会计英语课后习题答案.pdf

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1、Suggested SolutionChapter 11.Effect on the accounting equation(1)(2)(3)(4)(5)(6)(a)Increase in one asset,decrease inanother asset.J(b)Increase in an asset,increase in a liability.(c)Increase in an asset,increase in capital.JV(d)Decrease in an asset,decrease in aliability.(e)Decrease in an asset,decr

2、ease in capital.JV2.TransactionsAssets+/-Liabilities+/-Owners equity+/-1+2+3-4+5+6-7-8+/-9-10-3.=Describe each transaction based on the summary above.Transactions1Purchased land for cash,$6,000.2Investment for cash,$3,200.3Paid expense$1,200.4Purchased supplies on account,$800.5Paid owners personal

3、use,$750.6Paid creditor,$1,5007Supplies used during the period,$630.4.AssetsLiabilitiesEciuitvBeginning275,00080,000195,000Add.investment48,000Add.Net income27,000Less withdrawals-35,000Ending320,00085,000235,0005.March 31,20XXApril 30,20XXAssetsCash4,5005,400Accounts receivable2,5604,100Supplies840

4、450Total assets7,9009,950LiabilitiesAccounts payable430690EquityTina Pierce,Capital7,4709,260(b)net income=9,260-7,470=1,790(c)net income=1,790+2,500=4,2901.Chapter 2a.To increase Notes Payable-CRb.To decrease Accounts Receivable-CRc.To increase Owner,Capital-CRd.To decrease Unearned Fees-DRe.To dec

5、rease Prepaid Insurance-CRf.To decrease Cash-CRg.To increase Utilities Expense-DRh.To increase Fees Earned-CRi.To increase Store Equipment-DRj.To increase Owner,Withdrawal-DR2.a.Cash 1,800Accounts payable.b.Revenue.4,500Accounts receivable.1,8004,500Owners withdrawals.1,500Salaries Expense.d.Account

6、s Receivable.750Revenue.1,5007503.Prepare adjusting journal entries at December 31,the end of the year.Advertising expense 600Prepaid advertisingInsurance expense(2160/12*2)360Prepaid insurance600360Unearned revenueService revenue2,1002,100Consultant expense900Prepaid consultant900Unearned revenue3,

7、000Service revenue3,0004.1.$388,4002.$22,5203.$366,6004.$21, loss for the year ended June 30,2002:$60,0002.DR Jon Nissen,Capital 60,000CR income summary 60,0003.post-closing balance in Jon Nissen,Capital at June 30,2002:$54,000Chapter 31.Dundee Realty bank reconciliationOctober 31,2009Reconciled bal

8、ance$6,220 Reconciled balance$6,2202.April 7 Dr:Notes receivableA company 5400Cr:Accounts receivable一A company 540012 Dr:Cash 5394.5Interest expense 5.5Cr:Notes receivable 5400June 6 Dr:Accounts receivableA company 5533Cr:Cash 553318 Dr:Cash 5560.7Cr:Accounts receivable一A company 5533Interest revenu

9、e 27.73.(a)As a whole:the ending inventory=685(b)applied separately to each product:the ending inventory=6254.The cost of goods available for sale=ending inventory+thegoods=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,

10、000-90,000)=18828cost ofChapter 41.(a)second-year depreciation=(114,000-5,700)/5=21,660;(b)second-year depreciation=8,600*(114,000-5,700)/36,100=25,800;(c)first-year depreciation=114,000*40%=45,600second-year depreciation=(114,000-45,600)*40%=27,360;(d)second-year depreciation=(114,000-5,700)*4/15=2

11、8,880.2.(a)weighted-average accumulated expenditures(2008)=75,000*12/12+84,000*9/12+180,000*8/12+300,000*7/12+100,000*6/12=483,000(b)interest capitalized during 2008=60,000*12%+(483,000-60,000)*10%=49,5003.(1)depreciation expense=30,000(2)book value=600,000-30,000*2=540,000(3)depreciation expense=(6

