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first payment due on May 1, 2004. The note is noninterestbearing. The prevailing market rate of interest on notes of this kind is 12%. Prepare the required journal entries on May 1, 2003(year-end). The useful life of the equipment was estimated
15
After updating the depreciation, the machine’s book value on September
30, 2005, is:
a. $54,000.
b. $46,000.
c. $40,000.
d. $60,000.
Cost Accumulated Depreciation:
2
Valuation of plant assets at acquisition
For one piece: reasonable and necessary expenditure For lump-sum purchase:allocating to the various assets purchased according their fair market value. Plant assets can be acquired with long-term notes payable. (In
7
Acquisition of plant assets with note payable
In such situation, in order to be in accordance with the cost principle, the recorded cost of an asset purchased on credit is based on one of the following, whichever is more objective and reliable: (1) the cash equivalent price (market value) and (2) the present value of the future cash payments required by the debt agreement discounted at the prevailing (market) interest rate for that type of debt.

西方会计理论目录word版

第一章现代会计的演变P1目的：简略回顾西方国家现代会计的演进过程重点：复式簿记的产生等难点：20世纪初会计的发展第一节 19世纪前的会计发展P21494年威尼斯的卢卡·帕乔利所著的《算术、几何、比及比例概要》是第一本描述复式簿记制度并提供会计记录论据的著作。

第二节 19世纪至20世纪初会计发展P7折旧会计资本与收益区分成本会计报表审查制度第三节 20世纪30年代以来会计发展P9财务会计的形成公认会计原则重视收益确定税收会计管理会计政府与非盈利组织会计电算化会计通货膨胀会计社会责任会计国际会计衍生金融工具会计思考题：1、什么是衍生金融工具会计？第二章财务会计理论极其研究方法P19目的：理解什么是会计理论并简略了解会计理论研究方法重点：会计理论的研究方法难点：实证研究方法第一节会计理论的性质P20会计理论可以用来说明会计实务，以便更好地理解会计实务，会计理论还用来开拓会计理论、完善会计理论。

会计理论主要有三个层次：（1）结构性理论。

这类理论与数据的收集程序和财务陈报的机制有关，它试图说明现行会计实务，并预言会计师对某些情况将会如何做出反映或对特定事项将会如何进行陈报。

（2）解释性理论。

该理论着眼于事物或事项以及用来表示它们的名词或符号之间的关系。

（3）行为性理论。

该理论强调会计信息使用者的需要，以及会计报告和报表的行为或决策作用。

第二节构建会计理论的方法论P25归纳法演绎法实证法第三节会计学属性和会计理论验证P40思考题：1、什么是实证法？第三章美国的公认会计原则目的：了解公认会计原则的产生过程，理解会计假设与会计原则重点：会计假设与会计原则难点：会计原则第一节公认会计原则的产生与发展P43会计程序委员会会计原则委员会财务会计准则委员会第二节推动会计原则发展的主要组织P53美国注册会计师协会美国证券交易委员会美国会计学会美国管理会计师协会政府准则委员会财务经理协会第三节会计假设和基本会计原则P58一、会计假设会计主体持续经营货币计量会计期间二、基本会计原则成本原则权责发生制原则实现原则配比原则客观性原则一致性原则充分披露原则重要性原则稳健性原则第四节会计准则的制订准则制订的政治化准则制订的中立性思考题：1、如何理解会计准则制订的政治化与中立性？第四章财务会计概念框架P84目的：理解财务会计概念框架下所包含的具体内容重点：财务会计报表要素难点：会计确认与计量第一节财务会计概念框架的性质与发展P84第二节财务会计和财务报告的目标P91决策有用观受托责任观第三节会计信息的质量特征P99相关性可靠性第四节财务会计和财务报表的特征的新发展P103FASB的SFAC N0.8（2010）第五节财务会计和财务报表的要素P111资产负债产权业主投资分派业主款全面收益收入费用利得损失第六节财务会计的确认与计量P118会计确认：（1）可定义性（2）可计量性（3）相关性（4）可靠性第七节现金流量信息、现值与公允价值P123第八节对FASB概念框架的评价P128第九节概念框架的改进P130IASB和FASB的联合研究项目思考1、如何理解收入与利得的区别？2、如何理解费用与损失的区别？3、如何理解会计确认与会计计量之间的关系？第五章实证会计理论P134（重点）目的：了解实证会计研究的特点，掌握相关的主要研究结论重点：实证会计研究的主要结论难点：实证会计研究的主要结论第一节实证会计研究的发展P1341 实证研究与规范研究的区别（解释与预测）图3-11.1规范性会计理论的局限性2 实证会计研究的兴起2.1 发展阶段2.1.1 信息含量研究2.1.2 契约关系（经济后果）研究第二节实证会计研究的基础概念P1371 代理人理论（是实证会计理论研究的基础）1.1 所有个体都是理性的且追求自身效用最大化1.2 代理关系与代理问题1.3 代理成本1.3.1 在代理关系中，何方将要及如何承担代理成本？1.3.2 代理成本对代理关系中的各方行为有何影响？1.3.3 会计是降低代理成本的一个监控机制安排（实证理论最基本的方法）2 契约理论2.1 契约关系（管理契约和债务契约）2.2 旨在降低代理成本或契约成本2.3 契约关系大都基于会计数据约束（产生会计政策选择的动机）3 有效市场假说（EMH）（市场供求平衡，信息和资本市场的关系）有效市场假说的概念可用公式表述：3.1 弱式：市场价格充分体现过去交易活动信息。

