This document contains a midterm exam for a financial accounting course. It includes 5 questions testing concepts such as the objectives of financial statements, accounting principles, inventory valuation methods, receivables impairment, and preparation of a statement of financial position. The questions include multiple choice, comprehensive income statement preparation, inventory and receivables calculations, and statement of financial position preparation using provided financial information.
This document contains a midterm exam for a financial accounting course. It includes 5 questions testing concepts such as the objectives of financial statements, accounting principles, inventory valuation methods, receivables impairment, and preparation of a statement of financial position. The questions include multiple choice, comprehensive income statement preparation, inventory and receivables calculations, and statement of financial position preparation using provided financial information.
This document contains an exam for an accounting course, including 5 questions. Question 1 has 5 statements related to accounting procedures and asks students to identify which accounting principles or conventions are violated. Question 2 provides financial information for a company and asks students to prepare a comprehensive income statement. Question 3 provides account balances and additional information, and asks students to prepare a statement of financial position. Question 4 provides various cash, receivable, and inventory information for a company, and asks students to calculate impairment losses, show journal entries, and disclose information in the financial statements. Question 5 provides inventory information for a company and asks students to calculate gross profit rate and prepare a schedule to compute inventory flood loss amounts.
This document contains an exam for a financial accounting course, including multiple choice questions, problems requiring adjusting journal entries, and problems requiring preparation of financial statements. The multiple choice questions cover topics like financial reporting objectives, accounting principles, conceptual framework, and accounting assumptions and concepts. The adjusting entry problems provide account balances and transactions to record. The financial statements problem provides ending account balances and requires preparation of a statement of comprehensive income and statement of financial position.
The document is a student solutions manual for an introduction to financial accounting textbook. It contains solutions to problems and exercises from 14 chapters of the textbook. The solutions manual provides step-by-step workings and explanations to help students learn financial accounting concepts and practice applying them to problems. It also contains sample financial statements and transaction worksheets with numerical examples worked through.
This document contains a midterm exam for a financial accounting course. It includes 5 questions testing concepts such as the objectives of financial statements, accounting principles, inventory valuation methods, receivables impairment, and preparation of a statement of financial position. The questions include multiple choice, comprehensive income statement preparation, inventory and receivables calculations, and statement of financial position preparation using provided financial information.
This document contains an exam for an accounting course, including 5 questions. Question 1 has 5 statements related to accounting procedures and asks students to identify which accounting principles or conventions are violated. Question 2 provides financial information for a company and asks students to prepare a comprehensive income statement. Question 3 provides account balances and additional information, and asks students to prepare a statement of financial position. Question 4 provides various cash, receivable, and inventory information for a company, and asks students to calculate impairment losses, show journal entries, and disclose information in the financial statements. Question 5 provides inventory information for a company and asks students to calculate gross profit rate and prepare a schedule to compute inventory flood loss amounts.
This document contains an exam for a financial accounting course, including multiple choice questions, problems requiring adjusting journal entries, and problems requiring preparation of financial statements. The multiple choice questions cover topics like financial reporting objectives, accounting principles, conceptual framework, and accounting assumptions and concepts. The adjusting entry problems provide account balances and transactions to record. The financial statements problem provides ending account balances and requires preparation of a statement of comprehensive income and statement of financial position.
The document is a student solutions manual for an introduction to financial accounting textbook. It contains solutions to problems and exercises from 14 chapters of the textbook. The solutions manual provides step-by-step workings and explanations to help students learn financial accounting concepts and practice applying them to problems. It also contains sample financial statements and transaction worksheets with numerical examples worked through.
The document discusses key accounting concepts including the cash and accrual bases of accounting, the accounting equation, fundamental accounting principles, the accounting cycle, analyzing and recording transactions, and preparing a trial balance. It specifically provides an example illustrating how to analyze transactions for a travel agency and record the impacts in a T-account format to maintain the balance sheet equation of assets = liabilities + equity. Key steps in the accounting cycle are analyzing transactions, posting to ledgers, and preparing an initial trial balance to check balances.
SmartPrep's teaching methodology ensures better learning through unique interactive teaching-learning sessions, conducted by our certified & highly qualified faculty members at our state-of-the -art centres spread across Delhi-NCR and other cities of India. SmartPrep has programs in Maths, Science, English, Accountancy and Economics for Classes VII to XII.
This document contains an assignment for an Intermediate Accounting I course. It includes multiple choice questions and exercises analyzing accounting transactions and financial statements.
The questions cover topics such as GAAP, the FASB standard-setting process, elements of financial statements, and accounting assumptions and principles. Correct answers are provided for the multiple choice and transaction analysis questions.
The document provides an overview of key concepts in the first few chapters of an Intermediate Accounting textbook and assesses the student's understanding through questions requiring identification and explanation of accounting standards, transactions, and financial statement elements.
This document provides past questions from accounting exams administered between May 2010 and December 2015. It includes questions related to distinguishing between capital and revenue expenditures, preparing basic financial statements, ledger and double entry accounting, and recording financial transactions. Specifically, it asks students to classify expenditures, define accounting concepts, prepare journal entries, income statements, balance sheets and account for various business transactions through ledger entries. The questions progressively build students' understanding of fundamental accounting principles.
Principal accounting - Ch02 analyzing transactionArfan Fahmi
The document provides objectives and content for analyzing transactions in accounting. It discusses accounts and their characteristics, debit and credit rules, analyzing transaction effects on financial statements, preparing trial balances, and discovering and correcting errors. It also covers horizontal analysis to compare financial statements over different periods.
This document contains multiple choice questions related to accounting topics such as the balance sheet, income statement, statement of cash flows, and financial statement analysis. Specifically:
- Questions ask about items that make up stockholders' equity and assets on the balance sheet, how revenues and expenses are reported on the income statement, and activities that are classified as operating, investing and financing on the statement of cash flows.
- Additional questions cover calculation of financial ratios like earnings per share, return on equity, profit margin and cash ratio that are used to analyze the financial performance and position of a company.
- The document tests understanding of key accounting concepts like the matching principle, revenue recognition, and treatment of various business transactions.
The document provides a list of timing concepts and their descriptions to match. It asks the reader to match each concept with its description. It also provides two "Do it!" exercises asking the reader to prepare adjusting entries for deferrals and accruals based on sample company information.
Concept of Accounting Equation and the effect of transactions on Accounting Equation. To know about asset, liabilities, equities and concept of accounting equation. how to analyze accounting equation. Effect of transactions on accounting equation.
- The document appears to be a journal for a company with various transactions in August 2014, including the purchase of office supplies, payment of rent, collection of fees, and payment of expenses like advertising and salaries.
- The general ledger accounts show debits and credits for cash, accounts receivable, prepaid insurance, accounts payable, and other expense and revenue accounts.
- The trial balance at the end of the period lists account balances and totals debits and credits.
This document provides information for a grade 10 accounting test, including:
- Three compulsory questions on concepts, financial statements, and notes to financial statements.
- A pre-adjustment trial balance and additional information for Zozo Traders to prepare an income statement.
- Extracts from a post-closing trial balance and additional information to prepare notes to the financial statements for Nicol Traders.
