西方财务会计课后答案(第四章)

CHAPTER4

CompletionoftheAccountingCycle

ASSIGNMENTCLASSIFICATIONTABLE

BriefAB

StudyObjectivesQuestionsExercisesExercisesProblemsProblems

1.Prepareaworksheet.1,2,3,4,1,2,31,2,4,51A,2A,3A,1B,2B,3B,

54A,5A4B,5B

2.Explaintheprocessof6,7,11,4,5,63,6,8,111A,2A,3A,1B,2B,3B,

closingthebooks.124A,5A4B,5B

3.Describethecontentand8,973,61A,2A,3A,1B,2B,3B,

purposeofapost-closing4A,5A4B,5B

trialbalance.

4.Statetherequiredsteps10,11,128115A5B

intheaccountingcycle.

5.Explaintheapproachesto13996A

preparingcorrecting

entries.

6.Identifythesectionsofa14,15,16,102,7,101A,2A,3A,1B,2B,3B,

classifiedbalancesheet.17,18,19,4A,5A4B,5B

20

*7.Preparereversingentries.10,21,221111

*Note:AllasteriskedQuestions,Exercises,andProblemsrelatetomaterialcontainedintheappendix

tothechapter.

4-1

ASSIGNMENTCHARACTERISTICSTABLE

ProblemDifficultyTimeAllotted

NumberDescriptionLevel(min.)

1APrepareaworksheet,financialstatements,andadjustingSimple4050

andclosingentries.

2ACompleteworksheetandpreparefinancialstatements,Moderate5060

closingentries,andpost-closingtrialbalance.

3APreparefinancialstatements,closingentries,andpost­Moderate4050

closingtrialbalance.

4ACompleteworksheet;prepareaclassifiedbalancesheet,Moderate5060

adjustingandclosingentries,andpost-closingtrial

balance.

5ACompleteallstepsintheaccountingcycle.Complex7090

6AAnalyzeerrorsandpreparecorrectingentriesandtrialModerate4050

balance.

1BPrepareaworksheet,financialstatements,andadjustingSimple4050

andclosingentries.

2BCompleteworksheetandpreparefinancialstatements,Moderate5060

closingentries,andpost-closingtrialbalance.

3BPreparefinancialstatements,closingentries,andpost­Moderate4050

closingtrialbalance.

4BCompleteworksheet;prepareaclassifiedbalancesheet,Moderate5060

adjustingandclosingentries,andpost-closingtrial

balance.

5BCompleteallstepsintheaccountingcycle.Complex7090

ComprehensiveProblem:Chapters2to4

4-2

B

L

CorrelationChartbetweenBloom'sTaxonomy,StudyObjectivesandEnd-of-ChapterExercisesandProblemsO

O

StudyObjectiveKrowledgeConprehensionApplicationAnalysisSynthesisEvaluationM

S

1.Prepareaworksheet.3E4-1□4-1E4-13E4-2P4-1BT

24-2E4-2E4-4P4-4BA

M・3P4-2AE4-5P4-5BX

34-4P4-3A>4-1AO

)N

34-5P4-2B4-4AO

3E4-3P4-3B>4・5AM

ZxplaintheprocessofclosingQ4-6□4-7BE4-4E4-8=4-11P4-4BY

thebooks.24-11BE4-5P4-2A34-1AP4-5BT

A

24-12BE4-6P4-3A34-4AB

E4-3P4-2BM-5AL

=4-6P4-3BM-1BE

3.DescribethecontentandM8E4-3P4-3AP4-1AP4-1B

purposeofapost-closingtrial34-9E4-6P4-2BP4-4AP4-4B

balance.3E4-7)4・2AP4-3BP4■5AP4-5B

4.StatetherequiredstepsinM-11M-10E4-11

theaccountingcycle.24-12M-5A

3E4・8P4-5B

5.Explaintheapproachesto)4-133E4-9

preparingcorrectingentries.E4-9

M-6A

Sdentifythesectionsofaclas>Q4-14M-17BE4-10P4-2A54-1AP4-4B

sifiedbalancesheet.M-1534-18E4-2P4-3A)4-4AP4-5B

M-16M-19=4-7P4-2BM-5A

14-20E4-10P4-3BM-1B

*7.Preparereversingentries.24-1024-22

M-213E4-11

=4-11

>adeningYourPerspectiveCommunication，zookieFinancialReportingIHerpretingEthicsCase