12、00,000-30,000*8)/16=22,500(4)book value=600,000-30,000*8-22,500=337,5004.Situation 1:Jan 1st,2008 Investment in M 260,000Cash 260,000June 30 Cash 6000Dividend revenue 6000Situation 2:January 1,2008 Investment in S 81,000Cash 81,000June 15 Cash 10,800Investment in S 10,800December 31 Investment in S

13、25,500Investment Revenue 25,5005.a.December 31,2008 Investment in K 1,200,000Cash 1,200,000June 30,2009 Dividend Receivable 42,500Dividend Revenue 42,500December 31,2009 Cash 42,500Dividend Receivable 42,500b.December 31,2008 Investment in K 1,200,000Cash 1,200,000December 31,2009 Cash 42,500Investm

14、ent in K 42,500Investment in K 146,000Investment revenue 146,000c.In a,the investment amount is 1,200,000net income reposed is 42,500In b,the investment amount is 1,303,500Net income reposed is 146,000Chapter 51.a.June 1:Dr:InventoryC匚 Accounts PayableJune 11:Dr:Accounts PayableCr:Notes PayableJune

15、12:Dr:CashCr:Notes Payableb.Dr:Interest Expenses(for notes on June 11)Cr:Interest PayableDr:Interest Expenses(for notes on June 12)Cr:Interest Payablec.Balance sheet presentation:Notes PayableAccrued Interest on Notes Payabled.For Green:Dr:Notes PayableInterest PayableInterest ExpenseCr:CashFor West

16、ern:D匚 Notes PayableInterest PayableInterest ExpenseCr:Cash2.(1)20 x8 Deferred income tax is a liabilityIncome tax payable20 x9 Deferred income tax is an assetIncome tax payable(2)20 x8:Dr:Tax expenseCr:Income tax payableDeferred income tax20 x9:Dr:Tax expenseDeferred income taxCr:Income tax payable

17、(3)20 x8:Income statement:tax expenseBalance sheet:income tax payable20 x9:Income statement:tax expenseBalance sheet:income tax payable3.a.1,560,000(20000000*12%*(1-35%)b.7.8%(20000000*12%*(1-35%)/20000000)198,000198,000198,000198,000300,000300,00012,10012,1008,1758,175498,00020,275198,00012,1007,70

18、0217,800300,0008,17518,825327,0002,40021,60060026,10024,00021,6002,40025,50060026,10024,00021,60025,50026,1004.maturityvaluenumberofinterestperiodsstated rate perinterest-periodeffective interestrate perinterest-periodpaymentamountper periodpresentvalue ofbonds atdate ofissue1$10403.75%3%$0,375$11.7

19、32201010%12%217.74325100%12%08.055.Notes Payable14,400Interest Payable1,296Accounts Payable60,000+Unearned Rent Revenue7,200Current Liabilities82,896Chapter 6The value of the patent is not easily determinable,so use the issue price of$12 pershare on March 1 which is the issuing price of common stock

20、.1.Mar.1CashCommon StockPaid-in Capital in Excess of Par ValueMar.15Organization ExpenseCommon Stock1,200,0001,000,000200,00050,00050,000Mar.23PatentCommon StockPaid-in Capital in Excess of Par Value120,000100,00020,000The cost of treasury purchased is 180,000/30,000=60 per share.2.July.1Treasury St

21、ockCash180,000180,000Sell the treasury at the cost of$60 per share,and selling price is$70 per share.Thetreasury stock is sold above the cost.Nov.1CashTreasury StockPaid-in Capital from Treasury Stock70,00060,00010,000The cost of treasury is$60 per share while the selling price is$50 which is lower

22、thanthe cost.Dec.20CashPaid-in Capital from Treasury StockTreasury Stock75,00015,00090,0003.a.July 1Retained EarningsDividends Payable-Preferred Stockb.Sept.1Dividends Payable一Preferred StockCashc.Dec.1Retained EarningsDividends PayableCommon Stockd.Dec.3124,00024,00024,00024,00080,00080,000Income S

