Tugas 2 - Solution

TUGAS 2 - SOLUTION
EXERCISE 8-9
(A) JOURNAL ENTRIES (PERIODIC INVENTORY SYTEM)
DATE
ACCOUNT TITLES ANDA EXPLANATION
REF
Jan. 4
Accounts Receivable ............................................................
Sales (80 X $8) ........................................................
Jan. 11
Purchases ($150 X $6.50) .....................................................
Accounts Payable ...................................................
Jan. 13
Sales (120 X $8.75) .................................................
Jan. 20
Purchases (160 X $7) ............................................................
Accounts Payable ...................................................
Jan. 27
Sales (100 X $9) ......................................................
Jan. 31
Inventory ($7 X 110) .............................................................
Cost of Goods Sold ...............................................................
Purchases ($975 + $1,120) .....................................
Inventory (100 X $6) ..............................................
DR
CR
640
640
975
975
1,050
1,050
1,120
1,120
900
900
770
1,925*
2,095
600
*($600 + $2,095 $770)
(B) GROSS PROFIT

Sales ($640 + $1,050 + $900) ..............................................
Cost of goods sold ..............................................................
Gross profit .......................................................................
(C) JOURNAL ENTRIES (PERPETUAL INVENTORY SYTEM)
DATE
Jan. 4
Sales (80 X $8) ........................................................
Inventory (80 X $6) ................................................
Jan. 11
Inventory ..............................................................................
Accounts Payable (150 X $6.50) ..................................
Jan. 13
Sales (120 X $8.75) .................................................
Inventory ([(20 X $6) +
(100 X $6.50)] ......................................................
Jan. 20
Inventory ..............................................................................
Accounts Payable (160 X $7) ..................................
Jan. 27
Sales (100 X $9) ......................................................
Inventory [(50 X $6.50) +
(50 X $7)] .............................................................
$2,590
1,925
$ 665
REF
DR
640
480
480
975
975
1,050
1,050
770
770
1,120
1,120
900
900
675
675
(D) GROSS PROFIT

Sales...............................................................................................
Cost of goods sold
($480 + $770 + $675) ..................................................................
Gross profit ................................................................................
CR
640
$2,590
1,925
$ 665
*EXERCISE 8-18
(A) PERIODIC INVENTORY
MERCHANDISE INVENTORY APRIL, 30 (IN UNIT)
April1, 1. Beginning Inventory

Add Purchases:
April 4
April 8
April 13
April 21
April 29
$ 600
1,500
800
1,200
700
500
$5,300
Less Sales:
April 3
April 9
April 11
April 23
April 27
500
1,300
600
1,200
900
$4,500
$ 800
Merchandise Inventory April, 30 (in unit)
1.
LIFO
600 @ $6.00 =
200 @ $6.08 =
800
2.
Average cost
Total cost
Total units
$3,600
1,216
$4,816
$33,655*
5,300
= $6.35 average cost per unit
800 @ $6.35 = $5,080
*Units
600
1,500
800
1,200
700
500
5,300
Price
@
@
@
@
@
@
$6.00
$6.08
$6.40
$6.50
$6.60
$6.79
Total Cost
=
=
=
=
=
=
$ 3,600
9,120
5,120
7,800
4,620
3,395
$33,655
(B) PERPETUAL INVENTORY

FIFO
Date
Purcahases
P
Q
-
Sales
P
6.00
P
3,000
1-Apr-14
3-Apr-14
4-Apr-14
1,500
6.08
9,120
8-Apr-14
800
6.40
5,120
100
1,200
6.00
6.08
600
7,296
300
300
6.08
6.40
1,824
1,920
9-Apr-14
500
11-Apr-14
13-Apr-14
1,200
6.50
7,800
21-Apr-14
700
6.60
4,620
23-Apr-14
500
700
27-Apr-14
29-Apr-14
6.40
6.50
3,200
4,550
500
400
500
6.79
6.50
3,250
6.60
2,640
3,395
Merchandise Inventory, April 30
MERCHANDISE INVENTORY, APRIL 30 (FIFO):
500 @ $6.79 =
300 @ $6.60 =
600
100
100
1,500
100
1,500
800
Balance
P
6.00
6.00
6.00
6.08
6.00
6.08
6.40
P
3,600
600
600
9,120
600
9,120
5,120
300
800
6.08
6.40
1,824
5,120
500
500
1,200
6.40
6.40
6.50
3,200
3,200
7,800
500
1,200
700
6.40
6.50
6.60
3,200
7,800
4,620
500
700
6.50
6.60
3,250
4,620
300
300
500
800
6.60
6.60
6.79
1,980
1,980
3,395
5,375
$3,395
1,980
$5,375
LIFO
Date
Purcahases
P
1-Apr-14
3-Apr-14
4-Apr-14
1,500
6.08
9,120
8-Apr-14
800
6.40
5,120
13-Apr-14
1,200
6.50
7,800
21-Apr-14
700
6.60
4,620
Q
500
9-Apr-14
Sales
P
6.00
P
3,000
800
500
600
6.40
6.08
6.08
5,120
3,040
3,648
23-Apr-14
700
400
6.60
6.50
4,620
2,600
27-Apr-14
700
200
11-Apr-14
29-Apr-14
500
6.79
6.50
4,550
6.08
1,216
3,395
Merchandise Inventory, April 30
MERCHANDISE INVENTORY, APRIL 30 (LIFO)
(C)
(D)
100 @ $6.00 =
200 @ $6.08 =
500 @ $6.79 =
Total merchandise available for sale