西方财务会计PPT课件

二、在不同条件下商品购入和商品销售的帐务处理（1）购货与销货的记录：购货方须运用“购货”帐户，销货方需运用
“销货”帐户；（2）退货及折让货款的记录：购货方须运用“购货退还及折让”，销
货方需运用“销货退回及折让”帐户；（3）运费的记录：不同条件下，有这不同的帐务处理方法；（4）付款和收款的记录：应用“应付帐款”、“应收帐款”、“现金”
第五章商业帐款与商业票据要求：
熟练地掌握应收与应付帐款、应收与应付票据的帐务处理。重点： 1、应收帐款坏帐损失的计提； 2、应收、应付票据及其贴现的帐务处理。
一、商业帐款的帐务处理
在第三章论述商品购销业务的帐务处理程序时，已同时说明了应收、应付帐款的帐务处理程序，因此，在本章中，只是对应收帐款帐务处理中的特殊问题加以论述，包括坏帐损失、分期收款销货。
第六章存货要求：
熟练地掌握存货发出的计价方法和期末存货计价中成本与市价孰低规则的应用。重点： 1、各种存货发出计价方法及其适用性； 2、成本与市价孰低规则的应用。
一、存货帐务处理的基本程序 1、存货的定义及范围。 2、存货成本的构成。 3、存货内部控制的基本原则。 4、定期盘存制与永续盘存制下存货的帐务处理：定期盘存制和永续盘存制含义；定期盘存制与永续盘存制下购货和销货
2、资产负债表的会计恒等式资产=负债+业主权益收益表的关系式：收益—费用＝净收益
因为业主权益的变动时有以下两个所引起的：（1）投资与派得；（2）企业的净收益，所以，对会计恒等式中业主权益这一要素也可以表达成：
业主权益＝业主出资＋净收益－业主派得
四、财务报表的基本形式
资产负债表、收益表、业主权益表三个报表实际上都是上述三个关系式的展开。

西方财务会计分析

1.3 THE FASB’S FINANCIAL ACCOUNTING CONCEPTUAL FRAMEWORK
1.3-1 Objectives of the Conceptual Framework The Framework is to be the foundation for building a set of coherent accounting standards and rules. The Framework is to be a reference of basic accounting theory for solving emerging practical problems of reporting.
1.2 COMPARISON BETWEEN FINANCIAL AND MANAGEMENT ACCOUNTING

Management Accounting ---- The process of developing and reporting accounting information for internal users who have direct access to the information preparing.
西方财务会计
WESTERN FINANCIAL ACCOUNTING
Chapter 1
The Financial Accounting Conceptual Framework And The Accounting Equation
1.1 ACCOUNTINtivity ---- Provide useful information about economic entities to interested parties And a measurement-communication activity---The usefulness of accounting information depends on effective measurement of the economic activities and effective communication of those measurements to users of that information.

西方财务会计复习资料全

《西方财务会计》复习资料一般期末考试题型：一、判断题二、单项选择题三、多项选择题四、论述题五、业务题各章要求重点掌握的容：第一章：概论1．财务会计与管理会计的区别2．会计信息的质量特征3．各会计假设与会计原则（理解并能应用，不要求背诵）第二章：会计循环1．资产及其特征2．会计等式3．借贷记账法、日记账与分类账的应用4．试算表5．第三节应计制与账项调整6．会计循环的各个步骤第三章：商品购销业务1．购销业务的处理，（1）退货与折让货款（2）商业折扣与现金折扣（总价法与净价法）（3）运费2．销货成本的确定第四章：现金收支业务1．现金的围2．现金部控制的方法3．零用现金的会计处理4．银行余额的调节第五章：应收账款与应收票据1．第二节：应收账款坏账的处理2．第四节：应收票据第六章：存货1．第一节存货的种类和围2．第二节存货数量的确定3．第三节存货成本的确定（不包括成本与市价孰低法）第七章：对外投资1．投资的分类与计价2．债务性证券投资的会计处理（交易性和可供出售证券）3．权益性证券投资的会计处理（交易性和可供出售证券）4．成本法与权益法（看课件容）第八章：厂场资产、自然资源和无形资产1．厂场资产的特点2．长期资产的计价3．第二节厂场资产取得的会计处理（不包括非货币性交易）4．第三节厂场资产折旧及折旧的计算5．厂场资产的处置6．无形资产及其特征第九章：流动负债1．负债及其特点2．第三节金额确定的流动负债3．第六节或有负债第十章：长期负债1．第一节长期负债的特点2．公司债券的计价及其帐务处理（涉及债券发行、折价和溢价摊销、赎回等，以直线摊销法为主）第十一章：股东权益全章容重要（涉及股票发行、库藏股、股利等）第十二章：合伙企业业主权益（不要求）第十三章：财务报表1．财务报表的种类2．收益表及其作用3．资产负债表及其作用4．股东权益表及其作用5．第四节现金流量表（要求理解，掌握方法，不考具体编表）第十四章：财务报表分析1．第一节财务报表分析的目的和方法2．如何进行横向分析和纵向分析3．第三节比率分析法4．财务报表分析的局限性★考核知识点:会计的概念附1.1（考核知识点解释）会计的主要目的在于向决策者提供财务信息，以帮助他们做出有关财务事项的最有利的决策。

