Friday, June 3, 2016

Chapter - 2 Financial accounting An introduction to concepts, methods and uses - Solutions for text book questions with case studies and answers to problems by stickney

2.21 continued.

May 30, 2008
Insurance Expense................................................................             12
     Prepaid Insurance.............................................................                                 12

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
–12



–12
IncSt à RE

Adjusting entry required for prepaid insurance consumed during May, 2008.

June 1, 2008
Prepaid Insurance.................................................................           156
.... Cash......................................................................................                              156

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
+156





–156






To record payment of insurance for next 12 months.

June 30, 2008
Insurance Expense................................................................             13
        Prepaid Insurance..........................................................                                 13

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
–13



–13
IncSt à RE

Adjusting entry required for prepaid insurance consumed during June, 2008 ($13 = $156/12 months).

July 31, 2008
Insurance Expense................................................................             13
        Prepaid Insurance..........................................................                                 13

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
–13



–13
IncSt à RE

Adjusting entry required for prepaid insurance consumed during July, 2008.


2.22         (ABB Group; journal entries for prepaid rent.)  (Amounts in Millions)

a.    Journal Entries for January, 2007:
        January 31, 2007
        Rent Expense..................................................................           247
            Prepaid Rent...............................................................                              247

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
–247



–247
IncSt à RE

To record the adjusting entry for the consumption of the prepaid portion of rent expense for the month of January.

        January 31, 2007
        Prepaid Rent....................................................................        3,200
            Cash..............................................................................                           3,200

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
+3,200





–3,200






To record the prepayment of rent for the next 12 months.

b.    Journal Entry in December, 2007:
      December 31, 2007
        Rent Expense..................................................................        2,933
            Prepaid Rent...............................................................                           2,933

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
–2,933



–2,933
IncSt à RE

To record the adjusting entry for the consumption of the prepaid portion of rent expense for the months of February through December.

        Amount of Prepaid Rent consumed = [($3,200/12 months) X 11 months] = $2,933 million.



2.23         (Sappi Limited; journal entries for borrowing.)  (Amounts in Millions)

a.    Sappi repaid liabilities in fiscal 2007, in the amount of $1,634 + $1,200 – $1,828 = $1,006 million.  To record the repayment, Sappi made the following journal entry:

        Date of Repayment, Fiscal 2007
        Noncurrent Financial Liabilities................................        1,006
            Cash..............................................................................                           1,006

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
–1,006

–1,006




b.    Journal Entries:
       
      Fiscal Year 2007:
        March 31, 2007
        Cash...................................................................................        1,200
            Bank Loan Payable...................................................                           1,200

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
+1,200

+1,200




To record the loan from the local bank.

        September 30, 2007
        Interest Expense [= $1,200 Million X .075 X
             (180/360)]....................................................................             45
                 Interest Payable....................................................                                 45

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)


+45

–45
IncSt à RE

Adjusting entry to record interest expense earned but not yet paid at the end of fiscal year 2007.


2.23 b. continued.

        Fiscal Year 2008:
        March 31, 2008
        Interest Payable.............................................................             45
        Interest Expense.............................................................             45
            Cash..............................................................................                                 90

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
–90

–45

–45
IncSt à RE

To record payment of interest for the first year.

        September 30, 2008
        Interest Expense [= $1,200 Million X .075 X
            (180/360)].....................................................................             45
                 Interest Payable....................................................                                 45

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)


+45

–45
IncSt à RE

Adjusting entry to record interest expense earned but not yet paid at the end of fiscal year 2008.

      Fiscal Year 2009:
        March 31, 2009
        Interest Payable.............................................................             45
        Interest Expense.............................................................             45
            Cash..............................................................................                                 90

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
–90

–45

–45
IncSt à RE

To record payment of interest for the second year.
       
        March 31, 2009
        Bank Loan Payable.......................................................        1,200
            Cash..............................................................................                           1,200

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
–1,200

–1,200




To record repayment of the principal.



2.24         (Toyota Motor Company; journal entries related to the income statement.)  (Amounts in Millions)

2007
Accounts Receivable..............................................................     22,670
.... Revenues.............................................................................                         22,670

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
+22,670



+22,670
IncSt à RE

To record product sales on account.

Cost of Goods Sold..................................................................     18,356
     Inventories..........................................................................                         18,356

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
–18,356



–18,356
IncSt à RE

To record the cost of sales.

Cash..........................................................................................     22,670
.... Accounts Receivable.........................................................                         22,670

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
–22,670





+22,670






To record the cash collected on sales made on account.
2.25         (Teva Pharmaceutical; journal entries related to the income statement.)  (Amounts in Millions)

2007
Accounts Receivable..............................................................        9,408
.... Revenues.............................................................................                           9,408

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
+9,408



+9,408
IncSt à RE

To record product sales on account.



2.25 continued.

Cost of Goods Sold..................................................................        6,531
     Inventories..........................................................................                           6,531

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
–6,531



–6,531
IncSt à RE

To record the cost of sales.

Cash..........................................................................................        2,650
.... Accounts Receivable.........................................................                           2,650

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
–2,650





+2,650






To record the cash collected on sales made on account.
2.26         (Bostick Enterprises; journal entries to correct recording error.)  (Amounts in Millions)

Entry Made:
Equipment Expense.............................................................     120,000
     Cash....................................................................................                        120,000

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
–120,000



–120,000
IncSt à RE

Correct Entries:
Equipment.............................................................................     120,000
     Cash....................................................................................                        120,000

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
–120,000





+120,000






Depreciation Expense ($120,000/10)................................       12,000
     Accumulated Depreciation.............................................                          12,000

Assets

=
Liabilities
+
Shareholders' Equity
(Class.)
–12,000



–12,000
IncSt à RE


2 comments:

  1. Tìm thuê Dịch vụ kế toán thuế giá rẻ
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận cầu giấy
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận tại từ liêm
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận thanh xuân
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận hà đông
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận long biên
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận đống đa
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận ba đình
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận tây hồ
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận hoàng mai
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại thanh trì
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận hoàn kiếm
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận hai bà trưng
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận thủ đức
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận bình thạnh
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận tân phú
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận gò vấp
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận phú nhuận
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận bình tân
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận tân bình
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại đông anh
    Tìm thuê Dịch vụ kế toán thuế giá rẻ gia lâm
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận 1
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận 2
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận 3
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận 4
    Tìm thuê Dịch vụ kế toán thuế giá rẻ tại quận 5

    ReplyDelete
  2. Woman small business funds are generally available through various private groups or organizations. In order to find these groups you have to search on the Internet or visit your local public library.
    guarantor loans

    ReplyDelete