会计英语课后习题参考答案

SuggestedSolution

Chapter1

1.

Effectontheaccountingequation(1)(2)(3)(4)(5)(6)

(a)Increaseinoneasset,decreaseinJ

anotherasset.

(b)Increaseinanasset,increaseina

liability.

(c)Increaseinanasset,increaseinJJ

capital.

(d)Decreaseinanasset,decreaseinaV

liability.

(e)Decreaseinanasset,decreaseinVJ

capital.

2.

AssetsLiabilitiesOwner'sequity

Transactions

+/-+/-+/-

1++

2++

3--

4++

5++

6--

7--

8+/-

9--

10--

3.

Describeeachtransactionbasedonthesummaryabove.

Transactions

1Purchasedlandforcash,$6,000.

2Investmentforcash,$3,200.

3Paidexpense$1,200.

4Purchasedsuppliesonaccount,$800.

5PaidownerJspersonaluse,$750.

6Paidcreditor,$1,500

7Suppliesusedduringtheperiod,$630.

4.

AssetsLiabilitiesEquity

Beginning275,00080,000195,000

Add.investment48,000

Add.Netincome27,000

Lesswithdrawals-35,000

Ending320,00085,000235,000

5.

(a)

March31,20XXApril30,20XX

Assets

Cash4,5005,400

Accountsreceivable2,5604,100

Supplies840450

Totalassets7,9009,950

Liabilities

Accountspayable430690

Equity

TinaPierce,Capital7,4709,260

(b)netincome=9,260-7,470=1,790

(c)netincome=1,790+2,500=4,290

Chapter2

i.

a.ToincreaseNotesPayable-CR

b・TodecreaseAccountsReceivable-CR

C・ToincreaseOwner,Capital-CR

d.TodecreaseUnearnedFees-DR

e.TodecreasePrepaidInsurance-CR

f・TodecreaseCash-CR

g.ToincreaseUtilitiesExpense-DR

h.ToincreaseFeesEarned-CR

1.ToincreaseStoreEquipment-DR

j.ToincreaseOwner,Withdrawal-DR

2.

a.

Cash1,800

Accountspayable..................................................1,800

b.

Revenue.....................................................................4,500

Accountsreceivable..................................4,500

c.

Owner'swithdrawals............................................1,500

SalariesExpense..........................................1,500

d.

AccountsReceivable750

Revenue.................................................................750

3.

PrepareadjustingjournalentriesatDecember31,theendoftheyear.

Advertisingexpense600

Prepaidadvertising600

Insuranceexpense(2160/12*2)360

Prepaidinsurance360

Unearnedrevenue2,100

Servicerevenue2,100

Consultantexpense900

Prepaidconsultant900

Unearnedrevenue3,000

Servicerevenue3,000

4.

1.$388,400

2.$22,520

3.$366,600

4.$21,800

5.

1.netlossfortheyearendedJune30,2002:$60,000

2.DRJonNissen,Capital60,000

CRincomesummary60,000

3.post-closingbalanceinJonNissen,CapitalatJune30,2002:$54,000

Chapter3

1.DundeeRealtybankreconciliation

October31,2009

Reconciledbalance$6,220Reconciledbalance$6,220

2.April7Dr:Notesreceivable一Acompany5400

Cr:Accountsreceivable一Acompany5400

12Dr:Cash

Interestexpense

Cr:Notesreceivable5400

June6Dr:Accountsreceivable-Acompany5533

Cr:Cash5533

18Dr:Cash

Cr:Accountsreceivable—Acompany5533

Interestrevenue

3.(a)Asawhole:theendinginventory=685

(b)appliedseparatelytoeachproduct:theendinginventory=625

4.Thecostofgoodsavailableforsale=endinginventory+thecostof

goods=80,000+200,000*500%=80,000+1,000,000=1,080,000

5.(1)24,000+60,000-90,000*=12000

(2)(60,000+24,000)/(85,000+31,000)*(85,000+31,000-90,000)=18828

Chapter4

1.(a)second-yeardepreciation=(114,000-5,700)/5=21,660;

(b)second-yeardepreciation=8,600*(114,000-5,700)/36,100=25,800;

(c)first-yeardepreciation=114,000*40%=45,600

second-yeardepreciation=(114,000-45,600)*40%=27,360;

(d)second-yeardepreciation=(114,000-5,700)*4/15=28,880.

