LATIHAN SOAL
Materi Final Test
Exercise 1
Account for Receivable
The ledger of Nuro Company at the end of the current year shows Accounts
Receivable $180,000, Sales Revenue $1,800,000, and Sales Returns and
Allowances $60,000.
Instructions :
a) If Nuro uses the direct write-off method to account for uncollectible accounts,
journalize the adjusting entry at December 31, assuming Nuro determines that
Willie’s $2,900 balance is uncollectible.
b) If Allowance for Doubtful Accounts has a credit balance of $4,300 in the trial
balance, journalize the adjusting entry at December 31, assuming bad debts
are expected to be
• 1 % of net sales,
• 10% of accounts receivable.
c) If Allowance for Doubtful Accounts has a debit balance of $410 in the trial
balance, journalize the adjusting entry at December 31, assuming bad debts
are expected to be
• 0.75% of net sales,
• 6% of accounts receivable.
Solution Exercise 1
Account for Receivable
a) 31/12 Bad Debt Expense 2,900
Accounts Receivable—Willie’s 2,900
b) 31/12 Bad Debt Expense
[($1,800,000 - $60,000) x 1%] 17,400
Allowance for Doubtful Accounts 17,400
31/12 Bad Debt Expense 13,700
Allowance for Doubtful
Accounts [($180,000 x 10%) - $4,300] 13,700
c) 31/12 Bad Debt Expense
[($1,800,000 2 $60,000) x 0.75%] 13,050
Allowance for Doubtful Accounts 13,050
31/12 Bad Debt Expense 11,210
Allowance for Doubtful
Accounts [($180,000 x 6%) + $410] 11,210
Exercise 2
Account for Receivable
Sargeant Supply Co. has the following transactions related to notes receivable
during the last 2 months of 2017 :
Nov.1 Loaned $20,000 cash to Mary Hawkins on a 1-year, 12% note.
Dec.11 Sold goods to Eminem, Inc., receiving a $9,000. 90-day, 8% note.
Dec.16 Received a $8,000, 6-month, 9% note in exchange for Rick DeLong’s
outstanding accounts receivable.
Dec.31 Accrued interest revenue on all notes receivable.
Instructions :
a) Journalize the transactions for Sargeant Supply Co.
b) Record the collection of the Hawkins note at its maturity in 2018.
Solution Exercise 2
Account for Receivable
a) 1/11 Notes Receivable 20,000
Cash 20,000
11/12 Notes Receivable 9,000
Sales Revenue 9,000
16/12 Notes Receivable 8,000
Accounts Receivable 8,000
31/12 Interest Receivable 470
Interest Revenue* 470
b) 1/11 Cash 22,400
Interest Receivable 400
Interest Revenue 2,000
($20,000 x 12% x 10/12)
Notes Receivable 20,000
(*)
Hawkins’ note : $20,000 x 12% x 2/12 = $400
Eminem’s note : 9,000 x 8% x 20/360 = 40
DeLong’s note : 8,000 x 9% x 15/360 = 30
Total accrued interest = $470
Exercise 3
Account for Receivable
On April 1, 2015, Prince Company assigns $500,000 of its accounts receivable
to the Hibernia Bank as collateral for a $300,000 loan due July 1, 2015. The
assignment agreement calls for Prince Company to continue to collect the
receivables. Hibernia Bank assesses a administration charge of 2% of the
accounts receivable, and interest on the loan is 10% (a realistic rate of interest
for a note of this type).
Instructions:
a) Prepare the April 1, 2015, journal entry for Prince Company.
b) Prepare the journal entry for Prince’s collection of $350,000 of the
accounts receivable during the period from April 1, 2015, through June
30, 2015.
c) On July 1, 2015, Prince paid Hibernia all that was due from the loan it
secured on April 1, 2015.
