inbound bài tập nguyên lý thống kê

Interest/ asset leasepayment received inadvance Part E: Which items/transactions satisfy expense recognition criteria inaccordance with accrual basis?Expense : matching revenue in the cu

CHAPTER 2Q1

Typical statement of financial position classifications are as follows:a Long Term Investments f Share Capital

c Intangible Assets h Retained Earningsd Non - Current Assets i Non-Current Liabilities

Indicate by use of the above letters how each of the following items would beclassified on a statement of financial position prepared at December 31st, 2019 If acontra account, or any amount that is negative or opposite the normal balance, putparentheses around the letter selected A letter may be used more than once or notat all.

1 Accrued salaries and wages

2 Rental revenues for 3 months collected in advance 3 Land used as plant site

4 Equity securities classified as trading 5 Cash

6 Accrued interest payable due in 30 days 7 Share premium–preference shares 9 Petty cash fund

10 Ordinary shares

11 Allowance for doubtful accounts:12 Accumulated depreciation: 13 Goodwill:

14 90 day notes payable

15 Investment in bonds of another company; will be held to 2023 maturity 1

16 Current maturity of bonds payable 17 Trade accounts payable

18 Preference shares ($10 par) 19 Prepaid rent for next 12 months 20 Copyright

21 Accumulated amortization, patents 22 Earnings not distributed to shareholders

1- Let’s have a look at a business where capital at the end of 2019 was $20,000.During 2020, there have been no drawings, and no contributions from the owner.At the end of 2020, the capital was $30,000.

a Determine net income (loss) for business for year 2020.

b Determine net income (loss) for business for year 2020 if drawings had been$7,000.

2- ABCcompany has got following information on 3 Quarter of 2019 Unit: $st1/7/2019 30/9/2019

B - Net income (net loss) for 3 Quarter of 2019?

3 – XYZ coporation has got following information on Quarter 1 , 2020stOpenning

His drawings were: cash $400 per week for 50 weeks, cheque payment $870

+ Does not meet any criteria – does not recognize: 0

Part A: Which items/transactions satisfy asset recognition criteria?

ReliableResult ofControllabFutureRecognition

3

Items/ Transactionsmeasurement

eventslebenefitsof asset

1 Company’s reputation; ability of employees

2 Value of goods thatis committed to be bought in the future

3 Tools, goods stocked on behalf of other parties

9 Obsolete goods

10 Goods from trial

11.Prepayment of leased assets for future accounting period

4

Part B: Which items/transactions satisfy liability recognition criteria?

1 Share dividend (stock dividend) declared, not yet issued

2 Cash dividend declared, notyet paid

3 Bonds/ debentures4 Receipt in advance fromcustomers

5 Interest received in advance6 Lease payment received inadvance from lessee

7 Provision for warranty

Part C: Which items/transactions satisfy (income) revenue recognitionaccording to accrual basis?

Revenue : earned ( deliver goods or render service)Realizable ( paid cash or accepted payment)

Increaseequity(indirect)

Completedobligation for

1.Contributions from owners orliabilities reclassification

5

5 Interest, dividend earned, notyet received.

Part D: Which items/transactions satisfy income recognition criteria inaccordance with cash basis?

Items/ Transactions

Equity increase(indirect)

Received cashfrom thetransaction

1 Contributions from owners by assets or liabilities reclassification 2 Receipt in advance3 Selling goods on credit4 Interest, dividend on duedate but not received 5 Interest/ asset leasepayment received inadvance

Part E: Which items/transactions satisfy expense recognition criteria inaccordance with accrual basis?

Expense : matching revenue in the current period

Equity decrease(indirect)

6

(1) (2) (3) (4) (5)1 Equity withdrawal from

owners, dividendsDistribution to ownersPayments utilized from funds(e.g Bonus and WelfareFund )

2 Goods available for sale3 Cost of goods sold in theperiod

4 Obsolete goods cannot sell5 Revenue in the period 6 Salary payable toemployees

Part F: Which items/transactions satisfy expense recognition criteria inaccordance with cash basis?

Equity decrease(indirect)

Cash paid outfrom thetransactions

1 Equity withdrawal of owners Profit distribution to owners Payments utilized from funds(e.g Bonus and Welfare Fund,etc)

2 Goods decrease due tounknown reason

3 Purchase goods on credit, soldin the period

4 Interest/ asset lease paid in

7

9 Paid $46,000 cash for land.

Land( A) increased 46.000Cash( A) decreased 46.000

12 Purchased medical supplies of $1,800 on account

Supplies(A) increased 1.800 A/P( L) increased 1.800

15 Officially opened for business

No recording

15-31 During the rest of the month, Caren Smith treated patients andearned service revenue $ 8,000, receiving cash.

