44K6.1 Financial Accounting – ACC2001 CHAPTER ASSIGNMENT (Chapter 5) Questions Complex Moderate How many questions that you did answer? List the question that you are not able to answer Simple 3_/3 Brief Exercises Complex Moderate How many brief exercises that you did answer? List the brief exercises that you are not able to answer Simple 5_/5 Exercises Complex Moderate How many exercises that you did answer? List the exercises that you are not able to answer Simple 13_/13 Problems & Critical Thinking Complex Moderate How many 5_/5 © 2020 by Dr Nguyen Huu Cuong Simple “Liberal Arts - Self-initiative - Pragmatism” problems that you did answer? List the problems that you are not able to answer Student Information Full Name Ngô Thị Lan Dung Class 44k06.1 Phone 0372532461 Email Landungngo.2000@gmail.com Self-evaluation (Out of ten) © 2020 by Dr Nguyen Huu Cuong 10/10 “Khai phóng - Tự thân - Hữu ích” 44K6.1 Financial Accounting – ACC2001 CHAPTER ASSIGNMENT (Chapter 5) FINANCIAL ACCOUNTING: TOOLS FOR DECISION-MAKING, 7th Canadian Edition (Kimmel P.D et al., 2017) – CHAPTER BRIEF EXERCISES BE5-4: Pocras Corporation Debit merchandise inventory $32,000 Credit Accounts Payable $32,000 Wydell Inc Debit cost of goods sold $14,400 Credit merchandise inventory $14,400 Debit accounts Credit receivable sales $32,000 $32,000 BE5-5: Jan Debit inventory $45,000 Credit accounts payable $45,000 Jan Debit inventory Credit cash $900 Jan Debit accounts payable Credit Inventory $900 $6,000 $6,000 11 Jan Debit accounts payable $45,000 Credit inventory (45,000 - 6,000) x 2% = $780 Credit cash $44,220 BE5-12: Jan Credit purchase $45,000 Debit accounts payable $45,000 © 2020 by Dr Nguyen Huu Cuong “Liberal Arts - Self-initiative - Pragmatism” Jan Credit purchase Debit cash $900 $900 Jan Credit accounts payable Debit purchase $6,000 $6,000 11 Jan Credit accounts payable $45,000 Debit purchase (45,000 - 6,000) x 2% = $780 Debit cash $44,220 © 2020 by Dr Nguyen Huu Cuong “Khai phóng - Tự thân - Hữu ích” 44K6.1 Financial Accounting – ACC2001 CHAPTER ASSIGNMENT (Chapter 5) EXERCISES E5-4: (a) April Debit inventory $28,000 Credit account payable $28,000 April Debit inventory Credit cash $700 $700 April Debit supplies $5,000 Credit account payable $5,000 April Debit account payable Credit inventory $3,500 $3,500 30 April Debit account payable (28,000 – 3,500) = $24,500 Credit cash $24,500 (b) 12 April Debit account payable $24,500 Credit inventory (28,000 – 3,500) x 1% = $245 Credit cash $24,255 E5-6: They shouldn’t this, because the discount for paying early is 1% It’s lower than the interest of short-term loan (8%) © 2020 by Dr Nguyen Huu Cuong “Liberal Arts - Self-initiative - Pragmatism” PROBLEMS P5-2A: (a) Phantom Book Warehouse Ltd is a wholesaler Its suppliers are publishers and its customers are book stores (b) June Debit Merchandise Inventory (180 x 16) = $2,880 Credit Accounts Payable $2,880 June Debit Accounts Receivable (220 x 25) = $5,500 Credit Sales $5,500 Debit Cost of Goods Sold (220 x 17) = $3,740 Credit Merchandise Inventory $3,740 June Debit Accounts Payable $160 Credit Merchandise Inventory $160 June Debit Accounts Receivable (80 x 22) = $1,760 Credit Sales $1,760 Debit Cost of Goods Sold (80 x 17) = $1,360 Credit Merchandise Inventory $1,360 June Debit Sales Returns and Allowances $264 Credit Accounts Receivable $264 June 11 Debit Merchandise Inventory (130 x 15) = $1,950 Credit Accounts Payable $1,950 June 12 Debit Cash (5,500 – 110) = $5,390 Debit Sales Discounts (5,500 x 2%) = $110 © 2020 by Dr Nguyen Huu Cuong “Khai phóng - Tự thân - Hữu ích” 44K6.1 Financial Accounting – ACC2001 CHAPTER ASSIGNMENT (Chapter 5) Credit Accounts Receivable $5,500 June 17 Debit Cash $1,466.08 Debit Sales Discounts (1,760 – 264) x 2% = $29.92 Credit Accounts Receivable (1,760 – 264) = $1,496 June 22 Debit Accounts Receivable (125 x 25) = $3,125 Credit Sales $3,125 Debit Cost of Goods Sold (125 x 17) = $2,125 Credit Merchandise Inventory $2,125 June 25 Debit Sales Returns and Allowances $375 Credit Accounts Receivable $375 Debit Merchandise Inventory (15 x 17 ) = $255 Credit Cost of Goods Sold $255 June 29 Debit account payable (2,880 - 160) = $2,720 Credit cash $2,720 P5-3A (a) September Debit equipment $65,000 Credit account payable $65,000 September Debit supplies $4,000 Credit cash $4,000 © 2020 by Dr Nguyen Huu Cuong “Liberal Arts - Self-initiative - Pragmatism” September Debit inventory $65,000 Credit account payable $65,000 September Debit inventory Credit cash $1,600 $1,600 September Debit account payable Credit supplies $5,000 $5,000 September Debit account receivable Credit sales $20,000 $20,000 Debit cost of goods sold Credit inventory $15,000 $15,000 September 10 Debit freight out $375 Credit cash $375 September 17 Debit cash $19,600 Debit sale account 20,000 x 2% = $400 Credit account receivable $20,000 September 20 Debit Accounts Payable (65,000 – 5,000) = $60,000 Credit Inventory (60,000× 1%) = $60 Credit Cash $59,940 September 21 Debit inventory $6,000 Credit cash $6,000 September 22 Debit account receivable © 2020 by Dr Nguyen Huu Cuong $27,000 “Khai phóng - Tự thân - Hữu ích” 44K6.1 Financial Accounting – ACC2001 CHAPTER ASSIGNMENT (Chapter 5) Credit sales Debit cost of goods sold Credit inventory $27,000 $20,000 $20,000 September 28 Debit Sales Returns and Allowances $10,000 Credit account receivable $10,000 Debit Inventory $7,500 Credit Cost of Goods Sold $7,500 (b) October Debit account payable $60,000 Credit cash $60,000 the cost of missing = $60 P5-4A (a) April Debit inventory $3,200 Credit account payable $3,200 April Debit inventory $286 Credit cash $286 April Debit account receivable Credit sales Debit cost of goods sold Credit merchandise © 2020 by Dr Nguyen Huu Cuong $9,750 $9,750 $5,850 $5,850 “Liberal Arts - Self-initiative - Pragmatism” 9 April Debit Accounts Payable $320 Credit Inventory $320 11 April Debit Accounts Payable (3,200 – 320) = $2,880 Credit Inventory (2,880× 1%) = $28.8 Credit Cash $2,851.2 14 April Debit cash $4,150 Credit account receivable $4,150 16 April Debit inventory $1,300 Credit account payable $1,300 17 April Debit Accounts Payable $100 Credit Inventory $100 20 April Debit account receivable Credit sales Debit cost of goods sold Credit merchandise $11,100 $11,100 $6,200 $6,200 24 April Debit Accounts Payable (1,300 – 100) = $1,200 Credit Inventory (1,200× 2%) = $24 Credit Cash $1,176 25 April Debit cash $4,375 Credit account receivable $4,375 27 April Debit Sales Returns and Allowances Credit account receivable $85 $85 P5-5A © 2020 by Dr Nguyen Huu Cuong “Khai phóng - Tự thân - Hữu ích” 10 44K6.1 Financial Accounting – ACC2001 CHAPTER ASSIGNMENT (Chapter 5) (a) May Debit Inventory $5,800 Credit Accounts Payable $5,800 May Debit Inventory $145 Credit Cash $145 May Debit account receivable $3,500 Credit Sales $3,500 Debit Cost of Goods