西方财务会计课后习题答案-精品

西方财务会计课后习题答案-精品2020-12-12【关键字】财务会计The Financial StatementsCheck Points(5 min.) CP 1-1 Store manager decisions:a.What food items to offer and how to market the goodsb.Where to locate a restaurantc.How to finance operationsAccounting helps managers measure the revenue from food sales, the cost of the food, and the profit (or loss) on each food item. Accounting also helps measure which Taco Bells are most profitable and which are losing money. Finally, accounting helps managers decide how to finance operations. Items on YUM! Brands’ income statement that help decide whether to invest in the company:The company earned a net income (rather than a net loss).This year’s net income is more than last year’s.Net sales revenue is increasing from year to year. Student responses may vary.(5 min.) CP 1-2 Accounting is the information system that measures business activities, processes data into reports, and communicates results to people.Bookkeeping is only a part of accounting. Bookkeeping is related to accounting as arithmetic is related to mathematics.(5 min.) CP 1-3Standards of professional conduct are designed to produce relevant and reliable information for decision making. People need relevant and reliable information in order to make wise decisions.If accountants had no ethical guidelines, companies could report inaccurate information. This could cause people to invest in the wrong companies and lose money.(5 min.) CP 1-4 1. Novak can be misled into believing that YUM! Brands ownsmore assets than it actually has.2. The entity concept applies.3. Application of the entity concept will separate Novak’spersonal assets from the assets of YUM! Brands. This will help Novak, investors, and lenders know how much in assets the business controls, and this knowledge will help all parties evaluate the business realistically.(5 min.) CP 1-5 1. Owners’ Equity = Assets – LiabilitiesThis way of determining the amount of owners’ equity applies to eBay, Coca-Cola, your household, a Pizza Hut restaurant, or any other organization.2. Liabilities = Assets –Owners’ Equity3. Total Assets = Total Liabilities + Total Owners’ Equity(5 min.) CP 1-6 1. Assets are the economic resources of a business that areexpected to produce a benefit in the future.Owners’ equity represents the insider claims of a business, the owners’ interest in its assetsAssets and owners’ equity differ in that owners’ equity is a claim to assets, whereas assets are resources.Assets must be at least as large as owners’ equity, so equity can be smaller than assets.2. Both liabilities and owners’ equity are claims to assets.Liabilities are the outsider claims to the assets of a business;they are obligations to pay creditors. Owners’ equity represents the insider claims to the assets of the business, the owners’ interest in its assets.(5-10 min.) CP 1-7a. Accounts receivable A g. Accounts payable Lb. Long-term debt L h. Common stock Ec. Merchandise inventory A i. Supplies Ad. Notes payable L j. Retained earnings Ee. Expenses payable L k. Land Af. Equipment A l. Prepaid expenses A(5 min.) CP 1-81. Revenues and expenses2. Net income (or net loss)3. Total assets are not used to measure net income. Onlyrevenues and gains, expenses and losses enter into the measurement of net income.(10 min.) CP 1-9 2003 2002Percentage of cost= $2,300$7,441= 30.9%$2,109$6,891= 30.6%of goods sold tocompany salesThis trend is unfavorable for YUM because cost of goods sold (an expense) consumed a higher percentage of sales revenue in 2003. That could cause a decrease in profits.(5 min.) CP 1-10IHOP Corp.Statement of Retained EarningsYear Ended December 31, 2003Millions Retained earnings:Balance, beginning of year…………...$274Net income ($405 –$368) (37)Less: Dividends (16)Balance, end of year…………………...$295(10-15 min.) CP 1-11Toby Landscaping ServicesBalance SheetDecember 31, 2008ASSETSCurrent assets:Cash……………………………………………………$ 13,000 Receivables…………………………………………...2,000 Inventory……………………………………………… 40,000 Total current assets…………………………………55,000 Equipment……………………………………………….85,000 Other assets…………………………………………….. 10,000 Total assets……………………………………………...$150,000 LIABILITIESCurrent liabilities:Accounts payable……………………………………$ 8,000 Short-term notes payable…………………………. 12,000 Total current liabilities……………………………...20,000 Long-term liabilities:Long-term debt………………………………………80,000 STOCKHOLDERS’ EQUITYCommon stock………………………………………….15,000 Retained earnings……………………………………… 35,000* Total stockholders’ equity………………………… 50,000 Total liabilities and stockholders’ equity…………..$150,000 _____*Computation:Total assets ($150,000) – current liabilities ($20,000) – long-term debt ($80,000) – common stock ($15,000) = $35,000(10-15 min.) CP 1-12Clearsource Cable, Inc.Statement of Cash FlowsYear Ended December 31, 2006Cash flows from operating activities:Net income………………………………………...$ 88,000 Adjustments to reconcile net income to netcash provided by operating activities…. (20,000) Net cash provided by operating activities.. 68,000 Cash flows from investing activities:Purchases of equipment…………$(300,000)Sale of equipment………………… 90,000Net cash used for investing activities……..(210,000) Cash flows from financing activities:Borrowing…………………………..