EcploringtheWebChronicleGoupDecisionCaseFinancialEcploringtheWeb

FesearchCaseCoiiparativeAnalysisStatenlents

lobalFocus

ANSWERSTOQUESTIONS

1.No.Aworksheetisnotapermanentaccountingrecord.Theuseofaworksheetisanoptional

stepintheaccountingcycle.

2.Theworksheetismerelyadeviceusedtomakeiteasiertoprepareadjustingentriesandthe

financialstatements.

3.Theamountshownintheadjustedtrialbalancecolumnforanaccountequalstheaccount

balanceintheledgerafteradjustingentrieshavebeenjournalizedandposted.

4.Thenetincomeof$12,000willappearintheincomestatementdebitcolumnandthebalance

sheetcreditcolumn.Anetlosswillappearintheincomestatementcreditcolumnandthe

balancesheetdebitcolumn.

5.Formalfinancialstatementsareneededbecausethecolumnardataarenotproperlyarranged

andclassifiedforstatementpurposes.Forexample,thedividendsaccountislistedwithassets.

o

(Dr)Individualrevenueaccountsand(Cr)IncomeSummary.

化(Dr)IncomeSummaryand(Cr)Individualexpenseaccounts.

(3(Dr)IncomeSummaryand(Cr)RetainedEarnings(fornetincome).

(4(Dr)RetainedEarningsand(Cr)Dividends.

7.IncomeSummaryisatemporaryaccountthatisusedintheclosingprocess.Theaccountis

debitedforexpensesandcreditedforrevenues.Thedifference,eithernetincomeorloss,is

thenclosedtotheretainedearningsaccount.

8.Thepost-closingtrialbalancecontainsonlybalancesheetaccounts.Itspurposeistoprovethe

equalityofthepermanentaccountbalancesthatarecarriedforwardintothenextaccounting

period.

9.Theaccountsthatwillnotappearinthepost-closingtrialbalanceareDepreciationExpense;

Dividends;andServiceRevenue.

10.Areversingentryistheexactopposite,bothinamountandinaccounttitles,ofanadjusting

entryandismadeatthebeginningofthenewaccountingperiod.Reversingentriesarean

optionalstepintheaccountingcycle.

11.Thestepsthatinvolvejournalizingare:(1)journalizethetransactions,(2)journalizetheadjusting

entries,and(3)journalizetheclosingentries.

12.Thethreetrialbalancesarethe:(1)trialbalance,(2)adjustedtrialbalance,and(3)post-closing

trialbalance.

13.Correctingentriesdifferfromadjustingentriesbecausethey:(1)arenotarequiredpartofthe

accountingcycle,(2)maybemadeatanytime,and(3)mayaffectanycombinationofaccounts.

4-4

QuestionsChapter4(Continued)

14.Thestandardclassificationsinabalancesheetare:

AssetsLiabihtiesandStockholders'Equitv

CurrentAssetsCurrentLiabilities

Long-termInvestmentsLong-termLiabilities

Property,Plant,andEquipmentStockholders'Equity

IntangibleAssets

15.Acompany'soperatingcycleistheaveragetimerequiredtogofromcashtocashinproducing

revenues.

16.Currentassetsarecashandotherresourcesthatarereasonablyexpectedtoberealizedin

cashorsoldorconsumedinthebusinesswithinoneyearofthebalancesheetdateorthe

company*soperatingcycle,whicheverislonger.Currentassetsarelistedintheorderoftheir

liquidity.

17.Long-terminvestmentsareresourcesthatcanberealizedincash.However,theconversion

intocashisnotexpectedwithinoneyearortheoperatingcycle,whicheverislonger.Property,

plant,andequipmentaretangibleresourcesofarelativelypermanentnaturethatareusedin

thebusinessandnotintendedforsale.