Less inventory (FIFO)
Cost of goods sold
FIFO will show the highest income in an inflationary period.
Q
600
100
100
1,500
100
1,500
800
100
1,000
100
400
100
400
1,200
100
400
1,200
700
100
400
700
100
200
100
200
500
800
Balance
P
6.00
6.00
6.00
6.08
6.00
6.08
6.40
6.00
6.08
6.00
6.08
6.00
6.08
6.50
6.00
6.08
6.50
6.60
6.00
6.08
6.50
6.00
6.08
6.00
6.08
6.79
$ 600
1,216
3,395
$5,211
$33,655
5,375
$28,280
P
3,600
600
600
9,120
600
9,120
5,120
600
6,080
600
2,432
600
2,432
7,800
600
2,432
7,800
4,620
600
2,432
4,550
600
1,216
600
1,216
3,395
5,211
EXERCISE 10-13
No. 1
DATE
July

Land .............................................................................................
Building
Machinery and Equipment ..........................................................
Share CapitalOrdinary
(12,500 X $100) ..........................................................
Share PremiumOrdinary ............................................
($2,250,000 $1,250,000)
REF
DR
375,000
1,125,000
750,000
CR
1,250,000
1,000,000
The cost of the property, plant and equipment is $2,250,000 (12,500 X $180). This cost is allocated based on appraised
values as follows:
$400,000
Land
X $2,250,000
= $375,000
$2,400,000
No. 2
DATE
July
No. 3
DATE
Dec 20
Building
$1,200,000
$2,400,000
X $2,250,000
= $1,125,000
Machinery & Equipment
$800,000
$2,400,000
X $2,250,000
= $750,000

Buildings ($105,000 plus $161,000) ............................................
Machinery and Equipment ..........................................................
Land Improvements ....................................................................
Land .............................................................................................
Cash...............................................................................
REF

Machinery and Equipment ........................................................
Cash ............................................................................
($10,500 plus $274,400, which is 98%
of $280,000.)
REF
Fair value
Loss
DATE
CR
541,000
PROBLEM 10-8
DATE
REF
1.
Holyfield Corporation
Cash ..............................................................................................
Machinery .....................................................................................
Accumulated Depreciation ...........................................................
Loss on Disposal of Machinery .....................................................
Machinery ........................................................................
*Computation of loss: Book value
DR
266,000
135,000
122,000
18,000
DR
284,900
CR
284,900
DR
CR
23,000
69,000
60,000
8,000*
160,000
$100,000
(92,000)
$ 8,000

REF
Dorsett Company
Machinery ..................................................................................
Accumulated Depreciation ........................................................
Loss on Disposal of Machinery ..................................................
Cash ...............................................................................
Machinery .....................................................................
DR
CR
92,000
45,000
6,000*
23,000
120,000
*Computation of loss: Book value

Fair value
Loss
DATE
2.

REF
Machinery ..................................................................................
Machinery .....................................................................
Winston Company
Machinery ($92,000 $11,000) .................................................
Machinery .....................................................................
*Computation of gain
deferred:
Fair value
Book value
Gain deferred
DATE
3.
$ 75,000
(69,000)
$ 6,000
CR
92,000
60,000
8,000
160,000
81,000*
71,000
152,000
$92,000
(81,000)
$11,000

REF
Machinery ..................................................................................
Machinery .....................................................................
Cash ...............................................................................
Liston Company
Machinery ..................................................................................
Cash
Machinery .....................................................................
Gain on Disposal of Machinery .....................................
*Fair value
Book value
Gain
DR
DR
CR
95,000
60,000
8,000
160,000
3,000
92,000
75,000
3,000
160,000
10,000*
$ 95,000
(85,000)
$ 10,000
Because the exchange has commercial substance, the entire gain should be recognized.
DATE
4.