$150,000Payment of dividends……………. (10,000)Net cash provided by financing activities. 140,000 Net increase (decrease) in cash………………….(2,000) Cash balance, December 31, 2005………………. 24,000 Cash balance, December 31, 2006……………….$ 22,000(10 min.) CP 1-131. Cash BS, SCF2. Net cash used for financing activities SCF3. Accounts payable BS4. Common stock BS5. Interest revenue IS6. Long-term debt BS7. Increase or decrease in cash SCF8. Dividends SRE, SCF9. Salary expense IS10. Inventory BS11. Sales revenue IS12. Retained earnings SRE, BS13. Net cash provided by operating activities SCF14. Net income (or net loss) IS, SRE, SCFExercises(10-15 min.) E 1-1 a. Proprietorship. There is a single owner of the business, sothe owner is answerable to no other owner.b. Partnership. If the partnership fails and cannot pay itsliabilities, creditors can force the partners to pay the business’s debts from their personal assets. A partnership affords more protection for creditors than a proprietorship because there are two or more owners to share this liability.c. Corporation. If the corporation fails and cannot pay itsliabilities, creditors cannot force stockholders to pay theb usiness’s debts from their personal assets. Therefore, themost an investor can lose on an investment in a corporation is the amount invested.d. Corporation. Most investors are willing to invest more in acorporation than in a proprietorship or a partnership because of their limited personal liability for a corporation’s debts.(continued) E 1-1 What form of business organization would you choose?The answer depends on your objective. If you want to maintain absolute control of the business, you may prefer to organize as a proprietorship. If your objective is to maintain a high degree of control but you need additional money or expertise, a partnership may work for you. If you want the business to grow large, or if you wish to avoid personal liability for business debts, you should organize as a corporation.Student responses may vary.(10 min.) E 1-2The income statement reports the revenues and expenses of a particular entity for a period such as a month or a year. Total revenues minus total expenses equals net income, or profit. A lender would require this information in order to predict whether the borrower can generate enough income to repay the loan.The balance sheet reports the assets, liabilities, and owners’ equity of the entity at a particular point in time. The assets show the resources that the business has to work with. Because borrowers pay loans with assets, a lender wants to know the business’s assets (especially cash). Liabilities—debts —represent creditors’ claims to the business’s assets. Owners’ equity is the portion of the business assets owned outright by the owners.Student responses may vary.(5-10 min.) E 1-3a. Entity conceptb. Going-concern conceptc. Cost principled. Entity concept (No, Comer could not determine the successor failure of the business solely from his checkbook.)e. Reliability (Objectivity) principle (PepsiCo. should wait torecord a gain or loss after it sells the land.)(5-15 min.) E 1-4 (Amounts in billions)Assets = Liabilities + Owners’ Equity Dell $19 $13 $ 6Pier 1 Imports 0.9 0.3 0.6 Boeing 53 45 8Pier 1 appears to have the strongest financial position because its liabilities make up the smallest percentage of company assets ($3 / $9 = .333). Stated differently, Pier 1’s equity is the highest percentage of company assets ($6 / $9 = .667).(10-15 min.) E 1-5 Req. 1(Amounts in millions)Assets = Liabilities + Stockholders’Equity$141 $ 60202 7767Total $410 = $137 + $273Resources to workwithcreditors stockholdersReq. 5Krispy Kreme appears able to pay current liabilities of $60 million because current assets are over twice as large as current liabilities.Krispy Kreme also appears able to pay total liabilities because total assets far exceed total liabilities.(10-20 min.) E 1-6Situation1 2 3BillionsTotal stockholders’ equit yJanuary 31, 2003 ($30 –$10)………….. $20 $20 $20 Add: Issuances of stock……………….. 1 -0- 5 Net income…………………………. 1* 4*Less: Dividends…………………………... -0- (2) (1) Net loss…………………………….. (2)* Total stockholders’ equity,January 31, 2004 ($34 –$12)………….. $22 $22 $22 Situation 2 indicates the strongestis the highest.Situation 3 is the weakest because of the net loss._____*Must solve for these amounts.(10-15 min.) E 1-7 1. Fossil Inc.(Amounts in millions)Assets = Liabilities + Stockholders’EquityBeginning $ 483 = $142 + $341 Multiplier for increase 1.217Ending $ 5882. Bed Bath & Beyond(Amounts in billions)Assets –Liabilities = Stockholders’EquityBeginning amount $2.2 –$0.7 = $1.5 Net income 0.4 Ending amount $1.9(10-15 min.) E 1-8a. Balance sheetb. Income statementc. Balance sheetd. Balance sheete. Statement of retained earnings, Statement of cash flowsf. Income statementg. Balance sheet, Statement of retained earningsh. Income statementi. Balance sheetj. Statement of cash flowsk. Income statementl. Statement of cash flowsm. Balance sheet, Statement of cash flowsn. Balance sheeto. Income statement, Statement of retained earnings, Statement of cash flows(10-20 min.) E 1-9Wells Fargo & CompanyBalance Sheet (Adapted; Amounts in billions)December 31, 2003ASSETS LIABILITIESCash $ 16 Current liabilities $290 Receivable 253 Long-term liabilities 64 Investment assets 72 Total liabilities 354 Property andequipment, net 4 STOCKHOLDERS’Other assets 43EQUITYCommon stock 12Retained earnings 22*Total stockholders’ equity 34Total liabilities andTotal assets $388 stockholders’ equity$388 _____*Computation of retained earnings:Total assets ($388) – Total liabilities ($354) – Common stock ($12) = $22(15-25 min.) E 1-10 Req. 1Wells Fargo & CompanyIncome Statement (Adapted)Year Ended December 31, 2003Billions Total revenue……………………………………….