18.Themajordifferencesbetweencurrentliabilitiesandlongterm-liabilitiesare:

DeferenceCurrentLiabilitiesLong-termLiabiHties

Sourceofpayment.ExistingcurrentassetsorotherOtherthanexistingcurrentassets

currentliabilities.orcreatingcurrentliabilities.

TimeofexpectedOneyearortheoperatingcycle.Beyondoneyearortheoperating

payment.cycle.

Natureofitems.DebtspertainingtotheoperatingMortgages,bonds,andotherlong­

cycleandothershort-termdebts.termliabilities.

19.(a)Theowner'sequitysectionforacorporationiscalledstockholders5equity.

(b)Thetwoaccountsandthepurposeofeachare:(1)Capitalstockisusedtorecord

investmentsofassetsinthebusinessbytheowners(stockholders).(2)Retained

earningsisusedtorecordnetincomeretainedinthebusiness.

20.Thereportformbalancesheetdiffersfromtheaccountformbalancesheetinthelocationofthe

liabilitiesandstockholders*equitysection.Inthereportformthissectionisplacedbelowassets.

Intheaccountformthesectionisplacedtotherightofassets.

*21.Afterreversingentrieshavebeenmade,thebalanceswillbeInterestPayable,zerobalance;

InterestExpense,acreditbalance.

*22.(a)Jan.10SalariesExpense8,000

Cash8,000

BecauseoftheJanuary1reversingentrythatcreditedSalariesExpensefor$4,500,

SalariesExpensewillhaveadebitbalanceof$3,500whichequalstheexpenseforthe

currentperiod.

4-5

QuestionsChapter4(Continued)

(b)Jan.10SalariesPayable4,500

SalariesExpense3,500

Cash8,000

NotethatSalariesExpensewillagainhaveadebitbalanceof$3,500.

4-6

SOLUTIONSTOBRIEFEXERCISES

BRIEFEXERCISE4-1

Thestepsinusingaworksheetareperformedinthefollowingsequence:

(1)prepareatrialbalanceontheworksheet,(2)enteradjustmentdata,(3)

enteradjustedbalances,(4)extendadjustedbalancestoappropriate

statementcolumnsand(5)totalthestatementcolumns,computenet

income(loss),andcompletetheworksheet.Fillingintheblanks,the

answersare1,3,4,5,2.

ThesolutiontoBRIEFEXERCISE4-2ison8.

BRIEFEXERCISE4-3

IncomeStatementBalanceSheet

AccountDr.Cr.Dr.Cr.

AccumulatedDepreciationX

DepreciationExpenseX

CommonStockX

DividendsX

ServiceRevenueX

SuppliesX

AccountsPayableX

BRIEFEXERCISE4-4

Dec.31ServiceRevenue50,000

IncomeSummary50,000

31IncomeSummary27,000

SalariesExpense23,000

SuppliesExpense4,000

31IncomeSummary23,000

RetainedEarnings23,000

31RetainedEarnings2,000

Dividends2,000

4-7

B

R

m

F

E

X

E

R

C

W

E

4

2,

KEOCOMPANY

WorkSheet

AdjustedIncomeBalance

TrialBalanceAdjustmentsTrialBalanceStatementSheet

AccountTitlesDr.Cr.Dr.Cr.Dr.Cr.Dr,Cr.

4PrepaidInsurance4,000(a)1,2002,8002,800

CD

ServiceRevenue58,000(b)1,10059,10059,100

SalariesExpense25,000(c)80025,80025,800

AccountsReceivable(b)1,1001,1001,100

SalariesPayable(c)800800800

InsuranceExpense(a)1,2001,2001,200

BRIEFEXERCISE4-5

SalariesExpenseIncomeSummaryServiceRevenue

23,000(2)23,000⑵27,000⑴50,000⑴50,00050,000

⑶23,000___________

50,00050,000

SuppliesExpenseRetainedEarningsDividends

4,000(2)4,000(4)2,000(3):>3,0002,000(I)2,000

Bal.21,000

BRIEFEXERCISE4-6

July31GreenFeeRevenue14,600

IncomeSummary14,600

31IncomeSummary10,700

SalariesExpense8,200

MaintenanceExpense2,500

GreenFeeRevenue

DateExplanationRef.DebitCreditBalance

14,600

7/31Closingentry14,6000

SalariesExpense

DateExplanationRef.DebitCreditBalance

8,200

7/31Closingentry8,2000

4-9

BRIEFEXERCISE4-6(Continued)

