最新外专业会计学习题答案

第1章国际会计的形成与发展一、讨论题1.1 为什么说市场国际化，特别是货币市场和资本市场的国际化是会计国际化的主要推动力？国际贸易和国际经济技术合作，促使会计成为一种国际商业语言。

特别是国际货币市场和资本市场的兴起向进入市场的贷款人或筹资者提出了应提供在国际间可比且可靠的财务信息的要求（即国际财务报告趋同化的要求），更成为会计国际化的主要推动力。

1.2 跨国公司是否在百分之百地推动会计国际化？说明你的观点。

不是。

跨国公司对推动会计国际化有其两面性：一方面，基于其跨国经营和国际筹资的需要，他们希望通过会计国际化来缩小和协调国别差异；另一方面，他们又十分重视利用各国现存的会计差异来谋取财务利益。

后者也推动了各国会计模式和重要会计方法的国际比较研究。

（注意：“会计国际化”大体上与“会计的国际协调化”概念一致，而与国际会计研究中的“国别会计”观点对立）1.3 会计随商业活动的扩展而传播，你同意这种说法吗？从历史发展的进程谈谈你的看法。

同意。

可主要就前殖民帝国的会计向其原殖民地传播、工业革命后西方会计的发展及在世界范围内的广泛传播以及第二次世界大战以后美国会计的影响在一定程度上主宰着世界各地的会计发展等历史事实，加以讨论。

1.4 哪些特定会计方法具有国际性质？把外币交易和外币报表的折算引入会计领域，是会计国际化带来的独特问题。

它与由此引发的跨国企业合并和国际合并财务报表与外币折算相互关联和制约的问题，以及各国的物价变动影响在国际合并财务报表中如何处理和调整的问题，从20世纪70年代以来，就成为国际会计研究中既需协调一致但又矛盾重重的“三大难题”。

在世纪之交，金融工具（特别是衍生工具）的创新引发的会计处理问题，给传统的会计概念和实务带来了巨大的冲击，成为各国会计准则机构联合攻关、仍未妥善解决的难题。

此外，国际税务会计也是值得关注的课题。

1.5 你对会计国际化和国家化之间的矛盾及其消长有何看法？会计国际化和国家化的矛盾实际上反映了经济全球化与各国的国家利益之间的矛盾及其消长过程。

会计学原理课后答案第一章总论一、单选1．A 2.B 3.B 4.A 5.C6.B7.A8.C9.B 10.B11.B 12..D 13.D 14.A 15.C16.B 17.A 18.D 19.B 20.D二、多选1.BCE2.ABD3. ABCE4.BCE5.ACDE6.ABCDE7.BCE8. ABCDE9.ABCDE 10.AC11.AD 12.ABCDE 13.ACE 14.ABCDE 15.ABDE练习一：租入的汽车，因为不符合资产的定义，不属于大华公司的资产。

如果汽车是企业由外部购入，则符合资产定义，可作为资产。

练习二：资产：1、2、3、6、9、10、13负债：4、8、12所有者权益：5、7、11练习三：练习四：第二章账户与复式记账一、单选1.A2.B3.D4.D5.B6.B7.C8.B9.A 10.A二、多选1.ABCD2.ACDE3.ACDE4.BDE5.ABC6.CD7.ABC8.ABCE9.AC 10.BCE 11.BCE练习题：练习一2010年7月：期初所有者权益=250,000-209,000=41,000期末所有者权益=295,000-231,000=64,000(1) 利润=64,000-41,000-25,000=-2,000(2) 利润=64,000-41,000+15,000=38,000(3) 利润=64,000-41,000-45,000+8,000=-14,000(4) 利润=64,000-41,000=23,000练习二1、资产增加，所有者权益增加；2、一项资产增加，一项资产减少；3、资产增加，负债增加；4、资产减少，负债减少；5、一项负债减少，一项负债增加；6、一项资产减少，一项资产增加；7、资产减少，所有者权益减少 8、一项所有者权益增加，一项所有者权益减少9、负债增加，所有者权益减少 10、一项资产减少，一项资产增加练习三1、(1) 资产一增一减：银行存款减少50,000元,原材料增加50,000;(2) 负债一增一减：短期借款增加100,000元,应付账款减少100,000元;(3) 所有者权益一增一减：资本公积减少30,000元,实收资本增加30,000元;(4) 资产增加,所有者权益增加：固定资产增加200,000元,资本公积增加200,000元;(5) 资产减少,所有者权益减少：银行存款减少50,000元,实收资本减少50,000元.2、1月初：资产总额=1,000,000负债总额=200,000+150,000=350,000所有者权益总额=600,000+50,000=650,0001月末：资产总额=1,000,000-(50,000-50,000)+200,000-50,000=1,150,000 负债总额=350,000+(100,000-100,000)=350,000所有者权益总额=650,000+(30,000-30,000)+200,000-50,000=800,000练习四：1、(1) 资产增加负债增加：银行存款增加20万,短期借款增加20万(2) 资产减少负债减少：银行存款减少15万,应付账款减少15万;(3) 负债一增一减：应付票据增加5万,应付账款减少5万;(4) 资产减少,负债减少：库存现金减少8万,应付职工薪酬减少8万.2、2010年1月初：资产总额=150万负债总额=50万所有者权益总额=100万2010年1月末：资产总额=150+20-15-8=147万负债总额=50+20-15+5-5-8=47万所有者权益总额=100万练习五：银行存款期初余额 33 460① 40 000② 30 000③ 22 000④ 35 000⑤ 55⑥ 4 800⑦ 12 000 本期发生额 75 055 68 800 期末余额 39 715练习六资产类：（4）、（5）、（7）、（10）、（15）负债类：(1) 、(3) 、(13)、（17）、（19）所有者权益：（2）、（6）、（16）、（20）成本类：（8）、（18）收入类：（11）、（12）费用类：（14）、（9）虚账户：（9）、（11）、（12）、（14）调整类：（6）、（15）结算类：（1）、（3）、（4）、（17）、（19）盘存类：（5）练习七练习八1、借：银行存款 75 000贷：实收资本 75 0002、借：库存商品 27 000贷：应付账款 27 0003、借：银行存款 15 000贷：应收账款 15 0004、借：库存现金 50 000贷：银行存款 50 0005、借：销售费用 50 000贷：应付职工薪酬 50 0006、借：应收账款 62 000银行存款 128 000贷：主营业务收入 190 0007、借：销售费用 180贷：库存现金 1808、借：销售费用 47 820贷：银行存款 47 8209、借：应付账款 24 800贷：银行存款 24 80010、借：固定资产 55 000贷：银行存款 15 000应付账款 40 00011、借：应付职工薪酬 50 000贷：库存现金 50 000库存现金应收账款本期发生额 50 000 50 180 本期发生额 62 000 15 000 期末余额 320 期末余额 74 000银行存款库存商品本期发生额 218 000 92 620 本期发生额 27 000期末余额 137 380 期末余额 80 000固定资产应付账款本期发生额 55 000 本期发生额 24 800 67 000 期末余额 161 000 期末余额 60 700销售费用应付职工薪酬本期发生额 98 000 本期发生额 50 000 50 000 期末余额 98 000 期末余额 0主营业务收入实收资本本期发生额 190 000 本期发生额 75 000 期末余额 190 000 期末余额 255 000本期发生额及余额试算平蘅表2010年5月总表科目期初余额本期发生额期末余额借方贷方借方贷方借方贷方库存现金 500 50 000 50 180 320银行存款 12 000 218 000 137 620 92 380应收账款 27 000 62 000 15 000 74 000库存商品 53 000 27 000 80 000固定资产 106 000 55 000 161 000应付账款 18 500 24 800 67 000 60 700销售费用 98 000 98 000应付职工薪酬 50 000 50 000主营业务收入 190 000 190 000实收资本 180 000 75 000 255 000总计 198 500 198 500 584 800 584 800 505 700 505 700练习九1、借：固定资产 400 000贷：实收资本 400 0002、借：银行存款 50 000贷：短期借款 50 0003、借：原材料 12 000贷：银行存款 12 0004、借：生产成本 8 000贷：原材料 8 0005、借：应付账款 40 000贷：银行存款 40 0006、借：银行存款 60 000贷：实收资本 60 0007、借：其他应收款 1 000贷：库存现金 1 0008、借：原材料 45 000贷：应付账款 45 0009、借：固定资产 160 000贷：银行存款 160 00010、借：制造费用 100贷：库存现金 10011、借：银行存款 6 000库存现金 600贷：应收账款 6 60012、借：管理费用 980库存现金 20贷：其他应收款 1 00013、借：库存现金 22 000贷：银行存款 22 000练习十1．借:银行存款 200 000贷:实收资本 200 0002.借:固定资产 40 000贷:银行存款 40 0003.借:原材料 15 000贷:应付账款 15 0004.借:库存现金 2 000贷:银行存款 2 0005.借:银行存款 20 000贷:短期借款 20 0006.借:应付账款 35 000贷:银行存款 35 0007.借:生产成本 12 000贷:原材料 12 0008 .借:短期借款 30 000贷:银行存款 30 000《会计学原理》第3章参考答案自测题一、单项选择题1. C2. B3. C4. B5. D6. A7. C8. B9. C 10. D二、多项选择题1. BCD2. ACE3.AC4. ABC5. BCD6.ACDE7.ACDE8.ABCDE9. ABC 10.ABC三、判断题1. ×2. √3. √4. √5. ×6. ×7.×8.×9.× 10.×练习题习题一1.借：银行存款 3 000 000固定资产 200 000原材料 100 000应交税金—应交增值税（进项税额）17 000无形资产 56 000贷：实收资本 3 373 0002.借：银行存款 150 000贷：短期借款 150 0003.借：银行存款 117 000贷：长期借款 117 0004.借：短期借款 50 000长期借款 100 000贷：银行存款 150 000习题二1.编制会计分录：（1）借：在途物资—A材料 10 000应交税费—应交增值税（进项税额） 1 700贷：银行存款 11 700（2）①借：在途物资—A材料 500贷：库存现金 500②借：原材料—A材料 10 500贷：在途物资—A材料 10 500（3）借：在途物资—B材料 5 000—C材料 20 000应交税费—应交增值税（进项税额）4 250 贷：应付票据 29 250（4）分配率=6 000/（500+1 000）=4（元/千克）B材料应分摊的运杂费=500×4=2 000（元）C材料应分摊的运杂费=1 000×4=4 000（元）借：在途物资—B材料 2 000—C材料 4 000贷：银行存款 6 000（5）借：原材料—B材料 7 000—C材料 24 000贷：在途物资—B材料 7 000—C材料 24 000（6）借：应付票据 29 250贷：银行存款 29 2502.计算采购成本A材料的采购成本= 10 000+500= 10 500 （元）B材料的采购成本= 5 000+2 000= 7 000 （元）C材料的采购成本= 20 000+4 000= 24 000 （元）习题三1.编制会计分录（1）借：生产成本—甲产品 16 600—乙产品 12 825制造费用 3 030管理费用 1 120贷：原材料—A材料 9 555—B材料 6 020—C材料 18 000（2）借：生产成本—甲产品 5 000—乙产品 4 000制造费用 3 000管理费用 3 000贷：应付职工薪酬 15 000（3）①借：库存现金 15 000贷：银行存款 15 000②借：应付职工薪酬 15 000贷：库存现金 15 000（4）借：制造费用 400贷：库存现金 400（5）借：管理费用 230库存现金 70贷：其他应收款 300（6）借：管理费用 370制造费用 1 020贷：银行存款 1 390（7）借：制造费用 1 120贷：银行存款 1 120（8）借：制造费用 800贷：原材料 800（9）借：管理费用 1 000制造费用 2 000贷：银行存款 3 000（10）借：管理费用 300贷：库存现金 300（11）借：待摊费用 240贷：库存现金 240 借：管理费用 80贷：待摊费用 80 （12）借：财务费用 900贷：应付利息/预提费用 900（13）借：制造费用 1 000管理费用 500贷：累计折旧 1 5002.登账略习题四（1）借：银行存款 46 800 贷：主营业务收入 40 000 应交税金—应交增值税（销项税额） 6 800（2）借：应收账款—精艺工厂 35 100 贷：主营业务收入 30 000 应交税金—应交增值税（销项税额） 5 100（3）借：销售费用 1 000 贷：银行存款 1 000 （4）借：销售费用 1 000 贷：应付职工薪酬 1 000（5）借：销售费用 1 500 贷：银行存款 1 500（6）借：银行存款 936 贷：其他业务收入 800 应交税费—应交增值税（销项税额） 136（7）借：其他业务成本 525贷：原材料—A材料 525（8）借：银行存款 35 100贷：应收账款—精艺工厂 35 100习题五1.编制会计分录（1）该厂采用生产工人工资作为制造费用的分配标准。

Suggested SolutionChapter 13.4.5.(b) net income = 9,260-7,470=1,790(c) net income = 1,790+2,500=4,290Chapter 21.a.To increase Notes Payable -CRb.To decrease Accounts Receivable-CRc.To increase Owner, Capital -CRd.To decrease Unearned Fees -DRe.To decrease 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 ................................................... 1,800 b.Revenue ................................................................... 4,500Accounts receivable ...................................... 4,500c.Owner’s withdrawals ................................................ 1,500Salaries Expense ............................................ 1,500 d.Accounts Receivable (750)Revenue (750)3.Prepare adjusting journal entries at December 31, the end of the year.Advertising expense 600Prepaid advertising 600Insurance expense (2160/12*2) 360Prepaid insurance 360Unearned revenue 2,100Service revenue 2,100Consultant expense 900Prepaid consultant 900Unearned revenue 3,000Service revenue 3,000 4.1. $388,4002. $22,5203. $366,6004. $21,8005.1. net 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 balance $6,220 Reconciled balance $6,2202. April 7 Dr: Notes receivable—A company 5400Cr: Accounts receivable—A company 540012 Dr: Cash 5394.5Interest expense 5.5Cr: Notes receivable 5400June 6 Dr: Accounts receivable—A company 5533Cr: Cash 553318 Dr: Cash 5560.7Cr: Accounts receivable—A company 5533Interest revenue 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 + the cost of goods=80,000+200,000*500%=80,000+1,000,000=1,080,0005.(1) 24,000+60,000-90,000*0.8=12000(2) (60,000+24,000)/( 85,000+31,000)*( 85,000+31,000-90,000)=18828Chapter 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 = 28,880.2. (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 = ( 600,000 – 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 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 1,200,000 December 31, 2009 Cash 42,500Investment in K 42,500Investment in K 146,000Investment revenue 146,000 c. 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: Inventory 198,000Cr: Accounts Payable 198,000 June 11: Dr: Accounts Payable 198,000Cr: Notes Payable 198,000 June 12: Dr: Cash 300,000Cr: Notes Payable 300,000b. Dr: Interest Expenses (for notes on June 11) 12,100Cr: Interest Payable 12,100Dr: Interest Expenses (for notes on June 12) 8,175Cr: Interest Payable 8,175c. Balance sheet presentation:Notes Payable 498,000 Accrued Interest on Notes Payable 20,275d. For Green:Dr: Notes Payable 198,000 Interest Payable 12,100Interest Expense 7,700Cr: Cash 217,800For Western:Dr: Notes Payable 300,000Interest Payable 8,175Interest Expense 18,825Cr: Cash 327,0002.(1) 208 Deferred income tax is a liability 2,400Income tax payable 21,600 209 Deferred income tax is an asset 600 Income tax payable 26,100(2) 208: Dr: Tax expense 24,000Cr: Income tax payable 21,600 Deferred income tax 2,400 209: Dr: Tax expense 25,500 Deferred income tax 600Cr: Income tax payable 26,100 (3) 208: Income statement: tax expense 24,000Balance sheet: income tax payable 21,600 209: Income statement: tax expense 25,500 Balance sheet: income tax payable 26,1003.a. 1,560,000 (20000000*12 %* (1-35%))b. 7.8% (20000000*12 %* (1-35%)/20000000)5.Notes Payable 14,400 Interest Payable 1,296 Accounts Payable 60,000 +Unearned Rent Revenue 7,200 Current Liabilities 82,896Chapter 61. Mar. 1Cash 1,200,000Common Stock 1,000,000Paid-in Capital in Excess of Par Value 200,000Mar. 15Organization Expense 50,000Common Stock 50,000Mar. 23Patent 120,000Common Stock 100,000Paid-in Capital in Excess of Par Value 20,000The value of the patent is not easily determinable, so use the issue price of $12 per share on March 1 which is the issuing price of common stock.2. July.1Treasury Stock 180,000Cash 180,000The cost of treasury purchased is 180,000/30,000=60 per share.Nov. 1Cash 70,000Treasury Stock 60,000Paid-in Capital from Treasury Stock 10,000Sell the treasury at the cost of $60 per share, and selling price is $70 per share. The treasury stock is sold above the cost.Dec. 20Cash 75,000Paid-in Capital from Treasury Stock 15,000Treasury Stock 90,000The cost of treasury is $60 per share while the selling price is $50 which is lower than the cost.3. a. July 1Retained Earnings 24,000Dividends Payable—Preferred Stock 24,000b.Sept.1Dividends Payable—Preferred Stock 24,000Cash 24,000c. Dec.1Retained Earnings 80,000Dividends Payable—Common Stock 80,000d. Dec.31Income Summary 350,000Retained Earnings 350,0004.a. Preferred stock gives its owner certain advantages over common stockholders. These benefits include the right to receive dividends before the common stockholders and the right to receive assets before the common stockholders if the corporation liquidates. Corporation 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 stockholders’ equity; the date of record and the date of payment have no effect on stockholders.5.a. Jan. 15Retained Earnings 35,000Accumulated Depreciation 35,000To correct error in prior year’s depreciation.b. Mar. 20Loss from Earthquake 70,000Building 70,000c. Mar. 31Retained Earnings 12,500Dividends Payable 12,500d. Apirl.15Dividends Payable 12,500Cash 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 value 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 amount of Common Stock ($10 par value) decreases 275,000, while the amount of Common Stock ($5 par value) increases 275,000.Chapter 71.Requirement 1If revenue is recognized at the date of delivery, the following journal entries would be used to record the transactions for the two years:Year 1Inventory ....................................................................................... 480,000 Cash/Accounts payable .......................................................... 480,000 To record purchase of inventoryInventory ....................................................................................... 124,000 Cash/Accounts payable .......................................................... 124,000 To record refurbishment of inventoryAccounts receivable ...................................................................... 310,000 Sales revenue ......................................................................... 310,000 To record sale of goods on accountCost of goods sold ........................................................................ 220,000 Inventory ................................................................................. 220,000 To record the cost of the goods sold as an expenseSales returns (I/S) ......................................................................... 15,500* Allowance for sales returns (B/S) ........................................... 15,500 To record provision for return of goods sold under 30-day return period* 5% of $310,000Warranty expense ......................................................................... 31,000* Provision for warranties (B/S) ................................................. 31,000 To record provision, at time of sale, for warranty expenditures* 10% of $310,000Allowance for sales returns .......................................................... 12,400 Accounts receivable ............................................................... 12,400 To record return of goods within 30-day return period.It is assumed the returned goods have no value and are disposed of.Provision for warranties (B/S) ....................................................... 18,600 Cash/Accounts payable .......................................................... 18,600 To record expenditures in year 1 for warranty workCash .............................................................................................. 297,600*Accounts receivable ............................................................... 297,600 To record collection of Accounts Receivable* $310,000 – $12,400Year 2Provision for warranties (B/S) ....................................................... 8,400 Cash/Accounts payable .......................................................... 8,400 To record expenditures in year 2 for warranty workRequirement 2If revenue is recognized only when the warranty period has expired, the following journal entries would be used to record the transactions for the two years:Year 1Inventory ....................................................................................... 480,000 Cash/Accounts payable .......................................................... 480,000 To record purchase of inventoryInventory ....................................................................................... 124,000 Cash/Accounts payable .......................................................... 124,000 To record refurbishment of inventoryAccounts receivable ...................................................................... 310,000 Inventory ................................................................................. 220,000 Deferred gross margin ............................................................ 90,000 To record sale of goods on accountDeferred gross margin .................................................................. 12,400 Accounts receivable ............................................................... 12,400 To record return of goods within the 30-day return period. It is assumed the goods haveno value and are disposed of.Deferred warranty costs (B/S) ...................................................... 18,600 Cash/Accounts payable .......................................................... 18,600 To record expenditures for warranty work in year 1. The warranty costs incurred are deferred because the related revenue has not yet been recognizedCash .............................................................................................. 297,600* Accounts receivable ............................................................... 297,600 To record collection of Accounts receivable* $310,000 – $12,400Year 2Deferred warranty costs ................................................................ 8,400 Cash/Accounts payable .......................................................... 8,400 To record warranty costs incurred in year 2 related to year 1 sales. The warranty costs incurred are deferred because the related revenue has not yet been recognized.Deferred gross margin .................................................................. **77,600Cost of goods sold ........................................................................ 220,000 Sales revenue ......................................................................... 297,600* To record recognition of sales revenue from year 1 sales and related cost of goods sold at expiry of warranty period* $310,000 – $12,400** ($90,000 – $12,400)Warranty expense ......................................................................... 27,000* Deferred warranty costs ......................................................... 27,000 To record recognition of warranty expense at same time as related sales revenue recognition* $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 amount of warranty work that will be required under the terms of the one-year warranty. If Allied is not able, at the time of sale, to make a good estimate of the warranty work that will be required, then the measurability criterion of revenue recognition is not met at the time of sale. The measurability criterion means that the amount of revenue can be reliably measured. If the seller is not able to estimate the amount of work that will have to be done under the warranty agreement, then it is not able to reasonably measure the profit that itwill eventually earn on the sales. The performance criteria might also be invoked here.The performance criterion means that the seller has transferred the significant risks and rewards of ownership to the buyer. As long as there is warranty work to be performed after the sale that is the responsibility of the seller, you might argue that performance is not substantially complete. However, if the seller was able to reliably estimate the amount of warranty work, then performance would be satisfied on the assumption that we could measure the risk that remains with the seller, and make a provision for it.2.Percentage-of-completion method:The first step in applying revenue recognition using the percentage-of-completion method (using costs incurred to date compared to estimated total costs to determine the percentage of completion) is to estimate the percentage of completion of the project at the end of each year. This is done in the following table (in $000s):End of 2005 End of 2006 End of 2007Total costs incurred $ 5,400 $ 12,950 $ 18,800 Total estimated costs 18,000 18,500 18,800 % completed 30% 70% 100%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 the percentage completed to date, less what has previously been recorded in revenue. This is done in the following table (in $000s):2005 2006 20072005 $20,000 × 30% $ 6,0002006 $20,000 × 70% $ 14,0002007 $20,000 × 100% $ 20,000 Less: Revenue recognized in prior years (0) (6,000) (14,000) Revenue for year $ 6,000 $ 8,000 $ 6,000Therefore, the profit to be recognized each year on the construction project would be:2005 2006 2007 TotalRevenue recognized $ 6,000 $ 8,000 $ 6,000 $ 20,000 Construction costs incurred (expenses) (5,400) (7,550) (5,850) (18,800) Gross profit for the year $ 600 $ 450 $ 150 $ 1,200The following journal entries are used to record the transactions under thepercentage-of-completion method of revenue recognition:2005 2006 20071. Costs of construction:Construction in progress .................. 5,400 7,550 5,850 Cash, payables, etc. ..... 5,400 7,550 5,850 2. Progress billings:Accounts receivable ............ 3,100 4,900 12,000 Progress billings ............ 3,100 4,900 12,000 3. Collections on billings:Cash .................................... 2,400 4,000 12,400 Accounts receivable ...... 2,400 4,000 12,400 4. Recognition of profit:Construction in progress ..... 600 450 150Construction expense.......... 5,400 7,550 5,850 Revenue from long-termcontract ...................... 6,000 8,000 6,000 5. To close construction in progress:Progress billings .................. 20,000 Construction in progress .20,0002005 2006 2007Balance sheetCurrent assets:Accounts receivable $ 700 $ 1,600 $ 1,200 Inventory:Construction in process 6,000 14,000 Less: Progress billings (3,100) (8,000)Costs in excess of billings 2,900 6,000Income statementRevenue from long-term contracts $ 6,000 $ 8,000 $ 6,000 Construction expense (5,400) (7,550) (5,850) Gross profit $ 600 $ 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 example, for the sale of products, IAS18 defines 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 is done at the time of sale. Although the seller may have performed much of the work prior to the sale (production, selling efforts, etc.), there is still significant risk to theseller that a buyer may not be found. Therefore, from a reliability point of view,revenue recognition is delayed until the point of sale. Also, there may be significant risks remaining with the seller of the product even after the sale. Warranties given by the seller are a risk that remains with the seller. However, if this risk can be reliably estimated at the time of sale, revenue can be recognized at the point of sale.Performance is quite different under a long-term construction contract. Here,performance really is considered to be a measure of the work done. Revenue isrecognized over the production period as the work is performed. It is intended toreflect the amount of effort expended by the seller (contractor). Although legal titlewon’t transfer to the buyer until the project is completed, revenue can be recognized because there is a known and committed buyer. If the contractor is not able toestimate how much of the work has been done (perhaps because he or she can’treliably estimate how much work must still be done), then profit would not berecognized until the extent of performance is known.Measurability means that the seller or service provider must be able to reliablyestimate the amount of the revenue from the sale or service. For the sale of products this is generally known at the time of sale (the sales price is set). However, if the seller provides a return period, it may be necessary to estimate the volume of returns at the time of sale in order to measure the revenue that will be recognized.Collectibility means that the seller or the service provider has reasonable assurance that the sales price will actually be collected. In most cases for the sales of products, the seller is able to recognize revenue at the time of sale even if the sale is on account.This is because the seller has experience with its customers and is able to estimate reliably the risk of non payment. As long as the seller is able to make this estimate, it is appropriate to recognize the revenue but to offset it with a provision for possible non collection. If the seller is unable to make reliable estimates of future collection ofamounts owing, the recognition of revenue would be delayed until the cash is actually received. This is what is done using the instalment sales method of revenuerecognition.b. Because of the performance criterion of revenue recognition, it would seem to bemost appropriate to recognize most revenue as the seller or service provider performs the work. This would be the best measure of performance. This would mean, for example,that sellers of products would recognize their revenue over the whole production, selling, and post sales servicing periods. As we saw above, this is not commonly done because,in many cases, there are still significant risks that are retained by the seller (risk of not being able to sell the product, for example). There are also measurement risks (knowingthe selling price) that exist prior to the sale. The percentage-of-completion method of revenue used for some long-term construction contracts would seem to most closely recognize revenue as the work is performed. As mentioned in Part 1, we are able to recognize revenue on this basis since a contract exists which commits the purchaser tobuy the project (assuming certain conditions are met) and the sales price is known because of the existence of the contract.4.If all revenue is recognized when a student registers for the course, profit for 2007 would be:Sales Revenue1:Manuals and initial lessons (200 × $100) $ 20,000 Additional lessons ((200 × 8) × $30) 48,000 Examinations ((200 × 80%) × $130) 20,800 Total sales revenue 88,800Cost of sales:Manuals and initial lessons (200 × ($15 + $3)) 3,600 Additional lessons ((200 × 8) × $3)) 4,800Examinations ((200 × 80%) × $30) 4,800 Total cost of sales 13,200Depreciation of development costs:$180,000 × (200/1,000) 36,000Profit $ 39,6005.FINISH ENTERPRISESIncome Statementfor the year ending December 31, 2005Continuing operations (excluding the chemical division)Sales ($35,000,000 – $5,500,000) $ 29,500,000Cost of sales ($15,000,000 – $2,800,000) (12,200,000)Gross profit 17,300,000Selling & administration expenses($18,000,000 – $3,200,000) (14,800,000)Profit from operations 2,500,000Income tax expense (40%) 1,000,000Profit after tax $ 1,500,000Discontinuing operations (Chemical division)Sales 5,500,000Cost of sales (2,800,000)Gross profit 2,700,000Selling & administration expenses (3,200,000)Loss from operations (500,000)Income tax expense(40%) 200,000Loss after tax (300,000) Gain on discontinuance of the Chemical division 3,500,000Tax thereon (1,400,000)After-tax gain on discontinuance of the Chemical division 2,100,000 Enterprise net profit $ 3,300,000Chapter 81.Payment of account payable. operatingIssuance of preferred stock for cash. financingPayment of cash dividend. financingSale of long-term investment. investingAmortization of bond discount. no effectCollection of account receivable. operatingIssuance of long-term note payable to borrow cash. financing Depreciation of equipment. no effectPurchase of treasury stock. financingIssuance of common stock for cash. financingPurchase of long-term investment. investingPayment of wages to employees. operatingCollection of cash interest. investingCash sale of land. InvestingDistribution of stock dividend. no effectAcquisition of equipment by issuance of note payable. no effect Payment of long-term debt. financingAcquisition of building by issuance of common stock. no effect Accrual of salary expense. no effect2.(a) Cash received from customers = 816,000(b) Cash payments for purchases of merchandise. =468,000(c) Cash payments for operating expenses. = 268,200(d) Income taxes paid. =36,9003.Cash sales …………………………………………... $9,000 Payment of accounts payable ……………………….-48,000 Payment of income tax ………………………………-13,000 Payment of interest ……………………………..…..-16,000 Collection of accounts receivable ……………………93,000 Payment of salaries and wages ……………………….. -34,000 Cash flows from operating activitiesby the direct method -9,0004.Operating activities:Net loss -200,000 Add: loss on sale of land 250,000 Add: depreciation 300,000Add: amortization of patents 20,000Less: increases in current assets other than cash -750,000Add: increases in current liabilities 180,000Net cash flows from operating -200,000Investing activitiesSale of land -50,000Purchase of PPE -1,500,000Net cash flows from investing -1,550,000Financing activitiesIssuance of common shares 400,000Payment of cash dividend -50,000Issuance of non-current liabilities 1,000,000Net cash flows from financing 1,350,000 Net changes in cash -400,000 5.。