REF
Machinery ..................................................................................
Machinery .....................................................................
Cash ...............................................................................
Greeley Company
Cash
Used Machine Inventory............................................................
Sales ..............................................................................
Cost of Goods Sold .....................................................................
Inventory .......................................................................
DR
CR
185,000
60,000
8,000
160,000
93,000
93,000
92,000
185,000
130,000
130,000
EXERCISE 11-4
(a)
$279,000 $15,000 = $264,000; $264,000 10 yrs. = $26,400
(b)
$264,000 240,000 units = $1.10; 25,500 units X $1.10 = $28,050
(c)
$264,000 25,000 hours = $10.56 per hr.; 2,650 hrs. X $10.56 = $27,984
(d)
10 + 9 + 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 = 55 OR
10
55
X $264,000 X 1/3 =
$16,000
9
55
X $264,000 X 2/3 =
28,800
Total for 2011
(e)
n(n + 1)
2
10(11)
2
= 55
$44,800
$279,000 X 20% X 1/3 =
$18,600
[$279,000 ($279,000 X 20%)] X 20% X 2/3 =
29,760
Total for 2011
$48,360
[May also be computed as 20% of ($279,000 2/3 of 20% of $279,000)]
EXERCISE 11-6
(a)
2010
$304,000 $16,000
8
Straight-line
= $36,000/year
3 monthsDepreciation ($36,000 X 3/12) = $9,000

(b)
2010
$304,000 $16,000
40,000
Output
= $7.20/output unit
1,000 units X $7.20 = $7,200

(c)
2010
$304,000 $16,000
20,000
Working hours
= $14.40/hour
525 hours X $14.40 = $7,560

(d)
8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 = 36 OR
Sum-of-the-years-digits
Year 1 8/36 X $288,000 =
2 7/36 X $288,000 =
3 6/36 X $288,000 =
Total
$64,000
$56,000
$48,000
n(n + 1)
2
2010
$16,000
$16,000
2012:
8(9)
2
= 36
Allocated to
2011
$48,000
14,000
$62,000
2012
$42,000
12,000
$54,000
$54,000 = (9/12 of 2nd year of machines life plus 3/12 of 3rd year of machines life)
(e)
Double-declining-balance 2011: 1/8 X 2 = 25%.

2010:
25% X $304,000 X 3/12
= $19,000
2011:
25% X ($304,000 $19,000)
= $71,250
OR
1st full year (25% X $304,000)
= $76,000
2nd full year [25% X ($304,000 $76,000)]
= $57,000
2010 Depreciation 3/12 X $76,000
= $19,000
2011 Depreciation 9/12 X $76,000 = $57,000

3/12 X $57,000 = 14,250
$71,250
EXERCISE 11-23
(a)
$850,000 + $170,000 + $40,000* $100,000

= .08 depletion per unit
12,000,000
*Note to instructor: The $40,000 should be depleted because it is an environmental liability provision.
2,500,000 units extracted X $.08 = $200,000 depletion for 2010
(b)
2,200,000 units sold X $.08 = $176,000 charged to cost of goods sold for 2010
PROBLEM 14-8
DATE
3/1/10
1. SANFORD CO.
Cash ..................................................................................
Bonds Payable ....................................................
REF
12/31/10
3/1/11

Interest Expense ................................................................
Bonds Payable .....................................................
Cash .....................................................................
(See amortization table on next page)
Bonds Payable
($3,525 X 4/6) ...................................................
Interest Payable ($25,000 X 4/6).........................
Interest Payable .................................................................
Bonds Payable
($3,525 X 2/6) ...................................................
Cash .....................................................................
CR
472,090
*Present value of $500,000 due in 7 periods at 6%

($500,000 X .66506) ..................................................................................................
Present value of interest payable semiannually
($25,000 X 5.58238) ..................................................................................................
Proceeds from sale of bonds ...................................................................................
DATE
9/1/10
DR
472,090*
REF
$332,530
139,560
$472,090
DR
28,325*
CR
3,325
25,000
19,017
2,350
16,667
9,508
16,667
1,175
25,000
9/1/11
12/31/11

