Professional Documents
Culture Documents
PT Wabisabi is a manufacturer of various beauty and body care products. The followings are
findings related to inventory accounts that the auditor found during the auditing process of PT
Wabisabi's financial statements for 2022:
1. Due to the goods not being in PT Wabisabi's warehouse at the time of physical
check at the end of the year, goods in transit with the term FOB Shipping Point
were not included in PT Wabisabi's inventory value as of December 31, 2022
2. There is an excess on calculating the cost per unit of oily and dry type facial soap
products. This is due to an error in the formula for calculating the cost per unit
of finished goods on the working paper.
3. PT Wabisabi shareholders bought a private apartment using company’s money.
The apartment was recorded as a company asset.
4. PT Wabisabi received a partnership contract for 2024 and recorded it as revenue
in the book of 2022.
5. PT Wabisabi has not submitted an annual financial report to the Financial
Services Authority of Indonesia even though it is listed on the stock exchange.
The deadline for submission (the end of the third month after closing the book)
has been exceeded.
6. PT Wabisabi changed the estimated depreciation of production machines from 6
years to 12 years in order to increase net income and facilitate borrowing at
Kinderszenen Bank.
Question:
Identify and explain the qualitative characteristics of the accounting information,
principles, assumptions, and constraints that are violated in the audit findings.
Supplies 34,000,000
Equipment 150,000,000
Dividend 18,000,000
Revenue 355,250,000
The followings are additional information needed in preparing the financial statements:
1. The prepaid rent on 1 May 2020 amounting to IDR 95 million is the office rental
fee from May 1st, 2020 to August 30th, 2021.
2. Based on year-end calculations, the remaining supplies amounted to IDR 19
million.
3. Equipment is computers depreciated for 8 years using the straight-line method
with a residual value of IDR 30 million. Equipment was purchased in early 2020.
4. Artha Design receive an advance payment of IDR 34 million on interior design
services from a client on 12 December 2020. The value is immediately
recognized as income. However, until the end of the year, the work had not
started.
5. Weekly wages of IDR 14 million are paid every Friday for 5 working days
(Monday–Friday). December 31, 2020 falls on Thursday.
6. On July 1, 2020, Artha Design issued notes payable with 10% interest with a
maturity of 9 months. Principal and interest are paid at maturity.
7. Advertising expense amounting to IDR 15 million was paid on December 1, 2020
for the broadcast on December 17, 2020. The ad has aired in accordance to the
agreed date.
8. Prepaid insurance on June 1, 2020 amounting to IDR 18 million for 3 years was
recorded at the beginning as insurance expense.
Question:
Record the adjusting entry required by Artha Design by the end of 2020.
PROBLEM 3
Section 1: Income Statement
The following is information about Rakuzan Corp.'s first year operations presented on
December 31, 2021.
Sales 450,000
Question:
Prepare a Comprehensive Income Statement for the year ended December 31, 2021
using a one statement approach.
PT Kubik
Statement of Financial Position
As of December 31, 2020
Question: Prepare a Statement of Financial Position as of December 31, 2020 from the
information above including adjusting the account balance using the additional information
above, following the applicable provisions in PSAK No. 1 concerning Presentation of Financial
Statements.
Kirei Inc.
Comparative Statement of Financial Position
As of 31 December 2020 and 2019
2020 2019
29,600.00 16,000.00
Cash
39,700.00 18,000.00
Accounts Receivable
14,100.00 15,200.00
Prepaid Rent
31,000.00 27,500.00
Inventory
4,000.00
Copyright
32,500.00
Vehicle
5,000.00
Accumulated Depr - Vehicle
55,000.00 120,000.00
Equipment
10,300.00 16,000.00
Accumulated Depr - Equipment
190,600.00 180,700.00
Total Assets
36,100.00 15,100.00
Accounts Payable
12,100.00 14,500.00
Salaries Payable
9,200.00 8,500.00
Income Taxes Payable
5,200.00 5,400.00
Interest Payable
12,200.00 7,800.00
Accrued Expenses Payable
30,000.00 55,000.00
Bonds Payable
48,000.00 25,900.00
Retained Earnings
52,500.00 48,500.00
Share Capital - Ordinary, $ 10 par
14,700.00
Treasury Shares
190,600.00 180,700.00
Total Liabilities and Equity
Kirei Inc,
Income statement
For the Year Ended 31 December 2020
Sales Revenue 197,600.00
Additional information:
1. All dividends are cash dividends declared and paid for the year 2020.
2. The depreciation expense of $5,000 is included in operating expenses.
3. The decrease in the number of equipment occurred due to cash sales, while the
increase in vehicles occurred due to cash purchases.
4. Additional shares printed in 2020 are for copyright purchases.
Question:
Make a Cash Flow Statement using the Direct Method.
PROBLEM 4 REVENUE RECOGNITION
Section 1
Kronos Co. uses a wholesale network to supply its products to customers.
1. Kronos Co. sold 120 watches to retailers for € 40 each. The price for each watch
is € 20.
2. Kronos Co. estimates, based on the expected value method, that 5% of the
watches sold will be returned, and that it is highly likely that returns will not be
higher than 5%.
3. Kronos Co. has no further performance obligation after passing control of the
watch.
Question:
The retailer has the right to return the watch for a full refund for the period specified in the
contract. How does Kronos Co. recognizes income in accordance with PSAK 72?
Section 2
1. Sangsang Inc, an electronics manufacturer, has contracts with retailers to sell
computers and also arranges for the shipment of its goods.
2. Shipping requirements state that legal rights and risk of loss pass to the retailer
when the computer is made available for courier pick up.
3. The retailer does not have physical ownership of the computer during transit, but
has legal rights during the shipping process and can therefore transfer the
computer to another party.
4. Sangsang Inc is also prohibited from selling computers to other customers after
the computers have been picked up by couriers at Sangsang Inc.'s shipping point.
Question:
1. How many performance obligations does Sangsang Inc have?
2. When does Sangsang Inc. have the right to recognize revenue?
Section 3
1. Schokobar Ltd, a well-known brand, is offering a promotion where customers
who buy four boxes of chocolates in one transaction at the store can get one free
box of chocolate (for € 25 per box) if the customer fills out a form and sends it
to the shop before the set deadline date.
2. According to Schokobar, based on recent experiences with similar promotions,
all customers will send the necessary mail-in rebates to receive a free box of
chocolates.
Question:
How should a 'buy four, get one free' transaction calculated and presented by Schokobar:
a. Journal upon sale of 4 boxes of chocolates
b. Journal upon submission of 1 free box of chocolate at a later date
PROBLEM 5 INVENTORY
Section 1
PT Seirin uses periodic records for its inventory. The following is informations on purchase
and sales during October 2020:
Purchase Sales
October 1 (Beginning Balance) 250 IDR 1500 October 4 170 IDR 2200
Question : Compute Inventory and Cost of Goods Sold as of 31 October 2020 using the FIFO
cost flow method.
Section 2
PT Sinsa began operating since the beginning of 2019. The following is information related to
the company's ending inventory value as of December 31, 2019 and December 31, 2020:
Acquisition cost Net Realized Price
Question:
1. Determine whether the inventories as of December 31, 201 9 and December 31,
20 20 are carried at cost or net realizable value.
2. Prepare an adjusting entry (if any) that needs to be recorded by the company as
of December 31, 2018 and December 31, 2019.