《会计学》课后习题答案第二章答案练习题（假设不考虑增值税）1.借：固定资产 750 000贷：实收资本 750 0002.借：银行存款 620 000贷：短期借款 620 0003.借：原材料 120 000贷：应付账款 120 0004.借：库存商品 8 600贷：银行存款 8 6005.借：应付职工薪酬 6 300贷：库存现金 6 3006.借：应收账款 9 200贷：主营业务收入 9 2007.借：应付账款 120 000贷：银行存款 120 0008.借：银行存款 3 400贷：库存现金 3 4009.借：银行存款 9 200贷：应收账款 9 200第三章答案1.（1）借：库存现金 4 800贷：银行存款 4 800（2）借：原材料 57 000贷：银行存款 57 000（3）借：其他应收款——李明 4 000贷：库存现金 4 000（4）借：原材料 62 000贷：应付账款 62 000（5）借：银行存款 22 000贷：应收账款 22 000（6）借：管理费用 1 750贷：库存现金 1 750（7）借：应付账款 62 000贷：银行存款 62 000（8）借：银行存款 126 000贷：主营业务收入 126 000 （9）借：管理费用 3 300库存现金 700贷：其他应收款——李明 4 000 （10）借：银行存款 2 400贷：库存现金 2 400登记三栏式现金日记账和银行存款日记账（略）。

2．（1）采用红字更正法：借：原材料贷：银行存款借：固定资产 3 400贷：银行存款 3 400（2）采用补充登记法借：银行存款 5 400贷：应收账款 5 400（3）采用红字更正法借：银行存款贷：主营业务收入第四章答案1.答案：（1）借：库存现金 300贷：银行存款 300（2）借：其他应收款 1 800贷：银行存款 1 800（3）借：其他应收款—备用金 1 000贷：库存现金 1 000（4）借：库存现金 150管理费用 1 650贷：其他应收款 1 800（5）借：其他货币资金—外埠存款 32 000贷：银行存款 32 000（6）借：管理费用 600贷：库存现金 600（7）①发现现金溢余：借：库存现金 36贷：待处理财产损溢—待处理流动资产损溢 36②批准处理：借：待处理财产损溢—待处理流动资产损溢 36贷：营业外收入 36（8）①发现现金短缺：借：待处理财产损溢—待处理流动资产损溢 58贷：库存现金 58②批准处理：借：管理费用 58贷：待处理财产损溢—待处理流动资产损溢 58（9）借：原材料 26 000应交税费—应交增值税（进项税额） 4 420贷：其他货币资金—外埠存款 30420 借：银行存款 1 580贷：其他货币资金—外埠存款 1 5802.银行存款余额调节表2009年6月30日单位：元3.（1）贴现息= 30 000×4×12%9=900（元） 贴现所得=30 000—900= 29 100 (元)（2）到期价值=45 000×(1+90×360%6)= 45 675（元） 贴现息= 45 675×（90-20）×360%9= 799.31（元) 贴现所得= 45 675—799.31=44 875.69(元) 有关的账务处理如下： 借：银行存款 73975.69 财务费用 1699.31 贷：应收票据 75 675 4.（1）第一年年末开始提取坏账准备时，当年应计提的坏账准备为 3 200元（640 000×5‰），会计分录为：借：资产减值损失 3 200 贷：坏账准备 3 200(2) 第二年发生坏账损失5000元，会计分录为： 借：坏账准备 5 000 贷：应收账款 5 000第二年年末计提坏账准备时，当年应保持的坏账准备贷方余额为 3 600元（720000×5‰），而“坏账准备”账户的期末借方余额为1 800元，因此，应补提坏账准备5 400元，会计分录为：借：资产减值损失 5 400 贷：坏账准备 5 400（3）第三年发生坏账损失3 000元，会计分录为： 借：坏账准备 3 000 贷：应收账款 3 000上年已冲销的坏账5000元又收回，，会计分录为： 借：应收账款 5 000 贷：坏账准备 5 000 借：银行存款 5 000 贷：应收账款 5 000第三年年末计提坏账准备时，当年应保持的坏账准备贷方余额为2150元（430000×5‰），而“坏账准备”账户的期末贷方余额为5600元，应冲销坏账准备3 450元，有关的会计分录为：借：坏账准备 3 450贷：资产减值损失 3 450第五章答案1.答案：（1）发出A材料的单位成本＝（20000－2000＋2200＋37000＋51500＋600）/（2000＋2950＋5000＋50）＝109300/10000＝10.93（元/公斤）（2）①借：原材料 2000贷：应付账款2000②借：原材料 2200应交税金——应交增值税（进项税额） 306贷：银行存款2506③借：在途物资 37000应交税金——应交增值税（进项税额） 6120贷：银行存款43120④借：原材料 37000贷：在途物资37000⑤借：原材料 51500应交税金——应交增值税（进项税额） 8415银行存款 20085贷：其他货币资金80000⑥借：原材料 600贷：生产成本600⑦借：生产成本 65580制造费用 10930管理费用 10930贷：原材料87440解析：发出材料的单位成本为10.93元，则基本生产车间领用的材料为6 000*10.93=65 580元，应计入生产成本；车间管理部门领用的材料为1 000*10.93=10 930元，应计入制造费用；管理部门领用材料为1 000*10.93=10 930元，应计入管理费用。

（财务会计）西⽅财务会计课后习题答案Chapter 6Merchandise Inventory and Cost of Goods SoldCheck Points(10 min.) CP 6-1Nissan North AmericaBalance SheetDecember 31, 20X6Current assets:Inventory (300 @ $80)…………………..$24,000Nissan North AmericaIncome StatementYear Ended December 31, 20X6Sales revenue [700 ($80 + $40)]……….$84,000Cost of goods sold (700 @ $80)………… 56,000Gross profit………………………………….$28,000Chapter 6 Merchandise Inventory and Cost of Goods Sold 379(10-15 min.) CP 6-2 1. (Journal entries) Inventory…………………………………..100,000Accounts Payable…………………….100,000 Cash ($140,000 ?.20)……………………28,000 Amounts Receivable ($140,000 ? .80).. 112,000Sales Revenue………………………...140,000 Cost of Goods Sold……………………..60,000 Inventory ($100,000 ?.60)…………..60,000 2. (Financial statements)BALANCE SHEETCurrent assets:Inventory ($100,000 –$60,000)……………….$40,000 INCOME STATEMENTSales revenue………………………………………$140,000Cost of goods sold……………………………….. 60,000Gross profit…………………………………………$ 80,000 380Financial Accounting 6/e Solutions Manual(10 min.) CP 6-3Billions Inventory………………………… 6.4Cash…………………………... 6.4 Accounts Receivable………….28.5Sales Revenue……………….28.5Cost of Goods Sold…………… 6.2Inventory……………………... 6.2 Cash………………………………26.3Accounts Receivable……….26.3Chapter 6 Merchandise Inventory and Cost of Goods Sold 381(10 min.) CP 6-41. I nventory costs are increasing from $10 to $14 to $18 per unit.2. FIFO results in the highest cost of ending inventory($360)because under FIFO the ending inventory is costed at the last costs incurred during the period. When costs are increasing, the last costs are the highest costs.FIFO results in the lowest cost of goods sold. This occurs because the oldest costs are assigned to cost of goods sold. When costs are increasing, the oldest costs are the lowest.FIFO results in the highest gross profit because cost of goods sold, the expense, is the lowest. (Sales revenue is unaffected by the inventory costing method.)3. LIFO results in the lowest cost of ending inventory($240)because under LIFO, the ending inventory is costed at the oldest costs. When costs are increasing, the oldest costs are the lowest costs.LIFO results in the highest cost of goods sold. This occurs because the last costs of the period are assigned to cost of goods sold. When costs are increasing, the last costs are the highest.LIFO results in the lowest gross profit because cost of goods sold, the expense, is the highest. (Sales revenue is unaffected by the inventory costing method.)382Financial Accounting 6/e Solutions Manual(10 min.) CP 6-5a b cAverageCost FIFO LIFO Cost of goods sold:Average (50 @ $15*) $750FIFO (10 @ $10) + (25 @ $14) + (15 @ $18) $720LIFO (25 @ $18) + (25 @ $14) $800 Ending inventory:Average (10 @ $15*) $150FIFO (10 @ $18) $180LIFO (10 @ $10) $100 _____*Average cost= ($100 + $350 + $450)= $15per unit (10 + 25 + 25)Chapter 6 Merchandise Inventory and Cost of Goods Sold 383(10-15 min.) CP 6-6Kinko’sIncome StatementYear Ended December 31, 20XXAverage FIFO LIFO Sales revenue (600 ? $20) $12,000 $12,000 $12,000 Cost of goods sold (600 ? $9.90*)5,940(100 ? $9) + (500 ? $10) 5,900(600 ? $10) 6,000 Gross profit 6,060 6,100 6,000 Operating expenses 4,000 4,000 4,000 Net income $ 2,060 $ 2,100 $ 2,000 _____*Beginning inventory (100 @ $9.20)…………..$ 920 Purchases (700 @ $10)………………………… 7,000Goods available…………………….……………$7,920 Average cost per unit $7,920 / 800 units…$ 9.90384Financial Accounting 6/e Solutions Manual(10 min.) CP 6-7Kinko’sIncome StatementYear Ended December 31, 20XXAverage FIFO LIFO Sales revenue (600 ? $20) $12,000 $12,000 $12,000 Cost of goods sold (600 ? $9.90*)5,940(100 ? $9) + (500 ? $10) 5,900(600 ? $10) ______ ______ 6,000 Gross profit 6,060 6,100 6,000 Operating expenses 4,000 4,000 4,000 Income before income tax $ 2,060Income tax expense (40%) $ 824*From CP 6-6(5 min.) CP 6-8 Lands’ End managers can delay purchases of inventory until the next year. Under LIFO, high inventory costs that would have been paid for inventory do not become expense as cost of goods sold in the current year. As a result, the current year’s income statement reports a higher net income than Lands’ End would have reported if the company had replaced inventory before year end.Chapter 6 Merchandise Inventory and Cost of Goods Sold 385(5-10 min.) CP 6-9Millions BALANCE SHEETCurrent assets:Inventories, at market (which is lower than cost).. $ 330 INCOME STATEMENTCost of goods sold [$1,001 + ($333 – $330)]…………$1,004 386Financial Accounting 6/e Solutions Manual(10 min.) CP 6-101. FIFO2. LIFO Gross profitpercentage:Gross profit= $460*= 46%$340**= 34%Net sales revenue $1,000 $1,000 _____* $1,000 – $540 = $460** $1,000 – $660 = $340Inventory turnover:Cost of goods sold= $540 $660Average inventory ($100 + $360) / 2 ($100 + $240) / 2= 2.3 times = 3.9 times3. Gross profit percentage — FIFO looks better.4. Inventory turnover — LIFO looks better.Chapter 6 Merchandise Inventory and Cost of Goods Sold 387(10-15 min.) CP 6-11 1. Beginning inventory……………………………... $ 300,000+ Purchases……………………………………….… 1,600,000 = Goods available…………………………………... 1,900,000 –Cost of goods sol d………………………………. (1,800,000) = Ending inventory……………………………….…2. Beginning inventory……………………………..+ Purchases……………………………………….…= Goods available…………………………………...–Cost of goods sold:Sales revenue……………………….$3,000,000Less estimated gross profit (40%) (1,200,000)Estimated cost of goods sold……………….= Estimated cost of ending inventory…………... $ 100,000 388Financial Accounting 6/e Solutions Manual(5-10 min.) CP 6-12CorrectAmount(Millions)a. Inventory ($333 + $3)…………………………………$ 336b. Net sales (unchanged)……………………………….$1,755c. Cost of goods sold ($1,001 –$3)…………………...$ 998d. Gross profit ($754 + $3)……………………….……..$ 757(10 min.) CP 6-13 1. Last year’s reported g ross profit was understated.Correct gross profit last year was $5.6 million ($4.0 + $1.6). 2. This year’s gross profit is overstated.Correct gross profit for this year is $3.2 million ($4.8 – $1.6).3. Lang’s perspective is better because correcting the errorchanges the trend of correct gross profit from up (good) to down (bad), as follows:MillionsLast Year This Year Trend Reported gross profit……..$4.0 $4.8 Up (Good) Correct gross profit……….$5.6 $3.2 Down (Bad) Chapter 6 Merchandise Inventory and Cost of Goods Sold 389(5-10 min.) CP 6-14 1. Ethical. There is nothing wrong with buying inventorywhenever a company wishes.2. Ethical. Same idea as 1.3. Unethical. The company falsified its reported amounts ofinventory and net income.4. Unethical. The company falsified its reported inventorypurchases, cost of goods sold, and net income in order to cheat the government (and the people) out of income tax.5. Unethical. The company falsified its reported amount ofinventory in order to cheat the government (and the people) out of taxes.390Financial Accounting 6/e Solutions ManualExercises(15-20 min.) E 6-1 Req. 1 (journal entried)Perpetual System1. Purchases: ThousandsInventory…………………….……….… 2,200Accounts Payable………………….2,2002. Sales:Cash ($3,500 ?.20) (700)Accounts Receivable ($3,500 ? .80). 2,800Sales Revenue…………….……….3,500 Cost of Goods Sold………………….. 2,100 Inventory………………….………....2,100Req. 2 (financial statement amounts)BALANCE SHEET Thousands Current assets:Inventory ($370 + $2,200 – $2,100)... $ 470 INCOME STATEMENTSales revenue…………………………….$3,500Cost of goods sold……………………… 2,100Gross profit……………………………….$1,400Chapter 6 Merchandise Inventory and Cost of Goods Sold 391(15-25 min.) E 6-2JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT1 Inventory ($640 + $1,870 + $900)……….3,410Accounts Payable………………………3,4102 Accounts Receivable (17 @ $500)……...8,500Sales Revenue…………………………..8,500 Cost of Goods Sold……………………….2,800* Inventory…………………………………2,8003 Sales revenue………………………………$8,500Cost of goods sold……………………….. 2,800Gross profit…………………………………$5,700Ending inventory ($800 + $3,410 –$2,800)……...$1,410 _____*(9 @ $160) + (8 @ $170) = $2,800392Financial Accounting 6/e Solutions Manual(10-15 min.) E 6-3 1.Cost of Goods Sold Ending Inventory(a) Specificunit cost (6 @ $160) + (11 @ $170) = $2,830 (3 @ $160) + (5 @ $180) = $1,380 (b) Averagecost 17 ? $168.40* = $2,863 8 ? $168.40* = $1,347 _____*Average cost per unit = ($800 + $640 + $1,870 + $900)= $168.40(5 + 4 + 11 + 5)(c) FIFO (9 @ $160) + (8 @ $170) = $2,800 (5 @ $180) + (3 @ $170) $1,410(d) LIFO (5 @ $180) + (11 @ $170) + (1 @ $160) $2,930 (8 @ $160) $1,2802. LIFO produces the highest cost of goods sold.FIFO produces the lowest cost of goods sold.The increase in inventory cost from $160 to $170 to $180 per unit causes the difference in cost of goods sold. Chapter 6 Merchandise Inventory and Cost of Goods Sold 393(15-20 min.) E 6-4 Cost of goods sold:LIFO ($2,930) –FIFO ($2,800)…………………………$130 Incom e tax rate……………………………………….. .35 LIFO advantage in tax savings…………………………..$ 46(15 min.) E 6-51. a. FIFOCost of goods sold:(5 @ $90) + (5 @ $95)……………...$925Ending inventory:7 @ $95………………………………$665b. LIFOCost of goods sold:10 @ $95……………………………..$950Ending inventory:(5 @ $90) + (2 @ $95)……………...$6402.VPA, Inc.Income StatementMonth Ended May 31, 20XXSales revenue (3 @ $150) + (7 @ $155)................$1,535 Cost of goods sold. (925)Gross profit (610)Operating expenses (310)Income before income tax (300)Income tax expense (40%) (120)Net income………………………………………………$ 180 394Financial Accounting 6/e Solutions Manual(15 min.) E 6-6Millions1. Gross profit: FIFO LIFOSales revenue……………………………………$4.9 $4.9 Cost of goods soldFIFO: 600,000 ?$7…………………………… 4.2LIFO: (400,000 ? $5) + (100,000 ? $6)+ (100,000 ?$7)……………………… 3.3 Gross profit………………………………………$ .7 $1.6 2. Gross profit under FIFO and LIFO differ because inventorycosts decreased during the period.If you base your prediction on the decrease in inventory unit cost, then, yes, you would predict that LIFO gross profit would be higher.But if you assume that FIFO produces higher gross profit, then, no, the actual result does not follow your prediction. Chapter 6 Merchandise Inventory and Cost of Goods Sold 395(15-20 min.) E 6-7 DATE: _____________TO: Rick TaborFROM: Student NameSUBJECT: Proposal for Saving Income TaxWe can save income tax by buying above-normal quantities of inventory before the end of the year. Inventory costs are rising, and the company uses the LIFO inventory method. Under LIFO, the higher cost of year-end purchases of inventory goes straight into cost of goods sold. This increases cost of goods sold and decreases net income and income taxes. Because our inventory levels are lower than normal, we need the inventory anyway. In effect, we can use our cash to buy inventory or to pay income taxes. I think it would be wiser to buy inventory.396Financial Accounting 6/e Solutions Manual(10-15 min.) E 6-8 Specificunit cost 1. Used to account for automobiles, jewelry, and art objects.Average 2. Provides a middle-ground measure of ending inventory and cost of goods sold.FIFO 3. Maximizes reported income.LIFO 4. Matches the most current cost of goods sold against sales revenue.LIFO 5. Results in an old measure of the cost of ending inventory.LIFO 6. Generally associated with saving income taxes. FIFO 7. Results in a cost of ending inventory that is close to the current cost of replacing the inventory.LIFO 8. Enables a company to buy high-cost inventory at year end and thereby to decrease reportedincome.LIFO 9. Enables a company to keep reported income from dropping lower by liquidating older layers ofinventory.LCM 10. Writes inventory down when replacement cost drops below historical cost.Chapter 6 Merchandise Inventory and Cost of Goods Sold 397。

