会计英语课后习题参考答案.doc

Suggested Solution
Chapter 1
1.
Effect on the accounting equation
(1)
(2)
(3)
(4)
(5)
(6)
(a) Increase in one asset, decrease in another asset.

√

(b) Increase in an asset, increase in a liability.

(c) Increase in an asset, increase in capital.
√

√

(d) Decrease in an asset, decrease in a liability.

√

(e) Decrease in an asset, decrease in capital.

√

√

2.
Transactions
Assets
+/-
Liabilities
+/-
Owner’s equity
+/-
1
+

+
2
+
+

3
-
-

4
+

+
5
+

+
6
-

-
7
-
-

8
+/-

9
-

-
10
-

-

3.
Describe each transaction based on the summary above.
Transactions

1
Purchased land for cash, $6,000.
2
Investment for cash, $3,200.
3
Paid expense $1,200.
4
Purchased supplies on account, $800.
5
Paid owner’s personal use, $750.
6
Paid creditor, $1,500
7
Supplies used during the period, $630.

4.

Assets
Liabilities
Equity
Beginning
275,000
80,000
195,000
Add. investment

48,000
Add. Net income

27,000
Less withdrawals

-35,000
Ending
320,000
85,000
235,000

5.

(a)

March 31, 20XX
April 30, 20XX
Assets

Cash
4,500
5,400
Accounts receivable
2,560
4,100
Supplies
840
450
Total assets
7,900
9,950
Liabilities

Accounts payable
430
690
Equity

Tina Pierce, Capital
7,470
9,260

(b) net income = 9,260-7,470=1,790
(c) net income = 1,790+2,500=4,290
Chapter 2
1.
a. To increase Notes Payable -CR
b. To decrease Accounts Receivable-CR
c. To increase Owner, Capital -CR
d. To decrease Unearned Fees -DR
e. To decrease Prepaid Insurance -CR
f. To decrease Cash - CR
g. To increase Utilities Expense -DR
h. To increase Fees Earned -CR
i. To increase Store Equipment -DR
j. To increase Owner, Withdrawal -DR

2.
a.
Cash
1,800

Accounts payable

1,800

b.

Revenue
4,500

Accounts receivable

4,500

c.

Owner’s withdrawals
1,500

Salaries Expense

1,500

d.

Accounts Receivable
750

Revenue

750

3.
Prepare adjusting journal entries at December 31, the end of the year.
Advertising expense
600

Prepaid advertising

600

Insurance expense (2160/12*2)
360

Prepaid insurance

360

Unearned revenue
2,100

Service revenue

2,100

Consultant expense
900

Prepaid consultant

900

Unearned revenue
3,000

Service revenue

3,000
4.

1. $388,400
2. $22,520
3. $366,600
4. $21,800

5.
1. net loss for the year ended June 30, 2002: $60,000
2. DR Jon Nissen, Capital 60,000
CR income summary 60,000
3. post-closing balance in Jon Nissen, Capital at June 30, 2002: $54,000

Chapter 3
1. Dundee Realty bank reconciliation
October 31, 2009
Reconciled balance $6,220 Reconciled balance $6,220

2. April 7 Dr: Notes receivable—A company 5400
Cr: Accounts receivable—A company 5400
12 Dr: Cash 5394.5
Interest expense 5.5
Cr: Notes receivable 5400
June 6 Dr: Accounts receivable—A company 5533
Cr: Cash 5533
18 Dr: Cash 5560.7
Cr: Accounts receivable—A company 5533
Interest revenue 27.7

3. (a) As a whole: the ending inventory=685
(b) applied separately to each product: the ending inventory=625

4. The cost of goods available for sale=ending inventory + the cost of goods=80,000+200,000*500%=80,000+1,000,000=1,080,000

5.(1) 24,000+60,000-90,000*0.8=12000
(2) (60,000+24,000)/( 85,000+31,000)*( 85,000+31,000-90,000)=18828

Chapter 4
1. (a) second-year depreciation = (114,000 – 5,700) / 5 = 21,660;
(b) second-year depreciation = 8,600 * (114,000 – 5,700) / 36,100 = 25,800;
(c) first-year depreciation = 114,000 * 40% = 45,600
second-year depreciation = (114,000 – 45,600) * 40% = 27,360;
(d) second-year depreciation = (114,000 – 5,700) * 4/15 = 28,880.