This document provides an overview of management accounting concepts and techniques. It discusses key terms like prime cost, factory cost, overhead costs, and various costing methods. It also outlines the structure of a management accounting course, covering topics like financial accounting, cost accounting, budgeting, and ratio analysis. Flowcharts are presented showing the flow of cash and information in a business. Finally, it compares the differences between financial accounting, cost accounting and management accounting.
The document is a practice test for a financial accounting midterm at the National University of Singapore Business School. It consists of 25 multiple choice questions covering various topics in financial accounting, including the accounting equation, adjusting entries, trial balances, accounts receivable, and financial statements. Students are instructed to answer all questions by marking their responses on a scantron sheet within the allotted time of 1 hour and 15 minutes.
This document outlines the syllabus for Accountancy Class XI and XII in India. For Class XI, it covers topics like introduction to accounting, accounting principles and standards, recording transactions, trial balances, rectifying errors, depreciation, provisions and reserves, bills of exchange, and financial statements. For Class XII, the syllabus covers partnership accounts, share capital, debentures, and analysis of financial statements. Students will be assessed through written and practical projects, with emphasis on understanding and applying accounting concepts and preparation of financial statements.
Advanced accounting by sohail afzal keybook solution pdfPaksights
- The document discusses solutions to questions about joint stock companies, issuance of bonus shares and rights shares, debentures, bonds, TFCs, company final accounts, analysis of accounting ratios, consignment accounts, contract accounts, and hire purchase and installment purchase.
- Specific journal entries are provided for recording transactions related to share capital, debentures, purchase and sale of goods on consignment, long-term contracts, and hire purchase agreements.
- Calculations are shown for determining bonus shares issuable while maintaining the required minimum reserves, and ratios such as current ratio, liquidity ratio, and stock turnover ratio are computed using example figures.
Accounting Global 9th Edition Horngren Solutions Manualmelofufa
This document contains sample exercises and solutions for recording business transactions in journals and preparing trial balances. It includes multiple journal entries recording various business transactions, as well as trial balances for several sample businesses. The exercises cover key accounting concepts like debits and credits, normal balances of accounts, and preparing and analyzing trial balances.
Class 12th Sample Questions For Accountancy Practicalcommerceatease
This document provides a sample of 25 questions that may appear on the practical exam for 12th grade Accountancy. The questions cover various topics related to ratio analysis, cash flow statements, and calculations of ratios like inventory turnover, debt-equity, and profit ratios using financial data. This is intended as a practice resource for commerce students appearing for their C.B.S.E board exams in 2020.
This document provides information about a bank of economic science questions for a midterm microeconomics exam at the University of Indonesia's Faculty of Economics. It includes the exam topics, was created by the Kanopi study group at the university in 2009/2010, and focuses on human resources issues.
The document is a practice exam for a Cost Accounting class. It contains 4 problems related to process costing, job costing, and financial statement analysis. Problem 1 involves process costing calculations for a cutting department. Problem 2 involves budgeting and job costing calculations. Problem 3 involves process costing calculations for a drying and packaging department. Problem 4 involves calculating costs and preparing financial statements. The document provides detailed steps and calculations required to solve each problem.
This document discusses revenue recognition methods for long-term construction contracts. It provides examples comparing the percentage of completion method and cost recovery method. Under the percentage of completion method, revenue and profit are recognized based on the project's completion percentage each period. Under the cost recovery method, revenue is only recognized up to the amount of costs incurred, with profit recognized once all costs are recovered. Journal entries and partial financial statements are presented for a construction project from 2010-2012 under both methods.
This document contains an exam for a Financial Accounting 1 course, including multiple choice questions, adjusting entry problems, and exercises requiring preparation of income and financial position statements. The multiple choice questions cover accounting concepts like objectives of financial reporting, generally accepted accounting principles, and characteristics of general purpose financial statements. The adjusting entries problem involves reconciling cash balances and identifying reconciling items. The statement preparation exercises require assigning accounts to the proper financial statements.
The document discusses key accounting concepts including the cash and accrual bases of accounting, the accounting equation, fundamental accounting principles, the accounting cycle, analyzing and recording transactions, and preparing a trial balance. It specifically provides an example illustrating how to analyze transactions for a travel agency and record the impacts in a T-account format to maintain the balance sheet equation of assets = liabilities + equity. Key steps in the accounting cycle are analyzing transactions, posting to ledgers, and preparing an initial trial balance to check balances.
SmartPrep's teaching methodology ensures better learning through unique interactive teaching-learning sessions, conducted by our certified & highly qualified faculty members at our state-of-the -art centres spread across Delhi-NCR and other cities of India. SmartPrep has programs in Maths, Science, English, Accountancy and Economics for Classes VII to XII.
This document contains an assignment for an Intermediate Accounting I course. It includes multiple choice questions and exercises analyzing accounting transactions and financial statements.
The questions cover topics such as GAAP, the FASB standard-setting process, elements of financial statements, and accounting assumptions and principles. Correct answers are provided for the multiple choice and transaction analysis questions.
The document provides an overview of key concepts in the first few chapters of an Intermediate Accounting textbook and assesses the student's understanding through questions requiring identification and explanation of accounting standards, transactions, and financial statement elements.
This document provides past questions from accounting exams administered between May 2010 and December 2015. It includes questions related to distinguishing between capital and revenue expenditures, preparing basic financial statements, ledger and double entry accounting, and recording financial transactions. Specifically, it asks students to classify expenditures, define accounting concepts, prepare journal entries, income statements, balance sheets and account for various business transactions through ledger entries. The questions progressively build students' understanding of fundamental accounting principles.
Principal accounting - Ch02 analyzing transactionArfan Fahmi
The document provides objectives and content for analyzing transactions in accounting. It discusses accounts and their characteristics, debit and credit rules, analyzing transaction effects on financial statements, preparing trial balances, and discovering and correcting errors. It also covers horizontal analysis to compare financial statements over different periods.
This document contains multiple choice questions related to accounting topics such as the balance sheet, income statement, statement of cash flows, and financial statement analysis. Specifically:
- Questions ask about items that make up stockholders' equity and assets on the balance sheet, how revenues and expenses are reported on the income statement, and activities that are classified as operating, investing and financing on the statement of cash flows.
- Additional questions cover calculation of financial ratios like earnings per share, return on equity, profit margin and cash ratio that are used to analyze the financial performance and position of a company.
- The document tests understanding of key accounting concepts like the matching principle, revenue recognition, and treatment of various business transactions.
The document provides a list of timing concepts and their descriptions to match. It asks the reader to match each concept with its description. It also provides two "Do it!" exercises asking the reader to prepare adjusting entries for deferrals and accruals based on sample company information.
Concept of Accounting Equation and the effect of transactions on Accounting Equation. To know about asset, liabilities, equities and concept of accounting equation. how to analyze accounting equation. Effect of transactions on accounting equation.
- The document appears to be a journal for a company with various transactions in August 2014, including the purchase of office supplies, payment of rent, collection of fees, and payment of expenses like advertising and salaries.