23、ummary 350,000Retained Earnings 350,0004.a.Preferred stock gives its owner certain advantages over common stockholders.Thesebenefits include the right to receive dividends before the common stockholders and theright to receive assets before the common stockholders if the corporation liquidates.Corpo

24、ration pay a fixed amount of dividends on preferred stock.The 7%cumulative term indicates that the investors earn 7%fixed dividends.b.7%*120%*20,000=504,000c.If corporation issued debt,it has obligation to repay principald.The date of declaration decrease the stockholders1 equity;the date of record

25、and thedate of payment have no effect on stockholders.5.a.Jan.15Retained EarningsAccumulated Depreciation35,00035,000To correct error in prior years depreciation.b.Mar.20Loss from Earthquake 70,000Building 70,000c.Mar.31Retained Earnings 12,500Dividends Payable 12,500d.ApirL15Dividends Payable 12,50

26、0Cash 12,500e.June 30Retained Earnings 37,500Common Stock 25,000Additional Paid-in Capital 12,500To record issuance of 10%stock dividend:10%*25,000=2,500 shares;2500*$15=$37,500f.Dec.31Depreciation Expense 14,000Accumulated Depreciation 14,000Original depreciation:$40,000/40=$10,000 per year.Book va

27、lue on Jan.1,2009 is$350,000(=$400,000-5*$10,000).Deprecation for 2009 is$14,000(=$350,000/25).g.The company does not need to make entry in the accounting records.But the amountof Common Stock($10 par value)decreases 275,000,while the amount of CommonStock($5 par value)increases 275,000.Chapter 71.R

28、equirement 1If revenue is recognized at the date of delivery,the following journal entries would be usedto record the transactions for the two years:Year 1Inventory.Cash/Accounts payable.To record purchase of inventory480,000480,000Inventory.Cash/Accounts payable.To record refurbishment of inventory

29、124,000124,000Accounts receivable.Sales revenue.To record sale of goods on account310,000310,000Cost of goods sold.Inventory.To record the cost of the goods sold as an expense220,000220,000Sales returns(l/S).15,500*Allowance for sales returns(B/S).To record provision for return of goods sold under 3

30、0-day return period*5%of$310,00015,500Warranty expense.Provision for warranties(B/S).To record provision,at time of sale,for warranty expenditures*10%of$310,00031,000*31,000Allowance for sales returns.Accounts receivable.To record return of goods within 30-day return period.It is assumed the returne

31、d goods have no value and are disposed of.12,40012,400Provision for warranties(B/S).Cash/Accounts payable.To record expenditures in year 1 for warranty work18,60018,600Cash.297,600*Year 2Accounts receivable.To record collection of Accounts Receivable*$310,000-$12,400297,600Year 2Provision for warran

32、ties(B/S).Cash/Accounts payable.To record expenditures in year 2 for warranty work8,4008,400Requirement 2If revenue is recognized only when the warranty period has expired,the following journalentries would be used to record the transactions for the two years:Year 1Inventory.Cash/Accounts payable.To

33、 record purchase of inventory480,000480,000Inventory.Cash/Accounts payable.To record refurbishment of inventory124,000124,000Accounts receivable.Inventory.Deferred gross margin.To record sale of goods on account310,000220,00090,000Deferred gross margin.12,400Accounts receivable.12,400To record retur

34、n of goods within the 30-day return period.It is assumed the goods haveno value and are disposed of.Deferred warranty costs(B/S).18,600Cash/Accounts payable.18,600To record expenditures for warranty work in year 1.The warranty costs incurred aredeferred because the related revenue has not yet been r

35、ecognizedCash.Accounts receivable.To record collection of Accounts receivable*$310,000-$12,400297,600*297,600Deferred warranty costs.8,400Cash/Accounts payable.8,400To record warranty costs incurred in year 2 related to year 1 sales.The warranty costsincurred are deferred because the related revenue

