會計英語課后習題答案

-.zSuggestedSolutionChapter11.Effectontheaccountingequation(1)(2)(3)(4)(5)(6)(a)Increaseinoneasset,decreaseinanotherasset.√(b)Increaseinanasset,increaseinaliability.(c)Increaseinanasset,increaseincapital.√√(d)Decreaseinanasset,decreaseinaliability.√(e)Decreaseinanasset,decreaseincapital.√√2.TransactionsAssets+/-Liabilities+/-Owner’sequity+/-1++2++3--4++5++6--7--8+/-9--10--3.Describeeachtransactionbasedonthesummaryabove.Transactions1Purchasedlandforcash,$6,000.2Investmentforcash,$3,200.3Paide*pense$1,200.4Purchasedsuppliesonaccount,$800.5Paidowner’spersonaluse,$750.6Paidcreditor,$1,5007Suppliesusedduringtheperiod,$630.4.AssetsLiabilitiesEquityBeginning275,00080,000195,000Add.investment48,000Add.Netine27,000Lesswithdrawals-35,000Ending320,00085,000235,0005.(a)March31,20**April30,20**AssetsCash4,5005,400Accountsreceivable2,5604,100Supplies840450Totalassets7,9009,950LiabilitiesAccountspayable430690EquityTinaPierce,Capital7,4709,260(b)netine=9,260-7,470=1,790(c)netine=1,790+2,500=4,290Chapter21.ToincreaseNotesPayable-CRTodecreaseAccountsReceivable-CRToincreaseOwner,Capital-CRTodecreaseUnearnedFees-DRTodecreasePrepaidInsurance-CRTodecreaseCash-CRToincreaseUtilitiesE*pense-DRToincreaseFeesEarned-CRToincreaseStoreEquipment-DRToincreaseOwner,Withdrawal-DR2.Cash1,800Accountspayable1,800Revenue4,500Accountsreceivable4,500Owner’swithdrawals1,500SalariesE*pense1,500AccountsReceivable750Revenue7503.PrepareadjustingjournalentriesatDecember31,theendoftheyear.Advertisinge*pense600Prepaidadvertising600Insurancee*pense(2160/12*2)360Prepaidinsurance360Unearnedrevenue2,100Servicerevenue2,100Consultante*pense900Prepaidconsultant900Unearnedrevenue3,000Servicerevenue3,0004.1.$388,4002.$22,5203.$366,6004.$21,8005.1. netlossfortheyearendedJune30,2002:$60,0002. DRJonNissen,Capital60,000CRinesummary60,0003. post-closingbalanceinJonNissen,CapitalatJune30,2002:$54,000Chapter3DundeeRealtybankreconciliationOctober31,2021Reconciledbalance$6,220 Reconciledbalance$6,2202.April7 Dr:Notesreceivable—Apany 5400 Cr:Accountsreceivable—Apany 5400 12 Dr:Cash 5394.5 Intereste*pense 5.5 Cr:Notesreceivable 5400June6 Dr:Accountsreceivable—Apany 5533 Cr:Cash 553318 Dr:Cash 5560.7 Cr:Accountsreceivable—Apany 5533 Interestrevenue 27.73.(a)Asawhole:theendinginventory=685(b)appliedseparatelytoeachproduct:theendinginventory=6254.Thecostofgoodsavailableforsale=endinginventory+thecostofgoods=80,000+200,000*500%=80,000+1,000,000=1,080,0005.(1)24,000+60,000-90,000*0.8=12000(2)(60,000+24,000)/(85,000+31,000)*(85,000+31,000-90,000)=18828Chapter41.(a)second-yeardepreciation=(114,000–5,700)/5=21,660;(b)second-yeardepreciation=8,600*(114,000–5,700)/36,100=25,800;(c)first-yeardepreciation=114,000*40%=45,600second-yeardepreciation=(114,000–45,600)*40%=27,360;(d)second-yeardepreciation=(114,000–5,700)*4/15=28,880.2.(a)weighted-averageaccumulatede*penditures(2021)= 75,000*12/12+84,000*9/12+180,000*8/12+300,000*7/12+100,000*6/12=483,000(b)interestcapitalizedduring2021=60,000*12%+(483,000–60,000)*10%=49,5003.