- The general ledger accounts show debits and credits for cash, accounts receivable, prepaid insurance, accounts payable, and other expense and revenue accounts.
- The trial balance at the end of the period lists account balances and totals debits and credits.
This document provides information for a grade 10 accounting test, including:
- Three compulsory questions on concepts, financial statements, and notes to financial statements.
- A pre-adjustment trial balance and additional information for Zozo Traders to prepare an income statement.
- Extracts from a post-closing trial balance and additional information to prepare notes to the financial statements for Nicol Traders.
This document provides an overview of management accounting concepts and techniques. It discusses key terms like prime cost, factory cost, overhead costs, and various costing methods. It also outlines the structure of a management accounting course, covering topics like financial accounting, cost accounting, budgeting, and ratio analysis. Flowcharts are presented showing the flow of cash and information in a business. Finally, it compares the differences between financial accounting, cost accounting and management accounting.
The document is a practice test for a financial accounting midterm at the National University of Singapore Business School. It consists of 25 multiple choice questions covering various topics in financial accounting, including the accounting equation, adjusting entries, trial balances, accounts receivable, and financial statements. Students are instructed to answer all questions by marking their responses on a scantron sheet within the allotted time of 1 hour and 15 minutes.
This document outlines the syllabus for Accountancy Class XI and XII in India. For Class XI, it covers topics like introduction to accounting, accounting principles and standards, recording transactions, trial balances, rectifying errors, depreciation, provisions and reserves, bills of exchange, and financial statements. For Class XII, the syllabus covers partnership accounts, share capital, debentures, and analysis of financial statements. Students will be assessed through written and practical projects, with emphasis on understanding and applying accounting concepts and preparation of financial statements.
Advanced accounting by sohail afzal keybook solution pdfPaksights
- The document discusses solutions to questions about joint stock companies, issuance of bonus shares and rights shares, debentures, bonds, TFCs, company final accounts, analysis of accounting ratios, consignment accounts, contract accounts, and hire purchase and installment purchase.
- Specific journal entries are provided for recording transactions related to share capital, debentures, purchase and sale of goods on consignment, long-term contracts, and hire purchase agreements.
- Calculations are shown for determining bonus shares issuable while maintaining the required minimum reserves, and ratios such as current ratio, liquidity ratio, and stock turnover ratio are computed using example figures.
Accounting Global 9th Edition Horngren Solutions Manualmelofufa
This document contains sample exercises and solutions for recording business transactions in journals and preparing trial balances. It includes multiple journal entries recording various business transactions, as well as trial balances for several sample businesses. The exercises cover key accounting concepts like debits and credits, normal balances of accounts, and preparing and analyzing trial balances.
Class 12th Sample Questions For Accountancy Practicalcommerceatease
This document provides a sample of 25 questions that may appear on the practical exam for 12th grade Accountancy. The questions cover various topics related to ratio analysis, cash flow statements, and calculations of ratios like inventory turnover, debt-equity, and profit ratios using financial data. This is intended as a practice resource for commerce students appearing for their C.B.S.E board exams in 2020.
This document provides information about a bank of economic science questions for a midterm microeconomics exam at the University of Indonesia's Faculty of Economics. It includes the exam topics, was created by the Kanopi study group at the university in 2009/2010, and focuses on human resources issues.
The document is a practice exam for a Cost Accounting class. It contains 4 problems related to process costing, job costing, and financial statement analysis. Problem 1 involves process costing calculations for a cutting department. Problem 2 involves budgeting and job costing calculations. Problem 3 involves process costing calculations for a drying and packaging department. Problem 4 involves calculating costs and preparing financial statements. The document provides detailed steps and calculations required to solve each problem.
This document discusses revenue recognition methods for long-term construction contracts. It provides examples comparing the percentage of completion method and cost recovery method. Under the percentage of completion method, revenue and profit are recognized based on the project's completion percentage each period. Under the cost recovery method, revenue is only recognized up to the amount of costs incurred, with profit recognized once all costs are recovered. Journal entries and partial financial statements are presented for a construction project from 2010-2012 under both methods.
This document contains an exam for a Financial Accounting 1 course, including multiple choice questions, adjusting entry problems, and exercises requiring preparation of income and financial position statements. The multiple choice questions cover accounting concepts like objectives of financial reporting, generally accepted accounting principles, and characteristics of general purpose financial statements. The adjusting entries problem involves reconciling cash balances and identifying reconciling items. The statement preparation exercises require assigning accounts to the proper financial statements.
The document contains accounting journal entries for a manufacturing company. It records transactions for raw materials inventory, work in process, manufacturing overhead, finished goods, cost of goods sold, expenses and more. It also provides ending work in process inventory amounts and finished goods inventory for various jobs, as well as the actual cost of goods sold.
This document contains journal entries and financial statements for AAA Company over multiple periods:
1) It records various share transactions including the issuance of new shares, purchase of treasury shares, and dividends paid.
2) As of December 31, 2013 it provides a statement of stockholders' equity including share capital for ordinary and preference shares, share premium accounts, retained earnings, and total equity.
3) It also contains solutions for two additional problems involving the issuance of new shares through both proportional and incremental methods of allocation.
This document discusses two problems related to revenue recognition. Problem 1 describes a consignment transaction where Ice Company consigned freezers to Hotsa Company. Problem 2 describes a long-term construction project by PT WS to build a factory for MM over three years from 2010 to 2012. The document provides journal entries and calculations using percentage of completion and cost recovery methods. It also includes a homework problem on a three-year construction project by PT AAA and instructions to prepare journal entries using percentage of completion and cost recovery methods.
The document discusses two lease solutions. Solution 1 involves a direct financing lease, with schedules showing the lessor's lease amortization and related journal entries. Solution 2 involves a sales-type lease for the lessor and a finance lease for the lessee, with lease amortization schedules and calculations for both parties and their related journal entries.
This document discusses solutions or answers to questions from a 5th meeting in a class. It contains the heading "JAWABAN ASISTENSI PERTEMUAN 5 FK SOLUTION 1" and "JAWABAN ASISTENSI PERTEMUAN 5 FK SOLUTION 2", suggesting there are two solutions or sets of answers provided.
LTM Mikroekonomi - Bab 8 Memaksimalkan Laba dan Penawaran BersaingFarah Fauziah Hilman
1. Dokumen membahas tentang maksimisasi laba jangka pendek oleh perusahaan yang bersaing dengan menggunakan pendekatan marginal. Perusahaan akan memperoleh laba maksimum ketika MR sama dengan MC.
2. Perusahaan bersaing akan mendapatkan laba positif jika pendapatannya dapat menutupi biaya tetap dan variabel, tetapi akan mengalami kerugian jika pendapatannya kurang dari biaya variabel. Perusahaan d
This document provides multiple problems related to dilutive securities and earnings per share (EPS) calculations. It includes questions about convertible bonds, convertible preference shares, share warrants, share option plans, restricted shares, weighted average shares outstanding, and EPS calculations. Specifically, it asks the reader to calculate journal entries, weighted average shares, and basic and diluted EPS based on given share transactions and financial information for a company called Afika.