36、 has not yet been recognized.Deferred gross margin.*77,600Cost of goods sold.220,000Sales revenue.297,600*To record recognition of sales revenue from year 1 sales and related cost of goods sold atexpiry of warranty period*$310,000-$12,400*($90,000-$12,400)Warranty expense.27,000*Deferred warranty co

37、sts.27,000To record recognition of warranty expense at same time as related sales revenuerecognition*$18,600+$8,400Requirement 3Allied Auto Parts Inc.might choose to recognize revenue only after the warranty periodhas expired if they are not able to make a good estimate,at the time of sale,of the am

38、ountof warranty work that will be required under the terms of the one-year warranty.If Allied isnot able,at the time of sale,to make a good estimate of the warranty work that will berequired,then the measurability criterion of revenue recognition is not met at the time ofsale.The measurability crite

39、rion means that the amount of revenue can be reliablymeasured.If the seller is not able to estimate the amount of work that will have to be doneunder the warranty agreement,then it is not able to reasonably measure the profit that itwill eventually earn on the sales.The performance criteria might al

40、so be invoked here.The performance criterion means that the seller has transferred the significant risks andrewards of ownership to the buyer.As long as there is warranty work to be performed afterthe sale that is the responsibility of the seller,you might argue that performance is notsubstantially

41、complete.However,if the seller was able to reliably estimate the amount ofwarranty work,then performance would be satisfied on the assumption that we couldmeasure the risk that remains with the seller,and make a provision for it.2.Percentage-of-completion method:The first step in applying revenue re

42、cognition using the percentage-of-completion method(using costs incurred to date compared to estimated total costs to determine thepercentage of completion)is to estimate the percentage of completion of the project at theend of each year.This is done in the following table(in$000s):End of 2005End of

43、 2006End of 2007Total costs incurred$5,400$12,950Total estimated costs 18,000 18,500%completed 30%70%$18,80018,800100%Once the percentage of completion at the end of each year has been calculated as above,the next step is to allocate the appropriate amount of revenue to each year,based on thepercent

44、age completed to date,less what has previously been recorded in revenue.This isdone in the following table(in$000s):2005200620072005$20,000 x 30%$6,0002006$20,000 x 70%$14,0002007$20,000 x 100%$20,000Less:Revenue recognized in prior years_(0)(6,000)(14,000)Revenue for year$6.000$8.000$6.000Therefore

45、,the profit to be recognized each year on the construction project would be:200520062007TotalRevenue recognized$6,000$8,000$6,000$20,000Construction costs incurred(expenses)(5,400)(7750)(5,850)(18,800)Gross profit for the year$600$450$150$1.200The following journal entries are used to record the tra

46、nsactions under thepercentage-of-completion method of revenue recognition:2005200620071.Costs of construction:Construction in progress.5,4007,5505,850Cash,payables,etc.5,4007,5505,8502.Progress billings:Accounts receivable.3,1004,90012,000Progress billings.3,1004,90012,0003.Collections on billings:C

47、ash.2,4004,00012,400Accounts receivable.2,4004,00012,4004.Recognition of profit:Construction in progress.600450150Construction expense.5,4007,5505,850Revenue from long-termcontract.6,0008,0006,0005.To close construction in progress:Progress billings.20,000Construction in progress.20,000200520062007B

48、alance sheetCurrent assets:Accounts receivable$700$1,600$1,200Inventory:Construction in process6,00014,000Less:Progress billings(3,100)(8,000)Costs in excess of billings2.9006.000Income statementRevenue from long-term contracts$6,000$8,000$6,000Construction expense(5,400)(7,550)(5,850)Gross profit$6

49、00$450$1503.a.The three criteria of revenue recognition are performance,measurability,andcollectibility.Performance means that the seller or service provider has performed the work.Depending on the nature of the product or service,performance may mean quitedifferent points of revenue recognition.For

50、 example,for the sale of products,IAS18defines performance as the point when the seller of the goods has transferred therisks and rewards of ownership to the buyer.Normally,this means that performance isdone at the time of sale.Although the seller may have performed much of the workprior to the sale