会计学第四版课本习题答案会计学是一门研究如何确认、计量、记录和报告财务信息的学科，它在企业决策和经济活动中起着至关重要的作用。

随着会计准则的不断更新和实践的深入，会计学教材也在不断地更新和修订。

第四版会计学课本习题答案为学生提供了一个检验自己学习成果的机会，同时也帮助教师在教学过程中进行参考。

在会计学的学习过程中，理解会计基本概念、掌握会计准则和原则、熟悉会计程序和方法是非常关键的。

课本习题答案可以帮助学生更好地理解这些知识点，并在实际应用中加以运用。

会计基础概念会计基础概念是学习会计的起点，包括会计要素、会计假设、会计原则等。

例如，资产、负债、所有者权益、收入、费用和利润是会计的六大要素，它们构成了企业财务报表的基础。

会计假设包括会计主体、持续经营、货币计量和历史成本等，这些假设为会计提供了一个稳定的操作环境。

会计准则和原则会计准则和原则是指导会计实践的基本规范。

国际财务报告准则（IFRS）和美国通用会计准则（GAAP）是两个主要的会计准则体系。

这些准则规定了会计信息的确认、计量和报告方式，确保了会计信息的准确性和可比性。

会计程序和方法会计程序和方法涉及到会计信息的收集、处理和报告。

从凭证的编制到账簿的登记，再到财务报表的编制，每一步都需要遵循一定的程序和方法。

例如，权责发生制原则要求企业在收入和费用发生时进行确认，而不是在收到或支付现金时。

习题答案示例以下是一些会计学课本习题的答案示例，以帮助学生理解会计处理的具体操作：1. 问题：如何确定企业的资产价值？答案：企业的资产价值应根据历史成本原则确定，即资产的原始购买成本或制造成本，减去累计折旧。

2. 问题：在权责发生制下，企业何时确认收入？答案：在权责发生制下，企业应在收入实现时确认收入，即当企业已经提供了商品或服务，并且收入的金额可以可靠地计量，收入的实现是很可能的。

3. 问题：如何计算企业的净利润？答案：企业的净利润是收入减去费用后的余额。

会计学英语试题及答案一、单项选择题（每题2分，共10题）1. Which of the following is not a financial statement?A. Balance SheetB. Income StatementC. Cash Flow StatementD. Tax Return2. The process of recording all financial transactions in a company is known as:A. BudgetingB. ForecastingC. BookkeepingD. Auditing3. What does the term "Depreciation" refer to?A. The increase in value of an asset over timeB. The decrease in value of an asset over timeC. The sale of an assetD. The purchase of an asset4. Which of the following is not a type of receivable?A. Accounts ReceivableB. Notes ReceivableC. InventoryD. Trade Receivables5. What is the purpose of an audit?A. To ensure compliance with tax lawsB. To verify the accuracy of financial recordsC. To prepare financial statementsD. To manage the company's budget6. The term "Equity" in accounting refers to:A. The total assets of a companyB. The total liabilities of a companyC. The owner's investment in the companyD. The company's net income7. Which of the following is not a component of a balance sheet?A. AssetsB. LiabilitiesC. EquityD. Revenue8. The accounting equation is represented as:A. Assets = Liabilities + EquityB. Assets = Liabilities - EquityC. Assets - Liabilities = EquityD. Assets + Equity = Liabilities9. What is the term used to describe the conversion of cash into other assets?A. InvestingB. FinancingC. OperatingD. Spending10. Which of the following is a non-current asset?A. CashB. InventoryC. LandD. Office Supplies二、多项选择题（每题3分，共5题）1. Which of the following are considered as current assets?A. CashB. Accounts ReceivableC. InventoryD. Land2. The following are examples of liabilities except:A. Accounts PayableB. Long-term DebtC. Common StockD. Retained Earnings3. The following are types of expenses in an income statement except:A. Cost of Goods SoldB. Salaries and WagesC. DividendsD. Depreciation4. Which of the following are considered as equity transactions?A. Issuance of SharesB. Declaration of DividendsC. EarningsD. Payment of Dividends5. The following are true statements about accountingprinciples except:A. The going concern assumptionB. The matching principleC. The cash basis of accountingD. The accrual basis of accounting三、判断题（每题1分，共5题）1. True or False: The accounting cycle includes the processof closing the books at the end of an accounting period.2. True or False: All prepaid expenses are considered current assets.3. True or False: Revenue recognition is based on the cash received.4. True or False: The statement of cash flows is preparedusing the cash basis of accounting.5. True or False: The accounting equation must always balance.四、简答题（每题5分，共2题）1. Explain the difference between revenue and profit.2. Describe the role of the statement of cash flows infinancial reporting.五、计算题（每题10分，共1题）A company has the following transactions during the month:- Cash sales: $10,000- Accounts receivable: $5,000- Accounts payable: $3,000- Inventory purchased on credit: $2,000- Cash paid for expenses: $1,500Calculate the company's cash flow from operating activities for the month.答案：一、单项选择题1. D2. C3. B4. C5. B6. C7. D8. A9. A10. C二、多项选择题1. A, B, C2. C, D3. C4. A, D5. C三、判断题1. True2. True3. False4. False5. True四、简答题1. Revenue is the income generated from the normal business activities of a company over a specific period, before any expenses are deducted. Profit, on the other hand, is the amount of money remaining after all expenses have been deducted from the revenue. It represents the net income or net loss of a company.2. The statement of cash flows is a financial statement that provides information about the cash receipts。

第一章总论【思考题】1．说明财务会计与管理会计的区别与联系。

答：财务会计与管理会计的区别可概括为；（1）财务会计以计量和传送信息为主要目标财务会计不同于管理会计的特点之一，是财务会计的目标主要是向企业的投资者、债权人、政府部门，以及社会公众提供会计信息。

从信息的性质看，主要是反映企业整体情况，并着重历史信息。

从信息的使用者看，主要是外部使用者，包括投资人、债权人、社会公众和政府部门等。

从信息的用途看，主要是利用信息了解企业的财务状况和经营成果。

而管理会计的目标则侧重于规划未来，对企业的重大经营活动进行预测和决策，以及加强事中控制。

（2）财务会计以会计报告为工作核心财务会计作为一个会计信息系统，是以会计报表作为最终成果。

会计信息最终是通过会计报表反映出来。

因此，财务报告是会计工作的核心。

现代财务会计所编制的会计报表是以公认会计原则为指导而编制的通用会计报表，并把会计报表的编制放在最突出的地位。

而管理会计并不把编制会计报表当做它的主要目标，只是为企业的经营决策提供有选择的或特定的管理信息，其业绩报告也不对外公开发表。

（3）财务会计仍然以传统会计模式作为数据处理和信息加工的基本方法为了提供通用的会计报表，财务会计还要运用较为成熟的传统会计模式作为处理和加工信息的方法。

传统会计模式也是历史成本模式，它依据复式簿记系统，以权责发生制为基础，采用历史成本原则。

（4）财务会计以公认会计原则和行业会计制度为指导公认会计原则是指导财务会计工作的基本原理和准则，是组织会计活动、处理会计业务的规范。

公认会计原则由基本会计准则和具体会计准则所组成。

这都是我国财务会计必须遵循的规范。

而管理会计则不必严格遵守公认的会计原则。

2．试举五个会计信息使用者，并说明他们怎样使用会计信息。

答：股东。

他们需要评价过去和预测未来。

有关年度财务报告是满足这些需要的最重要的手段，季度财务报告、半年度报告也是管理部门向股东报告的重要形式。

向股东提供这些报告是会计信息系统的传统职责，股东借助于财务报告反映的常规信息,获得有关股票交易和股利支付的情况，从而做出投资决策。

《会计学》教材课后练习题参考答案第一章一、单项选择题：1～5 DCBDA 6～10 BBACD二、多项选择题：1、BCD 2、ABCD 3、AC 4、BD 5、ABCD6、ABCD7、BD8、ABD9、ACD 10、ABC三、判断题：1～5 √××√×6～10 ×√×√×第二章一、单项选择题：1～5 ACADB 6～10 CBBCD二、多项选择题：1、AE 2、ABD 3、ABC 4、ACD 5、ABCD6、ABD7、ACD8、AB9、ABD 10、ABCDE三、判断题：1～5 √×××√四、核算题：资产期末余额=916 000+500 000+300 000+80 000-80 000+6 000-6 000-90 000=1 626 000（元）负债期末余额=336 000+300 000-400 000-90 000=146 000（元）所有者权益总额=580 000+500 000+400 000+60 000-60 000=1 480 000（元）习题三2、收入总额200 000元，费用总额＝9 600+2 800+66 000+14 000+100 000=192 400（元）利润＝收入－费用＝200 000－192 400＝7 600（元），该企业3月份盈利。

3、资产总额=700 000+200 000-9 600-2 800-14 000-100 000=773 600（元）负债总额=200 000+66 000=266 000（元）所有者权益=500 000+7 600=507 600（元）习题六1、借：银行存款150 000贷：实收资本150 000 2、借：银行存款500 000贷：短期借款500 000 3、借：固定资产30 000贷：银行存款30 000 4、借：原材料20 000贷：银行存款12 000 应付账款8 000 5、借：银行存款8 000贷：库存现金8 000 6、借：应收账款30 000银行存款50 000贷：主营业务收入80 000 7、借：应收账款50 000贷：主营业务收入50 000 8、借：应付账款20 000贷：银行存款20 000 9、借：银行存款50 000贷：应收账款50 000 10、借：资本公积60 000贷：实收资本60 000习题七A、会计分录1、借：库存现金 6 000贷：银行存款 6 000 2、借：银行存款80 000贷：短期借款80 000 3、借：银行存款40 000贷：应收账款40 000 4、借：应付账款60 000贷：银行存款60 000 5、借：原材料30 000贷：应付账款30 000 6、借：应交税费20 000贷：银行存款20 000 7、借：固定资产55 000贷：应付账款55 000 8、借：实收资本70 000贷：长期借款70 000B、开设并登记有关账户（略）习题八1、借：固定资产20 058贷：银行存款20 058 编制付款凭证2、借：银行存款300 000贷：短期借款300 000 编制收款凭证3、借：库存现金 5 000贷：银行存款 5 000 编制付款凭证4、借：原材料35 200贷：银行存款20 000 应付账款15 200 编制两张凭证：一张付款凭证（金额为20 000元），一张转账凭证（金额为15 200元）习题九总分类账户总账科目：原材料明细科目：甲材料单位：吨总分类账户应付账款明细分类账户应付账款明细分类账户明细科目：绿叶公司习题十1、应采用“补充登记法”借：银行存款900 贷：应收账款900 借银行存款贷借应收账款贷2、应采用“红字更正法”借：管理费用 2 000贷：库存现金 2 000借：管理费用 2 000 贷：银行存款 2 000 借管理费用贷借库存现金贷借银行存款贷2 000 2 000 2 0002 000 2 0002 0003、应采用“红字更正法”借：应收账款34 315贷：主营业务收入34 315借：银行存款34 135 贷：主营业务收入34 135 借应收账款贷借主营业务收入贷借银行存款贷34 315 34 315 34 13534 31534 31534 1354、应采用“红字更正法”借：管理费用90贷：库存现金90借管理费用贷借库存现金贷870 87090905、应采用“划线更正法”借银行存款贷35 260（盖章）32 560第三章一、单项选择题：1～5 CADBA 6～10 DBBAC 11～13 ABC二、多项选择题：1、ACD 2、BCD 3、BCD 4、BC 5、AC 6、CD7、ABD 8、ACD 9、ABD 10、AD 11、ABCD 12、ACD三、判断题：1～5 ×√√√×6～10√××√×11～13√××四、核算题：习题一1、借：库存现金20 000贷：银行存款20 0002、借：库存现金600贷：其他业务收入6003、借：库存现金800贷：主营业务收入8004、借：其他应收款 2 000贷：库存现金 2 0005、借：管理费用 2 200贷：其他应收款——王力 2 000 库存现金2006、借：管理费用300贷：库存现金3007、借：应付职工薪酬800贷：库存现金800习题二1、借：库存现金20 000贷：银行存款20 0002、借：管理费用10 000贷：银行存款10 0003、借：银行存款30 000贷：主营业务收入30 0004、借：原材料25 000贷：应付账款25 0005、借：库存现金60 000贷：银行存款60 000 6、借：应付职工薪酬 1 000贷：银行存款 1 000 7、借：应付账款25 000贷：银行存款25 000习题三银行存款余额调节表习题四1、借：其他货币资金——外埠存款100 000贷：银行存款100 000 2、借：原材料80 000贷：其他货币资金——外埠存款80 000 3、借：银行存款20 000贷：其他货币资金——外埠存款20 000习题五1、借：应收票据70 200贷：主营业务收入60 000 应交税费——应交增值税（销项税额）10 200 2、借：银行存款70 200贷：应收票据70 200习题六1、借：应收票据35 100贷：主营业务收入30 000 应交税费——应交增值税（销项税额） 5 100 借：主营业务成本22 000 贷：库存商品22 000 2、贴现利息＝35 100×10%×30/360＝292.5（元）借：银行存款34 807. 5 财务费用292.5贷：短期借款35 100习题七1、销售商品时：借：应收账款——乙公司 2 106 000 贷：主营业务收入 1 800 000 应交税费——应交增值税（销项税额）306 000 2、收到款项时：借：银行存款 2 070 000 财务费用36 000贷：应收账款——乙公司 2 106 000习题八1、2001年末计提坏账准备时：借：资产减值损失 5 000 贷：坏账准备 5 000 2、2002年10月确认坏账损失时：借：坏账准备 1 400 贷：应收账款 1 400 3、2002年末计提坏账准备时：按应收账款余额应提坏账准备＝1 200 000×5‰＝6 000（元）计提坏账准备前“坏账准备”账户的贷方余额＝5 000－1 400＝3 600（元）年末实际计提坏账准备＝6 000－3 600＝2 400（元）借：资产减值损失 2 400 贷：坏账准备 2 400 4、2003年3月20日收回转销的坏账损失时：借：应收账款 1 000 贷：坏账准备 1 000 借：银行存款 1 000 贷：应收账款 1 000 5、2003年末计提坏账准备时：按应收账款余额应提坏账准备＝1 000 000×5‰＝5 000（元）计提坏账准备前“坏账准备”账户的贷方余额＝6 000＋1 000＝7 000（元）年末实际计提坏账准备＝5 000－7 000＝－2 000（元）借：坏账准备 2 000 贷：资产减值损失 2 000习题九1、借：预付账款——B企业15 000贷：银行存款15 000 2、借：原材料30 000应交税费——应交增值税（进项税额） 5 100贷：预付账款——B企业35 100 3、借：预付账款——B企业20 100贷：银行存款20 100习题十1、先进先出法：10日领用原材料的成本＝1 000×20＋200×21＝24 200（元）25日领用原材料的成本＝400×21＋1 100×22＝32 600（元）本月发出材料成本＝24 200＋32 600＝56 800（元）月末结存材料成本＝20 000＋12 600＋44 000－56 800＝19 800（元）2加权平均单价＝＝21.28（元/件）本月发出材料成本＝21.28×（1 200＋1 500）＝57 456（元）月末结存材料成本＝20 000＋12 600＋44 000－57 456＝19 144（元）3、移动平均法：10日发出原材料的单价＝＝20.375（元/件）10日发出原材料成本＝1 200×20.375＝24 450（元）10日结存原材料成本＝＝8 150（元）（400件）25日发出原材料的单价＝＝21.73（元/件）25日发出原材料成本＝21.73×1 500＝32 595（元）25日结存原材料成本＝8 150＋44 000－32 595＝19 555（元）本月发出材料成本＝24 450＋32 595＝57 045（元）月末结存材料成本＝20 000＋12 600＋44 000－57 045＝19 555（元）习题十一1、借：材料采购21 600应交税费——应交增值税（进项税额） 3 672贷：银行存款25 272 2、借：材料采购30 000应交税费——应交增值税（进项税额） 5 10020 000＋12 600贷：银行存款35 1003、不作分录4、借：原材料 5 600贷：应付账款 5 600 5、本月付款并验收入库甲材料的计划成本＝22 000＋29 700＝51 700（元）借：原材料51 700 贷：材料采购51 700 本月付款并验收入库甲材料的实际成本＝21 600＋30 000＝51 600（元）本月付款并验收入库甲材料的成本差异＝51 600－51 700＝－100（元）借：材料采购100 贷：材料成本差异100 6、借：生产成本34 000制造费用 4 000管理费用 1 000贷：原材料39 000 100％＝1.6%本月发出甲材料的实际成本＝39 000×（1+1.6%）＝39 624（元）结转本月发出甲材料应负担的材料成本差异时：借：生产成本544 制造费用64管理费用16贷：材料成本差异624习题十二1、借：待处理财产损溢——待处理流动资产损溢117贷：原材料100 应交税费——应交增值税（进项税额转出）17 借：管理费用67 其他应收款——保管员50贷：待处理财产损溢——待处理流动资产损溢117 2、借：原材料75贷：待处理财产损溢——待处理流动资产损溢75 借：待处理财产损溢——待处理流动资产损溢75 贷：管理费用75 3、（1）2007年6月30日成本比可变现净值多1 500元，应计提存货跌价准备1 500元。