Cash (A) increased 8.000

Service revenue (E) increased 8.000

29 Paid cash expense employees’ salaries, $1,600; office rent, $900,utilities, $100

Office rent expense increased ( E decreased) 900

8

Salaries expense increased ( E decreased) 1.600 Utilities expense increased ( E decreased) 100 Cash (A) decreased 2.600

30 Returned supplies purchased on the 12 for the cost of thosethsupplies, $700

A/P(L) decreased 700Supplies(A) decreased 700

31 Paid $1,100 on account

A/P (L) decreased 1.100Cash (A) decreased 1,100

Answer: increase asset (Cash)

Increase stockholders’ equity (Common stock)b Earned video rental revenue on account, $1,800c Purchased office furniture on account, $400.d Received cash on account, $100

e Paid cash on account, $100

f Rented videos and received cash of $100g Paid monthly office rent expense of $900.

h Paid $200 cash to purchase supplies that will be used in the future9

e Collected cash from customer on account, $700.f Received cash of $1,600 and issued common stock.g Consulted and billed the client for service rendered, $3,500.h Recorded the following business expenses for the month:1 Paid office rent, $1,200.

2 Paid advertising, $600i Paid cash dividends of $2,000

10

Cash +A/R

+Equipment =

A/P + CommonStock

+Revenue

Expense 1 31,00

0 4 190 - 190

7 1,500

1,500

COGS= cost of goods sold

With the given transactions, please identify:

A/ How does X record for elements of financial statement if the accrual basis isapplied?

11

- At the time of receiving in advance.- At the time of delivery to customer;

- At the time of receiving the remaining amount.

B/ How does Y record for elements of financial statement if the accrual basis isapplied?

- At the time of advance payment;- At the time of receiving goods;

- At the time of paying the remaining amount

Q10

On January 1/Year, Company P gave a loan of VND 500 million in two-year termand at 12%/year interest to Company Q On January 4 , the borrower prepaid thethfull interest of VND120 million in two years On 1/04/Y + 1 the borrower paid theprincipal to Company P, the interest received for the last 3 quarters of year (Y + 1)was repaid by the Company P by deducting from the principal.

Required: With the given transactions, please identify:

A/ How does P’s accountant record for elements of financial statement if theaccrual basis is applied and the accounting period is quarterly?

- At the time of transfering to the borrower;- At the time of receiving 02-year interest;- By the end of each quarter in year Y;- At the time of receiving the principal

B/ How does Q’s accountant record for elements of financial statement if theaccrual basis is applied and the accounting period is quarterly?

- At the time of receiving from the lender- At the time of paying 02-year interest;- By the end of each quarter in year Y;

12

- At the time of paying the principal.

In January/Y, A Company sold and handed over to B Company a batch of productsfor total VND 900 million and received by cash on hand VND 500 million, theremaining amount will be received in May/Y Free warranty service was providedfor 02 years since the products were delivered to customer Based on historicaldata, the cost of warranty coverage was about 2% of revenue Accordingly, ACompany extracted a product warranty amount for Jan/Y over of the products soldin this month which was VND 18 million.

Required: With given transactions, please identify:

A / Company A’s Accountant:

A1- How does she/he record elements of financial statement if accrual basis isapplied with the accounting period of month?

- At the time of delivery and receipt the first payment;- At the time of receipt of the second payment;- At the time of deducting warranty costs.

A2- How to record sales and expenses of January Y from the above events if thecash basis is applied?

A3-It is assumed that the accounting period is quarterly In Q1/Y, A Companyapplied the money accounting method, quarter 2/Y changed to accrual accountingand did not conduct retroaction Whether sales of the above product batch wereomitted or duplicated? how much?

B/ Company B’s Accountant: How to record the financial statement elements ifaccrual principle is applied with the accounting period of month?

- At the time of receiving goods and making the first payment; - At the second payment;

- At the time the seller extracted warranty cost.Accrual basic

13

A( seller) B( purchaser)At the time of

delivery goods andpayment( receiving)-Jan

Increase OE( revenue) 900Increase A( cash) 500Increase A( A/R) 400

Increase A( inventory) 900Decrease A( cash ) 500Increase L ( A/P) 400

At the time of thesecond payment( receiving)- May

Decrease A( A/R) 400Increase A( cash) 400

Decrease L (A/P) 400Decrease A( cash) 400

At the time of deducting warranty cost- January

Decrease OE( expense) 18Provision for warranty ( L)increase 18

ABC Catering Company, completed the following selected transactions duringMay, 2019.

