↑↓Exercise 1: 1/1/20X2: opening balance of items 

       
             
Cash  10,000 A/P  15000      
Inventory  50,000          
A/R  15,000 Notes payable  30000      
             
Equip-cost  48,000 Common stock  50000      
Acc depn  -10,000 RE  18,000      
Total assets  113,000 Total liab + Equity  113,000      
             
During January, following transactions occurred:       
1. Sold goods for $45,000 on account. Cost of goods sold: $30,000   
2. Paid salary expense: $2,000         
3. Paid rent expense: $1,500         
Additional information at the end of January:        
4. Equip has useful life of 20 years, residual value = 0       
5. Market value of equipment at end of Jan: 42,000       
Requirements: Prepare Income statement for Jan 20X2 and Balance sheet at 31 Jan
20X2 
 
Ans:
1, Dr AR ↑ 45000
Cr sale 45000
Dr COGS tăng 30000
Cr inventory giảm 30000
2, Dr sal exp 2000
Cr cash 2000
3, Dr rent exp 1500
Cr cash 1500
4, Dr Dep exp (48000-0)/ 20x12=200
Cr acc dep 200

Income statement
Sale 45000
COGS 30000
Sal exp 2000
Rent exp 1500
Dep exp 200
Net income 11300
 Balance sheet
Cash 6500
Inventory 20000
A/R 60000
Equipment cost 40000
Acc dep 10200
A/p 15000
Note payable 30000
Common stock 50000
RE(*) 29300

Reduction model

1, Dr A/R 45000
Cr sale 45000
Dr COGS 30000
Cr inventory 30000
2, Dr salary exp 2000
Cr cash 2000
3, Dr rent exp 1500
Cr cash 1500
4, Dr Dep exp 200
Cr Acc dep 200

31/1/X2

Cost 48000
Acc dep 10200
CA 37800
FV 42000
Gain on pevaduction 4200
Unrealized gain
Consider as new equip with cost =FV=42000, acc dep =0
Remaining useful life =20x12
- 10200= 200
Dr Acc depn 10200
Cr equip-cost 6000
Cr OCI/RS 4200

Statement of P or less OCI

Sales 45000
COGS 30000
Sal exp 2000
Rent exp 1500
Dep exp 200
Net income 11300
OCI
Gain on revaluation 4200

B/S:
Cash 6500
Inventory 20000
A/R 60000
Equip-cost 42000
Acc dem 0
AD 15000
Notes 30000
C/S 50000
RE 29300

Cost model
1st gain-> OCI/RS: 30000
2nd loss 50000
OCI/RS: 30000
PL: 20000
1 loss 30000->PL
st

2nd gain 50000 tăng PL 3000

Tăng OCI/RS: 20800

 Exercise 2: 1/1/20X2: opening balance of items         
             
Cash  10,000 A/P  15000      
Inventory  50,000          
A/R  15,000 Notes payable  30000      
             
Equip-cost  30,000 Common stock  50000      
Acc depn  -5,750 RE  4,250      
Total assets  99,250 Total liab + Equity  99,250      
             
During January, following transactions occurred:       
1. Sold goods for $50,000 on account. Cost of goods sold: $35,000   
2. Paid salary expense: $3,000         
3. Paid utilities expense: $1,000 
4. 2% of A/R is expected to uncollectible         
Additional information at the end of January:        
5. Equip has useful life of 10 years, residual value = 0       
6. Market value of equipment at end of Jan: 28,000       
Requirements: Prepare Income statement for Jan 20X2 and Balance sheet at 31 Jan 20X2
using: 
- Cost model 
- Revaluation model 
 

Ex 3:
A, 31 Dec Y2: cost : 100000
Acc depm (100000-0)/10*2=20000
Carry amount : 80000
FV: 90000
Consider as new machine with cost =90000, acc dep=0,remaining useful life : 8 years
Dr Acc depn: 20000
Cr Machine-cost: 10000
Cr OCI/RS: 10000
B, at the end of year 4, the machine is revalued downward by $20000
31/12/Y4: cost 90000
Acc depn: (90000- 0) /8*2=22500
CA : 67500
Loss on revaluation: 20000
FV: 47500( vì sau 4 tháng machine bị giảm 20000=>67500-20000=…)
Consider as a new machine, cost=47000,acc depn=0, useful life = 6 years

Dr Acc Depn: 22500

Dr OCI/RS: 10000
Dr PL: 10000
Cr machine-cost: 42500( giá ban đầu 90000, phải giảm 42500 để về 47500)

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3/3/2023

IAS 40: investment property

PPE (IAS 16) IP(IAS 40)

- Cost model - Cost model
- Revaluation model - Fair value model
- Periodically revaluation - Annual revaluation
- 1st time revaluation gain OCI/RS - Gain/loss in reduation PL
- Depn is needed - No depn

Ex: Sản phẩm bán vs giá $50000, tax increase 30%->50%

Bán $45000 ( NRV )
VIU ( $48000 )
=>Recoverable amount : $48000
=>suy giảm gtri (imperment loss) = 2000

Ex: 1. 15000 2.20000 3.10000 ( 10% )

VIU = 15000 + 20000 + 10000
1,1 1,1^2 1,1^3

Ex: (slide)
IFRs
CA = 50000
NRV = 39000
VIU = 46000
 Recoverable amount = 46000
 Impairment loss = 4000
US GAAP
CA = 50000
Future CF = 55000
 No impairment

Ex: (slide) spring company purchased new water

End of year 3: cost 1,000,000

 Acc depn: 1,000,000/40 x 3=75000
CV = 925,000
Recoverable amount: 740,000
=>impairment lost : 185,000
Dr. acc depn: 75,000
Cr. Ppe-cost :260,000
Dr.PL 185,000

End of year 5: cost 740,000

Acc depn: 740,000/37 x 2 = 40,000
CV= 700,000
RA= 900,000
CV if no impairment(gtri con lai cua tai san): 1,000,000 – 1,000,000/40 x 5 = 875,000

Question 19/44:
CA=85000
NRV=78000-2500=75500
VIU=77313
Impairment = 85000 – 77313 = 7687

Question 34/44: B
Question 21/44:
CA: 3unit
NRV: 2,7 -0,05=2,65
VIU: 2,6 unit
RA: 265 unit