C C Problem 1

A D
A C Billed Cost
D D Shipments from home office 1,120,000 800,000
C D Purchases 120,000 120,000
B C Total goods available for sale 1,240,000 920,000
A B Ending Inventory
A D Branch (173,600) (124,000)
B D Outsiders (26,400) (26,400)
A B Cost of goods sold 1,040,000 769,600
D C
C A Sales 1,200,000
B A Cost of goods sold (769,600)
C B Gross Profit 430,400
B D Operating Expenses (150,000)
D B True branch net income 280,400
C C
C D Problem 2
A A
A B HO BR
D A A Home Office Current 30,000
B D Cash (30,000)
B B
C C no entry made for home office
B B
D C Machinery
A B Investment in Branch
D C
A A B Investment in Branch 4,000
A B Cash (4,000)
A C
A A Cash 40,000
D D Home Office Current (40,000)
B A
B C Home Office Current
Cash

C Investment in Branch 10,000

Cash (10,000)

no entry made for branch

Expenses
Home Office Current

D Investment in Branch 18,000

 Shipments to Branch (16,000)
Allowance for Overvaluation (2,000)

no entry made for branch

Shipments from Home Office

Home Office Current

E no entry made by home office

Home Office Current 20,000

Cash (20,000)

Cash
Investment in Branch

HO BR
Unadjusted balances 132,000 90,000
A (30,000)
B (36,000)
C 10,000
D 18,000
E (20,000)
Adjusted balances 82,000 82,000

Problem 3

Job 7 Job 10
Direct materials 32,500 39,000
Direct labour (9.50/DLH) 26,600 31,350
Applied overhead 33,250 39,187.50
Total manufacturing cost 92,350 109,538

Problem 4

Job 3 Job 4

Beginning inventory 8,340 6,252

Direct materials 10,920 13,200
Direct labour 14,400 16,800
Applied overhead 9,360 10,920
Total manufacturing cost 43,020 47,172

Problem 5

Product Yards Sales Price

X 1,000 6
Z 2,000 9

Final selling price/yard 7

Separable cost/yard (1)
NRV/yard 6
Number of yards 800
Approximated NRv of product X 4,800

Problem 6

FIFO

Beginning Inventory 12,000

Units started 150,000
Units to be accounted for 162,000

DM
Beginning Inventory 12,000 2,400
Units started 115,000 115,000
Ending Inventory 35,000 35,000
Units as accounted 162,000 152,400

Weighted Average

Beginning Inventory 12,000

Units started 150,000
Units to be accounted for 162,000

DM
Beginning Inventory 12,000 12,000
Units started 115,000 115,000
Ending Inventory 35,000 35,000
Units as accounted 162,000 162,000

Problem 7

J K
Cash 250,000 350,000
Equipment 150,000
Inventory 550,000
Land 500,000
Mortgage on Land (250,000)
Contributed Capital 400,000 1,150,000
Agreed Capital (775,000) (775,000)
Additional investment/withdrawal (375,000) 375,000

Problem 8

Q R
Salaries 360,000 300,000
Interest on beginning capital 90,000 69,000
Remainder (159,500) (159,500)
Share in net income 290,500 209,500
Beginning capital 1,500,000 1,150,000
Ending capital 1,790,500 1,359,500
 Problem 9

OA L
320,000 Capital balances before admission 2,250,000
- Purchase of capital
320,000 Capital balances after purchase 2,250,000

(49,600) Problem 10

270,400 N
Capital balances before admission 1,260,000
Downward revaluation
Share in net income 191,100
Capital balances, end 1,451,100

Problem 11

T
Capital balances before admission 2,750,000
Adjusted Downward revaluation (625,000)
Balances after revaluation 2,125,000
Bonus to remaining partners 250,000
Balances after bonus and revaluation 2,375,000

Problem 12
30,000
(30,000) Cash, beginning 2,500,000
Sale of noncash assets 4,500,000
Liabilities paid (5,000,000)
Liquidation expenses (750,000)
Cash available for distribution 1,250,000

D
Partners' interests 1,750,000
36,000 Loss on liquidation (1,250,000)
(36,000) Cash paid to partners 500,000

Problem 13

Cash, beginning 48,000

Sale of inventories and receivables 84,000
Payment of liabilities (84,000)
10,000 Cash withheld for expenses (24,000)
(10,000) Cash available for distribution 24,000