$32 Expenses:Interest expense………………………………..$ 3Salary and other employee expenses (9)Other expenses (14)Total expenses (26)Net income………………………………………….$ 6 Req. 2The statement of retained earnings helps to compute dividends, as follows:Statement of Retained Earnings (Adapted)Billions Retained earnings, beginning of year..................... $19 Add: Net income for the year (Req. 1) (6)25 Less: Dividends (3)Retained earnings, end of year (from Exercise 1-9)…… $22 earnings.(15-20 min.) E 1-11ADP, Inc.Statement of Cash FlowsYear Ended December 31, 2004Millions Cash flows from operating activities:Net income………………………………………...$ 395Adjustments to reconcile net income tonet cash provided by operating activities….. 2,330 Net cash provid ed by operating activities………… $2,725 Cash flows from investing activities:Net cash used for investing activities…………... (3,140) Cash flows from financing activities:Net cash provided by financing activities (420)Net incr ease in cash (5)Beginning cash balance (145)Ending cash balance……………………………………….. $ 150Total assets –Balance sheetTotal liabilities –Balance sheetNet income…………………………………………. $ 7,500 Adjustments to reconcile net incometo net cash provided by operations……………. 2,000 Net cash provided by operating activit ies… 9,500 Cash flows from investing activities:Acquisition of equipment………………………… $(36,000) Net cash used for investing activities………(36,000) Cash flows from financing activities:Issuance (sale) of stock to owners…………….. $ 35,000Payment of dividends................................... (2,000) Net cash provided by financing activities.... 33,000 Net increase in cash.........................................$ 6,500 Cash balance, June 30, 20X6.. 0Cash balance, July 31, 20X6…………………………$ 6,500(10-15 min.) E 1-15 TO: Owner of Kinko’s storeFROM: Student NameSUBJECT: Opinion of operating results, dividends, financial position, a nd cash flowsYour first month of operations appears to have been successful. Revenues totaled $12,400 and net income was $7,500. These operating results look very strong.The company was able to pay a $2,000 dividend, and this should make you happy with so quick a return on your investment.Your financial position looks secure, with assets of $43,700 and liabilities of only $3,200. Your stockholders’ equity is $40,500.Operating activities generated cash of $9,500, which is respectable. You ended the month with cash of $6,500. Based on the above facts, I believe you should stay in business. Student responses may vary.(15-20 min.) E 1-16 a. The single best source of cash for a business is net incomeand the related cash receipts. This source of cash is best because it results from the core operations of the business.b. Borrowing, issuing stock, and selling land, buildings, andequipment can bring in cash even when the company has losses.c. P aying large dividends will cause retained earnings to be low.d. Heavy investing activity and paying off debts can result in acash shortage even if net income has been high.e. You can finance the payment of current liabilities in severalways: Borrow money, issue (sell) stock to stockholders, or sell long-term assets such as land, buildings, and equipment.Practice Quiz1. d2. a3. b4. b5. d6. a7. b8. c9. d10. c ($140,000 – $22,000 – $8,000 – $3,000 = $107,000)11. d ($110,000 + $95,000 – $30,000 = $175,000)12. d13. b14. aBegin.ChangesEnd._____15. cBegin.–End.ProblemsGroup A(15-30 min.) P 1-1A TO: Investment committeeSUBJECT: Genome Science Corporation request for us to buy its stockI recommend purchasing Genome Science stock because:1. Operations are the main source of Genome’s cash, and thecompany is increasing cash without a lot of borrowing.Moreover, Genome has been investing lots of money in long-term assets, as shown by its investing cash flows.2. Net income has increased dramatically during the past twoyears.3. Total assets have grown from $590,000 to $990,000 duringthe past two years, and liabilities have risen more slowly.I believe Genome has a bright future and that its stock islikely to increase in value.Student responses may vary.(15-20 min.) P 1-2A Req. 1General Electric CompanyIncome StatementYear Ended December 31, 20X5Billions Sales revenue………………………..$ 53Other revenue (73)Total revenue………………………...