Chapter 5Short-Term Investments and Receivables Check Points(5 min.) CP 5-1 1. Trading investments are reported at their current marketvalue.2. A trading investment is always a current asset because theinvestor intends to sell the trading investment in the very near future — days, weeks, or only a few months. A current asset is to be sold within one year or within the company’s operating cycle if longer than a year.(10 min.) CP 5-2 BALANCE SHEETCurrent assets:Short-term trading investments, at market value.. $74,000 INCOME STATEMENTOther revenue and gains (losses):Unrealized loss on investment……………………...$ (6,000)(10 min.) CP 5-3 1. Paid $100,0002. Unrealized Loss on Investment ($100,000 – $98,000)…2,000Short-Term Investment……………………………….. 2,000 Adjusted investment to market value.BALANCE SHEETCurrent assets:Short-term trading investment, at market value……….$98,000 INCOME STATEMENTOther revenue (loss):Unrealized loss on investment……………………………$ (2,000)(5 min.) CP 5-4 Jennings, the accountant, should not handle the company’s cash. With cash-handling duties, the accountant can steal cash and hide the theft by writing off a customer’s acc ount receivable as uncollectible.(5 min.) CP 5-5 1. Uncollectible-Account Expense ($900,000 ⨯.01)…..9,000Allowance for Uncollectible Accounts……………9,000 2. Balance sheetAccounts receivable…………………………………$90,000Less Allowance fo r uncollectible accounts…….. (9,000)Accounts receivable, net……………………………$81,000(5-10 min.) CP 5-6 1. Accounts Receivable…………………………………. 800,000Sales Revenue………………………………………800,000 2. Cash………………………………………………………780,000Accou nts Receivable………………………………780,000 3. Allowance for Uncollectible Accounts…………….. 5,000Accounts Receivable……………………………….5,000 4. Uncollectible-Account Expense ($800,000 ⨯.01)… 8,000Allowance for Uncollectible Accounts………….8,000(10 min.) CP 5-7 1.Accounts ReceivableBeg. bal. 90,000Net credit sales 800,000 Collections 780,000Write-offs 5,000 End. bal. 105,000Amount customersowe the company2.Allowance for Uncollectible AccountsBeg. bal. 9,000 Write-offs 5,000 Uncollectible-account expense 8,000End. bal. 12,000Amount Spitzerexpects not tocollect3. and4.BALANCE SHEET:Accounts receivable, net($105,000 –$12,000)…………………………$93,000Amount Spitzerexpects tocollect INCOME STATEMENT:Sales revenue…………………………………...$800,000Uncollectible-account expense………………8,000(5-10 min.) CP 5-8 (a) Accounts Receivable………………………..700,000Sales Revenue…………………………….700,000 (b) Cash…………………………………………….720,000Accounts Receivable…………………….720,000 (c) Allowance for Uncollectible Accounts…..6,000Accounts Receivable…………………….6,000 (d) Uncollectible-Account Expe nse…………..7,000Allowance for Uncollectible Accounts.. 7,000 Allowance for Uncollectible AccountsBeg. bal. 8,000 Write-offs 6,000 Uncollectible –account expense X = 7,000End. bal. 9,000(10 min.) CP 5-9 1. and 2.Accounts ReceivableBeg. bal. 100,000Net credit sales 700,000 Collections 720,000Write-offs 6,000 End. bal. 74,000Allowance for Uncollectible AccountsBeg. bal. 8,000 Write-offs 6,000 Uncollectible –account expense 7,000End. bal. 9,0003.BALANCE SHEETAccounts receivable…………………………….$74,000Less Allowance for uncollectible accounts… (9,000)Accounts receivable, net……………………….$65,000(5-10 min.) CP 5-10 a. May 19 Note Receivable —R. Kroll……..100,000Cash………………………………100,000 b. Nov. 19 Cash…………………………………103,000Note Receivable —R. Kroll…..100,000Interest Revenue($100,000 ⨯ .06 ⨯6/12)………3,000(10 min.) CP 5-11 1. Interest for:20X7 ($200,000 ⨯ .09 ⨯8/12)……………….$12,00020X8 ($200,000 ⨯.09)……………………….18,00020X9 ($200,000 ⨯ .09 ⨯4/12)……………….6,0002. Tradewinds Bank has a note receivable and interest revenue.Mike Toby has a note payable and interest expense.3. Payoff at November 30, 20X7:Principal………………………………………….$200,000Interest ($200,000 ⨯ .09 ⨯7/12)………………. 10,500Total……………………………………………….$210,500(10 min.) CP 5-1220X5a. Aug. 31 Note Receivable —L. Holland……………1,000Cash………………………………….…….1,000 To lend money.20X6b. June 30 Interest Receivable ($1,000 ⨯ .09 ⨯ 10/12).75Interest Revenue (75)To accrue interest revenue.20X6c. Aug. 31 Cash ($1,000 + $90)………………………...1,090Interest Receivable (75)Interest Revenue ($1,000 ⨯ .09 ⨯ 2/12). 15Note Receivable…………………………1,000 To collect on note receivable.(5-10 min.) CP 5-13 a. BALANCE SHEETJune 30, 20X6Current assets:Note receivable…………………………………… $1,000Interest receivable (75)b. INCOME STATEMENTYear ended June 30, 20X6Revenues:Interest revenue……………………………….….$ 75 c. BALANCE SHEETJune 30, 20X7Nothing to report because the note wascollected on August 31, 20X6.d. INCOME STATEMENTYear ended June 30, 20X7Revenues:Interest revenue……………………………….….$ 15(10 min.) CP 5-14 Req. 120X6Cash + Short-term investments $4,000 + $15,000Acid-test ratio =+ Net current receivables=+ $73,000 Total current liabilities $101,000= .91The company’s acid-test ratio compares favorably to the industry average of .90.Req. 2One day’s sales= $743,000 = $2,036365Days’ sales in average accounts receivableAverage net=accounts receivable=($73,000 + $68,000) / 2 One day’s sales$2,036= 35 daysThe company’s days’-sales-in-receivables ratio (35) is okay relative to the 30-day period of the credit terms.(10-15 min.) CP 5-15Income Statement Balance SheetDebit Credit Debit Credit 1. Classifications Balance Balance Balance BalanceService revenue (X)Other assets (X)Property, plant, andequipment (X)Cost of services sold.. XCash (X)Notes payable (X)Unearned revenues (X)Allowance fordoubtful accounts (X)Other expenses (X)Accounts receivable (X)Accounts payable (X)Millions 2. Service revenue………………………………………$23,613Cost of services sold……………………………….. (11,620) Other expenses………………………………………. (12,569) Net income (net loss)………………………………..$ (576)3. Current ratio = $239 + $4,417 – $389= 1.48 $607 + $2,285Exercises(10-15 min.) E 5-1 1. This is a trading investment because Exxonintends to sell the stock within a short time.2. Dec. 20 Short-Term Investment (10,000 ⨯$60)….600,000Cash……………………………………….600,000 Purchased investment.Dec. 31 Short-Term Investment[(10,000 ⨯ $63) –$600,000]………………..30,000Unrealized Gain on Investment………30,000 Adjusted investment to market value.3. BALANCE SHEETCurrent assets:Short-term trading investment, at market value……….$630,000 INCOME STATEMENTOther revenue and gains:Unrealized gain on investment……………………………$ 30,000(10-20 min.) E 5-2 INCOME STATEMENTOther revenue and (expense):Dividend revenue………………………………………$ 500 Unrealized gain on investment ($101,000 – $98,000).3,000 BALANCE SHEETCurrent assets:Short-term investments, at market value………….$101,000(15-30 min.) E 5-3 Req. 1Cash Short-TermInvestmentDividendRevenue110,000 67,000 67,000 2,000 1,700* 1,700* 65,00072,000Unrealized Gain (Loss) On InvestmentGain on Sale Of Investment2,000 7,000 _____*2,000 shares $.85 = $1,700Req. 2December 31 BALANCE SHEET 20X3 20X4 Current assets:Short-term investments…………………… $65,000 $ —Year Ended INCOME STATEMENT 20X3 20X4 Other revenue and expense:Dividend revenue…………………………… $ 1,700 $ —Unrealized (loss) on investment………….(2,000) —Gain on sale of investment………………..— 7,000(5-10 min.) E 5-4 MEMORANDUMDATE:TO: Bob O’ReillyFROM: Student NameRE: Essential element of internal control over collection from customersSeparation of duties is the essential element in a system to ensure that cash received by mail from customers is properly handled and accounted for. It is very important to separate cash-handling duties from accounting duties. Otherwise, an employee can steal a cash receipt from a customer and cover the theft by writing off the customer account as uncollectible.Student responses may vary.(15-20 min.) E 5-5JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 20X8Dec. 31Year-end entry:Doubtful-Account Expense($600,000 .01)………………………...6,000Allowance for Doubtful Accounts. 6,000 BALANCE SHEETCurrent assets:Accounts receivable, net of allowancefor doubtful accounts of $6,9001…………... $84,1002 _____ _____1$900 + $6,000 = $6,900 2$91,000 – $6,900 = $84,100(15 min.) E 5-6 Req. 1JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Oct. Accounts Receivable……………………...100,000Sales Revenue…………………………..100,000 Oct. Cash…………………………………………..94,000Accounts Receivable…………………...94,000 Oct. Allowance for Uncollectible Accounts…1,700Accounts Receivable…………………...1,700 Oct. Uncollectible-Account Expense($100,000 .02)……………………………..2,000Allowance for Uncollectible Accounts 2,000 Req. 2Accounts ReceivableAllowance for Uncollectible Accounts28,000 94,000 1,600100,000 1,700 1,700 2,00032,300 1,900 Net accounts receivable = $30,400 ($32,300 – $1,900)The store expects to collect an amount approximating the net receivable.Req. 3BALANCE SHEETCurrent assets:Accounts receivable, net of allowance foruncollectible accounts of $1,900…………………$30,400(10-15 min.) E 5-7 Req. 1JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Oct. Uncollectible-Account Expense…..1,700Accounts Receivable……………..1,700Req. 2Net accounts receivable is $32,300, the balance in Accounts Receivable, computed as follows:Accounts ReceivableBeg. bal. 28,000Cr. sales 100,000 Collections 94,000Write-offs 1,700End. bal. 32,300The store does not expect to collect the full $32,300 because some credit customers are likely not to pay their accounts.(15-30 min.) E 5-8 Req. 1The credit balance at December 31 in Allowance for Doubtful Accounts should be $13,400.($106,000 ⨯ .005) + ($78,000 ⨯ .015) + ($70,000 ⨯ .06) + ($15,000 ⨯.50) = $13,400. The current balance is $7,400. Thus, the balance of the allowance account is too low.Req. 2JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Doubtful-Account Expense……………..6,000Allowance for Doubtful Accounts….6,000 Allowance for Doubtful Accounts7,4006,00013,400Req. 3BALANCE SHEETCurrent assets:Cash.................................................. $ XX Short-term investments (XX)Accounts receivable, net of allowancefor doubtful accounts of $13,400……..255,600* _____*Another way to report accounts receivable isAccounts receivable……………………….$269,000Less All owance for doubtful accounts… (13,400) 255,600(15-20 min.) E 5-9 Req. 12% is reasonable because for each year’s sales and for the entire three-year period, the ratio of total write-offs to sales is very close to 2%.(Dollars in thousands) 20X4 20X5 20X6 TotalWrite offs= $139 $138 $144 $421Sales $6,800 $7,000 $7,100 $20,900= .0204 = .0197 = .0203 = .0201Req. 2Thousands20X6 Accounts Receivable……………………7,100Sales Revenue………………………...7,100 Recorded sales on account.20X6 Bad-Debt Expense ($7,100 .02) (142)Allowance for Bad Debts (142)Recorded expense for the year.20X6 Allowance for Bad Debts (144)Accounts Receivable (144)Wrote off uncollectible receivables.(10-15 min.) E 5-10JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Nov. 1 Note Receivable —Al Sperry………… 40,000Cash…………………………………….40,000 Dec. 3 Note Receivable —Acura, Inc……….. 5,000Ser vice Revenue……………………..5,00016 Note Receivable —Vanguard Co……. 2,000Accounts Receivable — Vanguard Co. 2,00031 Interest Receivable…………………….. 656*Interest Revenue (656)_____($40,000 ⨯ .09 ⨯ 2/12) + ($5,000 ⨯ .12 ⨯ 28/365) + ($2,000 ⨯ .12 ⨯ 15/365**) = $645 $600 $46 $10**Fraction can also be stated as .5/12Harrison earned interest revenue of $656 this year.(15 min.) E 5-1120X8 20X9 BALANCE SHEETCurrent assets:Note receivable…………………………….…$100,000 $ —Interest receivable ($100,000 ⨯ .08 ⨯ 9/12). 6,000 —INCOME STATEMENTInterest revenue…………………………………6,000 2,000* _____*$100,000 ⨯ .08 ⨯ 3/12 = $2,000(10 min.) E 5-12 1. Stockton Bank has interest receivable and interest revenue.California Company has interest payable and interestexpense.Interest for one month ($100,000 ⨯ .06 ⨯1/12)……… $5002. Stockton Bank: Assets = Liabilities + Equity Affected By0 Interest revenueCalifornia Company: 0 Interest expense3. True4. The net amount of receivables —the amount the companyexpects to collect —is more interesting because the company will probably collect this amount in cash.5. Accounts receiva ble…………………….$XXXLess Allowance for uncollectibles (X)Accounts receivable, net……………….$ XXBALANCE SHEETCurrent assets:CashShort-term investmentsAccounts receivable, net6. False. The direct write-off method overstates assets becauseit fails to show the amount of the receivables the company expects to collect.(10-15 min.) E 5-13 Amounts in millions of dollarsShort-term Net current(a) Acid-test= Cash + investments + receivablesratio Total current liabilities= $137 + $30 + $37 $40 + $158= $204 $198= 1.03An acid-test ratio of 1.03 is normal.(b) One Sales andday's= service revenue=$415= $1.137sales 365 365 Days’ sales Average netin average= accounts receivable=($37 + $42) / 2receivables One day’s sales$1.137= 35 days35 days’ sales in average receivables is okay relative to credit terms of net 30 days.(10-15 min.) E 5-14 Req. 1Average collection period: Millions of dollarsOne day’s sales= $256,329= $702.3 365Days’ sales in average receivables= ($1,254 + $1,569) / 2= 2 days(average collection period) $702.3Req. 2Wal-Mart’s collection period is short because Wal-Mart sells for cash and on credit cards and bank cards. Receivables are very low.(15-20 min.) E 5-15 Actualwithout BankCards Expected with Bank CardsSales revenue ……………………...$400,000 $440,000* Cos t of goods sold……………….$210,000 $231,000** Uncollectible-account expense…6,000 —Bank-card discount expense……4,800*** Other expenses…………………… 68,000 66,000**** Total expenses……………………. 284,000 301,800 Ne t income………………………….$116,000 $138,200 Decision: Accept bank cards because of the expected increase in net income._____*$400,000 ⨯ 1.10 = $440,000**$210,000 ⨯ 1.10 = $231,000***$440,000 – $200,000 = $240,000 ⨯ .02 = $4,800The switch to bank cards should produce bankcard discount expense on only the portion of sales that are made on bank cards.****$68,000 – $2,000 = $66,000(15-20 min.) E 5-16 Analysis of T-accounts is helpful, as follows (in millions):AllowancesBeg. bal. 68(a) Write-offs 351 Expense 354End. bal. 71(b) Total revenue = $35,400 ($354 .01)Trade ReceivablesBeg. bal. ($2,269 + $68) 2,337Total revenue 35,400 Write-offs 351Collections 34,729 (c) End. bal. ($2,586 + $71) 2,657(10-15 min.) E 5-17ReceivablesBeg. bal. 80,000Sales on account 950,000 Collections must be X = $940,000 Maximum acceptable bal. 90,000Collections= $940,000=$940,000= .91Beg. bal. + Sales on account $80,000 + $950,000 $1,030,000Therefore, the percentage discount that Columbia should be willing to absorb is 9% (100% – 91%).Practice Quiz1. c2. d3. c4. b [($150,000 ⨯ .02) + ($60,000 ⨯ .08) + ($10,000 ⨯ .20) –$3,200 = $6,600]5. $210,200 ($220,000 – $9,800)6. a ($1,000,000 ⨯ .03 = $30,000)7. b ($2,000 + $30,000 = $32,000)8. $7,000 ($2,000 + $30,000 – $25,000 = $7,000)9. c ($6,000 ⨯ .07 ⨯ 5/12 = $175)10. d11. b ($6,000 ⨯ .07 ⨯ 8/12 = $280)12. d13. Cash………………………….Note Receivable………...Interest Receivable……..Interest Revenue………..6,2806,00017510514. d15. a [($90,000 + $110,000) / 2] ) ($730,000 / 365 days) =50 d ays16. aProblemsGroup A(20-30 min.) P 5-1A Reqs. 1 and 2Cash Short-Term Investment 400,000 25,500* 25,500*900** 5,500+31,000Dividend Revenue Unrealized Gain (Loss) on Investment900** 5,500+ _____*2,000 ⨯ $12.75 = $25,500**2,000 ⨯ $.45 = $900+$31,000 – $25,500 = $5,500(continued) P 5-1A Req. 2JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 20X4Dec. 2 Short-Term Investment………………..25,500Cash (2,000 ⨯$12.75)………………..25,500 Purchased investment.21 Cash (2,000 ⨯$0.45) (900)Dividend Revenue (900)Received cash dividend.31 Short-Term Investment($31,000 –$25,500)……………………..5,500Unrealized Gain (Loss) on Investment 5,500 Adjusted investment to market value.Req. 3BALANCE SHEETCurrent assets:Short-term investment, at market value………$31,000 Req. 4INCOME STATEMENTOther revenue and gain:Dividend revenue…………………………………… $ 900 Unrealized gain on investment…………………… 5,500(continued) P 5-1A Req. 5JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 20X5Jan. 9 Cash……………………………………….29,000Loss on Sale of Investment…………..2,000Short-Term Investment……………..31,000 Sold investment at a loss.(10-15 min.) P 5-2A MEMORANDUMDATE: _________________TO: Company EmployeesFROM: Akbar Kuwaja, PresidentRE: Procedures to ensure that all cash receipts are deposited in the bank and that each day’s total cashreceipts are posted to accounts receivable.1. Someone other than the accountant opens the mail. Thisperson separates customer checks from the accompanying remittance slips.2. An employee with no access to the accounting recordsdeposits the cash in the bank immediately.3. The remittance slips go to the accountant, who uses them forposting credits to the customer accounts. The accountant adds up the total of the credits for the day.4. A third person, such as the manager or the president,compares the amount of the bank deposit to the total of the customer credits posted by the accountant. This gives some assurance that the day’s cash receipts went into the bank and that the same amount was posted to customer accounts.5. Someone other than the accountant should prepare the bankreconciliation.Student responses may vary.(15-20 min.) P 5-3A(All amounts in millions)Reqs. 1, 3, and 4Accounts Receivable Allowance for Uncollectibles 443 7,316 587,703 269* 269* 308561 97 These balances agree with the actual AOL amounts._____*Must solve for write offs, $269, through the Allowanceaccount.Req. 2JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDITa. Accounts Receivable……………….7,703Service Revenue………………….7,703b. Cash……………………………………7,316Accounts Receivable…………….7,316c. Uncollectible-Account Expense (308)Allowance for Uncollectibles($7,703 .04) (308)d. Allowance for Uncollectibles……...269*Accounts Receivable…………….269*(continued) P 5-3A Req. 5Customers owed AOL $561.AOL expected to collect $464 ($561 – $97).Req. 6INCOME STATEMENTService revenue……………………….$7,703Uncollectible-account expense (308)(25-35 min.) P 5-4A Req. 1JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Nov. 22 Allowance for Doubtful Accounts………4,100Accounts Receivable — Monet Corp.. 1,300Accounts Receivable — Blocker, Inc.. 2,100Accounts Receivable — M Street Plaza 700 Dec. 31 Doubtful-Account Expense………………7,800Allowance for Doubtful Accounts……7,800* _____*Computation:Required credit balance in Allowance for Doubtful Accounts based on aging of AccountsReceivable ($160,000 ⨯ .005) + ($80,000 ⨯ .01) +($34,000 ⨯ .05) + ($15,000 ⨯.50)……………………..$10,800 Credit balance in Allowance for Doubtful Accounts before the December 31 entry — (see theT-acccount in the answer to Req. 2;$7,100 –$4,100)……………………………………….. 3,000 Credit entry needed to produce the required credit balance in Allowance for Doubtful Accounts…….$ 7,800(continued) P 5-4A Req. 2Allowance for Doubtful AccountsNov. 22 Write-offs 4,100 Sept. 30 Balance 7,100Dec. 31 Adjusting 7,800Dec. 31 Balance 10,800Req. 3Dodge Ram Auto SupplyComparative Balance SheetDecember 31, 20X8 and December 31, 20X720X8 20X7 Accounts receivable………………………$289,000 $271,000 Less: Allowance for doubtful accounts. (10,800) (8,700) Accounts receivable, net…………………$278,200 $262,300(20-25 min.) P 5-5A Req. 1Cash ($18,000 –$8,000)……………………..$ 10,000 Short-term trading investments,at market value…………………………….22,000 Accounts receivable…………………………$49,000 Less: Allowance for uncollectibles……. (4,000) 45,000 Inventory……………………………………….54,000 Prepaid expenses……………………………. 5,000 Total current assets……………………….$136,000 Total current liabilities……………………$145,000 Req. 2As reported CorrectedCurrent= $202,000= 1.39$136,000= 0.94ratio $145,000 $145,000 ($18,000 + $34,000Acid-test= + $49,000 + $42,000)= 0.99$10,000 + $22,000 + $45,000= 0.53ratio $145,000 $145,000(continued) P 5-5A Req. 3Net income, as reported…………………..$65,000 –Unrealized loss on trading investments($34,000 –$22,000)……………………... (12,000) –Correction for conversion to theallowance method —Uncollectible-account expenseshould be ($400,000 .03)……….…$12,000Uncollectible-account expense bythe direct write-off method………… 7,000 (5,000) Net income, corrected…………………….$48,000 Req. 4KPMG’s suggestions make Bzensky look much less successful, decreasing the current ratio, the acid-test ratio, and net income.(20-30 min.) P 5-6A Req. 1JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 20X4Nov. 30 Note Receivable —Kelly Moore Paint Co…..60,000Sales Revenue………………………………..60,000Dec. 31 Interest Receivable ($60,000 ⨯ .10 ⨯ 1/12) (500)Interest Revenue (500)20X5Feb. 18 Note Receivable —Altex Co…………………..5,000Accounts Receivable —Altex Co…………5,000Feb. 20 Cash………………………………………………..4,600Financing Expense (400)Note Receivable —Altex Co……………….5,000Feb. 28 Cash………………………………………………..61,500Note Receivable — Kelly Moore Paint Co.. 60,000Interest Receivable (500)Interest Revenue ($60,000 ⨯ .10 ⨯2/12)…..1,000(continued) P 5-6AJournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 20X5Nov. 11 Note Receivable — Consolidated, Inc... 50,000Cash……………………………………...50,000Dec. 31 Interest Receivable (616)Interest Revenue ($50,000 ⨯ .09 ⨯ 50/365) 616Req. 2December 31 BALANCE SHEET 20X5 20X4 Current assets:Note receivable…………………………$50,000 $60,000 Interest receivable……………………...616 500(30-40 min.) P 5-7AReq. 1Dollar amounts in millions20X6 20X5a. Current = Total current assets = $766 = 1.42$695 = 1.56ratio Total current liabilities$540$446Cash + Short-term investmentsb. Acid-testratio=+ Net current receivables = $27+$93+$206 $26+$101+$154Total current liabilities$540$446 = .60 = .63c. One day’s sales=Net sales = $2,671 = $7.32 $2,505 = $6.86365365365Days’ sales in average receivables= Average net receivables= ($206+$154)/2 ($154+$127)/2One day’s sales$7.32$6.86= 25 days= 20 days(continued) P 5-7A Req. 2MEMORANDUMDATE: _________________TO: Top management of Crain’s Stationery Company FROM: Student NameRE: Changes in ratio values from 20X5 to 20X6The current ratio deteriorated from 1.56 to 1.42. The acid-test ratio dropped from .63 to .60, and days’ sales in receivables rose to 25 days.All three ratio values deteriorated during the current year. This is an unfavorable trend because it indicates that the company may find it more difficult to collect its receivables and pay its bills.Student responses may vary.ProblemsGroup B(20-30 min.) P 5-1B Reqs. 1 and 2Cash Short-Term Investment 400,000 46,250* 46,250* 9,250+1,600** 37,000Dividend Revenue Unrealized Gain (Loss) on Investment1,600** 9,250+ _____*5,000 ⨯ $9.25 = $46,250**5,000 ⨯ $.32 = $1,600+$46,250 – (5,000 ⨯ $7.40) = $9,250(continued) P 5-1B Req. 2JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 20X8Nov. 3 Short-Term Investment…………………46,250Cash (5,000 ⨯$9.25)………………….46,250 Purchased investment.14 Cash (5,000 ⨯$0.32)……………………..1,600Dividend Revenue…………………….1,600 Received cash dividend.Dec. 31 Unrealized Gain (Loss) on Investment. 9,250Short-Term Investment[$46,250 – (5,000 ⨯$7.40)].…………..9,250 Adjusted investment to market value.Req. 3BALANCE SHEETCurrent assets:Short-term investment, at market value(5,000 ⨯$7.40)……………………………………..$37,000 Req. 4INCOME STATEMENTOther revenue and (loss):Dividend revenue…………………………………… $ 1,600 Unrealized (loss) on investment…………………. (9,250)(continued) P 5-1B Req. 5JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 20X9Jan. 6 Cash……………………………………….39,000Short-Term Investment……………..37,000Gain on Sale of Investment………..2,000 Sold investment at a gain.(10-15 min.) P 5-2B MEMORANDUMDATE: _________________TO: Management of Tony the Tiger, Inc.FROM: Student NameRE: Evaluation of internal control over cash receipts from customersBy opening the mail, the accountant has direct access to cash. This creates an internal control weakness because the accountant also posts credits to customer accounts. She can steal a cash receipt from a customer and write off the customer account as uncollectible. The theft is hard to detect because the customer’s account gets zeroed out, and the company does not pursue collection.To correct this internal control weakness, the accountant should be denied access to cash. Someone else in the organization should open the mail and separate cash receipts from the accompanying remittance slips. The cash should be deposited in the bank immediately, and only the remittance slips should go to the accountant.Student responses may vary.(15-20 min.) P 5-3B(All amounts in millions)Reqs. 1, 3, and 4Accounts Receivable Allowance for Uncollectibles 1,635 9,343 659,489 88* 88* 951,693 72 These balances agree with the actual Nike amounts._____*Must solve for write-offs, $88, through the Allowance account.Req. 2JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDITa. Accounts Receivable………………9,489Sales Revenue……………………9,489b. Cash…………………………………..9,343Accounts Receivable……………9,343c. Uncollectible-Account Expense (95)Allowance for Uncollectibles($9,489 .01) (95)d. Allowance for Uncollectibles……..88*Accounts Receivable……………88*(continued) P 5-3B Req. 5Customers owed Nike $1,693.Nike expected to collect $1,621 ($1,693 – $72).Req. 6INCOME STATEMENTSales revenue………………………….$9,489Uncollectible-account expense (95)(25-35 min.) P 5-4B Req. 1JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Nov. 18 Allowance for Doubtful Accounts………1,100Accounts Receivable —Bliss Co (700)Accounts Receivable — Micro Data (400)Dec. 31 Doubtful-Account Expense……………...1,600Allowance for Doubtful Accounts…... 1,600* _____*Computation:Required credit balance in Allowance for Doubtful Accounts based on aging of AccountsReceivable ($100,000 ⨯ .001) + ($40,000 ⨯ .005) +($14,000 ⨯ .05) + ($9,000 ⨯.30)………………………$3,700 Credit balance in Allowance for Doubtful Accounts before the December 31 adjusting entry — (seethe T-acccount in the answer to Req. 2;$3,200 –$1,100)……………………………………….. 2,100 Credit entry needed to produce the required credit balance in Allowance for Doubtful Accounts…….$1,600。