Bonds Payable .....................................................
Cash .....................................................................
Bonds Payable
($3,961 X 4/6) ...................................................
Interest Payable ..................................................
Date
3/1/10
9/1/10
3/1/11
9/1/11
3/1/12
9/1/12
3/1/13
9/1/13
*Rounded $2.
28,736
3,736
25,000
19,308
2,641
16,667
Schedule of Bond Discount Amortization

Effective-Interest Method
10% Bonds Sold to Yield 12%
Cash Paid
Interest
Discount
Expense
Amortized
$25,000
$28,325
$3,325
25,000
28,525
3,525
25,000
28,736
3,736
25,000
28,961
3,961
25,000
29,198
4,198
25,000
29,450
4,450
25,000
29,715*
4,715
Carrying Amount
of Bonds
$472,090
475,415
478,940
482,676
486,637
490,835
495,285
500,000
2. TITANIA CO.
DATE
6/1/10

Cash ............................................................................
Bonds Payable ..............................................
REF
DR
425,853
425,853
Present value of $400,000 due in 8 periods at 5%

($400,000 X .67684) ...................................................................................................
Present value of interest payable semiannually
($24,000 X 6.46321) ...................................................................................................
Proceeds from sale of bonds ....................................................................................
DATE
12/1/10
12/31/10
6/1/11
10/1/11

Interest Expense .......................................................
Bonds Payable ..........................................................
Cash ($400,000 X .12 X 6/12) .....................
(See amortization table on Page 1450)
Interest Expense ($21,157 X 1/6) .............................
Bonds Payable
($2,843 X 1/6) ........................................................
Interest Payable ($24,000 X 1/6) ................
Interest Expense ($21,157 X 5/6) .............................
Interest Payable ........................................................
Bonds Payable
($2,843 X 5/6) ........................................................
Cash ............................................................
Interest Expense
($21,015 X .3* X 4/6)..............................................
CR
REF
$270,736
155,117
$425,853
DR
21,293*
2,707
CR
24,000
3,526
474
4,000
17,631
4,000
2,369
24,000
4,203
10/1/11
Bonds Payable
($2,985 X .3 X 4/6)..................................................
Cash ............................................................
*$120,000 $400,000 = .3
Bonds Payable ..........................................................
Gain on Extinguishment of Bonds ..............
Cash ............................................................
597
4,800
125,494
4,294*
121,200
*Reacquisition price
$126,000 ($120,000 X 12% X 4/12)
Net carrying amount of bonds redeemed:
($420,303* X .30) $597 .............................................................................
Gain on extinguishment .............................................................................
*From amortization table
DATE
12/1/11
Interest Expense ($21,015 X .7*) .................................
Bonds Payable ($2,985 X .7) ........................................
Cash ($24,000 X .7) ........................................
REF
$121,200
(125,494)
$ (4,294)
DR
14,711
2,089
CR
16,800
*($400,000 $120,000) $400,000 = .7

12/31/11
6/1/12
12/1/12
Date
6/1/10
12/1/10
6/1/11
12/1/11
6/1/12
12/1/12
6/1/13
12/1/13
6/1/14
Interest Expense ($20,866 X .7 X 1/6) .........................

Bonds Payable ($3,134 X .7 X 1/6) ...............................
Interest Payable
($24,000 X .7 X 1/6) ....................................
Interest Expense ($20,866 X .7 X 5/6) .........................
Interest Payable ...........................................................
Bonds Payable
($3,134 X .7 X 5/6).....................................................
Cash ($24,000 X .7) ........................................
2,434
366
2,800
12,172
2,800
1,828
16,800
Interest Expense ($20,709 X .7) ...................................

Bonds Payable
($3,291 X .7) ..............................................................
Cash ($24,000 X .7) ........................................
Cash Paid
Interest Expense
$24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
$21,293
21,157
21,015
20,866
20,709
20,545
20,372
20,190*
*$.50 adjustment due to rounding.
14,496
2,304
16,800
Premium
Amortized
$2,707
2,843
2,985
3,134
3,291
3,455
3,628
3,810
Carrying Amount of
Bonds
$425,853
423,146
420,303
417,318
414,184
410,893
407,438
403,810
400,000
PROBLEM 14-9
DATE
July 1, 2010
Cash
($900,000 X 1.19219) + ($900,000 X 12% X 6/12) ....
Bonds Payable ...............................................
Interest Expense ($900,000 X 12% X 6/12) ...
Dec 31, 2010
Jan 1, 2011
Jan 2, 2011
Dec 31, 2011
REF
DR
CR
1,126,971.00
1,072,971.00
54,000.00
Interest Expense ($900,000 X 12%) .............................

