This document provides information for an intermediate accounting exam including 4 problems related to financial statements, receivables, inventories, and accounting principles. Problem 1 asks students to prepare a statement of financial position. Problem 2 asks students to prepare a comprehensive income statement. Problem 3 involves calculating impairment of receivables. Problem 4 involves inventory costing methods and valuation. Problem 5 asks students to identify violations of accounting assumptions, principles, or constraints for various accounting practices.

1. Pararel Quiz Intermediate Accounting 1
Thursday, 19 October 2012
Closed book, calculator is permitted
Problem 1. Statement of Financial Position (25%)
Presented below is the trial balance of PT Luber at December 31 2011 (in Rp 000).
Account Amount
Cash 217,000
Sales 7,876,300
Trading securities (at cost $145,000) 153,000
COGS 4,800,000
Long term investment in bonds 322,700
Long term investment in share capital ordinary 282,000
Notes payable 965,000
Account payable 375,000
Selling expense 1,875,000
investment revenue 63,000
land 260,000
building (at historical cost) 1,040,000
dividend payable 161,250
accrued liabilities 96,000
account receivable 435,000
AFDA 25,000
administrative expense 917,000
interest expense 18,900
inventories 673,000
provision for pension 60,000
equipment (at historical cost) 600,000
bond payable 1,000,000
franchise 160,000
share capital ordinary ($5 par) 1,000,000
treasury shares 192,700
dividend 10,000
patent 195,000
retained earning (1 dec 2011) 78,000
accumulated other comprehensive income 34,000
Additional information :
a. Notes payable of $90,000 is due on November 2012
b. Included in the amount of land is $95,000 land held for future plant site
c. Included in the amount of cash is $77,000 cash restricted for plant expansion
d. equipment was purchased on 31 May 2009 and have 8 year estimated useful life
e. building was purchased on 31 dec 2005 and have20 years estimated useful life
f. not included in administrative expense is depreciation expense for building and equipment
INSTRUCTIONS
Prepare a statement of financial position at 31 December 2011 for PT Luber w ith a right classification

2. Problem 2. Statement of Comprehensive Income (25%)
Here is Income statement of PT. AL Caisario for the period ended 31 December 2010
Sales 750.000.000
COGS 245.750.000
Gross Profit 504.250.000
Selling and Administrative Expenses 115.000.000
Pretax Income 389.200.000
Income Tax (30%) 116.775.000
Net Income 272.475.000
Additional information (all below transaction has not been included in preparing income statement , except differently stated):
1. PT AL Caisario incurred loss due to its own building damage by an earthquake. Book value of the building was Rp
400.000.000 and insurance company only covered Rp 225.000.000 of the loss.
2. PT AL Caisario sold its investment in a banking company and beared Rp 22.000.000 loss due to declining stock’s Price.
3. PT AL Caisario changed its estimation on doubtful account which causing additional bad debt expense fo r the period
increase by Rp 3.000.000. This amount has been reported as part of selling and administrative expenses.
4. On 1 Oktober 2010, PT AL Caisario determined to sol done of its división to avoid further loss. Operating loss from 1
January -1 October 2010 was Rp 65.000.000 (before tax). Company got gain on sale of this división by Rp 25.000.000
(before tax).
5. In 2010 PT AL Caisario bought a financial instrumnet which classified as available for sale. In the end of the year, the
instrument value was reported Rp 20.000.000 (before tax) below of its acquisition price.
6. PT AL Caisario changed depreciation method from Straight line kto doublé declining in the beginning of the year. Total
depreciation for 2007-2010 was Rp 55.000.000 for straight line, compared to Rp 65.546.500 for doublé declining.
7. Inventory value was reported declined by Rp 4.500.000.
8. Average number of outstanding ordinary share during the year was 12.000 shares.
9. Retained earnings as of 1 January 2010 was Rp 48.000.000 and an amount of Rp 14.500.000 was paid as preferred dividend
for 2010.
10. Tax rate is 30%
Required : Prepare comprehensive income statement for period ended 2010 according to PSAK 1!
Problem 3 Receivables (20%)
Part 1
DEF corporation has the following receivables classified into individually significant and all other receivables (in million)
Significant:
PT. A Rp 35.000
PT. B Rp 100.000
PT. C Rp 50.000
PT. D Rp 60.000
Total Rp 245.000
All other receivables:
Current Rp 150.000
1-30 days Rp 45.000
31-60 days Rp 50.000
61-180 days Rp 45.000
181-365 days Rp 50.000
>365 days Rp 45.000
Amount Rp 385.000
Total Rp 630.000
DEF determines that PT A’s receivable is impaired by Rp 15.000.000 and PT D’s receivable is totally impaire d. Both PT B’s and PT
C’s receivables are not considered impaired individually but they are considered to be current. DEF also determines that all other
receivables have been grouped into the bucket according their ages. DEF applies a different percentage based on past experience to
determine the percentage of impairment:
Age % estimated to be impaired
Current 5%
1-30 days 20%
31-60 days 35%
61-180 days 65%
181-365 days 90%
>365days 100%