May 1 Prepaid rent for three months since 1/May, $1,500

Increase A( prepaid rent) 1,500Decrease A( cash) 1,500

5 Paid electricity expense, $400

Decrease A( cash) 400Decrease OE ( expense ) 400

9 Received cash for meals served to customers, $2,600

Increase A( cash) 2,600Increase OE( revenue) 2,600

14 Paid cash for kitchen equipment, $2,400

Increase A( equipment) 2,400Decrease A( cash) 2,400

23 Served a banquet on account, $3,000

14

Increase A ( A/R) 3,000Increase OE( revenue) 3,000

31 Determine rent expense for May

Decrease OE( rent expense) 500Decrease A( prepaid rent) 500

31 Accrued expense, $1,400

Decrease OE( expense) 1,400Increase L ( accrued payable) 1,400

31 Recorded depreciation for May on kitchen equipment, $40

Decrease A( depreciation accumulated) 40Decrease OE( depreciation expense) 40

Date Cash basic amount ofRevenue (Expense)

Accrual basic amount ofRevenue (Expense)

c Calculate the amount of net income or net loss for ABC Catering Companyunder cash basic and accrual basis.

Quoc Viet Company completed the following transaction during June, 2020:June 1 Prepaid rent for June through September, $3,600

Decrease A (cash) 3,600

Increase A (prepaid expense) 3,600

2 Purchased computer for cash, $90015

Increase A(computer) 900Decrease A( cash) 900

3 Performed catering service on account, $2,300

Increase OE (revenue) 2,300Increase A (A/R) 2,300

5 Paid internet service provider invoice, $100

Decrease A( cash) 100

Decrease OE( internet expense) 100

6 Catered wedding event for customer and received cash, $1,500

Increase OE ( revenue) 1,500Increase A( cash) 1,500

8 Purchased $150 of supplies on account.

Increase A( supplies) 150Increase L ( A/P) 150

10 Collected $1,200 on account

Increase A( cash) 1,200Decrease A( A/R) 1,200

14 Paid account payable from June 8

Decrease A( cash) 150Decrease L ( A/P) 150

15 Paid salary expense, $1,200

Decrease A (cash) 1,200

Decrease OE( salary expense) 1,200

30 Calculate rent expense (see June 1)

Decrease OE( rent expense) 900Decrease A( prepaid expense) 900

30 Depreciation expense for June, $25

16

Decrease OE( depreciation expense) 25Decrease A( depreciation accumulated) 25

30 There are $40 of supplies still on handSupplies in use = 150- 40 = 110

Decrease OE( supplies expense) 110Decrease A( supplies) 110

Tropical View Company applies accrual basic accounting Consider the factspresented in the following table for the company:

Payments for prepaid rentduring the year

17

Complete the table by filling in the missing values.

Case 1: Sales salaries paid during 2019 were €70,000 Sales salaries accrued were

€1,360 on January 1, 2019, and €1,380 on December 31, 2019 Show thecomputation of sales salaries on an accrual basis for 2019.

Cash paid during the year for expenses, R$55,500

Show the computation of the amount of expense on accrual basic 2019.

18

Case 3:

The records for Kiley Company showed the following for 2019: Jan 1 Dec 31

Cash collected during the year for revenue, HK$75,000

Show the computation of the amount of revenue that should be reported on theincome statement.

Case 4

The records for Kiley Company showed the following for 2019: Jan 1 Dec 31

Cash collected during the year for revenue, HK$75,000

Show the computation of the amount of revenue that should be reported on theincome statement.

1 Resources owned by a company (such as cash, accounts receivable, vehicles)are reported on the balance sheet and are referred to as

2 Obligations (amounts owed) are reported on the balance sheet and are referredto as

19

3 Which of the following characteristics does not describe an asset? Requires thepayment of cash or Controlled by an entity?

4 Which of the following characteristics does not describe a liability? Presentobligation or must be legally enforceable?

5 If you receive a telephone bill, is your expense increasing or decreasing? 6 If you purchase a motor vehicle, is your asset value increasing or decreasing? 7 If you are informed that your last insurance bill was overstated and that youwill receive a credit, is your expense increasing or decreasing

8 If you receive notification from the bank that you have been charged bank fees,is your asset (the bank account) increasing or decreasing?

11 Paid utility bill $1,200

Required: Prepare a tabular analysis which shows the effects of these transactions

on the expanded accounting equation

20