The document provides financial information for AAA Company and BBB Inc. including comparative balance sheets, income statements, and notes. It asks to prepare statements of cash flows for both companies using direct and indirect methods. For AAA Company, additional information includes bond premium amortization. For BBB Inc., additional information provides details on various cash flow transactions for the year.
Exercises Financial Accounting - Accounting Changes and ErrorFabiola Kristi
1. AAA Co. changed its accounting methods for long-term contracts and equipment depreciation in 2008. It also failed to accrue sales commissions in prior years. Inventory counts were incorrect in prior years. Journal entries are needed to correct the errors.
2. During an audit of PT Sarina, several errors were discovered relating to depreciation methods, commission expenses, bond amortization, inventory and patent amortization. Prior period adjustments are required.
3. An audit of Brue Gingrich Co. found errors in machine depreciation, accrual of sales salaries, revenue recognition, and inventory write-offs over the prior three years. Correction entries are required without considering tax effects
This document contains 3 problems related to accounting for leasing transactions. The first problem describes an airplane lease between AB Inc. and GK Airlines lasting 8 years. The second problem describes a machine lease between PT AAA and PT BBB lasting 10 years. The third problem describes a building lease between ABC Co. and DEF Inc. lasting 10 years. Instructions are provided to classify the leases, prepare amortization schedules, and record journal entries for the lessor and lessee for the transactions.
The document provides information about a cost accounting exam for a furniture company named Cedarwood Inc. It includes multiple problems with various accounting transactions during the month of November. The summary is:
1. Cedarwood Inc uses a job order costing system and is provided work in process and finished goods inventory amounts at the start of November.
2. The company had various transactions during November including purchasing raw materials, issuing materials to jobs, paying salaries, and selling finished jobs.
3. The problems require preparing journals, calculating inventory amounts, income statement, and analyzing overhead allocation methods.
This document discusses solutions for an assistant meeting in the sixth session of a class. It provides two potential solutions or answers for the assistant and class discussion.
1. Accounting is defined as recording, classifying and summarizing transactions and events in terms of money. It conveys a company's financial performance and position to stakeholders through financial statements.
2. The prudence principle, also called conservatism, means anticipating no profits but providing for all possible losses to avoid inflating profits. Secret reserves are not permitted.
3. Grouping means putting similar balance sheet items under common headings, while marshaling refers to the order assets and liabilities are shown, either by liquidity or permanence.
(New) final exam for acc 421 all correct answers 100%quikly11
This document provides the questions and answers to an ACC/421 final exam. It contains 30 multiple choice questions testing concepts related to accounting, financial statements, ratios, and cash flow statements. The document encourages the reader to leave positive feedback if it helped them and wishes them good luck on their exam.
(New) final exam for acc 421 acc 421 all correct answers 100%ri0908O0o
This document provides the answers to 20 multiple choice questions that appear to be from a final exam for an ACC/421 course. It emphasizes that the questions are randomly selected so may not fully cover the exam topics. It encourages the reader to leave positive feedback if the answers were helpful and wishes them good luck on the exam.
Acc 421 final exam mcq`s correct answers 100%liamSali
This document provides the questions and answers to an ACC/421 final exam. It contains 30 multiple choice questions testing concepts related to accounting, financial statements, ratios, and cash flow statements. The document encourages the reader to leave positive feedback if it helped them and wishes them good luck on their exam.
Acc 421 final exam mcq`s correct answers 100%Austing_3
This document provides the answers to 20 multiple choice questions that appear to be from a final exam for an ACC/421 course. It emphasizes that the questions are randomly selected so may not fully cover the exam topics. It encourages the reader to leave positive feedback if the answers were helpful and wishes them good luck on the exam.
(New) final exam for acc 421 all correct answers 100%liamSali
This document provides the questions and answers to an ACC/421 final exam. It contains 30 multiple choice questions testing concepts related to accounting, financial statements, ratios, and cash flow statements. The document encourages the reader to leave positive feedback if it helped them and wishes them good luck on their exam.
This document appears to be a practice exam for an ACC 421 course, likely focusing on accounting principles. It contains 36 multiple choice questions testing concepts related to financial accounting, including revenue recognition, adjusting entries, financial statements, and time value of money calculations. The questions cover topics like capitalization of costs, accrued expenses, the roles of organizations like the FASB and SEC, and ratios analyzed from financial statements.
This document appears to be a practice exam for an ACC 421 final exam. It contains 28 multiple choice questions testing accounting concepts related to financial statements, revenue and expense recognition, and ratio analysis. The questions cover topics such as capitalizing costs, accrued expenses, adjusting entries, the roles of organizations like the FASB and SEC, and preparing and analyzing financial statements.
This document appears to be a practice exam for an ACC 421 final exam. It contains 28 multiple choice questions testing accounting concepts related to financial statements, revenue and expense recognition, and ratio analysis. The questions cover topics such as capitalizing costs, accrued expenses, adjusting entries, the roles of organizations like the FASB and SEC, and preparing and analyzing financial statements.
This document provides a summary of key concepts and tools for analyzing financial statements, including horizontal analysis, vertical analysis, and ratio analysis. It includes sample true/false and multiple choice questions related to these topics to assess understanding. The document covers comparing financial data within and across periods, calculating percentage changes, analyzing statements like the income statement and balance sheet, and evaluating different measures of a company's liquidity, profitability, and solvency from the perspective of different stakeholders.
This document provides an overview of Chapter 18 on financial statement analysis from an ACC 206 accounting principles course. It includes study objectives, true-false questions, multiple choice questions, and financial information to analyze regarding horizontal analysis, vertical analysis, and ratio analysis. The key topics covered are the tools of financial statement analysis, comparative analysis techniques, and calculating and interpreting various liquidity, profitability, and solvency ratios.
1. Which of the following is an advantage of corporations relative.docxjackiewalcutt
This document contains 30 multiple choice questions related to accounting concepts and principles. The questions cover topics such as advantages of different business organizations, financial statements, ratios, costing methods, budgeting, and decision making. Correct answers are provided for each question testing understanding of key accounting concepts.
This document provides the questions and answers to the ACC/421 Final Exam. It contains 30 multiple choice questions testing concepts related to accounting, financial statements, ratios, and cash flow statements. The questions cover topics such as accruals, revenues, expenses, accounting standards, income statements, balance sheets, and calculating financial ratios.
This document provides the questions and answers to the ACC/421 Final Exam. It contains 29 multiple choice questions testing concepts related to accounting, financial statements, ratios, and cash flow statements. The questions cover topics such as accruals, deferrals, revenue and expense recognition, GAAP, FASB, financial reporting objectives, income statements, balance sheets, liquidity, and calculating financial ratios.
This document provides the questions and answers to the ACC/421 Final Exam. It contains 30 multiple choice questions testing concepts related to accounting, financial statements, ratios, and cash flow statements. The questions cover topics such as accruals, revenues, expenses, accounting standards, income statements, balance sheets, and calculating financial ratios.
