Practical Accounting Problems 1

Transcript

DMCCF – JPIA REVIEW CLASS PRACTICAL ACCOUNTING PROBLEMS 1 STATEMENT OF FINANCIAL POSITION AND COMPREHENSIVE INCOME 1. Kirk Company Company provid provided ed !e "o##o$i "o##o$in% n% in"ormai in"ormaion on "or &'11( &'11( A))o*nin% and #e%a# "ee+ 1&',''' Adveri+in% 1-',''' Frei%! o* ',''' Inere+ e/pen+e 0',''' Lo++ on +a#e o" inve+men ',''' 23)er4+ +a#arie+ &&-,''' Ren "or o3)e +pa)e &&',''' Sa#e+ +a#arie+ and )ommi++ion+ 15',''' 2ne !a#" o" !e rened promi+e+ are o))*pied 6y !e +a#e+ deparmen. W!a +!o*#d 6e repored a+ di+ri6*ion )o++ "or &'117 a. 480,000 6. 5'',''' ). 0',''' d. 8',''' &. D*rin% &'11, &'11, Myr#yn Myr#yn Company de)ided de)ided o )!an%e )!an%e "rom FIF2 FIF2 me!od invenory invenory va#*aion va#*aion o $ei%!ed avera%e me!od. Invenory 6a#an)e+ *nder ea)! me!od $ere( FIFO WEIGHTED AVE. 1&919': :,''',''' ,-'',''' 1&9191' ,''',''' ,'',''' 1&91911 0,''',''' 8,5'',''' I%norin% in)ome a/ in i+ &'11 +aemen o" reained earnin%+, $!a amo*n +!o*#d Myr#yn repor a+ !e e;e) o" !i+ a))o*nin% )!an%e7 a. &'',''' de)rea+e 6. &'',''' in)rea+e ). '',''' de)rea+e d. 300,000 in!"#$" . 2n Jan*ary Jan*ary 1, &'', Reena Reena Company Company p*r)!a+ed p*r)!a+ed a ma)!ine ma)!ine "or P -,&','' -,&',''' ' and depre)iaed i 6y !e +rai%!<#ine me!od *+in% an e+imaed *+e"*# #i"e o" ei%! year+ $i! no re+id*a# va#*e. 2n Jan*ary 1, &'11, Reena deermined !a !e ma)!ine !ad a *+e"*# #i"e o" +i/ year+ "rom !e dae o" a)=*i+iion and $i## !ave a re+id*a# va#*e o" P 5','''. An a))o*nin% )!an%e $a+ made in &'11 o re>e) !e+e addiiona# daa. W!a i+ !e a))*m*#aed depre)iaion depre)iaion "or !i+ ma)!ine on De)em6er 1, &'117 a. %, &%0,000 6. ,'',''' ). ,&'',''' d. ,-&',''' 5. 2n Jan*ary Jan*ary 1, &'':, Sep!en Sep!en Company Company p*r)!a+e p*r)!a+ed d "or P 8,''',''' 8,''',''' a ma)!ine ma)!ine $i! *+e"*# *+e"*# #i"e o" - year+ and re+id*a# va#*e o" 8'','''. ?!e ma)!ine $a+ depre)iaed 6y !e do*6#e de)#inin% 6a#an)e me!od and !e a))*m*#aed depre)iaion o" !e ma)!ine $a+ ,5',''' on De)em6er 1, &'1'. Sep!en )!an%ed o !e +rai%! #ine me!od on  Jan*ary 1, &'11 and !e re+id*a# re+id*a# va#*e did no )!an%e. )!an%e. In i+ &'11 in)ome +aemen, +aemen, $!a amo*n +!o*#d 6e repored a+ depre)iaion "or !i+ ma)!ine7 a. 0&',''' ). 