Sold $2,100 Credit Inventory $2,100 May Debit Freight Out $90 Credit Cash $90 May Debit Accounts Payable $200 Credit Inventory $200 May Debit Accounts Payable ($5,800 – $200) = $5,600 Credit Inventory ($5,600 × 1%) = $56 Credit Cash $5,544 11 May Debit Supplies $400 Credit Cash $400 14 May Debit Cash ($3,500 – $70) = $3,430 Debit Sales Discount ($3,500 × 2%) = $70 Credit Accounts Receivable $3,500 © 2020 by Dr Nguyen Huu Cuong “Liberal Arts - Self-initiative - Pragmatism” 11 15 May Debit Cash $1,000 Credit Account receivable $1,000 18 May Debit Inventory $2,000 Credit Accounts Payable $2,000 21 May No entry required (freight paid by Harlow) 22 May Debit Cash $6,500 Credit Sales $6,500 Debit Cost of Goods Sold $3,900 Credit Inventory $3,900 29 May Debit Sales Returns and Allowances $100 Credit Cash $100 Debit Inventory $60 Credit Cost of Goods Sold $60 31 May Cost of Goods Sold $149 Inventory $5,249 – $5,100 = $149 Unadjusted balance in Inventory account = $3,500 + $5,800 + $145 – $2,100 – $200 – $56 + $2,000 – $3,900 + $60 = $5,249 © 2020 by Dr Nguyen Huu Cuong “Khai phóng - Tự thân - Hữu ích” 12 44K6.1 Financial Accounting – ACC2001 CHAPTER ASSIGNMENT (Chapter 5) CRITICAL THINKING CT5-5: (a) The ethical considerations in this case are that Jamie Caterino has deceptively been swindling the company's creditors the whole time he was the assistant treasurer As well, he is now disclosing to Rita Pelzer that he has been doing this and is asking her to continue doing the same which is very unethical thing to It puts Rita Pelzer in a bad state since Jamie Caterino is telling her that everyone performs business in this manner when that is not true (b) The stakeholders who are harmed are the creditors since they are giving a discount that is not warranted They are losing their money on the activity they could be earning by getting paid in good time The company itself is as well harmed since Jamie Caterino has created a bad name among the creditors In some cases, the company benefits by keeping their money for a long duration of time and still getting the discount (c) Rita Pelzer should not continue the practice that was initiated by Jamie Caterino This is wrong and she should therefore not put herself in that state just because somebody told her to it that way She does have a choice in the issue since always have a choice in how they conduct themselves She could have gone above Jamie Caterino and report what she was told to If they tell her to continue with the practice as well, she cansnub them or search for another job She should not make herself responsible for immoral behavior under any circumstances © 2020 by Dr Nguyen Huu Cuong “Liberal Arts - Self-initiative - Pragmatism” 13 FINANCIAL ACCOUNTING: TOOLS FOR DECISION-MAKING, 7th Canadian Edition (Kimmel P.D et al., 2017) – CHAPTER 10 QUESTIONS Q4: a company has sold gift cards to customers Debit Cash Credit Gift card liability the gift cards are redeemed Debit Gift card liability Credit Revenue Q6: Non-current portion of debt that a company owns A company's total debt can be divided into two parts, the current portion of all its debt obligations and the long term portion of all its debt obligations These items are often found on a company's balance sheet Q11: An entity should present current and non-current liabilities as separate classifications in its statement of financial position © 2020 by Dr Nguyen Huu Cuong “Khai phóng - Tự