(New) acc 421 acc421 final exam entire answers with questions correct 100%twiter343r
This document provides the questions and answers to the ACC/421 Final Exam. It contains 29 multiple choice questions testing concepts related to accounting, financial statements, ratios, and cash flow statements. The questions cover topics such as accruals, deferrals, revenue and expense recognition, GAAP, FASB, financial reporting objectives, income statements, balance sheets, liquidity, and calculating financial ratios.
This document provides the questions and answers to the ACC/421 Final Exam. It contains 29 multiple choice questions testing concepts related to accounting, financial statements, ratios, and cash flow statements. The questions cover topics such as accruals, deferrals, revenue and expense recognition, GAAP, FASB, financial reporting objectives, income statements, balance sheets, liquidity, and calculating financial ratios.
This document provides the questions and answers to the ACC/421 Final Exam. It contains 29 multiple choice questions testing concepts related to accounting, financial statements, ratios, and cash flow statements. The questions cover topics such as accruals, deferrals, revenue and expense recognition, GAAP, FASB, financial reporting objectives, income statements, balance sheets, liquidity, and calculating financial ratios.
Brief Exercise 2-1Select the qualitative characteristics for the.docxAASTHA76
Brief Exercise 2-1
Select the qualitative characteristics for the following statements.
(a)
Quality of information that permits users to identify similarities in and differences between two sets of economic phenomena.
(b)
Having information available to users before it loses its capacity to influence decisions.
(c)
Information about an economic phenomenon that has value as an input to the processes used by capital providers to form their own expectations about the future.
(d)
Information that is capable of making a difference in the decisions of users in their capacity as capital providers.
(e)
Absence of bias intended to attain a predetermined result or to induce a particular behavior.
Brief Exercise 2-9
Vande Velde Company made three investments during 2014.
Where will Vande Velde report these investments in the fair value hierarchy?
(1)
It purchased 1,000 shares of Sastre Company, a start-up company. Vande Velde made the investment based on valuation estimates from an internally developed model.
(2)
It purchased 2,000 shares of GE stock, which trades on the NYSE.
(3)
It invested $10,000 in local development authority bonds. Although these bonds do not trade on an active market, their value closely tracks movements in U.S. Treasury bonds.
Brief Exercise 2-12
Identify whether the following expenditures is recorded as an asset or an expense. Assume all items are material.
(a)
Legal fees paid in connection with the purchase of land are $1,500.
(b)
Eduardo, Inc. paves the driveway leading to the office building at a cost of $21,000.
(c)
A meat market purchases a meat-grinding machine at a cost of $3,500.
(d)
On June 30, Monroe and Meno, medical doctors, pay 6 months’ office rent to cover the month of July and the next 5 months.
(e)
Smith’s Hardware Company pays $9,000 in wages to laborers for construction on a building to be used in the business.
(f)
Alvarez’s Florists pays wages of $2,100 for the month an employee who serves as driver of their delivery truck.
Exercise 2-1
Indicate whether the following statements about the conceptual framework are true or false.
(a)
Accounting rule-making that relies on a body of concepts will result in useful and consistent pronouncements.
(b)
General-purpose financial reports are most useful to company insiders in making strategic business decisions.
(c)
Accounting standards based on individual conceptual frameworks generally will result in consistent and comparable accounting reports.
(d)
Capital providers are the only users who benefit from general-purpose financial reporting.
(e)
Accounting reports should be developed so that users without knowledge of economics and business can become informed about the financial results of a company.
(f)
The objective of financial reporting is the foundation from which the other aspects of the framework logically result.
Exer ...
The document contains a practice exam for an ACC 421 final exam. It includes 36 multiple choice questions testing concepts related to accounting, financial statements, ratios, time value of money, and cash flows. The questions cover topics such as accruals, deferrals, revenue and expense recognition, financial reporting standards, income statements, balance sheets, statement of cash flows, and time value of money calculations.
The document contains information about a mid-semester exam for a Cost Accounting course, including 4 problems. Problem 1 involves process costing calculations for a cutting department. Problem 2 involves normal costing and overhead allocation using a job costing system. Problem 3 involves process costing calculations for a drying and packaging department. Problem 4 requires preparing income statements and cost of goods manufactured schedules. The document provides costs, production details, and other financial information to solve the problems.
This document presents the statement of financial position and statement of comprehensive income for PT Luber and PT Al Caisario as of 31 December 2011 and 2010 respectively.
The statement of financial position of PT Luber shows total assets of Rp3.8 billion consisting of current assets, property and equipment, long term investments and intangible assets. Total liabilities are Rp2.7 billion comprising current and non-current liabilities. Total equity is Rp1.1 billion.
The statement of comprehensive income of PT Al Caisario for the year ended 31 December 2010 shows net income of Rp86 billion comprising income from continuing and discontinued operations, offset by comprehensive loss of Rp14 billion.
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.
The document is a multi-page exam problem for a cost accounting course. It provides extensive information on the transactions and inventory of Cedarwood Inc., a furniture manufacturer, during November 2011. Students are asked to prepare journal entries, calculate ending inventory amounts, and prepare an income statement based on the information provided. The problem also includes additional questions on overhead allocation and standard costing for other sample companies.
The document provides information about standard and actual production costs for two companies, Valley Corporation and a furniture company that produces chairs. It also provides information about a third company, Cedarwood Inc., that uses job order costing and has various production and overhead cost transactions throughout the month of November. Students are asked to prepare various journal entries and calculations for standard costing, overhead allocation, and job order costing for the three companies based on the information provided.
The document is a practice test for a cost accounting exam from the Accounting Study Division of MoJaKoe Akuntansi Biaya. It contains 6 questions related to cost accounting concepts and calculations. The questions cover topics like ethical responsibilities in accounting, cost of goods sold reports, cost estimation methods, standard costing, job order costing, and process costing. Students are asked to perform calculations, analyze alternative courses of action, and discuss accounting concepts.
This document contains an exam for a Strategic Management course consisting of 6 questions. The exam tests students' understanding of strategic management concepts like the resource-based view, Porter's five forces model, intensive strategies, integration strategies, diversification strategies, defensive strategies, cost leadership strategy, and differentiation strategy. It also asks students to analyze the strategies of the automaker General Motors based on its historical actions and a strategic management matrix.
This document outlines an exam for a Strategic Management course covering various strategic planning models and concepts. It includes 8 questions asking students to:
1) Explain external environmental factors and Porter's Five Forces model for strategic planning.
2) Define the Resource-Based View approach and Value Chain Analysis.
3) Analyze two internal assessment areas of organizations.
4) Compare strategic formulation differences between large/SME companies and for-profit/non-profit organizations.
5) Explain three strategy types for turbulent markets and when each is most appropriate.
6) List primary strategies and explain related/unrelated diversification differences.
7) Compare strategic analysis tools and explain using
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2. MID TERM EXAM 2011/2012
FINANCIAL ACCOUNTING 1
Team Teaching
Monday, 7 November 2011
09.00 – 12.00 (3 hours)
This exam is CLOSED BOOKS; usage of financial calculator is allowed
Always provide calculation on every step of your answer
Provide your answer in a clear and readable form
Question 1 (20%) – Multiple Choice
1. What is the objective of financial statements according to the IASB’s Framework?
a. To prepare and present a balance sheet, an income statement, a cash flow statement, and a statement of changes in equity.
b. To prepare and present comparable, relevant, reliable, and understandable information to investors and creditors.
c. To provide information about the financial position, performance, and changes in financial position of an entity that is useful to a wide range of users in making economic decisions.
d. To prepare financial statements in accordance with all applicable Standards and Interpretations.