$126Cost of goods sold (36)Other expenses (70)Total expenses (106)Income before income tax (20)Income tax expense ($20 .30) (6)Net income……………………………$ 14(continued) P 1-2A Req. 2a. Reliability (objectivity) principle. Report revenues at theiractual sale value because that amount is more reliable than what management believes the goods are worth.b. Cost principle. Account for expenses at their actual cost, nota hypothetical amount that the company might have incurredif the products were purchased outside.c. Cost principle. Account for expenses at their actual cost.d. Entity concept. Each division of the company is a separateentity, and the company as a whole constitutes an entity for accounting purposes.e. Stable-monetary-unit concept. Accounting in the UnitedStates ignores the effect of inflation.f. Going-concern concept. There is no evidence that GeneralElectric is going out of business, so it seems safe to assume that the company is a going concern.(30-40 min.) P 1-3Abillions .FedEx Corp. Coca-Cola Ford Company Corp.Beginning :Assets $12 $17 $279 – Liabilities (7) (10) (228) = Owners’ equity $ 5 $ 7 $ 51Ending :Assets$13 $19 – Liabilities (7) (11) (204) = Owners’ Equity$ 6 $ 8 $ 65Owners’ Equity :Issuance of stock $ 1 – DividendsIncome Statement :Revenues$20 $119– Expenses(19) (97) = Net income$ 1 $ 4 $ 22Statement of owners’ equi ty :Beginning owners’ equity+ Issuance of stock+ Net income– Dividends(1) (3) (9) = E nding owners’ equity$ 6 $ 8 $ 65 __________ 1$5 + Issuance of stock2Net income = $4 3Assets = liabilities + OE + $1 – $1 = $6Revenue – expenses = net income Assets = $204 + $65 Issuance of stock = $1$19 – expenses = $4 Assets = $269 Expenses = $15(continued) P 1-3AFedEx Coca-Cola FordCorp. Company Corp.Percentage of liabilities to assets = $ 7 $11 $204$13 $19 $269= 53.8% = 57.9% = 75.8% Lowest 2nd LowestPercentage of net income to revenues = $ 1 $ 4 $ 22 $20 $19 $119= 5% = 21.1% = 18.5%HighestOn these measures, Coca-Cola looks the strongest. Coca-Cola has the second lowest percentage of liabilities to assets and the highest percentage of net income to revenues.(20-25 min.) P 1-4A Req. 1ICON, Inc.Balance SheetJuly 31, 20X7ASSETS LIABILITIESCash $15,000 Accounts payable $ 9,000 Accounts receivable 12,000 Note payable 16,000 Office supplies 1,000 Total liabilities 25,000 Office furniture 10,000 STOCKHOLDERS’Land 44,000 EQUITYStockholders’ equity 57,000*Total liabilities andTotal assets $82,000 stockholders’ equity $82,000 _____*Total assets ($82,000) – Total liabilities ($25,000) = Stockholders’ equity ($57,000).Req. 2ICON, Inc., is in better financial position than the erroneous balance sheet reports. True, assets are lower than reported, but by only $10,500 ($92,500 –$82,000). But liabilities are much lower, and owne rs’ equity is $36,300 higher than reported originally. Overall, ICON has less debt and more equity than first reported.Req. 3The following accounts are not reported on the balance sheet because they are revenues or expenses. These accounts are reported on the income statement.Rent expenseAdvertising expenseService revenueProperty tax expense(20-25 min. P 1-5A Req. 1Marjorie Caballero, Realtor, Inc.Balance SheetNovember 30, 2004ASSETS LIABILITIESCash $ 6,000 Accounts payable $ 6,000 Office supplies 1,000 Note payable 40,000 Franchise 20,000 Total liabilities 46,000 Furniture 17,000 STOCKHOLDERS’Land 120,000 EQUITYCommon stock 50,000Retained earnings 68,000*Total stockholders’ equity 118,000Total liabilities and ________ Total assets $164,000 stockholders’ equity$164,000 _____*Total assets ($164,000) – Total liabilities ($46,000) – Common stock ($50,000) = $68,000.Req. 2It appears that Caballero’s realty business can pay its debts. Total assets far exceed total liabilities.Req. 3Personal items not reported on the balance sheet of the business: a. Personal cash ($10,000)b. Personal account payable ($1,800)g. Personal residence ($160,000) and mortgagepayable ($100,000)(30-45 min.) P 1-6A Req. 1Hercules, Inc.Income StatementYear Ended December 31, 20X8RevenueService revenue…………………$220,000 ExpensesSalary expense………………….$63,000Rent expense…………………….23,000Advertising expense……………13,000Interest expense………………...9,000Property tax expense………….. 4,000Total expenses………………….. 112,000 Net income………………………….$108,000 Req. 2Hercules, Inc.Statement of Retained EarningsYear Ended December 31, 20X8Retained earnings, be ginning of year…… $ 10,000Add: Net income for the year…………… 108,000118,000 Less: Dividends……………………………. (70,000)Retained earnings, end of year…………… $ 48,000(continued) P 1-6A Req. 3Hercules, Inc.Balance SheetDecember 31, 20X8ASSETS LIABILITIESCash $ 10,000 Accounts payable $ 19,000 Accounts receivable 12,000 Salary payable 1,000 Supplies 3,000 Note payable 185,000 Furniture 20,000 Total liabilities 205,000 Building 150,000 STOCKHOLDERS’Land 98,000 EQUITYCommon stock 40,000Retained earnings 48,000Total stockholders’ equity 88,000Total liabilities andTotal assets $293,000 stockholders’ equity$293,000 Req. 4a. Hercules was profitable; net income was $108,000.b. Retained earnings increased by $38,000 —from $10,000 to$48,000.c. Total liabilities ($205,000) exceeds stockholders’ equity($88,000).The creditors own more of Hercules’ assets than do the company’s stockholders.(20 min.) P 1-7A Req. 1Nike, Inc.Statement of Cash FlowsYear Ended May 31, 20X4Millions Cash flows from operating activities:Net income…………………………………………. $796 Adjustments to reconcile net incometo cash provided by operations (473)Net cash provided by op erating activities (323)Cash flows from investing activities:Purchases of property, plant, and equipment.. $(510)Sales of property, plant, and equipment (24)Other investing cash receipts (33)Net cash used for investing activities (453)Cash flows from financing activities:Borrowing………………………………………….