会计英语课后习题参考答案————————————————————————————————作者：————————————————————————————————日期：Suggested SolutionChapter 11.Effect on the accounting equation (1) (2) (3) (4) (5) (6) (a) Increase in one asset, decrease inanother asset.√(b) Increase in an asset, increase in a liability.(c) Increase in an asset, increase in capital. √√(d) Decrease in an asset, decrease in aliability.√(e) Decrease in an asset, decrease in capital. √√2.Transactions Assets+/-Liabilities+/-Owner’s equity+/-1 + +2 + +3 - -4 + +5 + +6 - -7 - -8 +/-9 - -10 - -3.Describe each transaction based on the summary above.Transactions1 Purchased land for cash, $6,000.2 Investment for cash, $3,200.3 Paid expense $1,200.4 Purchased supplies on account, $800.5 Paid owner’s personal use, $750.6 Paid creditor, $1,5007 Supplies used during the period, $630.4.Assets Liabilities Equity Beginning 275,000 80,000 195,000Add. investment 48,000Add. Net income 27,000Less withdrawals -35,000 Ending 320,000 85,000 235,0005.(a)March 31, 20XX April 30, 20XX AssetsCash 4,500 5,400 Accounts receivable 2,560 4,100 Supplies 840 450 Total assets 7,900 9,950 LiabilitiesAccounts payable 430 690 EquityTina Pierce, Capital7,470 9,260(b) net income = 9,260-7,470=1,790(c) net income = 1,790+2,500=4,290Chapter 21.a.To increase Notes Payable -CRb.To decrease Accounts Receivable-CRc.To increase Owner, Capital -CRd.To decrease Unearned Fees -DRe.To decrease 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 ................................................... 1,800 b.Revenue ................................................................... 4,500Accounts receivable ...................................... 4,500c.Owner’s withdrawals ................................................ 1,500Salaries Expense ............................................ 1,500 d.Accounts Receivable (750)Revenue (750)3.Prepare adjusting journal entries at December 31, the end of the year.Advertising expense 600Prepaid advertising 600Insurance expense (2160/12*2) 360Prepaid insurance 360Unearned revenue 2,100Service revenue 2,100Consultant expense 900Prepaid consultant 900Unearned revenue 3,000Service revenue 3,000 4.1. $388,4002. $22,5203. $366,6004. $21,8005.1. net 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 balance $6,220 Reconciled balance $6,2202. April 7 Dr: Notes receivable—A company 5400Cr: Accounts receivable—A company 540012 Dr: Cash 5394.5Interest expense 5.5Cr: Notes receivable 5400June 6 Dr: Accounts receivable—A company 5533Cr: Cash 553318 Dr: Cash 5560.7Cr: Accounts receivable—A company 5533Interest revenue 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 + the cost of goods=80,000+200,000*500%=80,000+1,000,000=1,080,0005.(1) 24,000+60,000-90,000*0.8=12000(2) (60,000+24,000)/( 85,000+31,000)*( 85,000+31,000-90,000)=18828Chapter 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 = 28,880.2. (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 = ( 600,000 – 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 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 1,200,000 December 31, 2009 Cash 42,500Investment in K 42,500Investment in K 146,000Investment revenue 146,000 c. 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: Inventory 198,000Cr: Accounts Payable 198,000 June 11: Dr: Accounts Payable 198,000Cr: Notes Payable 198,000 June 12: Dr: Cash 300,000Cr: Notes Payable 300,000b. Dr: Interest Expenses (for notes on June 11) 12,100Cr: Interest Payable 12,100Dr: Interest Expenses (for notes on June 12) 8,175Cr: Interest Payable 8,175c. Balance sheet presentation:Notes Payable 498,000 Accrued Interest on Notes Payable 20,275d. For Green:Dr: Notes Payable 198,000 Interest Payable 12,100Interest Expense 7,700Cr: Cash 217,800For Western:Dr: Notes Payable 300,000Interest Payable 8,175Interest Expense 18,825Cr: Cash 327,0002.(1) 20⨯8 Deferred income tax is a liability 2,400Income tax payable 21,600 20⨯9 Deferred income tax is an asset 600Income tax payable 26,100(2) 20⨯8: Dr: Tax expense 24,000Cr: Income tax payable 21,600 Deferred income tax 2,400 20⨯9: Dr: Tax expense 25,500Deferred income tax 600Cr: Income tax payable 26,100 (3) 20⨯8: Income statement: tax expense 24,000Balance sheet: income tax payable 21,600 20⨯9: Income statement: tax expense 25,500 Balance sheet: income tax payable 26,1003.a. 1,560,000 (20000000*12 %* (1-35%))b. 7.8% (20000000*12 %* (1-35%)/20000000)4.maturity value numberofinterestperiodsstated rate perinterest-periodeffective interestrate perinterest-periodpaymentamountper periodpresentvalue ofbonds atdate ofissue1 $10 40 3.75% 3% $0.375 $11.732 20 10 10% 12% 2 17.743 25 10 0% 12% 0 8.055.Notes Payable 14,400Interest Payable 1,296Accounts Payable 60,000+Unearned Rent Revenue 7,200Current Liabilities 82,896Chapter 61. Mar. 1Cash 1,200,000Common Stock 1,000,000Paid-in Capital in Excess of Par Value 200,000Mar. 15Organization Expense 50,000Common Stock 50,000Mar. 23Patent 120,000Common Stock 100,000Paid-in Capital in Excess of Par Value 20,000The value of the patent is not easily determinable, so use the issue price of $12 per share on March 1 which is the issuing price of common stock.2. July.1Treasury Stock 180,000Cash 180,000The cost of treasury purchased is 180,000/30,000=60 per share.Nov. 1Cash 70,000Treasury Stock 60,000Paid-in Capital from Treasury Stock 10,000 Sell the treasury at the cost of $60 per share, and selling price is $70 per share. The treasury stock is sold above the cost.Dec. 20Cash 75,000Paid-in Capital from Treasury Stock 15,000Treasury Stock 90,000 The cost of treasury is $60 per share while the selling price is $50 which is lower than the cost.3. a. July 1Retained Earnings 24,000Dividends Payable—Preferred Stock 24,000b.Sept.1Dividends Payable—Preferred Stock 24,000Cash 24,000c. Dec.1Retained Earnings 80,000Dividends Payable—Common Stock 80,000d. Dec.31Income Summary 350,000Retained Earnings 350,0004.a. Preferred stock gives its owner certain advantages over common stockholders. These benefits include the right to receive dividends before the common stockholders and the right to receive assets before the common stockholders if the corporation liquidates. Corporation 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 stockholders’ equity; the date of record and the date of payment have no effect on stockholders.5.a. Jan. 15Retained Earnings 35,000Accumulated Depreciation 35,000To correct error in prior year’s depreciation.b. Mar. 20Loss from Earthquake 70,000Building 70,000c. Mar. 31Retained Earnings 12,500Dividends Payable 12,500d. Apirl.15Dividends Payable 12,500Cash 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 value 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 amount of Common Stock ($10 par value) decreases 275,000, while the amount of Common Stock ($5 par value) increases 275,000.Chapter 71.Requirement 1If revenue is recognized at the date of delivery, the following journal entries would be used to record the transactions for the two years:Year 1Inventory ....................................................................................... 480,000 Cash/Accounts payable .......................................................... 480,000 To record purchase of inventoryInventory ....................................................................................... 124,000 Cash/Accounts payable .......................................................... 124,000 To record refurbishment of inventoryAccounts receivable ...................................................................... 310,000 Sales revenue ......................................................................... 310,000 To record sale of goods on accountCost of goods sold ........................................................................ 220,000 Inventory ................................................................................. 220,000 To record the cost of the goods sold as an expenseSales returns (I/S) ......................................................................... 15,500* Allowance for sales returns (B/S) ........................................... 15,500 To record provision for return of goods sold under 30-day return period* 5% of $310,000Warranty expense ......................................................................... 31,000* Provision for warranties (B/S) ................................................. 31,000 To record provision, at time of sale, for warranty expenditures* 10% of $310,000Allowance for sales returns .......................................................... 12,400 Accounts receivable ............................................................... 12,400 To record return of goods within 30-day return period.It is assumed the returned goods have no value and are disposed of.Provision for warranties (B/S) ....................................................... 18,600 Cash/Accounts payable .......................................................... 18,600 To record expenditures in year 1 for warranty workCash .............................................................................................. 297,600*Accounts receivable ............................................................... 297,600 To record collection of Accounts Receivable* $310,000 – $12,400Year 2Provision for warranties (B/S) ....................................................... 8,400 Cash/Accounts payable .......................................................... 8,400 To record expenditures in year 2 for warranty workRequirement 2If revenue is recognized only when the warranty period has expired, the following journal entries would be used to record the transactions for the two years:Year 1Inventory ....................................................................................... 480,000 Cash/Accounts payable .......................................................... 480,000 To record purchase of inventoryInventory ....................................................................................... 124,000 Cash/Accounts payable .......................................................... 124,000 To record refurbishment of inventoryAccounts receivable ...................................................................... 310,000 Inventory ................................................................................. 220,000 Deferred gross margin ............................................................ 90,000 To record sale of goods on accountDeferred gross margin .................................................................. 12,400 Accounts receivable ............................................................... 12,400 To record return of goods within the 30-day return period. It is assumed the goods have no value and are disposed of.Deferred warranty costs (B/S) ...................................................... 18,600 Cash/Accounts payable .......................................................... 18,600 To record expenditures for warranty work in year 1. The warranty costs incurred aredeferred because the related revenue has not yet been recognizedCash .............................................................................................. 297,600* Accounts receivable ............................................................... 297,600 To record collection of Accounts receivable* $310,000 – $12,400Year 2Deferred warranty costs ................................................................ 8,400 Cash/Accounts payable .......................................................... 8,400 To record warranty costs incurred in year 2 related to year 1 sales. The warranty costs incurred are deferred because the related revenue has not yet been recognized.Deferred gross margin .................................................................. **77,600Cost of goods sold ........................................................................ 220,000 Sales revenue ......................................................................... 297,600* To record recognition of sales revenue from year 1 sales and related cost of goods sold at expiry of warranty period* $310,000 – $12,400** ($90,000 – $12,400)Warranty expense ......................................................................... 27,000* Deferred warranty costs ......................................................... 27,000 To 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 period has expired if they are not able to make a good estimate, at the time of sale, of the amount of warranty work that will be required under the terms of the one-year warranty. If Allied is not 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 of sale. The measurability criterion 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 done under the warranty agreement, then it is not able to reasonably measure the profit that it will eventually earn on the sales. The performance criteria might also be invoked here.The performance criterion means that the seller has transferred the significant risks and rewards of ownership to the buyer. As long as there is warranty work to be performed after the sale that is the responsibility of the seller, you might argue that performance is notsubstantially complete. However, if the seller was able to reliably estimate the amount of warranty 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 recognition 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 the end of each year. This is done in the following table (in $000s):End of 2005 End of 2006 End of 2007Total costs incurred $ 5,400 $ 12,950 $ 18,800 Total estimated costs 18,000 18,500 18,800 % completed 30% 70% 100%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 the percentage completed to date, less what has previously been recorded in revenue. This is done in the following table (in $000s):2005 2006 20072005 $20,000 × 30% $ 6,0002006 $20,000 × 70% $ 14,0002007 $20,000 × 100% $ 20,000 Less: Revenue recognized in prior years (0) (6,000) (14,000) Revenue for year $ 6,000 $ 8,000 $ 6,000Therefore, the profit to be recognized each year on the construction project would be:2005 2006 2007 TotalRevenue recognized $ 6,000 $ 8,000 $ 6,000 $ 20,000 Construction costs incurred (expenses) (5,400) (7,550) (5,850) (18,800) Gross profit for the year $ 600 $ 450 $ 150 $ 1,200The following journal entries are used to record the transactions under thepercentage-of-completion method of revenue recognition:2005 2006 20071. Costs of construction:Construction in progress .................. 5,400 7,550 5,850 Cash, payables, etc. ..... 5,400 7,550 5,850 2. Progress billings:Accounts receivable ............ 3,100 4,900 12,000 Progress billings ............ 3,100 4,900 12,000 3. Collections on billings:Cash .................................... 2,400 4,000 12,400 Accounts receivable ...... 2,400 4,000 12,400 4. Recognition of profit:Construction in progress ..... 600 450 150Construction expense.......... 5,400 7,550 5,850 Revenue from long-termcontract ...................... 6,000 8,000 6,000 5. To close construction in progress:Progress billings .................. 20,000 Construction in progress .20,0002005 2006 2007Balance sheetCurrent assets:Accounts receivable $ 700 $ 1,600 $ 1,200 Inventory:Construction in process 6,000 14,000 Less: Progress billings (3,100) (8,000)Costs in excess of billings 2,900 6,000Income statementRevenue from long-term contracts $ 6,000 $ 8,000 $ 6,000 Construction expense (5,400) (7,550) (5,850) Gross profit $ 600 $ 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 example, for the sale of products, IAS18 defines 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 is done at the time of sale. Although the seller may have performed much of the work prior to the sale (production, selling efforts, etc.), there is still significant risk to theseller that a buyer may not be found. Therefore, from a reliability point of view,revenue recognition is delayed until the point of sale. Also, there may be significant risks remaining with the seller of the product even after the sale. Warranties given by the seller are a risk that remains with the seller. However, if this risk can be reliably estimated at the time of sale, revenue can be recognized at the point of sale.Performance is quite different under a long-term construction contract. Here,performance really is considered to be a measure of the work done. Revenue isrecognized over the production period as the work is performed. It is intended toreflect the amount of effort expended by the seller (contractor). Although legal titlewon’t transfer to the buyer until the project is completed, revenue can be recognized because there is a known and committed buyer. If the contractor is not able toestimate how much of the work has been done (perhaps because he or she can’treliably estimate how much work must still be done), then profit would not berecognized until the extent of performance is known.Measurability means that the seller or service provider must be able to reliablyestimate the amount of the revenue from the sale or service. For the sale of products this is generally known at the time of sale (the sales price is set). However, if the seller provides a return period, it may be necessary to estimate the volume of returns at the time of sale in order to measure the revenue that will be recognized.Collectibility means that the seller or the service provider has reasonable assurance that the sales price will actually be collected. In most cases for the sales of products, the seller is able to recognize revenue at the time of sale even if the sale is on account.This is because the seller has experience with its customers and is able to estimate reliably the risk of non payment. As long as the seller is able to make this estimate, it is appropriate to recognize the revenue but to offset it with a provision for possible non collection. If the seller is unable to make reliable estimates of future collection ofamounts owing, the recognition of revenue would be delayed until the cash is actually received. This is what is done using the instalment sales method of revenuerecognition.b. Because of the performance criterion of revenue recognition, it would seem to bemost appropriate to recognize most revenue as the seller or service provider performs the work. This would be the best measure of performance. This would mean, for example,that sellers of products would recognize their revenue over the whole production, selling, and post sales servicing periods. As we saw above, this is not commonly done because,in many cases, there are still significant risks that are retained by the seller (risk of not being able to sell the product, for example). There are also measurement risks (knowingthe selling price) that exist prior to the sale. The percentage-of-completion method of revenue used for some long-term construction contracts would seem to most closely recognize revenue as the work is performed. As mentioned in Part 1, we are able to recognize revenue on this basis since a contract exists which commits the purchaser tobuy the project (assuming certain conditions are met) and the sales price is known because of the existence of the contract.4.If all revenue is recognized when a student registers for the course, profit for 2007 would be:Sales Revenue1:Manuals and initial lessons (200 × $100) $ 20,000 Additional lessons ((200 × 8) × $30) 48,000 Examinations ((200 × 80%) × $130) 20,800 Total sales revenue 88,800Cost of sales:Manuals and initial lessons (200 × ($15 + $3)) 3,600 Additional lessons ((200 × 8) × $3)) 4,800Examinations ((200 × 80%) × $30) 4,800 Total cost of sales 13,200Depreciation of development costs:$180,000 × (200/1,000) 36,000Profit $ 39,6005.FINISH ENTERPRISESIncome Statementfor the year ending December 31, 2005Continuing operations (excluding the chemical division)Sales ($35,000,000 – $5,500,000) $ 29,500,000Cost of sales ($15,000,000 – $2,800,000) (12,200,000)Gross profit 17,300,000Selling & administration expenses($18,000,000 – $3,200,000) (14,800,000)Profit from operations 2,500,000Income tax expense (40%) 1,000,000Profit after tax $ 1,500,000Discontinuing operations (Chemical division)Sales 5,500,000Cost of sales (2,800,000)Gross profit 2,700,000Selling & administration expenses (3,200,000)Loss from operations (500,000)Income tax expense(40%) 200,000Loss after tax (300,000) Gain on discontinuance of the Chemical division 3,500,000Tax thereon (1,400,000)After-tax gain on discontinuance of the Chemical division 2,100,000 Enterprise net profit $ 3,300,000Chapter 81.Payment of account payable. operatingIssuance of preferred stock for cash. financingPayment of cash dividend. financingSale of long-term investment. investingAmortization of bond discount. no effectCollection of account receivable. operatingIssuance of long-term note payable to borrow cash. financing Depreciation of equipment. no effectPurchase of treasury stock. financingIssuance of common stock for cash. financingPurchase of long-term investment. investingPayment of wages to employees. operatingCollection of cash interest. investingCash sale of land. InvestingDistribution of stock dividend. no effectAcquisition of equipment by issuance of note payable. no effect Payment of long-term debt. financingAcquisition of building by issuance of common stock. no effect Accrual of salary expense. no effect2.(a) Cash received from customers = 816,000(b) Cash payments for purchases of merchandise. =468,000(c) Cash payments for operating expenses. = 268,200(d) Income taxes paid. =36,9003.Cash sales …………………………………………... $9,000 Payment of accounts payable ……………………….-48,000 Payment of income tax ………………………………-13,000 Payment of intere st ……………………………..…..-16,000 Collection of accounts receivable ……………………93,000 Payment of salaries and wages ……………………….. -34,000 Cash flows from operating activitiesby the direct method -9,0004.Operating activities:Net loss -200,000 Add: loss on sale of land 250,000 Add: depreciation 300,000Add: amortization of patents 20,000Less: increases in current assets other than cash -750,000Add: increases in current liabilities 180,000Net cash flows from operating -200,000Investing activitiesSale of land -50,000Purchase of PPE -1,500,000Net cash flows from investing -1,550,000Financing activitiesIssuance of common shares 400,000Payment of cash dividend -50,000Issuance of non-current liabilities 1,000,000Net cash flows from financing 1,350,000 Net changes in cash -400,000 5.。