2. Decision makers vary widely in the types of decisions they make, the methods of decision making they employ, the information they already possess or can obtain from other sources, and their ability to process information. Consequently, for information to be useful there must be a linkage between these users and the decisions they make. This link is
a. relevance.
b. reliability.
c. understandability.
d. materiality.
3. Accounting information is considered to be relevant when it
a. can be depended on to represent the economic conditions and events that it is intended to represent.
b. is capable of making a difference in a decision.
c. is understandable by reasonably informed users of accounting information.
d. is verifiable and neutral.
4. Which of the following is an ingredient of reliable?
a. Predictive value.
b. Timeliness.
3. c. Neutrality.
d. Feedback value.
5. Financial information does not demonstrate consistency when
a. firms in the same industry use different accounting methods to account for the same type of transaction.
b. a company changes its estimate of the salvage value of a fixed asset.
c. a company fails to adjust its financial statements for changes in the value of the measuring unit.
d. none of these.
6. When information about two different enterprises has been prepared and presented in a similar manner, the information exhibits the characteristic of
a. relevance.
b. reliability.
c. consistency.
d. none of these.
7. Erin Company applies the same accounting treatment to similar events from period to period. Erin Company is exhibiting which of the following qualities as described by the International Accounting Standards Board’s (IASB’s) Conceptual Framework?
a. Verifiability.
b. Consistency.
c. Predictive value.
d. All of the choices are correct.
8. The International Accounting Standards Board (IASB) defines one of the 5 elements as follows: “the residual interest in the assets of the entity after deducting all its liabilities” Which element matches this description?
a. Retained earnings.
b. Income.
c. Equity.
d. All of the choices match this definition.
9. Which of the following is an implication of the going concern assumption?
a. The historical cost principle is credible.
b. Depreciation and amortization policies are justifiable and appropriate.
c. The current-noncurrent classification of assets and liabilities is justifiable and signify- cant.
d. All of these.
10. The assumption that a business enterprise will not be sold or liquidated in the near future is known as the
a. economic entity assumption.
b. monetary unit assumption.
c. materiality assumption.
d. none of these.
11. Which of the following basic assumptions of accounting (used by the International Accounting Standards Board) makes depreciation and amortization policies justifiable and appropriate?
a. Materiality.
b. Reliable
4. c. Relevance.
d. Going concern.
12. When should an item that meets the definition of an element be recognized, according to IASB’s Framework?
a. When it is probable that any future economic benefit associated with the item will flow to or from the entity and the item has a cost of value that can be measured with reliability.
b. When it is probable that any future economic benefit associated with the item will flow to or from the entity.
c. When the element has a cost or value that can be measured with reliability.
d. When the entity obtains control of the rights or obligations associated with the item.
13. Generally, revenue from sales should be recognized at a point when
a. management decides it is appropriate to do so.
b. the product is available for sale to the ultimate consumer.
c. the entire amount receivable has been collected from the customer and there remains no further warranty liability.
d. none of these.
14. The accounting principle of expense recognition is best demonstrated by
a. not recognizing any expense unless some revenue is realized.
b. associating effort (expense) with accomplishment (revenue).
c. recognizing prepaid rent received as revenue.
d. establishing an Appropriation for Contingencies account.
15. Which of the following are benefits of providing financial information?
a. Potential litigation.
b. Auditing.
c. Disclosure to competition.
d. Improved allocation of resources.
16. Issuance of common stock for cash affects which basic element of financial statements?
a. Revenues.
b. Losses.
c. Liabilities.
d. Equity.
17. Under International Financial Reporting Standards (IFRS) supplementary information
a. May be information that is high in relevance but low in reliability.
b. May include explanations of uncertainties and contingencies.
c. May include descriptions of accounting policies and methods.
d. All of the choices are correct regarding supplementary information.
5. 18. The IASB’s conceptual framework includes a cost-benefit constraint. Which of the following best describes the cost-benefit constraint?
a. The benefits of the information must be greater than the costs of providing it.
b. Financial information should be free from cost to users of the information.
c. Costs of providing financial information are not always evident or measurable, but must be considered.
d. All of the choices are correct.
19. The IASB’s conceptual framework includes a materiality as an ingredient of relevant. Which of the following is true regarding this ingredient?
a. The IASB’s rule for materiality is any item under 5% of net income is considered immaterial.
b. Materiality factors into both internal and external accounting decisions.
c. An item is immaterial if its inclusion or omission would influence or change the judgment of a reasonable person.
d. All of the choices are correct.
20. The IASB’s conceptual framework
a. Includes the concept of prudence or conservatism which means when in doubt, choose the solution that will be least likely to overstate assets or income.
b. Excludes the concept of prudence or conservatism because it is inconsistent with neutrality, which encompasses freedom from bias.
c. Includes the concept of prudence or conservatism which means when in doubt, choose the solution that will be least likely to understate assets or income and/or overstate liabilities or expenses.
d. Includes the concept of prudence or conservatism as a desirable, but not required, quality of financial reporting information.
QUESTION 2 (20%) – Comprehensive Income Statement
The following information was taken from records of SHINING CORPORATION for the year 2010.
Gain on sale of office building $ 95,000
Loss from discontinued operation $ 72,000
Selling expense $ 300,000
Rent Revenue $ 50,000
Cost Of Goods Sold $ 950,000
General and administrative expense $ 275,000
Sales $ 1,800,000
Dividend Revenue $ 25,000
6. Loss from impairment of account receivable $ 15,000
Unrealized holding gain on available for sale equity securities (net of tax) $ 60,000
Fixed assets revaluation surplus (net of tax) $ 30,000
Interest expense $ 36,000
Cash dividends declared on ordinary shares $ 50,000
Share capital – ordinary ($10 par) $1,000,000
Required: Prepare in a good form a comprehensive income statement using single statement
format (including the earnings per share) for the year 2010. Assume a 30% tax rate.
QUESTION 3 (20%) - Inventory
Toko Wijaya Elektrindo sells various home appliances, including two types of TVs: flat screen and
plasma. The inventory data of TVs shown below is available for the month of October 2011.
(in Rp‘000)
TV-Flat Screen TV-Plasma
Units
Price per
Unit
Units
Price per
Unit
Inventory at Sep 30 100 Rp 4.000 Inventory at Sep 30 150 Rp 8.500
Purchases: Purchases:
Oct 10 200 Rp 4.500 Oct 3 500 Rp 9.000
Oct 20 250 Rp 4.750 Oct 12 300 Rp 9.500
Oct 30 150 Rp 5.000 Oct 21 450 Rp 10.000
Sales: Sales:
Oct 15 200 Rp 5.400 Oct 18 700 Rp 10.800
Oct 25 300 Rp 5.700 Oct 29 550 Rp 11.400
7. PART A (10%)
a. Assume WijayaElektrindo uses a periodic inventory system under first-in, first-out (FIFO)
method. Determine the cost of ending inventory at October 31 and the cost of goods sold
(COGS) for October. (4%)
b. Assume WijayaElektrindo uses periodic inventory system under average cost method.