$ 388Issuance of common stock (26)Payment of dividends (101)Net cash provided by financing activities 313 Net increase in cash....................................... $ 183 Cash, beginning (262)Cash, ending………………………………………….. $ 445 Req. 2Operations and financing provided roughly equal amounts of cash. This signals a little financial weakness. Operations should be the main source of cash.(40-50 min.) P 1-8A Req. 120X6 20X5(Thousands)STATEMENT OF OPERATIONSRevenues $94,749 = $ k $88,412Cost of goods sold (74,564) (a) = 65,586 Other expenses (15,839) (13,564)Income before income taxes 4,346 9,262Income taxes (36.95% in 20X6) 1,606 = (l) (1,581)Net income 2,740 = $ m $ b = 7,681 STATEMENT OF RETAINED EARNINGSBeginning balance 17,213 = $ n $ 9,987Net income 2,740 = o c = 7,681 Dividends (559) (455)Ending balance 19,394 = $ p $ d = 17,213 BALANCE SHEETAssets:Cash 83 = $ q $ e = 45 Property, plant and equipment 23,894 20,874Other assets 18,564 = r 16,900 Total assets 42,541 = $ s $37,819Liabilities:Current liabilities 11,454 = $ t $ 9,973Long-term debt and other liabilities 11,331 10,120 Total liabilities 22,785 f = 20,093 Shareholders’ Equity:Common stock $ 229 $ 230Retained earnings 19,394 = u g = 17,213 Other shareholders’ equity 133 283 Total shareholders’ equity19,756 = v 17,726Total liabilities and shareholders’ equity42,541 = $ w $ h = 37,819 STATEMENT OF CASH FLOWSNet cash provided by operating activities 2,383 = $ x $ 2,906Net cash used for investing activities (3,332) (3,792)Net cash provided by financing activities 987 911 Increase (decrease) in cash 38 i = 25 Cash at beginning of year 45 = y 20Cash at end of year 83 = $ z $ j = 45(continued) P 1-8A Req. 2a. Operations deteriorated during 20X6. Revenues increased,but net income fell from $7,681 thousand to $2,740 thousand.b. The company retains most of its net income for use in thebusiness. Dividends were much less than net income.c. Total assets at the end of 20X6 were $42,541 thousand. Thisis the amount of total resources that the company has towork with as it moves into the year 20X7.d. At the end of 20X5, the company owed total liabilities of$20,093 thousand. At the end of 20X6, the company owed $22,785 thousand.e. The company’s major source of cash is operating activities,and cash is increasing. Based on these two facts, it appears that the comp any’s ability to generate cash is strong despite the dip in 20X6 net income. The company is using most of its cash to expand. This is clear from the large amounts of cash used for investing activities, which indicate that the company is growing.ProblemsGroup B(15-30 min.) P 1-1B TO: Edward Jones loan committeeSUBJECT: Kaiser Corporation loan requestI recommend not lending $50 million to Kaiser because:1. Operations are generating less and less of the company’scash, and the cash balance has decreased by $120 million during the past three years.2. Revenues decreased in 2007, and net income has decreasedfor the past two years.3. Dividends have exceeded net income for the past two years.As a result, stockholders’ equity has decreased from $400 million to $330 million.4. Liabilities have increased from $260 million to $390 million,which exceeds stockholders’ equity. A $50 million loan to Kaiser would make this situation worse.I doubt Kaiser could repay this loan.Student responses may vary.(15-20 min.) P 1-2B Req. 1Chrysler Division of DaimlerChrysler CorporationIncome StatementYear Ended December 31, 20X5Billions Sales revenue……………………………..$69.4Other revenue…………………………….. 5.8Total revenue……………………………...$75.2Cost of g oods sold……………………….$59.0Selling and administrative expenses… 3.7Other expenses……………………….….. 4.5Total operating expenses………………. 67.2Income before income tax………………8.0Income tax expense ($8.0 .35)………. 2.8Net income………………………………... $ 5.2(continued) P 1-2B Req. 2a. Reliability (objectivity) principle. Report revenues at theiractual sale value because that amount is more reliable than what management believes the good are worth.b. Cost principle. Account for expenses at their actual cost, nota hypothetical amount that the company might have incurredif the products were purchased outside.c. Cost principle. Account for expenses at their actual cost.d. Entity concept. Each division of the company is a separateentity, and the company as a whole constitutes an entity for accounting purposes.e. Stable-monetary-unit concept. Accounting in the UnitedStates ignores the effect of inflation.f. Going-concern concept. There is no evidence that Chrysler isgoing out of business, so it seems safe to assume that the division is a going concern.(30-40 min.) P 1-3BAmounts in billionsBest Buy Pier 1 Wal-Mart Beginning:Assets $ 3.0 $ 0.7 $ 78–Liabilities (1.9) (0.2) (47)= Owners’ equity $ 1.1 $ 0.5 $ 31 Ending:Assets $ 4.8 $ 0.9–Liabilities (3.0) (0.3) (48)= Owners’ Equity $ 1.8 $ 0.6 $ 35 Owners’ Equity:Issuance of stock $ 0 $ 0–Dividends (0)Income Statement:Revenues $218–Expenses (211)= Net income $ 7 Statement of owners’ equity:Beginning owners’ equity+ Issuance of stock+ Net income–Dividends (0) (0) (3)= En ding owners’ equity $ 1.8 $ 0.6 $ 35。