R
 Partners' interests 96,000
Share in maximum possible loss (64,800)
Balances 31,200
Absorption of loss (31,200)
Payment to partners -
18,000
(18,000) Problem 14

Dec 31
Purchase price $ 250,000
Spot rate 33.10
Feb 28
Purchase price $ 250,000
20,000 Spot rate 33.60
(20,000) Foreign exchange gain

Feb 28
Purchase price $ 250,000
Spot rate 33.20
Dec 31
Purchase price $ 250,000
Spot rate 33.10
Foreign exchange loss

Problem 15

Jan 1
Job 13 Fair value of option 19,600
39,000 Intrinsic (4,030)
38,000 Time Value 15,570
47,500
124,500 Problem 16

Oct 1
Sale price £ 105,000
Job 5 Job 6 120 day forward rate 52.50
Dec 31
Sale price £ 105,000
36,000 4,800 120 day forward rate 52.30
42,000 7,200 Fair value of derivative asset
27,300 4,680
105,300 16,680

Sales Value Allocation Joint Cost

 6,000 25% 2,000
18,000 75% 6,000
24,000 100% 8,000

CC
9,600
115,000
8,750
133,350

CC
12,000
115,000
8,750
135,750

Total
600,000
150,000
550,000
500,000
(250,000)
1,550,000
(1,550,000)
 -

Total
660,000
159,000
(319,000)
500,000
2,650,000
3,150,000
 M N O Total
2,000,000 1,750,000 6,000,000
(800,000) 800,000 -
1,200,000 1,750,000 800,000 6,000,000

O P Total
1,400,000 1,540,000 4,200,000
(367,500) (682,500) (1,050,000)
354,900 364,000 910,000
1,387,400 1,221,500 4,060,000

U V S Total
3,000,000 1,750,000 1,250,000 8,750,000
(125,000) (500,000) (1,250,000)
2,875,000 1,250,000 1,250,000 7,500,000
50,000 200,000 (500,000) -
2,925,000 1,450,000 750,000 7,500,000

E F Total
1,250,000 750,000 3,750,000
(500,000) (750,000) (2,500,000)
750,000 - 1,250,000

S T Total
 120,000 132,000 348,000
(64,800) (194,400) (324,000)
55,200 (62,400) 24,000
(31,200) 62,400 -
24,000 - 24,000

8,275,000

(8,400,000)
(125,000)

8,300,000

(8,275,000)
25,000

Mar 31
22,800
(7,410)
15,390 (180)

5,512,500

(5,491,500)
21,000
Problem 17

Consideration transferred 4,800,000

FV of net assets acquired:
Current assets 2,500,000
Noncurrent assets 4,400,000
Liabilities (1,700,000) (5,200,000)
Gain on Bargain Purchase (400,000)

Initial share premium 2,800,000

SEC share registration (20,000)
Share issuance costs (10,000)
Share premium post-acquisition 2,770,000

Gain on bargain purchase 400,000

Business combination expenses (50,000)
Net retained earnings 350,000

Entries
Acquirer Acquiree
Current Assets 2,500,000
Noncurrent Assets 4,400,000
Liabilities (1,700,000)
Share Capital - Ordinary (2,000,000)
Share Premium - Ordinary (2,800,000)
Retained Earnings (400,000)

Expense 50,000
Share Premium 30,000
Liability (80,000)

Liabilities 600,000
Share Capital - Ordinary 4,800,000
Gain on Bargain Purchase (400,000)
Current Assets (2,500,000)
Noncurrent Assets (2,500,000)

Share Capital - Ordinary 4,000,000

Retained Earnings 800,000
Share Capital - Ordinary (4,800,000)

Problem 18

Book value of shareholders' equity 1,350,000

Fair value adjustments:
Inventory 75,000
Equipment 150,000 225,000
Fair value of shareholders' equity 1,575,000
NCI % 20%
NCI, proportionate share 315,000

Acquisition cost 1,185,000

FV of NCI, proportionate share 315,000
Total 1,500,000
FV of net assets acquired (1,575,000)
Gain on bargain purchase (75,000)