2. (a) weighted-average accumulated expenditures (2008) = 75,000 * 12/12 + 84,000 * 9/12 + 180,000 * 8/12 + 300,000 * 7/12 + 100,000 * 6/12 = 483,000
(b) interest capitalized during 2008 = 60,000 * 12% + ( 483,000 – 60,000) * 10% =49,500

3. (1) depreciation expense = 30,000
(2) book value = 600,000 – 30,000 * 2=540,000
(3) depreciation expense = ( 600,000 – 30,000 * 8)/16 =22,500
(4) book value = 600,000 – 30,000 * 8 – 22,500 = 337,500

4. Situation 1:
Jan 1st, 2008 Investment in M 260,000
Cash 260,000
June 30 Cash 6000
Dividend revenue 6000
Situation 2:
January 1, 2008 Investment in S 81,000
Cash 81,000
June 15 Cash 10,800
Investment in S 10,800
December 31 Investment in S 25,500
Investment Revenue 25,500

5. a. December 31, 2008 Investment in K 1,200,000
Cash 1,200,000
June 30, 2009 Dividend Receivable 42,500
Dividend Revenue 42,500
December 31, 2009 Cash 42,500
Dividend Receivable 42,500
b. December 31, 2008 Investment in K 1,200,000
Cash 1,200,000
December 31, 2009 Cash 42,500
Investment in K 42,500
Investment in K 146,000
Investment revenue 146,000
c. In a, the investment amount is 1,200,000
net income reposed is 42,500
In b, the investment amount is 1,303,500
Net income reposed is 146,000

Chapter 5
1.
a. June 1: Dr: Inventory 198,000
Cr: Accounts Payable 198,000
June 11: Dr: Accounts Payable 198,000
Cr: Notes Payable 198,000
June 12: Dr: Cash 300,000
Cr: Notes Payable 300,000
b. Dr: Interest Expenses (for notes on June 11) 12,100
Cr: Interest Payable 12,100
Dr: Interest Expenses (for notes on June 12) 8,175
Cr: Interest Payable 8,175
c. Balance sheet presentation:
Notes Payable 498,000
Accrued Interest on Notes Payable 20,275
d. For Green:
Dr: Notes Payable 198,000
Interest Payable 12,100
Interest Expense 7,700
Cr: Cash 217,800
For Western:
Dr: Notes Payable 300,000
Interest Payable 8,175
Interest Expense 18,825
Cr: Cash 327,000
2.
(1) 20´8 Deferred income tax is a liability 2,400
Income tax payable 21,600
20´9 Deferred income tax is an asset 600
Income tax payable 26,100
(2) 20´8: Dr: Tax expense 24,000
Cr: Income tax payable 21,600
Deferred income tax 2,400
20´9: Dr: Tax expense 25,500
Deferred income tax 600
Cr: Income tax payable 26,100
(3) 20´8: Income statement: tax expense 24,000
Balance sheet: income tax payable 21,600
20´9: Income statement: tax expense 25,500
Balance sheet: income tax payable 26,100
3.
a. 1,560,000 (20000000*12 %* (1-35%))
b. 7.8% (20000000*12 %* (1-35%)/20000000)
4.

maturity value
number of interest periods
stated rate per interest-period
effective interest rate per interest-period
payment amount per period
present value of bonds at date of issue
1
$10
40
3.75%
3%
$0.375
$11.73
2
20
10
10%
12%
2
17.74
3
25
10
0%
12%
0
8.05

5.
Notes Payable 14,400
Interest Payable 1,296
Accounts Payable 60,000
+Unearned Rent Revenue 7,200
Current Liabilities 82,896

Chapter 6

1. Mar. 1
Cash 1,200,000
Common Stock 1,000,000
Paid-in Capital in Excess of Par Value 200,000
Mar. 15
Organization Expense 50,000
Common Stock 50,000
Mar. 23
Patent 120,000
Common Stock 100,000
Paid-in Capital in Excess of Par Value 20,000
The value of the patent is not easily determinable, so use the issue price of $12 per share on March 1 which is the issuing price of common stock.