国际会计学课后答案【篇一：国际会计第七版英文版课后答案(第六章)】foreign currency translationdiscussion questions solutions1. foreign currency translation is the process of restating a foreign account balance from one currency to another. foreign currency conversion is the process of physically exchanging one currency for another.2. in the foreign exchange spot market, currencies bought and sold must be delivered immediately,normally within 2 business days. thus a singaporean tourist buying u.s. dollars at the airportbefore boarding a plane for new york would hand over singapore dollars and immediatelyreceive the equivalent amount in u.s. dollars. the forward market handles agreements toexchange a fixed amount of one currency for another on an agreed date in the future. forexample, a french manufacturer exporting goods invoiced in euros to a japanese importer on 60- day credit terms would buy a forward contract to sell yen for euros 2 months in the future.transactions in the swap market involve the simultaneous purchase (or sale) of one currency inthe spot market and the sale (or purchase) of the same currency in the forward market. thus, acanadian investor wishing to take advantage of higher interest rates on 6-month treasury bills inthe united states would buy u.s. dollars with canadian dollars in the spot market and invest inthe united states. to guard against a fall in the value of the u.s. dollar before maturity (whenthe u.s. dollar proceeds are converted back to canadian dollars), the canadian investor wouldsimultaneously enter into a forward contract to sell u.s. dollars for canadian dollars 6 months inthe future at today s forward exchange rate.3. the question refers to alternative exchange rates that are used to translate foreign financialstatements. the current rate is the exchange rate at the financial statement date. it issometimes called the year-end or closing rate. the historical rate is the exchange rate at the timeof the underlying transaction. the average rate is the average of various exchange rates during afiscal period. since the average ratenormally is used to translate income statement items, it isoften weighted to reflect any seasonal changes in the volume of transactions during the period.translation gains and losses do not occur if exchange rates do not change. however, ifexchange rates change, the use of current and average rates causes translation gains and losses.these do not occur when the historical rate is used because the same (constant) rate is used eachperiod.4. in this example, the mexican affiliate s canadian dollar loan is denominated in canadian dollars.however, because the mexican affiliate’s functional currency is u.s. dollars, the peso equivalentof the canadian dollar borrowing would be remeasured in u.s. dollars prior to consolidation. ifthe mexican affiliate’s functional currency were the peso, the canadian dollar loan would beremeasured in pesos before being translated to u.s. dollars.5. a transaction gain or loss occurs when a foreign currency transaction, e.g., a foreign currencyborrowing, is settled at a different exchange rate than that which prevailed when the transactionwas originally incurred. in this case there is an exchange of one currency for another. atranslation gain or loss, on the other hand, is simply the result of a restatement process. there isno physical exchange of currencies involved.6. it is not possible to combine, add, or subtract accounting measurements expressed in differentcurrencies; thus, it is necessary to translate those accounts that are measured or denominated in aforeign currency into a single reporting currency. foreign currency translation can involverestatement or remeasurement. in restatement, the local (functional) currency is kept as the unitof measure; that is, the translation process multiplies the financial results and relationships in thelocal currency accounts by a constant, the current rate. in contrast, remeasurement translateslocal currency results as if the underlying transactions had taken place in the reporting(functional) currency of the parent company; for example, it changes the unit of measure of aforeign subsidiary from its local (foreign) currency to the u.s. dollar.7. major advantages and limitations of each of the major translation methods follow.current rate methodadvantages:a. retains the initial relationships in the foreign currency statements.b. simple to apply.limitations:a. violates the basic purpose of consolidation, which is to present the results of a parent and its subsidiaries as if they were a single entity.b. inconsistent with historical cost.c. presumes that all local assets and liabilities are subject to exchange risk.d. while stockholders equity adjustments shield an mnc s bottom line from translation gains and losses, such adjustments could distort certain financial ratios and be confusing.current-noncurrent methodadvantages:a. distortions in translated gross margins are reduced as inventories and translated at the current rate.b. reported earnings are shielded from the distorting effects of currency fluctuations as excess translation gains are deferred and used to offset future translation losses.limitations:a. uses balance sheet classification as basis for translation.b. assumes all current assets are exposed to exchange risk regardless of their form.c. assumes long-term debt is sheltered from exchange rate risk.monetary-nonmonetary methodadvantages:a. reflects changes in domestic currency equivalent of long-term debt on a timely basis.limitations:a. assumes that only monetary assets and liabilities are subject to exchange rate risk.b. exchange rate changes distort profit margins as sales transacted at current prices are matched against cost of sales measured at historical prices.c. uses balance sheet classification as basis for translation.d. nonmonetary items stated at current market values are translated at historical rates.temporal methodadvantages:a. theoretically valid: compatible with any accounting measurement method.b. has the effect of translating foreign subsidiaries operations as if they were originally transacted in the home currency, which is desirable for foreign operations that are extensions of the parent’s activities. limitation:a. a company increases its earnings volatility by recognizing translation gains and losses currently. in arguing for one translation method over another, your students should eventually realize that, in the present state of the art, there is probably no one translation method that is appropriate for all circumstances in which translations occur and for all purposes thattranslation serves. it is probably more fruitful to have students identify circumstances in which they think one translation method is more appropriate than another.8. the current rate method is appropriate when the foreign entity being consolidated is largely independent of the parent company. conditions which would justify this methodology is when the foreign affiliate tends to generate and expend cash flows in the local currency, sells a product locally so that its selling price is largely insulated from exchange rate changes, incurs expenses locally, finances its self locally and does not have very many transactions with the parentcompany. in contrast, the temporal method seems appropriate in those instances when theforeign affiliate’s operatio ns are integrally related to the parent company. conditions which would justify use of the temporal method are when the foreign affiliate transacts business in the parent currency and remits such cash flows to the parent company, sells a product largely in the parent country and whose selling price is sensitive to exchange rate changes,sources its factor inputs from the parent company, receives most of its financing from the parent and has a large two way flow of transactions with it.9. the history of foreign currency translation in the united states suggests that the development of accounting principles does not depend on theoretical considerations so much as on political, institutional, and economic influences that affect accounting standard setting. it may be morerealistic to recognize that theoretically sound solutions are impossible as long as policyprescriptions are evaluated on practical grounds. without specific choice criteria derived frominvestor decision models, it is fruitless to argue the conceptual merits of competing accountingtreatments. it is far more productive to admit that foreign currency translation choices are simplyarbitrary.readers of consolidated financial statements should know that the foreign currency translationmethod used is one of several alternatives, and this should be disclosed. this approach is moreopen and reduces the chance that readers will draw misleading inferences.10. foreign inflation, in particular, the differential rate of inflation between the country in which a subsidiary is located and the country of its parent determines foreign exchange rates.these rates, in turn, are used to translate foreign currency balances to parent currency.11. in the united kingdom, financial statements of affiliates domiciled in hyperinflationaryenvironments must first be adjusted to current price levels and then translated using the current rate; in the united states, the temporal method would be employed. the second part of this question is designed to get students from abroad to find out what companies in their homecountries are doing and thereby be in a position to share their new found knowledge with their classmates. they need simply get on the internet and read the footnotes of a major multinational company in their home country.12. under fas no. 52, the parent currency is designated as the functional currency for an affiliate, whose operations are considered to be an integral part of the parent company’s operations.accordingly, anything that affects consolidated earnings, including foreign currency translationgains and losses, is relevant to parent company shareholders and is included in reported earnings.in contrast, when a foreign affiliate s operations are independent of the parent s, the localcurrency is designated as its functional currency. since the focus is on the affiliate s localperformance, translation gains and losses that arise solely from consolidation are irrelevant and,therefore, are not included in consolidated income.exercises solutions1. ￥250,000,000 x .008557 = $2,139,250.the difference is due to rounding.。

Suggested SolutionChapter 13.4.5.(b) net income = 9,260-7,470=1,790(c) net income = 1,790+2,500=4,290Chapter 21.a.To increase Notes Payable -CRb.To decrease Accounts Receivable-CRc.To increase Owner, Capital -CRd.To decrease Unearned Fees -DRe.To decrease 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 ................................................... 1,800 b.Revenue ................................................................... 4,500Accounts receivable ...................................... 4,500c.Owner’s withdrawals ................................................ 1,500Salaries Expense ............................................ 1,500 d.Accounts Receivable (750)Revenue (750)3.Prepare adjusting journal entries at December 31, the end of the year.Advertising expense 600Prepaid advertising 600Insurance expense (2160/12*2) 360Prepaid insurance 360Unearned revenue 2,100Service revenue 2,100Consultant expense 900Prepaid consultant 900Unearned revenue 3,000Service revenue 3,000 4.1. $388,4002. $22,5203. $366,6004. $21,8005.1. net 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 balance $6,220 Reconciled balance $6,2202. April 7 Dr: Notes receivable—A company 5400Cr: Accounts receivable—A company 540012 Dr: Cash 5394.5Interest expense 5.5Cr: Notes receivable 5400June 6 Dr: Accounts receivable—A company 5533Cr: Cash 553318 Dr: Cash 5560.7Cr: Accounts receivable—A company 5533Interest revenue 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 + the cost of goods=80,000+200,000*500%=80,000+1,000,000=1,080,0005.(1) 24,000+60,000-90,000*0.8=12000(2) (60,000+24,000)/( 85,000+31,000)*( 85,000+31,000-90,000)=18828Chapter 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 = 28,880.2. (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 = ( 600,000 – 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 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 1,200,000 December 31, 2009 Cash 42,500Investment in K 42,500Investment in K 146,000Investment revenue 146,000 c. 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: Inventory 198,000Cr: Accounts Payable 198,000 June 11: Dr: Accounts Payable 198,000Cr: Notes Payable 198,000 June 12: Dr: Cash 300,000Cr: Notes Payable 300,000b. Dr: Interest Expenses (for notes on June 11) 12,100Cr: Interest Payable 12,100Dr: Interest Expenses (for notes on June 12) 8,175Cr: Interest Payable 8,175c. Balance sheet presentation:Notes Payable 498,000 Accrued Interest on Notes Payable 20,275d. For Green:Dr: Notes Payable 198,000 Interest Payable 12,100Interest Expense 7,700Cr: Cash 217,800For Western:Dr: Notes Payable 300,000Interest Payable 8,175Interest Expense 18,825Cr: Cash 327,0002.(1) 20⨯8 Deferred income tax is a liability 2,400Income tax payable 21,600 20⨯9 Deferred income tax is an asset 600Income tax payable 26,100(2) 20⨯8: Dr: Tax expense 24,000Cr: Income tax payable 21,600 Deferred income tax 2,400 20⨯9: Dr: Tax expense 25,500Deferred income tax 600Cr: Income tax payable 26,100 (3) 20⨯8: Income statement: tax expense 24,000Balance sheet: income tax payable 21,600 20⨯9: Income statement: tax expense 25,500 Balance sheet: income tax payable 26,1003.a. 1,560,000 (20000000*12 %* (1-35%))b. 7.8% (20000000*12 %* (1-35%)/20000000)5.Notes Payable 14,400 Interest Payable 1,296 Accounts Payable 60,000 +Unearned Rent Revenue 7,200 Current Liabilities 82,896Chapter 61. Mar. 1Cash 1,200,000Common Stock 1,000,000Paid-in Capital in Excess of Par Value 200,000Mar. 15Organization Expense 50,000Common Stock 50,000Mar. 23Patent 120,000Common Stock 100,000Paid-in Capital in Excess of Par Value 20,000The value of the patent is not easily determinable, so use the issue price of $12 per share on March 1 which is the issuing price of common stock.2. July.1Treasury Stock 180,000Cash 180,000The cost of treasury purchased is 180,000/30,000=60 per share.Nov. 1Cash 70,000Treasury Stock 60,000Paid-in Capital from Treasury Stock 10,000Sell the treasury at the cost of $60 per share, and selling price is $70 per share. The treasury stock is sold above the cost.Dec. 20Cash 75,000Paid-in Capital from Treasury Stock 15,000Treasury Stock 90,000The cost of treasury is $60 per share while the selling price is $50 which is lower than the cost.3. a. July 1Retained Earnings 24,000Dividends Payable—Preferred Stock 24,000b.Sept.1Dividends Payable—Preferred Stock 24,000Cash 24,000c. Dec.1Retained Earnings 80,000Dividends Payable—Common Stock 80,000d. Dec.31Income Summary 350,000Retained Earnings 350,0004.a. Preferred stock gives its owner certain advantages over common stockholders. These benefits include the right to receive dividends before the common stockholders and the right to receive assets before the common stockholders if the corporation liquidates. Corporation 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 stockholders’ equity; the date of record and the date of payment have no effect on stockholders.5.a. Jan. 15Retained Earnings 35,000Accumulated Depreciation 35,000To correct error in prior year’s depreciation.b. Mar. 20Loss from Earthquake 70,000Building 70,000c. Mar. 31Retained Earnings 12,500Dividends Payable 12,500d. Apirl.15Dividends Payable 12,500Cash 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 value 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 amount of Common Stock ($10 par value) decreases 275,000, while the amount of Common Stock ($5 par value) increases 275,000.Chapter 71.Requirement 1If revenue is recognized at the date of delivery, the following journal entries would be used to record the transactions for the two years:Year 1Inventory ....................................................................................... 480,000 Cash/Accounts payable .......................................................... 480,000 To record purchase of inventoryInventory ....................................................................................... 124,000 Cash/Accounts payable .......................................................... 124,000 To record refurbishment of inventoryAccounts receivable ...................................................................... 310,000 Sales revenue ......................................................................... 310,000 To record sale of goods on accountCost of goods sold ........................................................................ 220,000 Inventory ................................................................................. 220,000 To record the cost of the goods sold as an expenseSales returns (I/S) ......................................................................... 15,500* Allowance for sales returns (B/S) ........................................... 15,500 To record provision for return of goods sold under 30-day return period* 5% of $310,000Warranty expense ......................................................................... 31,000* Provision for warranties (B/S) ................................................. 31,000 To record provision, at time of sale, for warranty expenditures* 10% of $310,000Allowance for sales returns .......................................................... 12,400 Accounts receivable ............................................................... 12,400 To record return of goods within 30-day return period.It is assumed the returned goods have no value and are disposed of.Provision for warranties (B/S) ....................................................... 18,600 Cash/Accounts payable .......................................................... 18,600 To record expenditures in year 1 for warranty workCash .............................................................................................. 297,600*Accounts receivable ............................................................... 297,600 To record collection of Accounts Receivable* $310,000 – $12,400Year 2Provision for warranties (B/S) ....................................................... 8,400 Cash/Accounts payable .......................................................... 8,400 To record expenditures in year 2 for warranty workRequirement 2If revenue is recognized only when the warranty period has expired, the following journal entries would be used to record the transactions for the two years:Year 1Inventory ....................................................................................... 480,000 Cash/Accounts payable .......................................................... 480,000 To record purchase of inventoryInventory ....................................................................................... 124,000 Cash/Accounts payable .......................................................... 124,000 To record refurbishment of inventoryAccounts receivable ...................................................................... 310,000 Inventory ................................................................................. 220,000 Deferred gross margin ............................................................ 90,000 To record sale of goods on accountDeferred gross margin .................................................................. 12,400 Accounts receivable ............................................................... 12,400 To record return of goods within the 30-day return period. It is assumed the goods haveno value and are disposed of.Deferred warranty costs (B/S) ...................................................... 18,600 Cash/Accounts payable .......................................................... 18,600 To record expenditures for warranty work in year 1. The warranty costs incurred are deferred because the related revenue has not yet been recognizedCash .............................................................................................. 297,600* Accounts receivable ............................................................... 297,600 To record collection of Accounts receivable* $310,000 – $12,400Year 2Deferred warranty costs ................................................................ 8,400 Cash/Accounts payable .......................................................... 8,400 To record warranty costs incurred in year 2 related to year 1 sales. The warranty costs incurred are deferred because the related revenue has not yet been recognized.Deferred gross margin .................................................................. **77,600Cost of goods sold ........................................................................ 220,000 Sales revenue ......................................................................... 297,600* To record recognition of sales revenue from year 1 sales and related cost of goods sold at expiry of warranty period* $310,000 – $12,400** ($90,000 – $12,400)Warranty expense ......................................................................... 27,000* Deferred warranty costs ......................................................... 27,000 To record recognition of warranty expense at same time as related sales revenue recognition* $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 amount of warranty work that will be required under the terms of the one-year warranty. If Allied is not able, at the time of sale, to make a good estimate of the warranty work that will be required, then the measurability criterion of revenue recognition is not met at the time of sale. The measurability criterion means that the amount of revenue can be reliably measured. If the seller is not able to estimate the amount of work that will have to be done under the warranty agreement, then it is not able to reasonably measure the profit that itwill eventually earn on the sales. The performance criteria might also be invoked here.The performance criterion means that the seller has transferred the significant risks and rewards of ownership to the buyer. As long as there is warranty work to be performed after the sale that is the responsibility of the seller, you might argue that performance is not substantially complete. However, if the seller was able to reliably estimate the amount of warranty work, then performance would be satisfied on the assumption that we could measure the risk that remains with the seller, and make a provision for it.2.Percentage-of-completion method:The first step in applying revenue recognition using the percentage-of-completion method (using costs incurred to date compared to estimated total costs to determine the percentage of completion) is to estimate the percentage of completion of the project at the end of each year. This is done in the following table (in $000s):End of 2005 End of 2006 End of 2007Total costs incurred $ 5,400 $ 12,950 $ 18,800 Total estimated costs 18,000 18,500 18,800 % completed 30% 70% 100%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 the percentage completed to date, less what has previously been recorded in revenue. This is done in the following table (in $000s):2005 2006 20072005 $20,000 × 30% $ 6,0002006 $20,000 × 70% $ 14,0002007 $20,000 × 100% $ 20,000 Less: Revenue recognized in prior years (0) (6,000) (14,000) Revenue for year $ 6,000 $ 8,000 $ 6,000Therefore, the profit to be recognized each year on the construction project would be:2005 2006 2007 TotalRevenue recognized $ 6,000 $ 8,000 $ 6,000 $ 20,000 Construction costs incurred (expenses) (5,400) (7,550) (5,850) (18,800) Gross profit for the year $ 600 $ 450 $ 150 $ 1,200The following journal entries are used to record the transactions under thepercentage-of-completion method of revenue recognition:2005 2006 20071. Costs of construction:Construction in progress .................. 5,400 7,550 5,850 Cash, payables, etc. ..... 5,400 7,550 5,850 2. Progress billings:Accounts receivable ............ 3,100 4,900 12,000 Progress billings ............ 3,100 4,900 12,000 3. Collections on billings:Cash .................................... 2,400 4,000 12,400 Accounts receivable ...... 2,400 4,000 12,400 4. Recognition of profit:Construction in progress ..... 600 450 150Construction expense.......... 5,400 7,550 5,850 Revenue from long-termcontract ...................... 6,000 8,000 6,000 5. To close construction in progress:Progress billings .................. 20,000 Construction in progress .20,0002005 2006 2007Balance sheetCurrent assets:Accounts receivable $ 700 $ 1,600 $ 1,200 Inventory:Construction in process 6,000 14,000 Less: Progress billings (3,100) (8,000)Costs in excess of billings 2,900 6,000Income statementRevenue from long-term contracts $ 6,000 $ 8,000 $ 6,000 Construction expense (5,400) (7,550) (5,850) Gross profit $ 600 $ 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 example, for the sale of products, IAS18 defines 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 is done at the time of sale. Although the seller may have performed much of the work prior to the sale (production, selling efforts, etc.), there is still significant risk to theseller that a buyer may not be found. Therefore, from a reliability point of view,revenue recognition is delayed until the point of sale. Also, there may be significant risks remaining with the seller of the product even after the sale. Warranties given by the seller are a risk that remains with the seller. However, if this risk can be reliably estimated at the time of sale, revenue can be recognized at the point of sale.Performance is quite different under a long-term construction contract. Here,performance really is considered to be a measure of the work done. Revenue isrecognized over the production period as the work is performed. It is intended toreflect the amount of effort expended by the seller (contractor). Although legal titlewon’t transfer to the buyer until the project is completed, revenue can be recognized because there is a known and committed buyer. If the contractor is not able toestimate how much of the work has been done (perhaps because he or she can’treliably estimate how much work must still be done), then profit would not berecognized until the extent of performance is known.Measurability means that the seller or service provider must be able to reliablyestimate the amount of the revenue from the sale or service. For the sale of products this is generally known at the time of sale (the sales price is set). However, if the seller provides a return period, it may be necessary to estimate the volume of returns at the time of sale in order to measure the revenue that will be recognized.Collectibility means that the seller or the service provider has reasonable assurance that the sales price will actually be collected. In most cases for the sales of products, the seller is able to recognize revenue at the time of sale even if the sale is on account.This is because the seller has experience with its customers and is able to estimate reliably the risk of non payment. As long as the seller is able to make this estimate, it is appropriate to recognize the revenue but to offset it with a provision for possible non collection. If the seller is unable to make reliable estimates of future collection ofamounts owing, the recognition of revenue would be delayed until the cash is actually received. This is what is done using the instalment sales method of revenuerecognition.b. Because of the performance criterion of revenue recognition, it would seem to bemost appropriate to recognize most revenue as the seller or service provider performs the work. This would be the best measure of performance. This would mean, for example,that sellers of products would recognize their revenue over the whole production, selling, and post sales servicing periods. As we saw above, this is not commonly done because,in many cases, there are still significant risks that are retained by the seller (risk of not being able to sell the product, for example). There are also measurement risks (knowingthe selling price) that exist prior to the sale. The percentage-of-completion method of revenue used for some long-term construction contracts would seem to most closely recognize revenue as the work is performed. As mentioned in Part 1, we are able to recognize revenue on this basis since a contract exists which commits the purchaser tobuy the project (assuming certain conditions are met) and the sales price is known because of the existence of the contract.4.If all revenue is recognized when a student registers for the course, profit for 2007 would be:Sales Revenue1:Manuals and initial lessons (200 × $100) $ 20,000 Additional lessons ((200 × 8) × $30) 48,000 Examinations ((200 × 80%) × $130) 20,800 Total sales revenue 88,800Cost of sales:Manuals and initial lessons (200 × ($15 + $3)) 3,600 Additional lessons ((200 × 8) × $3)) 4,800Examinations ((200 × 80%) × $30) 4,800 Total cost of sales 13,200Depreciation of development costs:$180,000 × (200/1,000) 36,000Profit $ 39,6005.FINISH ENTERPRISESIncome Statementfor the year ending December 31, 2005Continuing operations (excluding the chemical division)Sales ($35,000,000 – $5,500,000) $ 29,500,000Cost of sales ($15,000,000 – $2,800,000) (12,200,000)Gross profit 17,300,000Selling & administration expenses($18,000,000 – $3,200,000) (14,800,000)Profit from operations 2,500,000Income tax expense (40%) 1,000,000Profit after tax $ 1,500,000Discontinuing operations (Chemical division)Sales 5,500,000Cost of sales (2,800,000)Gross profit 2,700,000Selling & administration expenses (3,200,000)Loss from operations (500,000)Income tax expense(40%) 200,000Loss after tax (300,000) Gain on discontinuance of the Chemical division 3,500,000Tax thereon (1,400,000)After-tax gain on discontinuance of the Chemical division 2,100,000 Enterprise net profit $ 3,300,000Chapter 81.Payment of account payable. operatingIssuance of preferred stock for cash. financingPayment of cash dividend. financingSale of long-term investment. investingAmortization of bond discount. no effectCollection of account receivable. operatingIssuance of long-term note payable to borrow cash. financing Depreciation of equipment. no effectPurchase of treasury stock. financingIssuance of common stock for cash. financingPurchase of long-term investment. investingPayment of wages to employees. operatingCollection of cash interest. investingCash sale of land. InvestingDistribution of stock dividend. no effectAcquisition of equipment by issuance of note payable. no effect Payment of long-term debt. financingAcquisition of building by issuance of common stock. no effect Accrual of salary expense. no effect2.(a) Cash received from customers = 816,000(b) Cash payments for purchases of merchandise. =468,000(c) Cash payments for operating expenses. = 268,200(d) Income taxes paid. =36,9003.Cash sales …………………………………………... $9,000 Payment of accounts payable ……………………….-48,000 Payment of income tax ………………………………-13,000 Payment of interest ……………………………..…..-16,000 Collection of accounts receivable ……………………93,000 Payment of salaries and wages ……………………….. -34,000 Cash flows from operating activitiesby the direct method -9,0004.Operating activities:Net loss -200,000 Add: loss on sale of land 250,000 Add: depreciation 300,000Add: amortization of patents 20,000Less: increases in current assets other than cash -750,000Add: increases in current liabilities 180,000Net cash flows from operating -200,000Investing activitiesSale of land -50,000Purchase of PPE -1,500,000Net cash flows from investing -1,550,000Financing activitiesIssuance of common shares 400,000Payment of cash dividend -50,000Issuance of non-current liabilities 1,000,000Net cash flows from financing 1,350,000 Net changes in cash -400,000 5.。