3. Compute the loss on impairment DEF will suffer on December 31, 2011. What journal entries should be made to record this loss?
PART 2
On 1 january 2011, PT ABC receives a Rp 2.000.000.000, four year note, bearing interest at 12% annually, in exchange for cash . The
market rate of interest for a note of similiar risk is 10%. Unfortunately, during 2011, PT GHI experienced financial liability. On 31
December 2011, even though PT GHI manages to pay all of te accrued interest, PT GHI informs PT ABC that the rest of the inter est
and te principal amount of the note can only be paid 65%. PT ABC has enough evidences to determine that the note has been
impaired.
PV Single Sum 10%, 4 0,68301 PV Ordinary Annuity 10%, 4 3,16986
PV Single Sum 12%, 4 0,63552 PV Ordinary Annuity 12%, 4 3,03735
PV Single Sum 10%, 3 0,75132 PV Ordinary Annuity 10%, 3 2,48685
PV Single Sum 12%, 3 0,71178 PV Ordinary Annuity 12%, 3 2,40183
1. Provide the schedule of effective interest method
2. Calculate the amount of impairment loss of receivable
3. Prepare the necessary journal entries to record transactions of notes receivable, including impairment
Problem 4 Inventories (20%)
Part A (15%)
Happy Co. Record the transaction for the month of December 2012 as follows:
Purchase
Sales
Date Units Price/unit
Date Units Price/unit
1(beg balance) 200 $ 10
10 300 $ 13
5 300 $ 10.5
18 300 $ 14
15 350 $ 10.2
27 200 $ 15
20 150 $ 10.4
1. Assume the company keeps the average pe rpetual pe riodic in ventory m ethod (rounded up the unit cost into nearest 2
decimal):
a. Compute the inventory at December 31, 2012, show your calculation.
b. Prepare the journal entry needed on December 20 and 27, 2012.
2. Assume the company keeps the FIFO periodic inventory method:
a. Compute the inventory at December 31, 2011 show your calculation.
b. Prepare the journal entry needed on December 15 and 18, 2012.
c. Prepare end of period entries for inventory if the physical inventory count indicates that total inventory on hand is 210 units!
d. At December 31, 2012, the company gathered information that the selling price/unit of company’s inventory is $13.1 and
estimated cost to sell/unit is $3.00 Prepare the journal needed if Happy Co. applies Lower-of-Cost-or-Net-Realizable-Value
(LCNRV) for its inventory!
e. At January 31, 2013, the company gathered information that the NRV of product rebound to $10.2/ unit. Prepare the journal
needed to record the recovery!
Part B (5%)
On December 31, 2010 Felt Company's inventory burned. Sales and purchases for the year had been $1,400,000 and $980,000,
respectively. The beginning inventory (Jan. 1, 2010) was $170,000; in the past Felt's gross profit has averaged 40% of selling price.
Instructions
Compute the estimated cost of inventory burned!
Problem 5 Framework (10%)
Presented below are a number of accounting procedures and practices in Amanda Corp. For each of these items, list the assumption,
principle, qualitative characteristic, or constraint that is violated.
1. Because the company's income is low this year, a switch from accelerated depreciation to straight-line depreciation is made this
year.
2. The president of Amanda Corp. believes it is foolish to report financial information on a yearly basis. Instead, the presiden t
believes that financial information should be disclosed only when significant new information is available related to the
company's operations.
3. Amanda Corp. decides to establish a large loss and related liability this year because of the possibility that it may lose a pending
patent infringement lawsuit. The possibility of loss is considered remote by its at torneys.
4. An officer of Amanda Corp. purchased a new home computer for personal use with company money, charging miscellaneous
expense.