Nama Kelompok : 1.

Estin Tasya (1802033039)

2. Indah Hayu P (1802033011)
Kelas : 4B D3 Perpajakan
Matkul : Lab Akuntansi Keuangan Menengah

Question 1 (Transfer of Receivables wth Guaranted)

Bryant Inc. factors receivables with a carrying amount of $ 200,000 to Warren Company for $190,000 and guara
Instructions
Prepare the appropriate journal entry to record this transaction on the books of Bryant Inc.

Answer

Computation of net proceeds:

Cash received $ 190,000
Less: Guarantee liability $ 2,000
Net proceeds $ 188,000
Computation of gain or loss:
Carrying value $ 200,000
Net proceeds $ 188,000
Loss on sale of receivables $ 12,000

The following journal entry would be made:

Account Dr Cr
Cash $ 190,000
Loss on Sale of Receivable $ 12,000
Accounts Receivable $ 200,000
Guarantee Liability $ 2,000
mpany for $190,000 and guarantees all credit losses.
 Question 2 (Transfer of Receivables without Guarantee)
SEK Corp factors 400,000 of accounts receivables with Mays finance corporation, without guaranteeing any p
for posible credit losses (without recourse) on july 1, 2010. the receivables records are transferred to Mays fi
asesses a finance charge of 11/2% of the amount of account receivables and retains an amount equal to 4%
allowances. The transaction is tobe recorded as a sale.
Instructions
(a) prepare the journal entry on july 1, 2010 for SEK Corp. to record the sale of receivables without recourse.
(b) prepare the journal entry on july 1, 2010 for Mays Finance corporation to record the purchase of receivab

Ans
Date Account Dr Cr
(A) July 1 Cash $ 378,000
Due from Factor ($400,000 x 4%) $ 16,000
Loss on Sales of receivables ($400,000 x 1,5%) $ 6,000
Account Receivable $ 400,000

Date Account Dr Cr
(B) July 1 Account receivable $ 400,000
Cash $ 378,000
Due to SEK Corp $ 16,000
Financing Revenue $ 6,000
 without guaranteeing any payment
ds are transferred to Mays finance, which will receive the collections. Mays finance
ins an amount equal to 4% of account receivables to cover sales discount, return and

ceivables without recourse.

ord the purchase of receivables without recourse.
Question 3 (Loan Impairment Entries)
On January 1, 2010, Botosan Company issued a $1,200,000, 5-year, zero-interest-bearing note to National Organiza
Unfortunately, during 2011 Botosan fell into financial trouble due to increased competition. After reviewing all avai
Organization Bank decided that the loan was impaired. Botosan will probably pay back only $800,000 of principal a
Instructions
(a) Prepare journal entris for both Botosan Company and National Organization Bank to record the issuance of the n
(b) Assuming that both Botosan Company and National Organization Bank use the effective-interest-method to amo
(c) Under what circumstances can National Organization Bank consider Botosan's note to be impaired?
(d) Compute the loss National Organization Bank will suffer from Botosan's financial distress on December 31, 2011

Answer
(a) Journal entries for both Botosan Company and National Organization Bank to record issuance of the note on Jan
Present Value of the note:
$1,200,000 x PVF 5,8% = $1,200,000 x 0,68058 = $816,700
*) $816,700 merupakan pembulatan keatas dari $816,696

Journal entries to record issuance of the note:

Botosan Company
Cash $ 816,700
Note Payable $ 816,700

National Organization Bank

Note Receivable $ 816,700
Cash $ 816,700

(b) Prepare the Amortization Schedule for the note

Schedule of Note Discount Amortization
Effective-Interest Method
0% Noted Discounted at 8%
Carrying
Interest Discount
Date Cash Paid Amount of
Expense Amortized
Note
1/1/2010 - - - $ 816,700
### $0 $ 65,336 $ 65,336 $ 882,036
### $0 $ 70,563 $ 70,563 $ 952,599
### $0 $ 76,208 $ 76,208 $ 1,028,807
### $0 $ 82,305 $ 82,305 $ 1,111,112
### $0 $ 88,888 $ 88,888 $ 1,200,000
$ 383,300 $ 383,300