2. July.1
Treasury Stock 180,000
Cash 180,000
The cost of treasury purchased is 180,000/30,000=60 per share.
Nov. 1
Cash 70,000
Treasury Stock 60,000
Paid-in Capital from Treasury Stock 10,000
Sell the treasury at the cost of $60 per share, and selling price is $70 per share. The treasury stock is sold above the cost.
Dec. 20
Cash 75,000
Paid-in Capital from Treasury Stock 15,000
Treasury Stock 90,000
The cost of treasury is $60 per share while the selling price is $50 which is lower than the cost.

3. a. July 1
Retained Earnings 24,000
Dividends Payable—Preferred Stock 24,000
b.Sept.1
Dividends Payable—Preferred Stock 24,000
Cash 24,000
c. Dec.1
Retained Earnings 80,000
Dividends Payable—Common Stock 80,000
d. Dec.31
Income Summary 350,000
Retained Earnings 350,000
4.
a. Preferred stock gives its owner certain advantages over common stockholders. These benefits include the right to receive dividends before the common stockholders and the right to receive assets before the common stockholders if the corporation liquidates. Corporation pay a fixed amount of dividends on preferred stock.
The 7% cumulative term indicates that the investors earn 7% fixed dividends.
b. 7%*120%*20,000=504,000
c. If corporation issued debt, it has obligation to repay principal
d. The date of declaration decrease the stockholders’ equity; the date of record and the date of payment have no effect on stockholders.

5.
a. Jan. 15
Retained Earnings 35,000
Accumulated Depreciation 35,000
To correct error in prior year’s depreciation.
b. Mar. 20
Loss from Earthquake 70,000
Building 70,000
c. Mar. 31
Retained Earnings 12,500
Dividends Payable 12,500
d. Apirl.15
Dividends Payable 12,500
Cash 12,500
e. June 30
Retained Earnings 37,500
Common Stock 25,000
Additional Paid-in Capital 12,500
To record issuance of 10% stock dividend: 10%*25,000=2,500 shares;
2500*$15=$37,500
f. Dec. 31
Depreciation Expense 14,000
Accumulated Depreciation 14,000
Original depreciation: $40,000/40=$10,000 per year. Book value on Jan.1, 2009 is $350,000(=$400,000-5*$10,000). Deprecation for 2009 is $14,000(=$350,000/25).
g. The company does not need to make entry in the accounting records. But the amount of Common Stock ($10 par value) decreases 275,000, while the amount of Common Stock ($5 par value) increases 275,000.

Chapter 7
1.
Requirement 1
If revenue is recognized at the date of delivery, the following journal entries would be used to record the transactions for the two years:
Year 1

Inventory 480,000
Cash/Accounts payable 480,000
To record purchase of inventory

Inventory 124,000
Cash/Accounts payable 124,000
To record refurbishment of inventory

Accounts receivable 310,000
Sales revenue 310,000
To record sale of goods on account

Cost of goods sold 220,000
Inventory 220,000
To record the cost of the goods sold as an expense

Sales returns (I/S) 15,500*
Allowance for sales returns (B/S) 15,500
To record provision for return of goods sold under 30-day return period
* 5% of $310,000

Warranty expense 31,000*
Provision for warranties (B/S) 31,000
To record provision, at time of sale, for warranty expenditures
* 10% of $310,000

Allowance for sales returns 12,400
Accounts receivable 12,400
To record return of goods within 30-day return period.
It is assumed the returned goods have no value and are disposed of.

Provision for warranties (B/S) 18,600
Cash/Accounts payable 18,600
To record expenditures in year 1 for warranty work

Cash 297,600*
Accounts receivable 297,600
To record collection of Accounts Receivable
* $310,000 – $12,400

Year 2

Provision for warranties (B/S) 8,400
Cash/Accounts payable 8,400
To record expenditures in year 2 for warranty work

Requirement 2
If revenue is recognized only when the warranty period has expired, the following journal entries would be used to record the transactions for the two years:
Year 1

Inventory 480,000
Cash/Accounts payable 480,000
To record purchase of inventory

Inventory 124,000
Cash/Accounts payable 124,000
To record refurbishment of inventory

Accounts receivable 310,000
Inventory 220,000
Deferred gross margin 90,000
To record sale of goods on account

Deferred gross margin 12,400
Accounts receivable 12,400
To record return of goods within the 30-day r