(1)depreciatione*pense=30,000(2)bookvalue=600,000–30,000*2=540,000(3)depreciatione*pense=(600,000–30,000*8)/16=22,500(4)bookvalue=600,000–30,000*8–22,500=337,5004.Situation1:Jan1st,2021InvestmentinM260,000Cash260,000June30Cash6000Dividendrevenue6000Situation2:January1,2021InvestmentinS81,000Cash81,000June15Cash10,800InvestmentinS10,800December31InvestmentinS25,500InvestmentRevenue25,5005.a.December31,2021InvestmentinK1,200,000Cash1,200,000June30,2021DividendReceivable42,500DividendRevenue42,500December31,2021Cash42,500DividendReceivable42,500b.December31,2021InvestmentinK1,200,000Cash1,200,000December31,2021Cash42,500InvestmentinK42,500InvestmentinK146,000Investmentrevenue146,000c.Ina,theinvestmentamountis1,200,000netinereposedis42,500Inb,theinvestmentamountis1,303,500Netinereposedis146,000Chapter51.a.June1:Dr:Inventory198,000Cr:AccountsPayable198,000June11:Dr:AccountsPayable198,000Cr:NotesPayable198,000June12:Dr:Cash300,000Cr:NotesPayable300,000b.Dr:InterestE*penses(fornotesonJune11)12,100Cr:InterestPayable12,100Dr:InterestE*penses(fornotesonJune12)8,175Cr:InterestPayable8,175c.Balancesheetpresentation:NotesPayable498,000AccruedInterestonNotesPayable20,275d.ForGreen:Dr:NotesPayable198,000InterestPayable12,100InterestE*pense7,700Cr:Cash217,800ForWestern:Dr:NotesPayable300,000InterestPayable8,175InterestE*pense18,825Cr:Cash327,0002.(1)208Deferredineta*isaliability2,400Ineta*payable21,600209Deferredineta*isanasset600Ineta*payable26,100(2)208:Dr:Ta*e*pense24,000Cr:Ineta*payable21,600Deferredineta*2,400209:Dr:Ta*e*pense25,500Deferredineta*600Cr:Ineta*payable26,100(3)208:Inestatement:ta*e*pense24,000Balancesheet:ineta*payable21,600209:Inestatement:ta*e*pense25,500Balancesheet:ineta*payable26,1003.a.1,560,000(20000000*12%*(1-35%))b.7.8%(20000000*12%*(1-35%)/20000000)4.maturityvaluenumberofinterestperiodsstatedrateperinterest-periodeffectiveinterestrateperinterest-periodpaymentamountperperiodpresentvalueofbondsatdateofissue1$10403.75%3%$0.375$11.732201010%12%217.74325100%12%08.055.NotesPayable14,400InterestPayable1,296AccountsPayable60,000+UnearnedRentRevenue7,200CurrentLiabilities82,896Chapter61.Mar.1Cash1,200,000monStock1,000,000Paid-inCapitalinE*cessofParValue200,000Mar.15OrganizationE*pense50,000monStock50,000Mar.23Patent120,000monStock100,000Paid-inCapitalinE*cessofParValue20,000Thevalueofthepatentisnoteasilydeterminable,sousetheissuepriceof$12pershareonMarch1whichistheissuingpriceofmonstock.2.July.1TreasuryStock180,000Cash180,000Thecostoftreasurypurchasedis180,000/30,000=60pershare.Nov.1Cash70,000TreasuryStock60,000Paid-inCapitalfromTreasuryStock10,000Sellthetreasuryatthecostof$60pershare,andsellingpriceis$70pershare.Thetreasurystockissoldabovethecost.Dec.20Cash75,000Paid-inCapitalfromTreasuryStock15,000TreasuryStock90,000Thecostoftreasuryis$60persharewhilethesellingpriceis$50whichislowerthanthecost.3.a.July1RetainedEarnings24,000DividendsPayable—PreferredStock24,000DividendsPayable—PreferredStock24,000Cash24,000c.Dec.1RetainedEarnings80,000DividendsPayable—monStock80,000d.Dec.31IneSummary350,000RetainedEarnings350,0004.a.Preferredstockgivesitsownercertainadvantagesovermonstockholders.Thesebenefitsincludetherighttoreceivedividendsbeforethemonstockholdersandtherighttoreceiveassetsbeforethemonstockholdersifthecorporationliquidates.Corporationpayafi*edamountofdividendsonpreferredstock.The7%cumulativetermindicatesthattheinvestorsearn7%fi*eddividends.b.7%*120%*20,000=504,000c.Ifcorporationissueddebt,ithasobligationtorepayprincipald.Thedateofdeclarationdecreasethestockholders’equity;thedateofrecordandthedateofpaymenthavenoeffectonstockholders.5.a.Jan.15RetainedEarnings35,000AccumulatedDepreciation35,000Tocorrecterrorinprioryear’sdepreciation.b.Mar.20LossfromEarthquake70,000Building70,000c.Mar.31RetainedEarnings12,500DividendsPayable12,500d.Apirl.15DividendsPayable12,500Cash12,500e.June30RetainedEarnings37,500monStock25,000