MaintenanceExpense

DateExplanationRef.DebitCreditBalance

2,500

7/31Closingentry2,5000

BRIEFEXERCISE4-7

Theaccountsthatwillappearinthepost-closingtrialbalanceare:

AccumulatedDepreciation

CommonStock

Supplies

AccountsPayable

BRIEFEXERCISE4-8

Thepropersequencingoftherequiredstepsintheaccountingcycleisas

follows:

1.Analyzebusinesstransactions.

2.Journalizethetransactions.

3.Posttoledgeraccounts.

4.Prepareatrialbalance.

5.Journalizeandpostadjustingentries.

6.Prepareanadjustedtrialbalance.

7.Preparefinancialstatements.

8.Journalizeandpostclosingentries.

9.Prepareapost-closingtrialbalance.

Fillingintheblanks,theanswersare4,2,8,7,5,3,9,6,1.

BRIEFEXERCISE4-9

1.ServiceRevenue780

AccountsReceivable780

4-10

BRIEFEXERCISE4-9(Continued)

2.AccountsPayable($1,850-$1,580)270

StoreSupplies270

BRIEFEXERCISE4-10

KRENCOMPANY

PartialBalanceSheet

Currentassets

Cash$18,400

Short-terminvestments6,700

Accountsreceivable12,500

Supplies5,200

Prepaidinsurance3,600

Totalcurrentassets$46,400

*BRIEFEXERCISE4-11

Nov.1SalariesPayable1,200

SalariesExpense1,200

ThebalancesafterpostingthereversingentryareSalariesExpense(Cr.)

$1,200andSalariesPayable$0.

4-11

SOLUTIONSTOEXERCISES

EXERCISE4-1

CAJONCOMPANY

(Partial)WorkSheet

FortheMonthEndedApril30,2006

AdjustedIncomeBalanceSheet

TrialBalanceStatement

AccountTitlesDr.Cr.Dr.Cr.Dr.Cr.

Cash14,75214,752

AccountsReceivable7,8407,840

PrepaidRent2,2802,280

Equipment23,05023,050

Accum.Depreciation4,9214,921

NotesPayable5,7005,700

AccountsPayable5,6725,672

CommonStock25,00025,000

RetainedEarnings8,9608,960

Dividends3,6503,650

ServiceRevenue12,59012,590

SalariesExpense9,8409,840

RentExpense760760

DepreciationExpense671671

InterestExpense5757

InterestPayable5757

Totals62,90062,90011,32812,59051,57250,310

NetIncome1,2621,262

Totals12,59012,59051,57251,572

4-12

EXERCISE4-2

CAJONCOMPANY

IncomeStatement

FortheMonthEndedApril30,2006

Revenues

Servicerevenue$12,590

Expenses

Salariesexpense$9,840

Rentexpense760

Depreciationexpense671

Interestexpense57

Totalexpenses11,328

Netincome$1±62

CAJONCOMPANY

RetainedEarningsStatement

FortheMonthEndedApril30,2006

RetainedEarnings,April1$8,960

Add:Netincome1,262

10,222

Less:Dividends3,650

RetainedEarnings,April30$6,、72

CAJONCOMPANY

BalanceSheet

April30,2006

Assets

Currentassets

Cash$14,752

Accountsreceivable7,840

Prepaidrent2,280

Totalcurrentassets24,872

Property,plant,andequipment

Equipment$23,050

Less:Accumulateddepreciation4,92118,129

Totalassets$43,001

4-13

EXERCISE4-2(Continued)

CAJONCOMPANY

BalanceSheet(Continued)

April30,2006

LiabilitiesandStockholders,Equity

Currentliabilities

Notespayable$5,700

Accountspayable5,672

Interestpayab