1. Prepare the journal entryfor the issuance of the note by Quantum Technology.

2. Prepare the appropriate adjusting entry for the note by Quantum on December 31, 2013.
3. Prepare the journal entry for the payment of the note at maturity.

Jawab
Nama Akun Dr Cr
1 Cash $ 16,000,000
Notes Payable $ 16,000,000

2 Interest Expense $ 320,000

Interest Payable $320,000
($16.000.000 x 12% x 2/12)

3 Interest Expense $ 1,120,000

Interest Payable $ 320,000
Notes Payable $ 16,000,000
Cash $ 17,440,000
$ 33,760,000 $ 33,760,000
 1. Prepare the appropriate adjusting entry for vacations earnedbut not taken in 2012.
2. Suppose wage rates for employees have risen by an average of 5% by the time vacations actually are taken in 20
Also, assume wages earned in 2013 (including vacations earned and taken in 2013) were $31 million. Prepare a
journal entry that summarizes 2013 wages and the payment for 2012 vacations taken in 2013.

Jawab
Nama Akun Dr Cr
1 Salary Expense $ 630,000
Liability-Compensated Future Absence $ 630,000

2 Liability-Compensated Future Absence $ 630,000

Salary Expense $ 31,031,500
Cash $ 31,661,500
$ 32,291,500 $ 32,291,500
ns actually are taken in 2013.
re $31 million. Prepare a
 1. Prepare the appropriate journal entries (in summary form) for the gift certificates sold during 2012 (keeping in m
each sale of a gift certificate or a meal would be reported individually).
2. Determine the liability for gift certificates to be reported on the December 31, 2012, statement of financial positi
3. What is the appropriate classification (current or noncurrent) of the liabilities at December 31, 2012? Why?

Jawab
Nama Akun Dr Cr
1 Cash $ 5,200
Gift Certificate Liability $ 5,200

Cash $ 884
Gift Certificate Liability $ 1,300
Sales Revenue $ 2,100
Sales Tax Payable $ 84
$ 7,384 $ 7,384

2 Gift certificates sold $ 5,200

Less: Gift certificates redeemed $ (1,300)
Gift Certificate Liabilit $ 3,900

3 Current Liabilities
Sales tax payable $ 84
Gift certificates sold $ 5,200
Estimated % redeemed within 1 year $ 0.80
Estimated current liability before redemption $ 4,160
Gift certificates redeemed in 2018 $ (1,300)
Remaining gift certificates classified as current liability $ 2,860

Noncurrent Liabilities
Gift certificates classified as noncurrent liability
Unredeemed gift certificates $ 3,900
Current portion of unredeemed certificates $ (2,860)
Noncurrent liability $ 1,040
during 2012 (keeping in mind that, in actuality,

atement of financial position.

ber 31, 2012? Why?
 1. Does this situation represent a loss contingency? Why or why not? How should Cupola account for it?
2. Prepare the journal entries that summarize the sales of the awnings (assume all credit sales) and any aspects of t
3. What amount should Cupola report as a liability at December 31, 2012?

Jawab
1 Yes, this does represent a loss contingency. The reason is that the product has been sold, i.e., a transacti
and the related warranty obligation has been incurred. A contingent liability for the warranty should be
that it is probable that warranty costs will be incurred, and the amount can be reasonably estimated.

Nama Akun Dr
Accounts Receivable $ 5,000,000
Sales

Warranty Expense (3% x 5.000.000) $ 150,000

estimated liability for warranty
estimated liability for warranty $ 37,500
Cash
$ 187,500
ola account for it?
dit sales) and any aspects of the warranty that should be recorded during 2012.

as been sold, i.e., a transaction or event has occurred,

y for the warranty should be accrued. The reason is
be reasonably estimated.

Cr

$ 5,000,000

$ 150,000

$ 37,500
$ 187,500
1

2 Sales :
accounts receivable 5,000,000
sales revenue 5,000,000
actual expenditures:
warranty liability 37,500
cash 37,500
accrued liability and expense:
warranty expense(3% X 5 mil) 150,000
warranty liability 150,000

3 150,000 - 37,500 = 112,500 ending balance