Interest Payable.............................................
108,000.00
Bonds Payable .............................................................

Interest Expense
[($108,000 $54,000) ($1,072,971 X 10% X 6/12)]
351.45
Interest Payable ...........................................................

Cash ...............................................................
108,000.00
Bonds Payable .............................................................

Cash ($360,000 X 102%) ................................
Gain on Extinguishment of Bonds .................
429,047.82*
Interest Expense ($540,000 X .12) ...............................

Interest Payable.............................................
64,800.00
Bonds Payable .............................................................

Interest Expense
[($1,072,971 $351.45
$429,047.82) X .10] $64,800 ..................
442.83
108,000.00
351.45
108,000.00
367,200.00
61,847.82
64,800.00
442.83
*[($360,000 $900,000) X ($1,072,971 $351.45).
Reacquisition price
($360,000 X 102%) ...........................................................................................
Net carrying value of bonds redeemed:
($1,072,971 $351.45) X ($360,000 $900,000)...............................................
Gain on redemption .......................................................................................
$367,200.00
(429,047.82)
$ (61,847.82)

Tugas 2 - Solution

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Tugas 2 - Solution

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TUGAS 2 - SOLUTION

*($600 + $2,095 $770)

(B) GROSS PROFIT

(D) GROSS PROFIT

MERCHANDISE INVENTORY APRIL, 30 (IN UNIT)

April1, 1. Beginning Inventory

Merchandise Inventory April, 30 (in unit)

= $6.35 average cost per unit

800 @ $6.35 = $5,080

(B) PERPETUAL INVENTORY

MERCHANDISE INVENTORY, APRIL 30 (FIFO):

MERCHANDISE INVENTORY, APRIL 30 (LIFO)

Total merchandise available for sale

FIFO will show the highest income in an inflationary period.

ACCOUNT TITLES ANDA EXPLANATION

Machinery & Equipment

ACCOUNT TITLES ANDA EXPLANATION

ACCOUNT TITLES ANDA EXPLANATION

ACCOUNT TITLES ANDA EXPLANATION

*Computation of loss: Book value

ACCOUNT TITLES ANDA EXPLANATION

ACCOUNT TITLES ANDA EXPLANATION

ACCOUNT TITLES ANDA EXPLANATION

$279,000 $15,000 = $264,000; $264,000 10 yrs. = $26,400

$264,000 240,000 units = $1.10; 25,500 units X $1.10 = $28,050

Total for 2011

$279,000 X 20% X 1/3 =

[$279,000 ($279,000 X 20%)] X 20% X 2/3 =

Total for 2011

[May also be computed as 20% of ($279,000 2/3 of 20% of $279,000)]

3 monthsDepreciation ($36,000 X 3/12) = $9,000

1,000 units X $7.20 = $7,200

525 hours X $14.40 = $7,560

Double-declining-balance 2011: 1/8 X 2 = 25%.

25% X $304,000 X 3/12

25% X ($304,000 $19,000)

1st full year (25% X $304,000)

2nd full year [25% X ($304,000 $76,000)]

2010 Depreciation 3/12 X $76,000

2011 Depreciation 9/12 X $76,000 = $57,000

$850,000 + $170,000 + $40,000* $100,000

ACCOUNT TITLES ANDA EXPLANATION

*Present value of $500,000 due in 7 periods at 6%

Interest Expense ................................................................

Schedule of Bond Discount Amortization

ACCOUNT TITLES ANDA EXPLANATION

Present value of $400,000 due in 8 periods at 5%

ACCOUNT TITLES ANDA EXPLANATION

*($400,000 $120,000) $400,000 = .7

Interest Expense ($20,866 X .7 X 1/6) .........................

Interest Expense ($20,709 X .7) ...................................

*$.50 adjustment due to rounding.

Dec 31, 2011

Interest Expense ($900,000 X 12%) .............................

Bonds Payable .............................................................

Interest Payable ...........................................................

Bonds Payable .............................................................

Interest Expense ($540,000 X .12) ...............................

Bonds Payable .............................................................

*[($360,000 $900,000) X ($1,072,971 $351.45).

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