Determine the cost of ending inventory at October 31 and the cost of goods sold (COGS) for
October. (4%)
c. Assume you need to compute a current ratio for WijayaElektrindo. Which inventory method
(FIFO or average cost) do you think would give you a more meaningful current ratio? Explain
briefly. (2%)
PART B (10%)
In addition to the above information, due to a downturn in the economy, Wijaya Elektrindo expects
TV-Plasma prices from October 31 onward to be considerably different (and lower) than at the
beginning of and during October. Wijaya has developed the following additional information:
(in Rp’000)
TV-Flat Screen TV-Plasma
Expected selling price Rp 6.000 Expected selling price Rp 11.200
Cost to sell Rp 200 Cost to sell Rp 700
Cost to complete Rp 300 Cost to complete Rp 1.500
a. Wijaya uses periodic FIFO accounting method (use your answer from Part A). Determine the
rupiah amount that WijayaElektrindo should report on its October 31 statement of financial
position for inventory of TVs. Assume Wijaya applies LCNRV at the individual product level.
Prepare the adjusting entries using allowance account. (2%)
b. Repeat question (a) but assume Wijaya applies LCNRV at the major group level, which is TVs.
(2%)
c. Which one of the two approaches above (individual product level or major group level) for
applying LCNRV do you think gives the financial statement reader better information?
Explain briefly. (2%)
d. Assume that during November, the NRV of TV plasma rebounds to Rp10.600.000. Briefly
describe how Wijaya’s November financial statements changed with respect to its inventory
remaining from October 31 under US-GAAP vs IFRS. (2%)
e. Refer to Question (d), prepare adjusting entries under IFRS, if any, to record the NRV
recovery of TV plasma if Wijaya applies LCNRV at the individual product level. Use your
answer from Question (a). (2%)
8. QUESTION 4 (20%) - Receivables
Part 1 (10%)
ABC Corporation has the following receivables classified into individually significant and all other receivables (In million).
ABC determines that PT A’s receivable is impaired by Rp 25.000.000 and PT D’s receivable is totally impaired based on their Present Value of the expected cash flow. Both PT B’s and PT C ‘s receivables are not considered impaired individually but they are considered to be current. ABC also determines that all other receivables have been grouped into the bucket according to their ages. ABC applies a different percentage based on past experience to determine the percentage of impairment: Age Percentage Estimated to be impaired Current 4% 1 - 30 days 16% 31 - 60 days 33% 61 - 180 days 60% 181 - 365 days 90% > 365 days 100%
SignificantPT A40,000Rp PT B100,000Rp PT C60,000Rp PT D50,000Rp Total250,000Rp All other ReceivablesCurrent250,000Rp 1 - 30 days50,000Rp 31 - 60 days50,000Rp 61 - 180 days50,000Rp 181 - 365 days50,000Rp > 365 days50,000Rp Amount500,000Rp Total750,000Rp
9. Compute the loss on impairment ABC will suffer on December 31, 2011. What journal entries should be made to record this loss?
Part 2 (10%)
On 1 January 2011, PT FGH receives a Rp 1,500,000,000 four-year note, bearing interest at 12% annually, in exchange for cash. The market rate of interest for a note of similar risk is 10%. Unfortunately, during 2011, PT KLM experienced financial difficulty. On 31 December 2011, even though PT KLM manages to pay all of the accrued interest, PT KLM informs PT FGH that the rest of the interests and the principal amount of the note can only be paid 75%. PT FGH has enough objective evidences to determine that the note has been impaired.
PV Single Sum 10%, 4 period
0.68301
PV Ordinary Annuity 10%, 4 period
3.16986
PV Single Sum 10%, 3 period
0.75132
PV Ordinary Annuity 10%, 3 period
2.48685
10. Instructions:
1. Provide the schedule of effective interest method
2. Calculate the amount of impairment loss of and the end-of-year value after impairment of Notes Receivable
3. Prepare the necessary journal entries to record transactions of Trade Receivable and Notes Receivable, including the impairment
QUESTION 5 (20%) – Statement of Financial Position
Instructions: Prepare a Statement of Financial Position as of December 31, 2010
PT Bolibos Diaz
Statement of Financial Position
December 31, 2010
Cash and Cash Equivalent
?
Short term Investment
?
Accounts Receivable (net)
?
Prepaid Expenses
?
Inventory
?
Property, Plant and Equipment
?
Accumulated depreciation
?
?
Long term Investment
?
Intangible Assets
?
Total Assets
?
Accounts Payable
?
Notes Payable
?
Salary and Wages Payable
?
Interest Payable
?
11. Deposits received from customers
?
Accrued expenses
?
Bond liabilities due January 31, 2020
?
Total Liabilities
?
Share Capital-Ordinary
700,000
Share Premium-Ordinary
50,000
Retained Earnings
610,220
Total Equity
?
Total Liabilities and Equity
?
The following information that you need to complete the above statement of financial position.
1. Sales on account during the year is 3,053,081, and the credit terms is 2 weeks.Assuming that all customers paid on time as per credit terms.
2. Purchase of inventory during the year is 2,125,825 and beginning of inventory is 346,429. Inventoryis recorded on the book at end of the year is 511,713, but based on physical examination is 489,713.Loss of inventory is charged to Cost of Good Sold.Purchase of inventory during the year is on account, and the credit term is 1 month.Assuming the company always pay on time and beginning balance of its Accounts Payable is 176,000.
3. Freight dan Transportation cost which have not been paid is 12,030. Utilities expense which have notbeen paid is 8,350.
4. Administration expense which have been paid is 248,593, and it is included prepaid insurancefor 16,253.
5. The usefull life of Property, Plant and Equipment of 1,100,800 is 10 years, these assets have beendepreciated for 2 years and this year is the 3rd year.The Equipment of 300,000, which has been depreciated for 2 years, is sold for 411,410 at end of year.At end of the year, company purchase the new equipment of 600,000 and the usefull life is the same.
6. Note payable of 80,000 with interest 10% pa, due on Desember 31, 2010 and it will be paid onJanuary 5, 2011.
7. Bond Payable of 425,000 which will be due on 2020. Interest is 12% pa and 10% of it, will be paid inJanuary 2011.
8. Sales office salary is paid weekly basis and at the end of the year is not paid for 3 days, salary expense per day is 1,000 and Office Admin salary is 5 days not paid, cost per day is 500.
9. In book record that showed Cash is 31,000 but the bank statement showed 41,400. There isoutstanding cheques which has been issued but it is not cleared by supplier for 10,000.Interest income is not recorded for 400. Petty Cash is 2,000.Cash in safe deposit in the office, which is deposit received from customers for 4,380.Travel cheques for 14,000.