2.(a)weighted-averageaccumulatedexpenditures(2008)=75,000*12/12+

84,000*9/12+180,000*8/12+300,000*7/12+100,000*6/12=483,000

(b)interestcapitalizedduring2008=60,000*12%+(483,000-60,000)*10%

=49,500

3.(1)depreciationexpense=30,000

(2)bookvalue=600,000-30,000*2=540,000

(3)depreciationexpense=(600,000-30,000*8)/16=22,500

(4)bookvalue=600,000-30,000*8-22,500=337,500

4.Situation1:

Janhi,2008InvestmentinM260,000

Cash260,000

June30Cash6000

Dividendrevenue6000

Situation2:

January1,2008InvestmentinS81,000

Cash81,000

June15Cash10,800

InvestmentinS10,800

December31InvestmentinS25,500

InvestmentRevenue25,500

5.a.December31,2008InvestmentinK1,200,000

Cash1,200,000

June30,2009DividendReceivable42,500

DividendRevenue42,500

December31,2009Cash42,500

DividendReceivable42,500

b.December31,2008InvestmentinK1,200,000

Cash1,200,000

December31,2009Cash42,500

InvestmentinK42,500

InvestmentinK146,000

Investmentrevenue146,000

c.Ina,theinvestmentamountis1,200,000

netincomereposedis42,500

Inb,theinvestmentamountis1,303,500

Netincomereposedis146,000

Chapter5

1.

a.June1:Dr:Inventory198,000

Cr:AccountsPayable198,000

June11:Dr:AccountsPayable198,000

Cr:NotesPayable198,000

June12:Dr:Cash300,000

Cr:NotesPayable300,000

b.Dr:InterestExpenses(fornotesonJune11)12,100

Cr:InterestPayable12,100

Dr:InterestExpenses(fornotesonJune12)8,175

Cr:InterestPayable8,175

c.Balancesheetpresentation:

NotesPayable498,000

AccruedInterestonNotesPayable20,275

d.ForGreen:

Dr:NotesPayable198,000

InterestPayable12,100

InterestExpense7,700

Cr:Cash217,800

ForWestern:

Dr:NotesPayable300,000

InterestPayable8,175

InterestExpense18,825

Cr:Cash327,000

2.

(1)208Deferredincometaxisaliability2,400

Incometaxpayable21,600

209Deferredincometaxisanasset600

Incometaxpayable26,100

(2)208:Dr:Taxexpense24,000

Cr:Incometaxpayable21,600

Deferredincometax2,400

209:Dr:Taxexpense25,500

Deferredincometax600

Cr:Incometaxpayable26,100

(3)208:Incomestatement:taxexpense24,000

Balancesheet:incometaxpayable21,600

209:Incomestatement:taxexpense25,500

Balancesheet:incometaxpayable26,100

3.

a.1,560,000(*12%*(1-35%))

b.%(*12%*(1-35%)/)

4.

maturitynumberstatedratepereffectivepaymentpresent

valueofinterest-periodinterestrateamountvalueof

interestperperbondsat

periodsinterest-periodperioddateof

issue

1$1040%3%$$

2201010%12%2

325100%12%0

5.

NotesPayable14,400

InterestPayable1,296

AccountsPayable60,000

+UnearnedRentRevenue7,200

CurrentLiabilities82,896

Chapter6

1.Mar.1

Cash1,200,000

CommonStock1,000,000

Paid-inCapitalinExcessofParValue200,000

Mar.15

OrganizationExpense50,000

CommonStock50,000

Mar.23

Patent120,000

CommonStock100,000

Paid-inCapitalinExcessofParValue20,000

Thevalueofthepatentisnoteasilydeterminable,sousetheissuepriceof

$12pershareonMarch1whichistheissuingpriceofcommonstock.

2.

TreasuryStock180,000

Cash180,000

Thecostoftreasurypurchasedis180,000/30,000=60pershare.

Nov.1

Cash70,000

TreasuryStock60,000

Paid-inCapitalfromTreasuryStock10,000

Sellthetreasuryatthecostof$60pershare,andsellingpriceis$70pershare.

Thetreasurystockissoldabovethecost.

Dec.20

Cash75,000

Paid-inCapitalfromTreasuryStock15,000

TreasuryStock90,000

Thecostoftreasuryis$60persharewhilethesellingpriceis$50whichislower

thanthecost.

3.a.July1

RetainedEarnings24,000

DividendsPayable—PreferredStock24,000

DividendsPayable-PreferredStock24,000

Cash24,000

c.

RetainedEarnings80,000

DividendsPayable—CommonStock80,000

d.

IncomeSummary350,000

RetainedEarnings350,000

4.

a.Preferredstockgivesitsownercertainadvantagesovercommonstockholders.