5&,''' d. 1&,''' '. (%0,000 -. A#6er A#6er Co. Co. provided provided !e "o##o$ "o##o$in% in% daa daa "or &'11( &'11( Sa#e+ -0-,''' Co+ o" %ood+ +o#d &5',''' Inere+ reven*e &-,''' Admini+raive e/pen+e+ 0',''' Sa#e+ )ommi++ion+ -',''' Frei%! o* 1-,''' Lo++ on +a#e o" e=*ipmen 1',''' Lo++ on e/in%*i+!men o" de6 &',''' @n)o##e)i6#e a))o*n+ e/pen+e 1-,'''  ?!e ni+!ed %ood+ invenory i+ 5'',''' 5'',''' on Jan*ary 1, &'11 and 8',''' on De)em6er De)em6er 1, &'11. ?!e in)ome a/ i+ 'B. W!a amo*n +!o*#d 6e repored a+ in)ome "rom )onin*in% operaion+7 a. 1%),000 6. 1',''' ). 15',''' d. 150,''' 8. Adrian Adrian Company Company provided provided !e !e "o##o$in% "o##o$in% daa daa "or !e )*rren )*rren year( year( 1 DMCCF – JPIA REVIEW CLASS In)ome "rom )onin*in% operaion+ In)ome "rom di+)onin*ed operaion+ @nrea#ied %ain on avai#a6#e "or +a#e +e)*riie+ @nrea#ied %ain "**re+ )onra) de+i%naed a+ a )a+! >o$ !ed%e A)*aria# #o++ d*rin% !e year "*##y re)o%nied Forei%n ran+#aion ad*+men – de6i Reva#*aion +*rp#*+ d*rin% !e year o$ m*)! i+ !e )ompre!en+ive in)ome "or !e )*rren year7 a. -,8'',''' 6. ,5'',''' ). 8,-'',''' -,''',''' 8'',''' :'',''' 5'',''' '',''' 1'',''' &,-'',''' d. &,000,000 0. Karen Co. repored ne in)ome o" 051,''' "or &'11 $!i)! in)#*ded !e "o##o$in% iem+( @nrea#ied #o++ on avai#a6#e "or +a#e +e)*riie+, ne o" a/ -5,'''G Hain on e/in%*i+!men o" 6ond+ paya6#e, ne o" a/ &&',''' Ad*+men o" pro+ o" prior year+, ne o" a/ 0-,'''G Lo++ "rom re, ne o" a/ 15','''G W!a +!o*#d 6e repored a+ ne in)ome "or &'117 a. 8-',''' 6. 881,''' ). 18,''' d. 8*0,000 . W!i#e preparin% i+ &'11 nan)ia# +aemen+, Leie# Co. di+)overed error+ in i+ &'1' and &'': depre)iaion. ?!e+e error+ re+*#ed in over+aemen o" ea)! year4+ ne in)ome 6y &'',''' ne o" a/. ?!e "o##o$in% amo*n+ $ere repored in &'1' and &'':( %010 %00& Reained earnin%+ < Jan*ary 1 -,-'',''' ,-'',''' e in)ome 1,-'',''' &,''',''' Reained earnin%+ – De)em6er 1 0,''',''' -,-'','''  ?!e ne in)ome "or &'11 $a+ ,''','''. 2n De)em6er 1, &'11 Leie# de)#ared dividend+ o" &,''','''. W!a i+ !e 6a#an)e o" reained earnin%+ on De)em6er 1, &'117 a. *,)00,000 6. ,''',''' ). ,5'',''' d. 0,'',''' :. Man*e# Company repored !e "o##o$in% )*rren a++e+ on De)em6er 1, &'1&( Ca+! in)#*de+ P '',''' )*+omer4+ po+daed )!e)k and P 1,''',''' +inkin% "*ndG 5,''',''' A))o*n+ re)eiva6#e 0,-'',''' Invenory 5,-'',''' Prepaid e/pen+e+ -'',''' De"erred a/ a++e &,-'',''' on)*rren a++e )#a++ied a+ !e#d "or +a#e ,''','''  ?oa# )*rren a++e+ &&,''',''' C*+omer4+ de6i 6a#an)e+, ne o" )*+omer+4 )redi 6a#an)e+ o" P8'',''' -,''',''' A##o$an)e "or do*6"*# a))o*n+ -'','''G Se##in% pri)e o" Man*e# Company4+ *n+o#d %ood+ +en o* on )on+i%nmen A 1&-B o" )o+ e/)#*ded "rom endin% invenory ,''',''' 0,-'',''' 2n De)em6er 1, &'1&, $!a amo*n +!o*#d 6e repored a+ oa# )*rren a++e+7 a. 1,-'',''' '. 18,%00,000 ). 1,-',''' d. 1,'-',''' 1'.Sie%"red Co.4+ De)em6er 1, &'11 +aemen o" nan)ia# po+iion repored !e "o##o$in% )*rren a++e+( Ca+! 5,''',''' A))o*n+ re)eiva6#e 0,-'',''' Invenory 5,-'',''' Prepaid e/pen+e+ -'',''' De"erred a/ a++e &,-'',''' on)*rren a++e )#a++ied a+ !e#d "or +a#e ,''',''' &&,''',''' & DMCCF – JPIA REVIEW CLASS Ca+! on !and, in)#*din% )*+omer4+ )redi 6a#an)e+ o" &'',''' And emp#oyee I2@ o" 1'',''' 1,''',''' Ca+! in 6ank per 6ank +aemen o*+andin% )!e)k+ on De)em6er 1, &'11 P '','''G ,''','''  ?oa# )a+! 5,''',''' C*+omer+4 de6i 6a#an)e+, ne o" )*+omer+4 )redi 6a#an)e+ o" 5'',''' -,''',''' A##o$an)e "or do*6"*# a))o*n+ -'','''G Se##in% pri)e o" *n+o#d %ood+ +en o* on )on+i%nmen a 1-'B o" )o+ And e/)#*ded "rom endin% invenory ,''',''' 0,-'',''' 2n De)em6er 1, &'11 $!a +!o*#d 6e repored a+ oa# )*rren a++e7 a. 1,8'',''' 6. 1,&'',''' ). 1,'',''' d. 10,'',''' 11.?!e "o##o$in% ria# 6a#an)e o" A#vin Co. on De)em6er 1, &'11 !a+ 6een ad*+ed e/)ep "or in)ome a/ e/pen+e( Ca+! -,''',''' A))o*n+ re)eiva6#e 15,''',''' Invenory 1',''',''' Propery, p#an and e=*ipmen &-,''',''' A))o*n+ paya6#e :,''',''' In)ome a/ paya6#e 8,''',''' De"erred a/ #ia6i#iy ,''',''' 2rdinary +!are )apia# 1-,''',''' S!are premi*m 5,''',''' Reained earnin%+ – Jan*ary 1 ,''',''' e +a#e+ and o!er reven*e ',''',''' Co+ and e/pen+e+ 8',''',''' In)ome a/ e/pen+e 11,''',''' 1&-,''',''' 1&-,''',''' D*rin% !e year e+imaed a/ paymen+ o" -,''',''' $ere )!ar%ed o in)ome a/ e/pen+e. ?!e a/ rae i+ 'B. De"erred a/ #ia6i#iy $i## rever+e in &'1&. W!a amo*n +!o*#d 6e repored a+ oa# )*rren #ia6i#iie+ on De)em6er 1, &'117 a. 1-,''',''' 6. 1',''',''' ). 1,''',''' d. 1,''',''' 1&.?!e ria# 6a#an)e o" So#ida Co. on De)em6er 1, &'11 i+ a "o##o$+( Ca+! 5,''',''' A))o*n+ re)eiva6#e, ne ,''',''' Co+ in e/)e++ o" 6i##in%+ on #on%<erm )onra)+ -,''',''' i##in%+ in e/)e++ o" )o+ on #on%<erm )onra)+ 1,-'',''' Prepaid a/e+ ,''',''' Propery, p#an and e=*ipmen, ne &',''',''' oe paya6#e