thân - Hữu ích” 14 44K6.1 Financial Accounting – ACC2001 CHAPTER ASSIGNMENT (Chapter 5) BRIEF EXERCISES BE10-2: (a) April 30 Debit Property Tax Expense ($36,000÷12 x 4) = 12,000 Credit Property Tax Payable 12,000 (b) July 15 Debit Property Tax Payable 12,000 Debit Property Tax Expense ($36,000 ÷12 x 2.5) = 7,500 Debit Prepaid Property Tax ($36,000 ÷12 x 5.5) = 16,500 Credit Cash 36,000 (c) Dec 31 Property Tax Expense 16,500 Prepaid Property Tax 16,500 BE10-4: (a) July Debit Cash 60,000 Credit Bank Loan Payable 60,000 (b) Aug Debit Interest Expense ($60,000 x 5% x 1/12) 250 Credit Cash 250 Aug 31 Debit Interest Expense 250 Credit Interest Payable 250 Sept Debit Interest Payable 250 Credit Cash 250 Oct Debit Interest Expense 250 Credit Cash 250 (c) Oct Debit Bank Loan Payable 60,000 Credit Cash 60 © 2020 by Dr Nguyen Huu Cuong “Liberal Arts - Self-initiative - Pragmatism” 15 © 2020 by Dr Nguyen Huu Cuong “Khai phóng - Tự thân - Hữu ích” 16 44K6.1 Financial Accounting – ACC2001 CHAPTER ASSIGNMENT (Chapter 5) INTRODUCTION TO FINANCIAL ACCOUNTING (VERSION 2019B) by Dauderis, H & Annand, D – CHAPTER DISCUSSION QUESTIONS DQ 1Current Liabilities: - Liabilities that business owners must settle within twelve months or one operating cycle of the balance sheet date - Recorded in the balance sheet in the order of their due dates Long-Term Liabilities: - Payables that are due beyond twelve months or one operating cycle; also called “non-current liabilities” or “long term debt - Written in separate formal documents that include the important details such as principal amount, interest, and due date DQ Notes payable, wages and salaries, property taxes, insurance, interest, dividends, utilities, employee benefits, and short-term bank loans DQ Known current liabilities are which the payee, amount, and timing of payment are known These are different from estimated current liabilities which the amount is not known DQ Leases, mortgage, bonds payable, bank notes, bank loans, pension obligations, deferred taxes, post-employment benefits, car payments, and other loans for equipment, land, or machinery DQ Contingent liability is a liability which will depend on the outcome of the future event such a legal case against the company in the court of law Estimated liability is a liability which is estimated for example the electricity bills or workers overtime etc © 2020 by Dr Nguyen Huu Cuong “Liberal Arts - Self-initiative - Pragmatism” 17 EXERCISES E9-3 a July 1, 2019 Debit account 112 $300,000 Credit account 341 $300,000 b July 31, 2019 Debit account 635 3.5% x $300,000 x 30/365 = $863.01 Credit account 112 $863.01 c August 15, 2019 d August 15, 2019 Debit account 341 $300,000 Debit account 635 3.5% x $300,000 x 15/365 = $431,51 Credit account 112 $300,431.51 E9-4 a Debit account 6415 $82,000 x 2% = $1,640 Credit account 352 $1,640 b Debit account 352 $2,000 Credit account 156 $2,000 c 740 + 1,640 – 2,000 = 380 E9-6 a Debit account 3334 $500 Credit account 112 $500 b Debit account 821 15,000 x 40% = $6,000 Credit account 3334 $6,000 c Debit account 3334 $500 Credit account 112 $500 © 2020 by Dr Nguyen Huu Cuong “Khai phóng - Tự thân - Hữu ích” 18 44K6.1 Financial Accounting – ACC2001 CHAPTER ASSIGNMENT (Chapter 5) INTRODUCTION TO FINANCIAL ACCOUNTING (VERSION 2019B) by Dauderis, H & Annand, D – CHAPTER 10 EXERCISES E10- a Debit account 213 $50,000 Credit account 411(12) $50,000 b share capital E10- a Debit