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 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 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 Class 44k06.1 Phone Email Self-evaluation (Out of ten) © 2020 by Dr Nguyen Huu Cuong “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 Credit inventory $45,000 Debit accounts payable $45,000 Jan Credit inventory Debit cash $900 $900 Jan Credit accounts payable Debit Inventory $6,000 $6,000 11 Jan Credit accounts payable $45,000 Debit inventory (45,000 - 6,000) x 2% = $780 Debit 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: Accounting for the Sale of Gift Certificates The sale of a gift certificate should be recorded with a debit to Cash and a credit to a liability account such as Gift Certificates Outstanding Note that revenue is not recorded at this point Rather, the retailer is recording its obligation/liability to provide merchandise or services for the amount of the certificate sold Accounting for the Redemption of a Gift Certificate When a gift certificate is presented to the retailer, revenue will be recorded by the retailer for the amount of merchandise or services that were provided This is done with a debit to the liability account Gift Certificates Outstanding and a credit to a revenue account Q6: Non-current portion of debt that a company owns Think of this as a component of what a company has for debt that is not a short-term obligation 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 In this case here, this line item is the non-current portion of its debt Q11: IAS 1, Presentation of Financial Statements, paragraph 60 stipulates that an entity should present current and non-current liabilities as separate classifications in its statement of financial position, except when a presentation based on liquidity provides more relevant and reliable information Whatever the method of presentation, an entity should disclose the amount expected to be settled after more than 12 months and less than 12 months © 2020 by Dr Nguyen Huu Cuong “Khai phóng - Tự thân - Hữu ích” 14 44K6.1 Financial Accounting – ACC2001 CHAPTER ASSIGNMENT (Chapter 5) © 2020 by Dr Nguyen Huu Cuong “Liberal Arts - Self-initiative - Pragmatism” 15 BRIEF EXERCISES BE10-2: (a) April 30 Property Tax Expense ($36,000÷12 x 4) Property Tax Payable (b) July 15 Property Tax Payable Property Tax Expense ($36,000 ÷12 x 2.5) Prepaid Property Tax ($36,000 ÷12 x 5.5) Cash (c) Dec 31 Property Tax Expense Prepaid Property Tax BE10-4 a) July Cash Bank Loan Payable b) Aug Interest Expense ($60,000 x 5% x 1/12) Cash Aug 31 Interest Expense Interest Payable Sept Interest Payable Cash Oct Interest Expense Cash c) Oct Bank Loan Payable Cash © 2020 by Dr Nguyen Huu Cuong 12,000 12,000 12,000 7,500 16,500 36,000 16,500 16,500 60,000 60,000 250 250 250 250 250 250 250 250 60,000 60,000 “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 The curent liabulities are the liabilities that business owners must settle within twelve months or one operating cycle of the balance sheet date Long-term liabilities are the payables that are due beyond twelve months or one operating cycle, also called “non-current liabilities” or “long-term debt” DQ Accounts payable,Sales taxes payable,Payroll taxes payable,Income taxes payable,Interest payable,… DQ DQ The electricity and natural gas consumed but the bill has not been received An emergency repair that occurred but the bill has not been received Real estate taxes that have occurred but the tax bill has not been received Worker compensation insurance premiums which have occurred but the bill has not been received 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) Debit 111 Credit 341 b) Debit 635 Credit 11X d) August 15,2019 e) Debit 341 Debit 635 Credit 11X E9-4 a) Debit 641: Credit 352 b) Debit 352: Credit 156: E9-6 a) Debit 333: Credit 11X: b) Debit 821: Credit 333: c) Debit 333: Credit 11X: 300,000 300,000 863,01 863,01 300,000 1294,52 301294,52 1,640 1,640 2,000 2,000 500 500 6,000 6,000 500 300 © 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 50000 Credit Account 411 50000 a) The credit part of the transaction would be classified on the balance sheet in the equity The debit part of the transaction would be recorded as an intangible fixed asset E10- a) May 25 Debit Account 421 Credit Account 338 b) Jun 26 Debit Account 338 Credit Account 111 100000 100000 100000 100000 E10- 10 Common share dividend to be issued = (5000 × 10%) × $10 = $5000 Jan 15, 2018 Debit Account 421 5000 Credit Account 338 5000 Feb 15, 2018 Debit Account 338 5000 Credit Account 411 5000 © 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 Inventory was purchased on account at a cost of $10,000, plus applicable taxes Debit 156 10.000 + (10.000*40%) = 10.400 Debit 133 600 Credit 331 11.000 b Equipment was purchased for cash at a cost of $3,000, plus applicable taxes Debit 211 3.000 + (3.000*4%) = 3.120 Debit 133 180 Credit 111 3.300 c Sales on account were made for proceeds of $16,000 plus applicable taxes Debit 131 17.600 Credit 333 1600 Credit 511 16.000 d Cash sales were made for proceeds of $5,000 plus applicable taxes Debit 111 5.500 Credit 333 500 Credit 511 5.000 E12-4 E12-6 a Prepare all the necessary journal entries for 2016, 2017, and 2018 to reflect the above transactions - 1/1/2016: Debit 11X: 21.000.000 Credit 511: 20.930.000 Credit 352: 70.000 - 31/12/2016: Debit 352(1): 23.333 Credit 641: 23.333 Debit 641(5): 12.000 Credit 11X (331): 12.000 - 31/12/2017: Debit 352(1): 23.333 Credit 641: 23.333 Debit 641(5): 30.000 Credit 11X (331): 30.000 - 31/12/2018: © 2020 by Dr Nguyen Huu Cuong “Khai phóng - Tự thân - Hữu ích” 20 44K6.1 Financial Accounting – ACC2001 CHAPTER ASSIGNMENT (Chapter 5) Debit 352(1): 23.333 Credit 641: 23.333 Debit 641(5): 35.000 Credit 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 Prepare the journal entries for the current year with respect to the vacation and sick pay Debit 622: 24.720 Credit 335: 24.720 Debit 3383: 15.360 Credit 334: 15.360 b Calculate the amount of liability to be reported at the end of the current year with respect to the vacation pay and sick pay Vacation pay liability at December 31 = $24,720, per part (a) Sick pay liability at December 31 = $0 (these benefits not accumulate) E12-10 a 2016 Sale revenue: Debit 11X: 33.000.000 Credit 511: 33.000.000 2016 Actual repair cost: Debit 641: 975.000 Credit 11X (331): 975.000 2017 Actual repair cost: Debit 641: 345.000 Credit 11X (331): 345.000 2018 Actual repair cost: Debit 641: 425.000 Credit 11X(331): 425.000 b 2016 300 x 11,000 - 975,000 = 825,000 © 2020 by Dr Nguyen Huu Cuong “Liberal Arts - Self-initiative - Pragmatism” 21 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 ... Cash © 2020 by Dr Nguyen Huu Cuong 12,000 12,000 12,000 7 ,50 0 16 ,50 0 36,000 16 ,50 0 16 ,50 0 60,000 60,000 250 250 250 250 250 250 250 250 60,000 60,000 “Khai phóng - Tự thân - Hữu ích” 16 44K6. 1... 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... 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 $1 45 Credit Cash $1 45 May Debit