Solution Exercise 3
Account for Receivable
a) Cash 290,000
Administration charge (500,000 x 2%) 10,000
Notes Payable 300,000
b) Cash 350,000
Account Receivable 350,000
c) Notes Payable 300,000
Interest Expenses (10% x $300,000 x 3/12) 7,500
Cash 307,500
Exercise 4
Plant Assets, Natural Resources, and Intangible Assets
DuPage Company purchases a factory machine at a cost of $18,000 on
January 1, 2017. DuPage expects the machine to have a salvage value of
$2,000 at the end of its 4-year useful life. During its useful life, the machine
is expected to be used 160,000 hours. Actual annual hourly use was :
2017 40,000 hours
2018 60,000 hours
2019 35,000 hours
2020 25,000 hours
Instructions
Prepare depreciation schedules for the following methods:
(a) Straight-line
(b) Units of activity
(c) Declining-balance using double the straight-line rate.
Solution Exercise 4
Plant Assets, Natural Resources, and Intangible Assets
Exercise 5
Plant Assets, Natural Resources, and Intangible Assets
Henning Company, organized in 2017, has the following transactions related
to intangible assets :
1/2/17 Purchased patent (7-year life) $840,000
4/1/17 Goodwill purchased (indefi nite life) 450,000
7/1/17 10-year franchise: expiration date 7/1/2027 330,000
9/1/17 Research and development costs 210,000
Instructions
Prepare the necessary entries to record these intangibles. All costs incurred
were for cash. Make the adjusting entries as of December 31, 2017, recording
any necessary amortization and refl ecting all balances accurately as of that
date
Solution Exercise 5
Plant Assets, Natural Resources, and Intangible Assets
Exercise 6
Current Liabilities
On June 1, Streamsong Company borrows $150,000 from First Bank on a 6-month,
$150,000, 8% note.
Instructions
a) Prepare the entry on June 1.
b) Prepare the adjusting entry on June 30.
c) Prepare the entry at maturity (December 1), assuming monthly adjusting entries
have been made through November 30.
d) What was the total financing cost (interest expense)?
Solution Exercise 6
Liabilities
Exercise 7
Non Current Liabilities
North Airlines Company issued $900,000 of 8%, 10-year bonds on
January 1, 2017, at face value. Interest is payable annually on January 1.
Instructions
Prepare the journal entries to record the following events.
a) The issuance of the bonds.
b) The accrual of interest on December 31.
c) The payment of interest on January 1, 2018.
d) The redemption of bonds at maturity, assuming interest for the last
interest period has been paid and recorded
Solution Exercise 7
Non Current Liabilities
Exercise 8
Non Current Liabilities
Snyder issued $2,500,000, with a term of 10 years, 10% interest is paid
semi-annually to be precise on June 1 and January 1 each year and 8%
market interest.
Instructions :
a. PV of Bonds
b. Make schedule bond of ammortization
c. Make issuance journal (5 points)
Solution Exercise 8
Non Current Liabilities
a. Present value of principal, 10 Years, 10
annualy ($2.500.000 x 0.45639) $1.140.975
Present Value of interest, 10 years, 10%
½ annualy (($2,500,000/2) x 10% ) x 13.59033) $1.698.791
Proceeds from sale of obligations $2.839.766
b. Tabel Amortization
Solution Exercise 8
Non Current Liabilities
b. Tabel Amortization…..continue
Solution Exercise 8
Non Current Liabilities
c. Journal
1/1/19 Cash $2.839.766
Bond payable $2.839.766
1/6/19 Interest expense $113.560,64
Bond Payable $ 11.409,36
Cash $125.000
31/12/19 Interest Expense $113.134,27
Bond Payable $ 11.865,73
Interest Payable $125.000
1/1/20 Interest payable $125.000
Cash $125.000
1/1/24 Interest Payable $125.000
Cash $125.000
(Pembayaran Bunga)
Bond Payable $2.500.000
Cash $2.500.000
Exercise 9
Cash Flow
Exercise 9
Cash Flow
Exercise 9
Cash Flow
Solution Exercise 9
Cash Flow
Solution Exercise 9
Cash Flow