account 421 $100,000 Credit account 338 $100,000 b Debit account 338 $100,000 Credit account 111 $100,000 E10- 10 January 15, 2018 Debit account 421 5,000 × (10% × 10) = $5,000 Credit account 338 $5,000 February 15, 2018 Debit account 338 $5,000 Credit account 112 $5,000 © 2020 by Dr Nguyen Huu Cuong “Liberal Arts - Self-initiative - Pragmatism” 19 INTERMEDIATE FINANCIAL ACCOUNTING - VOLUME (2019 - REVISION A) by Arnold, G & Kyle, S – CHAPTER 12 EXERCISES E12-3 a Debit account 156 10,000 + 10,000 x 4% = $10,400 Debit account 133 10,000 x 6% = $600 Credit account 331 $11,000 b Debit account 153 3,000 + 3,000 x 4% = $3,120 Debit account 133 3,000 x 6% = $180 Credit account 331 $3,300 c Debit account 131 $17,600 Credit account 511 $16,000 Credit account 333 $16,000 x (4%+6%) = $1,600 d Debit account 111 $5,500 Credit account 511 $5,000 Credit account 333 $5,000 x (4%+6%) = $500 e Debit account 111 $780 Credit account 133 (600 + 180) = $780 Debit account 333 (1,600 + 500) = $2,100 Credit account 111 $2,100 E12-4 a Debit account 642 $73,000 Debit account 811 $1,200 Credit account 333 (2,200 + 19,000) = $21,200 Credit account 138 $50,000 Credit account 111 $3,000 b Debit account 642 73,000 x : 10 = $36,500 Debit account 811 1,200 x : 10 = $500 Credit account 335 $37,000 E12-6 1st January 2016 Debit account 11X: $21.000.000 Credit account 511: $20.930.000 © 2020 by Dr Nguyen Huu Cuong “Khai phóng - Tự thân - Hữu ích” 20 44K6.1 Financial Accounting – ACC2001 CHAPTER ASSIGNMENT (Chapter 5) Credit account 352: $70.000 2nd January 2016 Debit account 352(1): $23.333 Credit account 641: $23.333 Debit account 641(5): $ 12.000 Credit account 11X (331): $12.000 31st January 2017: Debit account 352(1): Credit account 641: $23.333 $23.333 Debit account 641(5): $30.000 Credit account 11X (331): $ 30.000 31st January 2018: Debit account 352(1): $23.333 Credit account 641: $23.333 Debit account 641(5): $35.000 Credit account 11X (331): $35.000 b Calculate the amount of unearned revenue to be reported at December 31, 2017 Unearned revenue at December 31, 2017 = (70,000 − 23,333 − 23,333) = $23,334 E12-7 a Debit account 622 $24.720 Credit account 335 $24.720 Debit account 3383 Credit account 334 $15.360 $15.360 b Vacation pay liability at December 31 = $24,720 Sick pay liability at December 31 = $0 E12-10 © 2020 by Dr Nguyen Huu Cuong “Liberal Arts - Self-initiative - Pragmatism” 21 a Debit account 111 3,000 x 11,000 = $33,000,000 Credit account 511 $33,000,000 Debit account 641 $975,000 Credit account 111 $975,000 Debit account 641 $345,000 Credit account 111 $345,000 Debit account 641 $425,000 Credit account 111 $425,000 b 2016 300 x 11,000 - 975,000 = 825,000 2017 825,000 - 345,000 = 480,000 2018 480,000 - 425,000 = 55,000 © 2020 by Dr Nguyen Huu Cuong “Khai phóng - Tự thân - Hữu ích” 22 ... ACC2001 CHAPTER ASSIGNMENT (Chapter 5) (a) May Debit Inventory $5, 800 Credit Accounts Payable $5, 800 May Debit Inventory $1 45 Credit Cash $1 45 May Debit account receivable $3 ,50 0 Credit Sales $3 ,50 0... account 6 35 3 .5% x $300,000 x 30/3 65 = $863.01 Credit account 112 $863.01 c August 15, 2019 d August 15, 2019 Debit account 341 $300,000 Debit account 6 35 3 .5% x $300,000 x 15/ 3 65 = $431 ,51 Credit... ($60,000 x 5% x 1/12) 250 Credit Cash 250 Aug 31 Debit Interest Expense 250 Credit Interest Payable 250 Sept Debit Interest Payable 250 Credit Cash 250 Oct Debit Interest Expense 250 Credit Cash 250