Chapter 6Merchandise Inventory and Cost of Goods SoldCheck Points(10 min.) CP 6-1Nissan North AmericaBalance SheetDecember 31, 20X6Current assets:Inventory (300 @ $80)…………………..$24,000Nissan North AmericaIncome StatementYear Ended December 31, 20X6Sales revenue [700 ($80 + $40)]……….$84,000Cost of goods sold (700 @ $80)………… 56,000Gross profit………………………………….$28,000(10-15 min.) CP 6-2 1. (Journal entries)Inventory…………………………………..100,000Accounts Payable…………………….100,000 Cash ($140,000 ⨯.20)……………………28,000Amounts Receivable ($140,000 ⨯ .80).. 112,000Sales Revenue………………………...140,000 Cost of Goods Sold……………………..60,000Inventory ($100,000 ⨯.60)…………..60,000 2. (Financial statements)BALANCE SHEETCurrent assets:Inventory ($100,000 –$60,000)……………….$40,000 INCOME STATEMENTSales revenue………………………………………$140,000Cost of goods sold……………………………….. 60,000Gross profit…………………………………………$ 80,000(10 min.) CP 6-3Billions Inventory………………………… 6.4Cash…………………………... 6.4 Accounts Receivable………….28.5Sales Revenue……………….28.5Cost of Goods Sold…………… 6.2Inventory……………………... 6.2 Cash………………………………26.3Accounts Receivable……….26.3(10 min.) CP 6-41. I nventory costs are increasing from $10 to $14 to $18 per unit.2. FIFO results in the highest cost of ending inventory($360)because under FIFO the ending inventory is costed at the last costs incurred during the period. When costs are increasing, the last costs are the highest costs.FIFO results in the lowest cost of goods sold. This occurs because the oldest costs are assigned to cost of goods sold.When costs are increasing, the oldest costs are the lowest.FIFO results in the highest gross profit because cost of goods sold, the expense, is the lowest. (Sales revenue is unaffected by the inventory costing method.)3. LIFO results in the lowest cost of ending inventory($240)because under LIFO, the ending inventory is costed at the oldest costs. When costs are increasing, the oldest costs are the lowest costs.LIFO results in the highest cost of goods sold. This occurs because the last costs of the period are assigned to cost of goods sold. When costs are increasing, the last costs are the highest.LIFO results in the lowest gross profit because cost of goods sold, the expense, is the highest. (Sales revenue is unaffected by the inventory costing method.)(10 min.) CP 6-5a b cAverageCost FIFO LIFO Cost of goods sold:Average (50 @ $15*) $750FIFO (10 @ $10) + (25 @ $14) + (15 @ $18) $720LIFO (25 @ $18) + (25 @ $14) $800 Ending inventory:Average (10 @ $15*) $150FIFO (10 @ $18) $180LIFO (10 @ $10) $100 _____*Average cost= ($100 + $350 + $450)= $15per unit (10 + 25 + 25)(10-15 min.) CP 6-6Kinko’sIncome StatementYear Ended December 31, 20XXAverage FIFO LIFO Sales revenue (600 ⨯ $20) $12,000 $12,000 $12,000 Cost of goods sold (600 ⨯ $9.90*)5,940(100 ⨯ $9) + (500 ⨯ $10) 5,900(600 ⨯ $10) 6,000 Gross profit 6,060 6,100 6,000 Operating expenses 4,000 4,000 4,000 Net income $ 2,060 $ 2,100 $ 2,000 _____*Beginning inventory (100 @ $9.20)…………..$ 920 Purchases (700 @ $10)………………………… 7,000Goods available…………………….……………$7,920 Average cost per unit $7,920 / 800 units…$ 9.90(10 min.) CP 6-7Kinko’sIncome StatementYear Ended December 31, 20XXAverage FIFO LIFO Sales revenue (600 ⨯ $20) $12,000 $12,000 $12,000 Cost of goods sold (600 ⨯ $9.90*)5,940(100 ⨯ $9) + (500 ⨯ $10) 5,900(600 ⨯ $10) ______ ______ 6,000 Gross profit 6,060 6,100 6,000 Operating expenses 4,000 4,000 4,000 Income before income tax $ 2,060Income tax expense (40%) $ 824*From CP 6-6(5 min.) CP 6-8 Lands’ End managers can delay purchases of inventory until the next year. Under LIFO, high inventory costs that would have been paid for inventory do not become expense as cost of goods sold in the current year. As a result, the current year’s income statement reports a higher net income than Lands’ End would have reported if the company had replaced inventory before year end.(5-10 min.) CP 6-9Millions BALANCE SHEETCurrent assets:Inventories, at market (which is lower than cost).. $ 330 INCOME STATEMENTCost of goods sold [$1,001 + ($333 – $330)]…………$1,004(10 min.) CP 6-101. FIFO2. LIFO Gross profitpercentage:Gross profit= $460*= 46%$340**= 34%Net sales revenue $1,000 $1,000 _____* $1,000 – $540 = $460** $1,000 – $660 = $340Inventory turnover:Cost of goods sold= $540 $660Average inventory ($100 + $360) / 2 ($100 + $240) / 2= 2.3 times = 3.9 times3. Gross profit percentage — FIFO looks better.4. Inventory turnover — LIFO looks better.(10-15 min.) CP 6-11 1. Beginning inventory……………………………... $ 300,000+ Purchases……………………………………….… 1,600,000 = Goods available…………………………………... 1,900,000 –Cost of goods sol d………………………………. (1,800,000) = Ending inventory……………………………….…2. Beginning inventory……………………………..+ Purchases……………………………………….…= Goods available…………………………………...–Cost of goods sold:Sales revenue……………………….$3,000,000Less estimated gross profit (40%) (1,200,000)Estimated cost of goods sold……………….= Estimated cost of ending inventory…………... $ 100,000(5-10 min.) CP 6-12CorrectAmount(Millions)a. Inventory ($333 + $3)…………………………………$ 336b. Net sales (unchanged)……………………………….$1,755c. Cost of goods sold ($1,001 –$3)…………………...$ 998d. Gross profit ($754 + $3)……………………….……..$ 757(10 min.) CP 6-13 1. Last year’s reported g ross profit was understated.Correct gross profit last year was $5.6 million ($4.0 + $1.6). 2. This year’s gross profit is overstated.Correct gross profit for this year is $3.2 million ($4.8 – $1.6).3. Lang’s perspective is better because correcting the errorchanges the trend of correct gross profit from up (good) to down (bad), as follows:MillionsLast Year This Year Trend Reported gross profit……..$4.0 $4.8 Up (Good) Correct gross profit……….$5.6 $3.2 Down (Bad)(5-10 min.) CP 6-14 1. Ethical. There is nothing wrong with buying inventorywhenever a company wishes.2. Ethical. Same idea as 1.3. Unethical. The company falsified its reported amounts ofinventory and net income.4. Unethical. The company falsified its reported inventorypurchases, cost of goods sold, and net income in order to cheat the government (and the people) out of income tax.5. Unethical. The company falsified its reported amount ofinventory in order to cheat the government (and the people) out of taxes.Exercises(15-20 min.) E 6-1 Req. 1 (journal entried)Perpetual System1. Purchases: ThousandsInventory…………………….……….… 2,200Accounts Payable………………….2,2002. Sales:Cash ($3,500 ⨯.20) (700)Accounts Receivable ($3,500 ⨯ .80). 2,800Sales Revenue…………….……….3,500 Cost of Goods Sold………………….. 2,100Inventory………………….………....2,100Req. 2 (financial statement amounts)BALANCE SHEET Thousands Current assets:Inventory ($370 + $2,200 – $2,100)... $ 470 INCOME STATEMENTSales revenue…………………………….$3,500Cost of goods sold……………………… 2,100Gross profit……………………………….$1,400(15-25 min.) E 6-2JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT1 Inventory ($640 + $1,870 + $900)……….3,410Accounts Payable………………………3,4102 Accounts Receivable (17 @ $500)……...8,500Sales Revenue…………………………..8,500 Cost of Goods Sold……………………….2,800*Inventory…………………………………2,8003 Sales revenue………………………………$8,500Cost of goods sold……………………….. 2,800Gross profit…………………………………$5,700Ending inventory ($800 + $3,410 –$2,800)……...$1,410 _____*(9 @ $160) + (8 @ $170) = $2,800(10-15 min.) E 6-3 1.Cost of Goods Sold Ending Inventory(a) Specificunit cost (6 @ $160) + (11 @ $170) = $2,830 (3 @ $160) + (5 @ $180) = $1,380 (b) Averagecost 17 ⨯ $168.40* = $2,863 8 ⨯ $168.40* = $1,347 _____*Average cost per unit = ($800 + $640 + $1,870 + $900)= $168.40(5 + 4 + 11 + 5)(c) FIFO (9 @ $160) + (8 @ $170) = $2,800 (5 @ $180) + (3 @ $170) $1,410(d) LIFO (5 @ $180) + (11 @ $170) + (1 @ $160) $2,930 (8 @ $160) $1,2802. LIFO produces the highest cost of goods sold.FIFO produces the lowest cost of goods sold.The increase in inventory cost from $160 to $170 to $180 per unit causes the difference in cost of goods sold.(15-20 min.) E 6-4 Cost of goods sold:LIFO ($2,930) –FIFO ($2,800)…………………………$130 Incom e tax rate……………………………………….. .35 LIFO advantage in tax savings…………………………..$ 46(15 min.) E 6-51. a. FIFOCost of goods sold:(5 @ $90) + (5 @ $95)……………...$925Ending inventory:7 @ $95………………………………$665b. LIFOCost of goods sold:10 @ $95……………………………..$950Ending inventory:(5 @ $90) + (2 @ $95)……………...$6402.VPA, Inc.Income StatementMonth Ended May 31, 20XXSales revenue (3 @ $150) + (7 @ $155)................$1,535 Cost of goods sold. (925)Gross profit (610)Operating expenses (310)Income before income tax (300)Income tax expense (40%) (120)Net income………………………………………………$ 180(15 min.) E 6-6Millions1. Gross profit: FIFO LIFOSales revenue……………………………………$4.9 $4.9 Cost of goods soldFIFO: 600,000 ⨯$7…………………………… 4.2LIFO: (400,000 ⨯ $5) + (100,000 ⨯ $6)+ (100,000 ⨯$7)……………………… 3.3 Gross profit………………………………………$ .7 $1.6 2. Gross profit under FIFO and LIFO differ because inventorycosts decreased during the period.If you base your prediction on the decrease in inventory unit cost, then, yes, you would predict that LIFO gross profit would be higher.But if you assume that FIFO produces higher gross profit, then, no, the actual result does not follow your prediction.(15-20 min.) E 6-7 DATE: _____________TO: Rick TaborFROM: Student NameSUBJECT: Proposal for Saving Income TaxWe can save income tax by buying above-normal quantities of inventory before the end of the year. Inventory costs are rising, and the company uses the LIFO inventory method. Under LIFO, the higher cost of year-end purchases of inventory goes straight into cost of goods sold. This increases cost of goods sold and decreases net income and income taxes. Because our inventory levels are lower than normal, we need the inventory anyway. In effect, we can use our cash to buy inventory or to pay income taxes. I think it would be wiser to buy inventory.(10-15 min.) E 6-8 Specificunit cost 1. Used to account for automobiles, jewelry, and art objects.Average 2. Provides a middle-ground measure of ending inventory and cost of goods sold.FIFO 3. Maximizes reported income.LIFO 4. Matches the most current cost of goods sold against sales revenue.LIFO 5. Results in an old measure of the cost of ending inventory.LIFO 6. Generally associated with saving income taxes. FIFO 7. Results in a cost of ending inventory that is close to the current cost of replacing the inventory.LIFO 8. Enables a company to buy high-cost inventory at year end and thereby to decrease reportedincome.LIFO 9. Enables a company to keep reported income from dropping lower by liquidating older layers ofinventory.LCM 10. Writes inventory down when replacement cost drops below historical cost.(5-10 min.) E 6-9Jeffrey CorporationIncome Statement (partial)Year Ended December 31, 20X4Sales revenue ………………………………………………$225,000 Cost of goods sold [$110,000 + ($18,000 – $17,000)].. 111,000 Gross profit…………………………………………………$114,000 Note: Cost was used for beginning inventory because cost was lower than market. Market (replacement cost) wasused for ending inventory because market was lowerthan cost.(20-25 min.) E 6-10(15-20 min.) E 6-11 (Amounts in millions)a. $ 1,055 (Let a = beginning inventory;a + $7,344 – $1,294 = $7,105a = $1,055)b. $ 12,459 ($19,564 – $7,105)d. $150,255 ($191,329 – $41,074)c. $151,904 (Let c = Purchases;$19,793 + c– $21,442 = $150,255c = $151,904)e. $ 12,650 ($33,726 – $21,076)f. $ 4,367 ($972 + $3,395)g. $ 546 ($513 + $1,005 – $972)The Coca-Cola CompanyIncome StatementYear Ended December 31, 20XX(Millions) Net sales $19,564Cost of goods soldBeginning inventory $1,055Net purchases 7,344Goods available 8,399Ending inventory (1,294)Cost of goods sold 7,105 Gross profit 12,459Operating and other expenses 7,886Income before tax 4,573Income tax expense ($4,573 .333) 1,523Net income $ 3,050(20-30 min.) E 6-12Company Gross ProfitPercentage Inventory TurnoverCoca-Cola $12,459= 63.7%$7,105= 6.0 times $19,564 ($1,055 + $1,294) / 2Wal-Mart$41,074= 21.5%$150,255= 7.3 times $191,329 ($19,793 + $21,442) / 2Intel $21,076= 62.5%$12,650= 6.8 times $33,726 ($1,478 + $2,241) / 2Estée Lauder $3,395= 77.7%$972= 1.8 times $4,367 ($513 + $546) / 2These ratio values explain the merchandising philosophies of these companies. Wal-Mart has the lowest gross profit percentage (21.5%) and the fastest rate of inventory turnover (7.3 times per year). This makes sense for a volume discounter.Estée Lauder has the highest gross profit percentage (77.7%) and the slowest inventory turnover (1.8 times per year). High markups and low turnover go hand-in-hand.Coca-Cola’s and Intel’s ratios fall between these extremes. These ratio data suggest that Intel is the most profitable company of this group.(10 min.) E 6-13Billions Sales……………………………………………...$45.7 Cost of goods soldBeginning inventory………………………..$ 5.5Purchases……………………………………. 33.2Goods available……………………………..38.7Ending inventory…………………………… (6.6)Cost of goods sold…………………………. 32.1 Gross profit……………………………………..$13.6Gross profit percentage = $13.6= 29.8% $45.7Inventory turnover =$32.1= 5.3 times ($5.5 + $6.6) / 2(10-15 min.) E 6-14 Year ended January 31, 20X4: Millions Budgeted cost of goods sold ($6,500 1.08)………... $7,020 Budgeted ending inventory…………………………….. 2,200 Budgeted goods available………….…………………… 9,220 Actual beginning inventory…………………………….. (1,900) Budgeted purch ases…………………………………….. $7,320(10-15 min.) E 6-15 Beginning inventory………………………$ 48,000 Net purchases……………………………… 136,000 Goods available……….…………………...184,000 Cost of goods sold:Net sales revenue……………………… $200,000Less estimated g ross profit of 40%… (80,000)Estimated cost of goods sold………... 120,000 Estimated cost of inventory destroyed.. $ 64,000Another reason managers use the gross profit method to estimate ending inventory is to test the reasonableness of ending inventory from (a) the perpetual inventory records or (b) a physical count.(10-15 min.) E 6-16Allergan, Inc.Income StatementYear Ended September 30,20X5 20X4Sales revenue $149,000 $122,000 Cost of goods sold:Beginning inventory $27,000 $12,000Net purchases 72,000 66,000 Goods available 99,000 78,000 Ending inventory (16,000) (27,000)*Cost of goods sold 83,000 51,000 Gross profit 66,000 71,000 Operating expenses 30,000 20,000 Net income $ 36,000 $ 51,000 *$18,000 + $9,000 = $27,000Allergan actually performed poorly in 20X5, compared to 20X4, with net income down from $51,000 to $36,000. The understatement of inventory at the end of 20X4 caused 20X4 net income to be understated. Then this same error caused 20X5 net income to be overstated, giving the false impression that profits were higher in 20X5. In reality, net income was down in 20X5.(10 min.) E 6-17Millions INCOME STATEMENTSales revenue…………………………………………..$18,144 Cost of goods sold ($5,456 –$100)………………... 5,356 Gross profit……………………………………………..$12,788(5-10 min.) E 6-18a. Use average cost.b. Use FIFO.c. Use FIFO.d. Use any method. They all produce the same resultsbecause costs are stable.e. Buy inventory late in the year.f. Company is using LIFO.(20-30 min.) E 6-19 Req. 1Actual cost of goods sold =1. From purchase in December (30 @ $1,300)……..$ 39,0002. From purchase in June (50 @ $1,200)…………….60,0003. From purchase in February (20 @ $1,100)……….22,0004. From beginning inventory (30 @ $1,000)………... 30,000Actual cost of goods sold………………………..$151,000Req. 2Cost of goods sold with the additional year-end purchase (this would have avoided a LIFO liquidation) =1. From purchase in December (60* @ $1,300)…….$ 78,0002. From purchase in June (50 @ $1,200)…………….60,0003. From purchase in February (20 @ $1,100)………. 22,000Cost of goods sold (with no LIFO liquidation). $160,000 _____*Must purchase a total of 60 units in December to keep ending inventory at 40 units, which was the level of beginninginventory.(continued) E 6-19 Req. 3The LIFO liquidation•Boosted gross profit by $9,000 ($160,000 – $151,000).•Cost the company $3,600 ($9,000 ⨯ .40) in income tax.•Boosted net income by $5,400 ($9,000 – $3,600).•Was bad for the company because the additional income tax drained off valuable cash. Paying the added tax was not worth the boost in net income because the company would have to replenish its inventory anyway, so it’s better to go ahead and buy the goods before year end. That action would save the cash that was wasted on taxes.(20-30 min.) E 6-20 Sales, gross profit, net income, the gross profit percentage, and inventory turnover showed the following trends:Dollars in millions 20X7 20X6 20X5 Sales $37.0 $35.9 $33.7 Cost of sales 29.7 28.1 26.3 Gross profit 7.3 7.8 7.4Net income (net loss) (0.2) 0.4 0.5Gross profit= $7.3= .197$7.8= .217$7.4= .220percentage $37.0 $35.9 $33.7Inventory= $29.7= 4.4$28.1= 4.1$26.3= 4.1turnover ($7.1 + $6.4) / 2 ($6.5 + $7.1) / 2 ($6.4 + $6.5) / 2The gross profit percentage dropped significantly while the rate of inventory turnover improved. This suggests that Zmart was having to discount its merchandise more and more just to sell the goods. The end result was a net loss in 20X7.Selling, general and administrative expenses increased significantly, which suggests that Zmart was having to advertise heavily in order to sell its inventory.Chapter 6 Merchandise Inventory and Cost of Goods Sold 409Practice Quiz1. d ($7,200 – $5,500 = $1,700)2. b ($2,000 + $6,000 – $5,500 = $2,500)3. a4. c [(3,400 @ $10.75) + (100 @ $10.30) = $37,580]5. d (3,400 @ $10.75 = $36,550)6. a7. d ($144,000 + $216,000 = $360,000)8. c9. c10. c [$620,000 – ($70,000 + $400,000 – $40,000) =$190,000]11. b ($10,000 + X – $15,000 = $90,000; X = $95,000)12. c13. d [($500,000 – $200,000) ($25,000 + $35,000) / 2] =10 times14. a Net sales = $480,000 ($490,000 – $10,000)COGS = $50,000 + ($230,000 + $20,000 – $6,000–$4,000) – $40,000 = $250,000GP% = ($480,000 – $250,000) / $480,000 = 47.9%15. b $53,500 + $75,500 – $93,000 (1 – .30) = $63,90016. b17. a410Financial Accounting 6/e Solutions ManualProblemsGroup A(20-30 min.) P 6-1A Req. 1Inventory……………………………………..9,580,000 Accounts Payable……………………….9,580,000Accounts Payable………………………….9,110,000 Cash……………………………………….9,110,000Cash…………………………………………..4,700,000Accounts Receivable………………………8,700,000 Sales Revenue…………………………… 13,400,000 Cost of Goods Sold………………………...9,880,000Inventory…………………………………..9,880,000 [$6,300,000 + $1,360,000 + $1,920,000 + (10,000 units ⨯ $30*)]_____*$1,500,000 / 50,000 units = $30 per unit.Operating Expenses………………………..2,130,000 Cash ($2,130,000 ⨯2/3)………………….1,420,000 Accrued Liabilities ($2,130,000 ⨯ 1/3)... 710,000 Income Tax Exp ense……………………….556,000 Income Tax Payable……………………..556,000 [($13,400,000 – $9,880,000 – $2,130,000) ⨯ .40 = $556,000]Chapter 6 Merchandise Inventory and Cost of Goods Sold 411(continued) P 6-1A Req. 2Req. 3Lord & Taylor - AtlantaIncome StatementYear Ended January 31, 20X0Sales revenue ……………………………$13,400,000Cost of goods sold…………………….. 9,880,000Gross profit………………………………3,520,000Operating expenses…………………… 2,130,000Income before tax………………………1,390,000Income tax expense (40%)……………. 556,000Net income……………………………….$ 834,000412Financial Accounting 6/e Solutions Manual(20-30 min.) P 6-2A Req. 1The store uses FIFO.This is apparent from the flow of costs out of inventory. For example, the March 8 sale shows a unit cost of $19, which came from the beginning inventory. This is how FIFO, and only FIFO, works.Req. 2Cost of goods sold:27 ⨯$19 = $ 51323 ⨯ 19 = 4371 ⨯ 20 = 2025 ⨯ 20 = 500$1,470Sales 27 + 23 = 50 units ⨯ $36 = $1,8001 + 25 = 26 units ⨯ $37 = 962 $2,762 Cost of goods sold……………………………………. (1,470) Gross profit……………………………………………...$1,292 Req. 3Cost of March 31 inventory (24 ⨯ $21) + (10 ⨯ $20). $ 704Chapter 6 Merchandise Inventory and Cost of Goods Sold 413(20-30 min.) P 6-3A Req. 1Cost of Goods Sold Ending Inventory Average cost 696 ⨯ $82.6626* $57,533 214 ⨯ $82.6626* $17,690 ____*Average cost= ($10,640 + $17,577 + $7,790 + $17,640 + $21,576)= $82.6626per unit (140 + 217 + 95 + 210 + 248)FIFO (140 @ $76) + (217 @ $81)+ ( 95 @ $82) + (210 @ $84)+ ( 34 @ $87) = $56,605 214 @ $87 = $18,618 LIFO (248 @ $87) + (210 @ $84)+ ( 95 @ $82) +(143 @ $81) = $58,589 140 @ $76 +(74 @ $81) = $16,634Financial Accounting 6/e Solutions Manual 414(continued) P 6-3A Req. 2LIFO’s cost of goods sold is highest for Hot Wheels because (a) the company’s prices are rising and (b) LIFO assigns to cost of goods sold the cost of the latest inventory purchases. When costs are rising, these latest inventory costs are the highest, and that makes cost of goods sold the highest under LIFO.Req. 3Hot Wheels Motorcycles, Inc.Income StatementMonth Ended December 31, 20XXSales revenue (696 @ $130)……………………..$90,480Cost of goods sol d……………………………….. 58,589Gross profit…………………………………………31,891Operating expenses……………………………… 22,000Income before income taxes…………………….9,891Income tax expense (40%)………………………. 3,956Net income………………………………………….$ 5,935Chapter 6 Merchandise Inventory and Cost of Goods Sold 415(30-40 min.) P 6-4A Req. 1 (partial income statementsBlockbuster Digital ImagesIncome StatementYear Ended December 31, 20XXAVERAGE FIFO LIFOSales revenue $11,200 $11,200 $11,200Cost of goods sold 8,392 8,255 8,520 Gross profit $ 2,808 $ 2,945 $ 2,680 Computations of cost of goods sold:Average cost= ($1,215 + $2,520 + $2,010 + $1,400 + $2,590)= $3.3569per unit (400 + 800 + 600 + 400 + 700)COGS at average cost = 2,500 $3.3569 = $8,392 FIFO COGS = (300 @ $3.00) + (900 @ $3.15) + (600 @ $3.35) + (400 @ $3.50)+ (300 @ $3.70)= $8,255 LIFO COGS = (700 @ $3.70) + (400 @ $3.50) + (600 @ $3.35) + (800 @ $3.15) = $8,520Financial Accounting 6/e Solutions Manual416(continued) P 6-4A Req. 2Use the FIFO method to report the highest net income because cost of goods sold is lowest (gross profit is highest) under FIFO when inventory costs are rising.Chapter 6 Merchandise Inventory and Cost of Goods Sold 417(15-20 min.) P 6-5A LM Electronics should apply the lower-of-cost-or-market rule to account for inventories. The current replacement cost of ending inventory is less than LM’s actual cost, so LM must write the inventory down to current replacement cost, with the following journal entry:Cost of Goods Sold…………1,500,000Inventory…………………..1,500,000 To write inventory down to market value.LM should report the following amounts in its financial statements:BALANCE SHEETInventory ($8,900,000 –$1,500,000)……………..$ 7,400,000 INCOME STATEMENTCost of goods sold ($27,400,000 + $1,500,000). $28,900,000 Accounting conservatism is the reason to account for inventory at the lower of cost or market value. Conservatism directs accountants to write inventory down if cost appears unrealistically high. In this case conservatism comes into play because the current replacement cost (marke t value) of LM’s ending inventory is less than cost. Under the lower-of-cost-or-market rule, this requires a write-down of the inventory value to current replacement cost.Student responses may vary.418Financial Accounting 6/e Solutions Manual(20-30 min.) P 6-6A Req. 1Hershey TargetMillionsGross profit percentage:Sales……………………$4,221 $36,362 Cost of sales………….. 2,471 25,295 Gross profit……………$1,750 $11,067Gross profit $1,750= 41.5% $11,067= 30.4%percentage: $4,221 $36,362 Inventory turnover:Cost of goods sold= $2,471 $25,295Average inventory ($605 + $602) / 2 ($4,248 + $3,798) / 2= 4.1 times = 6.3 timesReq. 2These statistics do not indicate which company should be more profitable. Hershey has a higher gross profit percentage, but Target turns its inventory over more rapidly. On one measure Hershey looks better; on the other measure Target is better. Another factor that makes it difficult to tell which company should be more profitable is that the gross profit percentage and inventory turnover do not take into account operating expenses.Chapter 6 Merchandise Inventory and Cost of Goods Sold 419(25-30 min.) P 6-7A Req. 1 (estimate of ending inventory by the gross profit method)Beginning inventory………………………$1,292,000 Purchases…………………………………..$6,585,000 Less: Purchase discou nts…………..(149,000)Purchase returns……………… (8,000) Net purchases…………………………... 6,428,000 Goods available……………………………7,720,000 Cost of goods sold:Sales revenue…………………………… $8,657,000Less: Sales returns…………………. (17,000) Net sales………………………………….8,640,000Less: Estimated gross profit of 40%.. (3,456,000)Estimated cost of goods sold………... 5,184,000 Estimated cost of ending inventory……$2,536,000 420Financial Accounting 6/e Solutions Manual(continued) P 6-7A Req. 2 (income statement through gross profit)Kinko’sIncome Statement (partial)Month of March, 20XXSales revenue…………………………..$8,657,000 Less: Sales returns………………… (17,000)Net sales revenue…………………...8,640,000 Cost of goods sold……………………. 5,184,000*Gross profit……………………………..$3,456,000_____*Cost of goods sold:Beginning inventory………………………...$1,292,000Purchases……………………...$6,585,000Less: Purchases discounts. (149,000)Purchase returns……. (8,000)Net purchas es……………………………….. 6,428,000Goods available……………………………...7,720,000Less: Ending inventory……………………. (2,536,000)Cost of goods sold………………………….$5,184,000Chapter 6 Merchandise Inventory and Cost of Goods Sold 421(20-30 min.) P 6-8A Req. 1Cost of sales, budgeted ($720,000 ⨯ 1.05).. $756,000+ Ending inventory, budgeted………………... 80,000= Cost of goods available……………………...836,000–Beginning inventory…………………………. (70,000)= Purchases, budgeted ………………………..$766,000Req. 2Stop-n-Go StoreBudgeted Income StatementYear Ended December 31, 20X4Sales ($960,000 ⨯1.05)……………………..$1,008,000Cost of sales ($720,000 ⨯1.05)…………… 756,000Gross profit…………………………………...252,000Operating expenses………………………… 102,000Net income……………………………………$ 150,000422Financial Accounting 6/e Solutions Manual(15-20 min.) P 6-9A Req. 1 (corrected income statements)Monaco Gemstones, Inc.Income Statement (adapted; amounts in thousands)Years Ended 2007, 2006, and 20052007 2006 2005Net sales revenue……………...$1,412 $1,231 $1,138 Cost of goods sold:Beginning i nventory………..$ 249 $ 309 $ 234Purchases…………………… 859 729 663Goods available……………..1,108 1,038 897Ending inventory…………… (311) (249) (309)Cost of goods sold………… 797 789 588 Gross pro fit……………………..615 442 550 Operating expenses…………... 500 437 420 Net income………………………$ 115 $ 5 $ 130 Chapter 6 Merchandise Inventory and Cost of Goods Sold 423。