Thesebenefitsincludetherighttoreceivedividendsbeforethecommonstockholders

andtherighttoreceiveassetsbeforethecommonstockholdersifthecorporation

liquidates.Corporationpayafixedamountofdividendsonpreferredstock.

The7%cumulativetermindicatesthattheinvestorsearn7%fixeddividends.

b.7%*120%*20,000=504,000

c.Ifcorporationissueddebt,ithasobligationtorepayprincipal

d.Thedateofdeclarationdecreasethestockholders,equity;thedateofrecord

andthedateofpaymenthavenoeffectonstockholders.

a.Jan.15

RetainedEarnings35,000

AccumulatedDepreciation35,000

Tocorrecterrorinprioryear'sdepreciation.

b.Mar.20

LossfromEarthquake70,000

Building70,000

c.Mar.31

RetainedEarnings12,500

DividendsPayable12,500

d.

DividendsPayable12,500

Cash12,500

e.June30

RetainedEarnings37,500

CommonStock25,000

AdditionalPaid-inCapital12,500

Torecordissuanceof10%stockdividend:10%*25,000=2,500shares;

2500*$15=$37,500

f.Dec.31

DepreciationExpense14,000

AccumulatedDepreciation14,000

Originaldepreciation:$40,000/40二$10,000peryear.Bookvalueon,2009is

$350,000(=$400,000-5*$10,000).Deprecationfor2009is$14,000(=$350,000/25).

g.Thecompanydoesnotneedtomakeentryintheaccountingrecords.Buttheamount

ofCommonStock($10parvalue)decreases275,000,whiletheamountofCommonStock

($5parvalue)increases275,000.

Chapter7

i.

Requirement1

Ifrevenueisrecognizedatthedateofdelivery,thefollowingjournalentrieswould

beusedtorecordthetransactionsforthetwoyears:

YearI

Inventory...................................................480,000

Cash/Accountspayable.................................480,000

Torecordpurchaseofinventory

Inventory...................................................124,000

Cash/Accountspayable.................................124,000

Torecordrefurbishmentofinventory

Accountsreceivable........................................310,000

Salesrevenue..........................................310,000

Torecordsaleofgoodsonaccount

Costofgoodssold.........................................220,000

Inventory..............................................220,000

Torecordthecostofthegoodssoldasanexpense

Salesreturns(I/S)........................................15,500*

Allowanceforsalesreturns(B/S)....................15,500

Torecordprovisionforreturnofgoodssoldunder30-dayreturnperiod

*5%of$310,000

Warrantyexpense.........................................31,000*

Provisionforwarranties(B/S)......................31,000

Torecordprovision,attimeofsale,forwarrantyexpenditures

*10%of$310,000

Allowanceforsalesreturns.............................12,400

Accountsreceivable.................................12,400

Torecordreturnofgoodswithin30-dayreturnperiod.

Itisassumedthereturnedgoodshavenovalueandaredisposedof.

Provisionforwarranties(B/S)..........................18,600

Cash/Accountspayable...............................18,600

Torecordexpendituresinyear1forwarrantywork

Cash....................................................297,600*

Accountsreceivable.................................297,600

TorecordcollectionofAccountsReceivable

*$310,000-$12,400

Year2

Provisionforwarranties(B/S)..........................8,400

Cash/Accountspayable...............................8,400

Torecordexpendituresinyear2forwarrantywork

Requirement2

Ifrevenueisrecognizedonlywhenthewarrantyperiodhasexpired,thefollowing

journalentrieswouldbeusedtorecordthetransactionsforthetwoyears:

Year1

Inventory........................................................................................480,000

Cash/Accountspayable.........................................................480,000

Torecordpurchaseofinventory

Inventory........................................................................................124,000

Cash/Accountspayable.........................................................124,000

Torecordrefurbishmentofinventory

Accountsreceivable.....................................................................310,000

Inventory................................................................................220,000

Deferredgrossmargin.........................................................90,000

Torecordsaleofgoodsonaccount

Deferredgrossmargin.................................................................12,400

Accountsreceivable.............................................................12,400

Torecordreturnofgoodswithinthe30-dayreturnperiod.Itisassumedthegoods

havenovalueandaredisposedof.