12. 10. Investment in commercial paper which will be maturity of 3 to 12 month for 50,000
11. Investment in PT Hollywood for 100,000.
12. Company has a Patent for 100,000
JAWABAN
Question 1 (20%)
1
C
6
D
11
D
16
D
2
C
7
B
12
A
17
A
3
B
8
C
13
D
18
A
4
C
9
D
14
B
19
B
5
D
10
D
15
D
20
A
Question 2 (20%)
Sales 1,800,000Cost of goods sold 950,000Gross profit 850,000Selling expenses 300,000General and Administrative expenses 275,000575,000275,000Other income and expenseGain on sale of office building95,000Rent revenue 50,000Dividend revenue25,000Loss from impairment of receivable(15,000)155,000Income from operations 430,000Interest expense36,000Income before income tax 394,000Income tax (30%)118,200Income from continuing operations 275,800Discontinued operationsLoss from discontinued operations 72,000Less: Applicable income tax reduction (30%)(21,600)50,400Net income 225,400Other comprehensive incomeUnrealized holding gain on available for sales equity securities (net of tax)60,000Fixed assets revaluation surplus (net of tax)30,00090,000Comprehensive income 315,400Earnings per share: Income from continuing operations($275,800 ÷ 100,000) 2.76Loss from discontinued operations, net of tax ($50,400 ÷ 100,000)0.50Net income ($225,400 ÷ 100,000) 2.25SHINING CORPORATIONStatement of Comprehensive Income For the Year Ended December 31, 2010
14. Question 4 (20%)
Part 1
Dr. Loss on Impairment 230.900
Cr. Account Receivable 230.900
Part 2
Schedule of effective interest method:
Face Value of the Note Rp 1,500,000
Present Value of the Principal
$1,500,000 x 0.68301 (PV SS,10,4) Rp 1,024,515
Present Value of the Interest
12% x Rp1,500,000 x 3.16936 570,485 1,595,000
Difference – Premium on Notes Rp 95,000
Individual Signifikan, SpesifikPT A (= Rp 40 - Rp 25)15,000Rp PT D (= Rp 50 - Rp 0)50,000Rp Individual Signifikan, CollectivePT B100,000Rp PT C60,000Rp Sub Total (4% x Rp 160,000)160,000Rp 6,400Rp Individual Not Significant, CollectiveCurrent (4% x Rp 250,000)10,000Rp 1 - 30 days (16% x Rp 50,000)8,000Rp 31 - 60 days (33% x Rp 50,000)16,500Rp 61 - 180 days (60% x Rp 50,000)30,000Rp 181 - 365 days (90% x Rp 50,000)45,000Rp > 365 days (100% x Rp 50,000)50,000Rp Sub Total159,500Rp Loss on Impairment230,900Rp
15. Cash Received
Interest Income
Amort Premium
Carrying Value
1/1/2010
1,595,000
12/31/2010
180,000
159,500
20,500
1,574,500
12/31/2011
180,000
157,450
22,550
1,551,950
12/31/2012
180,000
155,195
24,805
1,527,145
12/31/2013
180,000
152,855
27,145
1,500,000
Assessment of impairment on 12/31/2010:
Carrying Amount of the Note Rp 1,574,500
Present Value of the Principal
75% x $1,500,000 x 0.75132 (PV SS,10,3) Rp 845,235
Present Value of the Interest
75% x 12% x Rp1,500,000 x 2.48685 335,725
End of year value, after impairment 1,180,960
Loss on Impairment Rp 393,540
2. Journal Entries:
01/01/2010
Notes Receivable ................................................................................. 1,595,000
Cash ......................................................................................... 1,595,000
12/31/2010
Cash ……………….. ................................................................................... 180,000
Notes Receivable ................................................................................. 20,500
Interest Income ....................................................................... 159,500
16. 12/31/2010
Loss on Impairment ............................................................................. 393,540
Notes Receivable .................................................................... 393,540
17. PT Bolibos DiazStatement of Financial PositionDecember 31, 2010Cash and Cash Equivalent51,780Short term Investment50,000Accounts Receivable (net)117,426Prepaid Expenses16,253Inventory489,713Property, Plant and Equipment1,400,800Accumulated depreciation240,2401,160,560Long term Investment100,000Intangible Assets100,000Total Assets2,085,732Accounts Payable177,152Notes Payable80,000Salary and Wages payable5,500Interest payable13,100Deposits received from customers4,380Accrued expenses20,380Bond liabilities due January 31, 2020425,000Total Liabilities725,512Share capital-Ordinary700,000Share Premium-Ordinary50,000Retained earnings610,220Total Equity1,360,220Total Liabilities and Equity2,085,7321. Sales on account during the year is 3,053,081, and the credit terms is 2 weeks. Assuming that all customers paid on time as per credit terms. 2/52 x 3,053,081117,426Accounts Receivable2. Purchase of inventory during the year is 2,125,825 and beginning of stock is 346,429, and inventory is recorded on the bookat end of the year is 511,713, but based on physical examination is 489,713. Loss of inventory is charged to Cost of Good Sold. Result of physical examination489,713InventoryPurchase of inventory during the year is on account, and the credit term is 1 month. Assuming the companyalways pay on time and beginning balance of its Accounts Payable is 176,000. 1/12 x 2,125,825177,152Accounts Payable3. Freight dan Transportation cost which have not been paid is 12,030. Utilities expense which have not been paid is 8,35012,0308,35020,380Accrued expenses4. Administration expense which have been paid is 248,593, and it is included prepaid insurance for 16,253.16,253Prepaid expenses5. The usefull life of Property, Plant and Equipment of 1,100,800 is 10 years, these assets have beendepreciated for 2 years and this year is the 3rd year. 1,100,800/10 x 3330,240 300,000/10 x 3-90,000240,240Accumulated DepreciationThe Equipment of 300,000, which has been depreciated for 2 years, is sold for 411,410 at end of the year. And at end of the year, company purchase the new equipment of 600,000 and the usefull life is the same. 1,100,800-300,000600,0001,400,800Property, Plant and Equipment6. Note payable of 80,000 with interest 10% pa, due on Desember 31, 2010 and it will be paid on January 5, 201180,000Note Payable 80,000 x 10%8,000Interest Payable (1) 7. Bond Payable of 425,000 which will be due on 2020. Interest is 12% pa and 10% of it, will be paid in January 2011.425,000Bond Payable 425,000 x 12% x 10%5,100Interest Payable (2) 8. Sales office salary is paid weekly basis and at the end of the year is not paid yet for 3 days, salary expense per day is 1,000 and Office Admin salary is 5 days not paid yet, cost per day is 500.3,0002,5005,500Salary and Wages payable9. In book record that Cash is 31,000 but the bank statement showed 41,400. There is outstanding chequeswhich has been issued but it is not cleared by supplier for 10,000. Interest income is not recorded for 400. Petty Cash is2,000. Cash in safe deposit in the office, which is deposit received from customers for 4,380. Travel cheques for 14,000.31,4002,0004,380Depopsit received from customers14,00051,780Cash and Cash Equivalent10. Investment in commercial paper which will be maturity of 3 to 12 month for 50,00050,000Short term investment11. Investment in PT Hollywood for 100,000.100,000Long term investment12, Company has a Patent for 100,000100,000Intangible Assets