第一章答案:自测题一、A 、C 、A、B、 B 、C 二、ABCD、AB、AB、ABCD、BD、AC 第二章答案：自测题一、B、D、C、B、D、B二、ABC、ABC、ABCD、ACD、BD、BC第三章答案：自测题一、A、D、D、B、A、B二、ABC、AD、BC、ABCD、BCD、BC、AB 第四章答案：自测题一、A、C、C、C、A、D、D、B、B、B二、ABCD、BCD、ABC、AB、AC、ABD、ABD、ABC、ABCD练习题一(1)借：管理费用120贷：库存现金120(2)借：其他应收款2000贷：库存现金2000(3)借：库存现金5000贷：银行存款5000(4)借：银行存款30000贷：应收账款30000(5) 借：短期借款100000贷：银行存款100000(6)借：管理费用1800库存现金200贷：其他应收款2000(7)借：管理费用3500贷：银行存款3500(8)借：银行存款3000贷：库存现金3000（9）借：管理费用8000贷：银行存款8 000（10）借：银行存款100 000贷：实收资本100 000三、答案：（1）借：应收账款117000贷：主营业务收入100 000应交税费——应交增值税（销项税额）17 000 （2）借：应收票据93600贷：主营业务收入80 000应交税费——应交增值税（销项税额）13 600（3）借：其他应收款2000贷：银行存款2000（4）借：预付账款35000贷：银行存款35000（5）借：银行存款117 000贷：应收账款117000 （6）借：银行存款 2 000贷：其他应收款2000 （7）借：原材料160 000应交税费——应交增值税（销项税额）27 200贷：预付账款35000银行存款152200 （8）贴现息=93600×6%×40/360=624（元）借：银行存款92976财务费用624贷：应收票据93600四答案：2008年5月，确认坏账借：坏账准备9000贷：应收账款90002008年10月，已确认的坏账又收回借：应收账款3000贷：坏账准备3000借：银行存款3000贷：应收账款30002008年12月31日坏账准备余额=4000-9000+3000=-1000（元）2008年12月31日计提坏账准备=230000×3%+1000=7900（元）借：资产减值损失7900贷：坏账准备7900五、答案：(1) 借：原材料90000应交税费15300贷：银行存款105300(2) 借：在途物资80000应交税费13600贷：应付账款93600(3) 借：在途物资2400贷：银行存款2400(4)借：原材料82400贷：在途物资82400(5)借：预付账款10 000贷：银行存款10 000(6) 借：原材料100000应交税费17000贷：预付账款10 000银行存款107 000(7)借：生产成本120000制造费用30000管理费用20000贷：原材料170000(8)借：待处理财产损溢12000贷：原材料12000借：其他应收款8000营业外支出4000贷：待处理财产损溢12000六、答案：先进先出法发出存货成本=（120×55+60×56）+（90×56+90×58）=20220（元）结存存货成本=110×58+100×59=12280（元）一次加权平均法平均单价=（120×55+150×56+200×58+100×59）/（120+150+200+100）≈57.02(元) 发出存货成本=(180+180)×57.02=20527.2（元）结存存货成本=（120×55+150×56+200×58+100×59）-20527.2=11972.8(元)七(1)2008年9月25日，购入股票借：交易性金融资产——成本500 000投资收益500贷：银行存款500 500(2)2008年12月31日，B公司宣告分派现金股利借：应收股利50 000贷：投资收益50 000(3)2008年12月31日，期末计价借：交易性金融资产——公允价值变动125 000贷：公允价值变动损益125 000(4) 2009年1月25日，收到现金股利借：银行存款50 000贷：应收股利50 000(5) 2009年3月15日，转让股票借：银行存款600 000投资收益25 000贷：交易性金融资产——成本500 000——公允价值变动125 000 借：公允价值变动损益125 000贷：投资收益125 000 九答案：(1)借：固定资产93 500应交税费15300贷：银行存款108 800(2)借：在建工程101 400应交税费17 000贷：银行存款118 400(3)借：在建工程45 000贷：银行存款45 000(4)借：固定资产146 400贷：在建工程146 400(5)借：固定资产240 000贷：实收资本240 000(6)借：固定资产清理70 000累计折旧50 000贷：固定资产120 000(7)借：固定资产清理7500贷：原材料6000银行存款1500(8)借：银行存款90 000贷：固定资产清理90 000(9) )借：固定资产清理12 500贷：营业外收入12 500(10)借：制造费用 3 500管理费用12 000贷：累计折旧15 500十一、直线法：各年折旧额=（300 000-6000）/5=58 800（元）双倍余额递减法第一年折旧额=300 000×40%=120 000（元）第二年折旧额=（300 000-120 000）×40%=72 000（元）第三年折旧额=（300 000-120 000-72 000）×40%=43 200（元）第四年折旧额=（300 000-120 000-72 000-43 200-6000）/2=32 400（元）第五年折旧额=32 400（元）年数总和法第一年折旧额=（300 000-6 000）×5/15=98 000（元）第二年折旧额=（300 000-6 000）×4/15=78 400（元）第三年折旧额=（300 000-6 000）×3/15=58 800（元）第四年折旧额=（300 000-6 000）×2/15=39 200（元）第五年折旧额=（300 000-6 000）×1/15=19 600（元）十二、答案：（1）借：无形资产150 000贷：银行存款150 000（2）借：无形资产150 000贷：实收资本150 000（3）借：管理费用 6 000贷：累计摊销 6 000（4）借：银行存款120 000累计摊销50 000贷：无形资产150 000营业外收入20 000第五章答案：自测题一、C、C、C、A、C、D二、ABC、ABCD、ABCD、ABC、？、BC（第6小题A、购入机器设备B、购入建造不动产用工程物资）练习题一、答案：2008年1月1日，借入时借：银行存款100000贷：短期借款1000002008年1月至9月末每个月的利息=100000×8%=8000元借：财务费用8000贷：应付利息8000每季支付利息时借：应付利息24000贷：银行存款240002008年9月30日，借款到期归还本金借：短期借款100000贷：银行存款100000二1、借：原材料300000应交税费——应交增值税51000贷：应付账款3510002、借：银行存款5000贷：其他应付款5000借：银行存款485000预收账款100000贷：主营业务收入500000应交税费——应交增值税850003、借：应交税费——应交增值税26000——应交城建税1820——社保费236000 贷：银行存款2638204、借：应付账款351000贷：银行存款3510005、假设该工程是造厂房借：在建工程23400贷：原材料20000应交税费——应交增值税34006、3月25日借：利润分配650000贷：应付利润6500004月20日借：应付利润650000贷：银行存款6500007、借：生产成本365000制造费用63500管理费用152000销售费用19500贷：应付职工薪酬——工资6000008、借：生产成本102200制造费用17780管理费用42560销售费用5460贷：应付职工薪酬——社保费168000 9、借：库存现金507330贷：银行存款507330借：应付职工薪酬——工资600000 贷：应付职工薪酬——社保费72000其他应付款/其他应收款12000应交税费——应交个人所得税8670库存现金50733010、本月实际应交增值税=85000-51000+3400=30600应交城建税=30600×7%=2142元借：应交税费——应交城建税2142贷：银行存款2142三、越越公司发生如下经济业务：(1)20×7年1月1日，从建设银行借入资金3 000 000元，用于建造厂房。