AdditionalPaid-inCapital12,500Torecordissuanceof10%stockdividend:10%*25,000=2,500shares;2500*$15=$37,500f.Dec.31DepreciationE*pense14,000AccumulatedDepreciation14,000Originaldepreciation:$40,000/40=$10,000peryear.BookvalueonJan.1,2021is$350,000(=$400,000-5*$10,000).Deprecationfor2021is$14,000(=$350,000/25).g.Thepanydoesnotneedtomakeentryintheaccountingrecords.ButtheamountofmonStock($10parvalue)decreases275,000,whiletheamountofmonStock($5parvalue)increases275,000.Chapter71.Requirement1Ifrevenueisrecognizedatthedateofdelivery,thefollowingjournalentrieswouldbeusedtorecordthetransactionsforthetwoyears:Year1Inventory 480,000 Cash/Accountspayable 480,000TorecordpurchaseofinventoryInventory 124,000 Cash/Accountspayable 124,000TorecordrefurbishmentofinventoryAccountsreceivable 310,000 Salesrevenue 310,000TorecordsaleofgoodsonaccountCostofgoodssold 220,000 Inventory 220,000Torecordthecostofthegoodssoldasane*penseSalesreturns(I/S) 15,500* Allowanceforsalesreturns(B/S) 15,500Torecordprovisionforreturnofgoodssoldunder30-dayreturnperiod*5%of$310,000Warrantye*pense 31,000* Provisionforwarranties(B/S) 31,000Torecordprovision,attimeofsale,forwarrantye*penditures*10%of$310,000Allowanceforsalesreturns 12,400 Accountsreceivable 12,400Torecordreturnofgoodswithin30-dayreturnperiod.

Itisassumedthereturnedgoodshavenovalueandaredisposedof.Provisionforwarranties(B/S) 18,600 Cash/Accountspayable 18,600Torecorde*pendituresinyear1forwarrantyworkCash 297,600* Accountsreceivable 297,600TorecordcollectionofAccountsReceivable*$310,000–$12,400Year2Provisionforwarranties(B/S) 8,400 Cash/Accountspayable 8,400Torecorde*pendituresinyear2forwarrantyworkRequirement2Ifrevenueisrecognizedonlywhenthewarrantyperiodhase*pired,thefollowingjournalentrieswouldbeusedtorecordthetransactionsforthetwoyears:Year1Inventory 480,000 Cash/Accountspayable 480,000TorecordpurchaseofinventoryInventory 124,000 Cash/Accountspayable 124,000TorecordrefurbishmentofinventoryAccountsreceivable 310,000 Inventory 220,000 Deferredgrossmargin 90,000TorecordsaleofgoodsonaccountDeferredgrossmargin 12,400 Accountsreceivable 12,400Torecordreturnofgoodswithinthe30-dayreturnperiod.Itisassumedthegoodshavenovalueandaredisposedof.Deferredwarrantycosts(B/S) 18,600 Cash/Accountspayable 18,600Torecorde*pendituresforwarrantyworkinyear1.ThewarrantycostsincurredaredeferredbecausetherelatedrevenuehasnotyetbeenrecognizedCash 297,600* Accountsreceivable 297,600TorecordcollectionofAccountsreceivable*$310,000–$12,400Year2Deferredwarrantycosts 8,400 Cash/Accountspayable 8,400Torecordwarrantycostsincurredinyear2relatedtoyear1sales.Thewarrantycostsincurredaredeferredbecausetherelatedrevenuehasnotyetbeenrecognized.Deferredgrossmargin **77,600Costofgoodssold 220,000 Salesrevenue 297,600*Torecordrecognitionofsalesrevenuefromyear1salesandrelatedcostofgoodssoldate*piryofwarrantyperiod*$310,000–$12,400**($90,000–$12,400)Warrantye*pense 27,000* Deferredwarrantycosts 27,000Torecordrecognitionofwarrantye*penseatsametimeasrelatedsalesrevenuerecognition*$18,600+$8,400Requirement3AlliedAutoPartsInc.mightchoosetorecognizerevenueonlyafterthewarrantyperiodhase*pirediftheyarenotabletomakeagoodestimate,atthetimeofsale,oftheamountofwarrantyworkthatwillberequiredunderthetermsoftheone-yearwarranty.IfAlliedisnotable,atthetimeofsale,tomakeagoodestimateofthewarrantyworkthatwillberequired,thenthemeasurabilitycriterionofrevenuerecognitionisnotmetatthetimeofsale.Themeasurabilitycriterionmeansthattheamountofrevenuecanbereliablymeasured.Ifthesellerisnotabletoestimatetheamountofworkthatwillhavetobedoneunderthewarrantyagreement,thenitisnotabletoreasonablymeasuretheprofitthatitwilleventuallyearnonthesales.Theperformancecriteriamightalsobeinvokedhere.Theperformancecriterionmeansthatthesellerhastransferredthesignificantrisksandrewardsofownershiptothebuyer.Aslongasthereiswarrantyworktobeperformedafterthesalethatistheresponsibilityoftheseller,youmightarguethatperformanceisnotsubstantiallyplete.However,ifthesellerwasabletoreliablyestimatetheamountofwarrantywork,thenperformancewouldbesatisfiedontheassumptionthatwecouldmeasuretheriskthatremainswiththeseller,andmakeaprovisionforit.2.Percentage-of-pletionmethod:Thefirststepinapplyingrevenuerecognitionusingthepercentage-of-pletionmethod(usingcostsincurredtodateparedtoestimatedtotalcoststodeterminethepercentageofpletion)istoestimatethepercentageofpletionoftheprojectattheendofeachyear.Thisisdoneinthefollowingtable(in$000s):Endof2005 Endof2006 Endof2007Totalcostsincurred $ 5,400 $ 12,950 $ 18,800Totalestimatedcosts 18,000 18,500 18,800%pleted 30% 70% 100%Oncethepercentageofpletionattheendofeachyearhasbeencalculatedasabove,thene*tstepistoallocatetheappropriateamountofrevenuetoeachyear,basedonthepercentagepletedtodate,lesswhathaspreviouslybeenrecordedinrevenue.Thisisdoneinthefollowingtable(in$000s):2005 2006 20072005$20,000×30% $ 6,0002006$20,000×70% $ 14,0002007$20,000×100% $ 20,000Less:Revenuerecognizedinprioryears (0) (6,000) (14,000)Revenueforyear $ 6,000$ 8,000$ 6,000Therefore,theprofittoberecognizedeachyearontheconstructionprojectwouldbe:2005 2006 2007 TotalRevenuerecognized $ 6,000 $ 8,000 $ 6,000 $ 20,000Constructioncostsincurred(e*penses) (5,400) (7,550) (5,850) (18,800)Grossprofitfortheyear $ 600$ 450$ 150$ 1,200Thefollowingjournalentriesareusedtorecordthetransactionsunderthepercentage-of-pletionmethodofrevenuerecognition:2005 2006 20071. Costsofconstruction:Constructioninprogress 5,400 7,550 5,850Cash,payables,etc. 5,400 7,550 5,8502. Progressbillings: Accountsreceivable 3,100 4,900 12,000 Progressbillings 3,100 4,900 12,0003. Collectionsonbillings: Cash 2,400 4,000 12,400 Accountsreceivable 2,400 4,000 12,4004. Recognitionofprofit: Constructioninprogress 600 450 150 Constructione*pense 5,400 7,550 5,850 Revenuefromlong-term contract 6,000 8,000 6,0005. Tocloseconstructioninprogress: Progressbillings 20,000 Constructioninprogress 20,000 2005 2006 2007BalancesheetCurrentassets:Accountsreceivable $ 700 $ 1,600 $ 1,200Inventory:Constructioninprocess 6,000 14,000 Less:Progressbillings (3,100) (8,000) Costsine*cessofbillings 2,900 6,000InestatementRevenuefromlong-termcontracts $ 6,000 $ 8,000 $ 6,000Constructione*pense (5,400) (7,550) (5,850)Grossprofit $ 600$ 450$ 1503.a. Thethreecriteriaofrevenuerecognitionareperformance,measurability,andcollectibility.Performancemeansthatthesellerorserviceproviderhasperformedthework.Dependingonthenatureoftheproductorservice,performancemaymeanquitedifferentpointsofrevenuerecognition.Fore*ample,forthesaleofproducts,IAS18definesperformanceasthepointwhenthesellerofthegoodshastransferredtherisksandrewardsofownershiptothebuyer.Normally,thismeansthatperformanceisdoneatthetimeofsale.Althoughthesellermayhaveperformedmuchoftheworkpriortothesale(production,sellingefforts,etc.),thereisstillsignificantrisktothesellerthatabuyermaynotbefound.Therefore,fromareliabilitypointofview,revenuerecognitionisdelayeduntilthepointofsale.Also,theremaybesignificantrisksremainingwiththeselleroftheproductevenafterthesale.Warrantiesgivenbythesellerareariskthatremainswiththeseller.However,ifthisriskcanbereliablyestimatedatthetimeofsale,revenuecanberecognizedatthepointofsale.Performanceisquitedifferentunderalong-termconstructioncontract.Here,performancereallyisconsideredtobeameasureoftheworkdone.Revenueisrecognizedovertheproductionperiodastheworkisperformed.Itisintendedtoreflecttheamountofefforte*pendedbytheseller(contractor).Althoughlegaltitlewon’ttransfertothebuyeruntiltheprojectispleted,revenuecanberecognizedbecausethereisaknownandmittedbuyer.Ifthecontractorisnotabletoestimatehowmuchoftheworkhasbeendone(perhapsbecauseheorshecan’treliablyestimatehowmuchworkmuststillbedone),thenprofitwouldnotberecognizeduntilthee*tentofperformanceisknown.Measurabilitymeansthatthesellerorserviceprovidermustbeabletoreliablyestimatetheamountoftherevenuefromthesaleorservice.Forthesaleofproductsthisisgenerallyknownatthetimeofsale(thesalespriceisset).However,ifthesellerprovidesareturnperiod,itmaybenecessarytoestimatethevolumeofreturnsatthetimeofsaleinordertomeasuretherevenuethatwillberecognized.Collectibilitymeansthatthesellerortheserviceproviderhasreasonableassurancethatthesalespricewillactuallybecollected.Inmostcasesforthesalesofproducts,thesellerisabletorecognizerevenueatthetimeofsaleevenifthesaleisonaccount.Thisisbecausethesellerhase*periencewithitscustomersandisabletoestimatereliablytheriskofnonpayment.Aslongasthesellerisabletomakethisestimate,itisappropriatetorecognizetherevenuebuttooffsetitwithaprovisionforpossiblenoncollection.Ifthesellerisunabletomakereliableestimatesoffuturecollectionofamountsowing,therecognitionofrevenuewouldbedelayeduntilthecashisactuallyreceived.Thisiswhatisdoneusingtheinstalmentsalesmethodofrevenuerecognition.b. Becauseoftheperformancecriterionofrevenuerecognition,itwouldseemtobemostappropriatetorecognizemostrevenueasthesellerorserviceproviderperformsthework.Thiswouldbethebestmeasureofperformance.Thiswouldmean,fore*ample,thatsellersofproductswouldrecognizetheirrevenueoverthewholeproduction,selling,andpostsalesservicingperiods.Aswesawabove,thisisnotmonlydonebecause,inmanycases,therearestillsignificantrisksthatareretainedbytheseller(riskofnotbeingabletoselltheproduct,fore*ample).Therearealsomeasurementrisks(knowingthesellingprice)thate*istpriortothesale.Thepercentage-of-pletionmethodofrevenueusedforsomelong-termconstructioncontractswouldseemtomostcloselyrecognizerevenueastheworkisperformed.AsmentionedinPart1,weareabletorecognizerevenueonthisbasissinceacontracte*istswhichmitsthepurchasertobuytheproject(assumingcertainconditionsaremet)andthesalespriceisknownbecauseofthee*istenceofthecontract.4.Ifallrevenueisrecognizedwhenastudentregistersforthecourse,profitfor2007wouldbe:SalesRevenue1:Manualsandinitiallessons(200×$100) $ 20,000Additionallessons((200×8)×$30) 48,000E*aminations((200×80%)×$130) 20,800Totalsalesrevenue 88,800Costofsales:Manualsandinitiallessons(200×($15+$3)) 3,600Additionallessons((200×8)×$3)) 4,800E*aminations((200×80%)×$30) 4,800Totalcostofsales 13,200Depreciationofdevelopmentcosts:$180,000×(200/1,000) 36,000Profit $ 39,6005.FINISHENTERPRISESIneStatementfortheyearendingDecember31,2005Continuingoperations(e*cludingthechemicaldivision)Sales($35,000,000–$5,500,000) $ 29,500,000Costofsales($15,000,000–$2,800,000) (12,200,000)Grossprofit 17,300,000Selling&administratione*penses ($18,000,000–$3,200,000)