Deferredwarrantycosts(B/S)..................................................18,600

Cash/Accountspayable.........................................................18,600

Torecordexpendituresforwarrantyworkinyear1.Thewarrantycostsincurredare

deferredbecausetherelatedrevenuehasnotyetbeenrecognized

Cash................................................................................................297,600*

Accountsreceivable.............................................................297,600

TorecordcollectionofAccountsreceivable

*$310,000-$12,400

Year2

Deferredwarrantycosts.............................................................8,400

Cash/Accountspayable.........................................................8,400

Torecordwarrantycostsincurredinyear2relatedtoyear1sales.Thewarranty

costsincurredaredeferredbecausetherelatedrevenuehasnotyetbeenrecognized.

Deferredgrossmargin.................................................................**77,600

Costofgoodssold.......................................................................220,000

Salesrevenue.........................................................................297,600*

Torecordrecognitionofsalesrevenuefromyear1salesandrelatedcostofgoods

soldatexpiryofwarrantyperiod

*$310,000-$12,400

**($90,000-$12,400)

Warrantyexpense...........................................................................27,000*

Deferredwarrantycosts......................................................27,000

Torecordrecognitionofwarrantyexpenseatsametimeasrelatedsalesrevenue

recognition

*$18,600+$8,400

Requirement3

AlliedAutoPartsInc.mightchoosetorecognizerevenueonlyafterthewarranty

periodhasexpirediftheyarenotabletomakeagoodestimate,atthetimeofsale,

oftheamountofwarrantyworkthatwillberequiredunderthetermsoftheone-year

warranty.IfAlliedisnotable,atthetimeofsale,tomakeagoodestimateof

thewarrantyworkthatwillberequired,thenthemeasurabilitycriterionofrevenue

recognitionisnotmetatthetimeofsale.Themeasurabilitycriterionmeansthat

theamountofrevenuecanbereliablymeasured.Ifthesellerisnotabletoestimate

theamountofworkthatwillhavetobedoneunderthewarrantyagreement,thenit

isnotabletoreasonablymeasuretheprofitthatitwilleventuallyearnonthe

sales.Theperformancecriteriamightalsobeinvokedhere.Theperformance

criterionmeansthatthesellerhastransferredthesignificantrisksandrewards

ofownershiptothebuyer.Aslongasthereiswarrantyworktobeperformedafter

thesalethatistheresponsibilityoftheseller,youmightarguethatperformance

isnotsubstantiallycomplete.However,ifthesellerwasabletoreliablyestimate

theamountofwarrantywork,thenperformancewouldbesatisfiedontheassumption

thatwecouldmeasuretheriskthatremainswiththeseller,andmakeaprovision

forit.

2.

Percentage-of-completionmethod:

Thefirststepinapplyingrevenuerecognitionusingthepercentage-of-comp1etion

method(usingcostsincurredtodatecomparedtoestimatedtotalcoststodetermine

thepercentageofcompletion)istoestimatethepercentageofcompletionofthe

projectattheendofeachyear.Thisisdoneinthefollowingtable(in$000s):

Endof2005Endof2006Endof2007

Totalcostsincurred$5,400$12,950$18,800

Totalestimatedcosts18,00018,50018,800

%completed30%70%100%

Oncethepercentageofcompletionattheendofeachyearhasbeencalculatedas

above,thenextstepistoallocatetheappropriateamountofrevenuetoeachyear,

basedonthepercentagecompletedtodate,lesswhathaspreviouslybeenrecorded

inrevenue.Thisisdoneinthefollowingtable(in$000s):

200520062007

2005$20,000X30%$6,000

2006$20,000X70%$14,000

2007$20,000X100%$20,000

Less:Revenuerecognizedinprioryears_____^0)(6,000)(14,000)

Revenueforyear66,00038,000$6,000

Therefore,theprofittoberecognizedeachyearontheconstructionprojectwould

be:

200520062007Total

Revenuerecognized$6,000$8,000$6,000$20,000

Constructioncostsincurred(expenses)(5,400)(7,550)(5,850)(18,800)

Grossprofitfortheyear$600$450$150$1,200

Thefollowingjournalentriesareusedtorecordthetransactionsunderthe

percentage-of-completionmethodofrevenuerecognition:

200520062007

1.Costsofconstruction:

Constructioninprogress......5,4007,5505,850

Cash,payables,etc.5,4007,5505,850

2.Progressbillings:

Accountsreceivable....3,1004,90012,000

Progressbillings...3,1004,90012,000

3.Collectionsonbillings:

Cash......................2,4004,00012,400

Accountsreceivable.2,4004,00012,400

4.Recognitionofprofit:

Constructioninprogress600450150

Constructionexpense....5,4007,5505,850

Revenuefromlong-term

contract..........6,0008,0006,000

5.Tocloseconstructioninprogress:

Progressbillings.......20,000

Constructioninprogress20,000