Problem 19

CNI-P NCINI CNI

Net income
Pei 600,000 600,000
Dari 270,000 90,000 360,000
Gain on bargain purchase 75,000 75,000
Amortization of excess (11,700) (3,900) (15,600)
Intercompany dividends (180,000) (180,000)
Adjusted net income 753,300 86,100 839,400

Problem 20

FV of note
1000000 x 0.85734 857,338
100000 x 1.778326 178,326
Total 1,035,664

Jan 1 1,035,664
Jan 1 100,000 82,853 17,147 1,018,517
Dec 31 100,000 81,483 18,517 1,000,000

Problem 21

Paremt Sub WPEE

Interest Receivable 695
Cash (695)

Cash 695
Interest Payable (695)

Interest Payable 695

Interest Receivable (695)

Interest Income 695

Interest Expense (695)

Interest Receivable 758

Cash (758)

Cash 758
Interest Payable (758)

Interest Payable 758

Interest Receivable (758)

Interest Income 758

Interest Expense (758)

Problem 22

Retained Earnings 280,000

Property Dividends Payable (280,000)

Problem 23

Cash - MDS, Regular 240,000

Subsidy Income from National Government (240,000)

Subsidy Income from National Government 12,000

Cash - MDS, Regular (12,000)

Problem 24

Gross patient service revenue 3,940,000

Contractual adjustments (267,270)
Employee discounts (45,000)
Net patient service revenue 3,627,730
Problem 25

NET ASSETS
Unrestricted Temporary Permanent
500,000 750,000
(100,000)
150,000
400,000 (400,000)
(50,000) 1,500,000
225,000
75,000 (75,000)
(75,000)
900,000 500,000 1,500,000

Problem 26

Price of coupon 200

Redemption rate 75%
Selling price of coupon 150

Product 8,000 1,100 8,800,000 88%

Coupon 8,000 150 1,200,000 12%
Total 10,000,000 100%

Rebate Liability 1,056,000

Payments (500,000)
Rebate Liability, end 556,000

Problem 27

Price of coupon 400

Redemption rate 75%
Selling price of coupon 300

Product 30,000 400 12,000,000 80%

Coupon 10,000 300 3,000,000 20%
Total 15,000,000 100%

Unearned Revenue from Coupons 2,400,000

Redemption rate 60%
Sales Revenue from free products 1,440,000

Problem 28

Cash price equivalent 10,800,000

Actual selling price 12,000,000
Cash price equivalent (10,800,000)
Unearned Interest Income 1,200,000
Period 2
Interest Income 600,000

Problem 29

Computer 6,200,000
After sales support (1200000 x 150%) 1,800,000
Total 8,000,000

After sales support 1,800,000

Period 2
Contract Revenue 900,000

Problem 30

2021 2022

Contract Price 4,000,000 4,000,000

Costs incurred to date 1,200,000 3,000,000
Remaining estimated costs 4,800,000 750,000
Total estimated costs (6,000,000) (3,750,000)
Gross Profit to Date (2,000,000) 250,000
% of Completion 100% 80%
Cumulative Gross Loss (2,000,000) 200,000
Prior Year - 2,000,000
Current Year Gross Profit/Loss (2,000,000) 2,200,000

Costs incurred to date 3,000,000

Loss, 2021 (2,000,000)
Profit 2,200,000
Construction in Progress, 2022 3,200,000

Problem 31

Stall 400,000 40% 640,000

Delivery of raw materials 500,000 50% 800,000 75%
Tradename 100,000 10% 160,000 5
Initial revenue from franchise 1,000,000 100% 1,600,000
Sales Revenue
Total Revenue

Problem 32
 X's Investment in Z Y's Investment in Z
4,000,000 160,000 6,000,000
320,000 4,160,000 480,000
4,320,000 4,320,000 6,480,000

Problem 33

Transaction costs (400,000)

Dividend received 300,000
Unrealized gain (11200000 - 10000000) 1,200,000
Net income 1,100,000

X's Investment in Z Y's Investment in Z

10,400,000 300,000 10,400,000
1,000,000 11,100,000 1,000,000
11,400,000 11,400,000 11,400,000
 7,744,000
1,056,000
8,800,000

9,600,000
2,400,000
12,000,000
 640,000
600,000
32,000
1,272,000
100,000
1,372,000
Y's Investment in Z
240,000
6,240,000
6,480,000

Y's Investment in Z
300,000
11,100,000
11,400,000