(c) Under what circumstances can National Organization Bank consider Botosan Company's note to be impaired
Suatu piutang dianggap mengalami penurunan nilai bila terdapat kejadian yangmerugikan, menunjukkan dampak n
• Kesulitan keuangansignifikan yang dialami pelanggan
• Wanprestasi pembayaran
• Renegoisasi syarat-syaratpiutang disebabkan Kesulitan keuangan elanggan
Jadi National Organization Bank bisa mempertimbangkan terjadinya penurunan nilai note receivable
jika terdapat kejadian yang menunjukkan dampak negatif arus kas di masa depan yang akan diterima dari pelangga
Di soal kejadian tersebut adlah "Botosan fell into financial trouble due to increase competition,
After reviewing all available evidence on December 2011, National Organization Bank decided that the loan was im

(d) compute the loss Natonal Organization Bank will suffer from Botosan company's financial distress on December
The computation of the loss impairment:
Carrying amout of note (31/12/11) $ 952,599
Less: Present value of note ($800,000 x PVF3,8% = $800,000 x 0,79383) $ 635,064
Loss due to impairment $ 317,535

Journal entries to the impairment loss:

Bad debt expense $ 317,535
Allowance for doubtful accounts $ 317,535
g note to National Organization Bank. The noe was issued to yield 8% annual interest.
on. After reviewing all available evideence on December 31, 2011 , Natoinal
nly $800,000 of principal at maturity

record the issuance of the note on January 1, 2010. (Round to the nearest $10)
tive-interest-method to amortize the discont, prepare the amortization schedule for the note
o be impaired?
ress on December 31, 2011. what journal entries should be made to record thiss loss?

ssuance of the note on January 1, 2010

y's note to be impaired

n, menunjukkan dampak negatif arus kas dimasa depan yang akan diterima dari pelanggan, seperti:
e receivable
kan diterima dari pelanggan.

cided that the loan was impired"

ncial distress on December 31, 2011. what journal entries should be made to record this loss
 Question 4 (Notes Receivable Journal Entries)
On December 31, 2010, Oakbrook Inc. Rendered services to begin corporation at an agreed price of $ 102,049,
balance in four equal installments of $20,000 receivable each December 31. An assumed interest rate of 11% is
Instructions
Prepare the entries that would be recorded by OakbrookInc. For the sale and for the receipts and interest on th
(Assume that the effective-interest method is used for amortization purpose)
(a) December 31, 2010 (c) December 31, 2012 (e) December 31, 2014
(b) December 31, 2011 (d) December 31, 2013

Ans
(a) December 31, 2010
Cash $ 40,000
Notes Payable $ 62,049
Service Revenue $ 102,049

To record revenue at the present value of the note plus the immediate cash payment:
PV of $20,000 annuity @ 11% for 4 years ($20,000 x 3,10245)
Down Payment
Capitalized value of services

(b) December 31, 2011

Cash $ 20,000
Notes Receivable $ 20,000
Notes Receivable $ 6,825
Interest Revenue $ 6,825

Schedule of Note Discount Amortization

Cash Interest Carrying Amount
Date
Received Revenue of Note
12/31/10 - - $ 62,049
12/31/11 $ 20,000 $ 6,825 $ 48,874
12/31/12 $ 20,000 $ 5,376 $ 34,250
12/31/13 $ 20,000 $ 3,768 $ 18,018
12/31/14 $ 20,000 $ 1,984 -

*$6.825 = $62.049 x 11%

*$48.874 = $62.049 + $6.825 - $20.000

(c) December 31, 2012

Cash $ 20,000
Notes Receivable $ 20,000
Notes Receivable $ 5,376
Interest Revenue $ 5,376

(d) December 31, 2013

Cash $ 20,000
 Notes Receivable $ 20,000
Notes Receivable $ 3,768
Interest Revenue $ 3,768

(e) December 31, 2014

Cash $ 20,000
Notes Reeceivable $ 20,000
Notes Receivable $ 1,984
Interest Revenue $ 1,984
t an agreed price of $ 102,049, accepting $40,000 down and agreeing to accept the
assumed interest rate of 11% isimputed

the receipts and interest on the following dates.

December 31, 2014

e cash payment:
$ 62,049
$ 40,000
$ 102,049