西方财务会计课后习题答案

Chapter 2Check Points(5 min.) CP 2-1 Hickman’s payment was not an expense.Hickman acquired an asset, Equipment, because the computer is an economic resource of the business.(5 min.) CP 2-2a. $12,800b. $ 3,000c. $56,300d. $ 500e. $ 5,800 [Service revenue of $8,500 ($5,500 + $3,000) – Total expenses of $2,700 ($1,100 +$1,200 + $400) = Net income of $5,800]e. $ 500(5-10 min.) CP 2-3Cash Accounts Receivable 30,000 4,000 6,0002,000 Bal. 6,000Bal. 28,000(5 min.) CP 2-4 Increased total assets: May 1 (Cash)May 1 (Medical supplies)May 3 (Cash, Accounts receivable)Increased total liabilities: M ay 1 (Accounts payable)Decreased total assets: May 2 (Cash)(10 min.) CP 2-5JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Apr. 15 Cash……………………………………50,000Note Payable………………………50,000 Borrowed money from the bank.22 Accounts Receivable……………….9,000Service Revenue………………….9,000 Performed service on account.28 Cash……………………………………6,000Accounts Receivable…………….6,000 Received cash on account.29 Utilitie s Expense (600)Accounts Payable (600)Received utility bill.30 Salary Expense………………………3,000Cash…………………………………3,000 Paid salary expense.Chapter 2 Transaction Analysis 5730 Interest Expense (300)Cash (300)Paid interest expense.(10-15 min.) CP 2-6Req. 1JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Supplies………………………………..2,000Accounts Payable…………………2,000 Purchased supplies on account.Accounts Payable (500)Cash (500)Paid cash on account.Req. 2Accounts Payable500 2,000Bal. 1,500Req. 3Biaggi’s business owes $1,500, as shown in the Accounts Payable account.(10-15 min.) CP 2-7Req. 1JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Accounts Receivable………………..1,200Service Revenue…………………..1,200 Performed service on account.Cash (500)Accounts Receivable (500)Received cash on account.Req. 2Cash Accounts Receivable Service Revenue500 1,200 500 1,200 Bal. 500 Bal. 700 Bal. 1,200 Req. 3a. The Center earned $1,200: S ervice Revenueb. Total assets $1,200: C ash………………….. $ 500Accounts receivable. 700Total assets…………. $1,20058Financial Accounting 6/e Solutions Manual(10 min.) CP 2-8Old NavyTrial BalanceDecember 31, 20X8ACCOUNT DEBIT CREDITMillionsCash……………………….…...$ 2Other assets (9)Accounts payable……………$ 1Other liabilities (2)Stockholders’ equity (2)Revenues (30)Expenses……………………... 24 ___Total……………………….……$35 $35Old Navy’s net income:$6 million ($30 – $24)(10 min.) CP 2-9 1. Total assets = $53,800 ($33,300 + $2,000 + $500 +$18,000)2. Total liabilities = $1003. Total stockholders’ equity = $53,700 ($53,800 – $100)4. Net income = $5,800 ($8,500 – $1,100 – $1,200 – $400)(10 min.) CP 2-101. Total debits = $121,600 ($58,600 + $81,000 – $18,000)Total credits = $ 58,600Difference = $ 63,000 ($121,600 – $58,600)$63,000 / 9 = $7,000 (an integer), which suggests either atransposition or a slide2. Total debits = $76,600 ($58,600 + $20,000 – $2,000)Total credits = $58,600Difference = $18,000 ($76,600 – $58,600)$18,000 / 9 = $2,000 (original amount of accountsreceivable)3. Total debits = $56,600 ($58,600 – $ 2,000)Total credits = $60,600 ($58,600 + $ 2,000)Difference = $ 4,000 ($60,600 – $56,600)$4,000 / 2 = $2,000 (original amount of accounts receivable)Chapter 2 Transaction Analysis 59(5 min.) CP 2-12Cash Computer Equipment250,000 100,000Accounts Payable Common Stock100,000 250,000Total debits = $350,000 ($250,000 + $100,000)Total credits = $350,000 ($100,000 + $250,000)Exercises(10-15 min.) E 2-1 TO: Home OfficeFROM: Store ManagerDuring the first week, I borrowed $320,000 on a note payable. I used the store’s beginning cash plus the borrowed money to purchase land, a building, copy equipment, and supplies. After all these transactions, the store’s balance sheet appears as follows:Kinko’sOklahoma City StoreBalance SheetDateASSETS LIABILITIESCash $ 80,000* Note payable $320,000 Supplies 10,000Copy equipment 60,000 STOCKHOLDERS’ EQUITYLand 90,000 Common stock 40,000 Building 120,000 Total liabilities and ________ Total assets $360,000 stockholders’ equity $360,000 _____*$40,000 + $320,000 – $90,000 – $120,000 – $60,000 – $10,000 = $80,000(5-10 min.) E 2-2 a. Issuance of stockRevenue transactionb. Purchase of asset on accountBorrow moneyc. Purchase of asset for cashSale of asset for cashCollection of an account receivabled. Payment of dividends to ownersExpense transactione. Pay a liability60Financial Accounting 6/e Solutions Manual(10-20 min.) E 2-4 Req. 1Analysis of TransactionsASSETS = LIABILITIES + STO CKHOLDERS’ EQUITYDate Cash + AccountsReceivable +MedicalSupplies + Land =AccountsPayable +NotePayable +CommonStock +RetainedEarningsType of Stockholders’Equity TransactionOct. 6 40,000 40,000 Issued stock9 (30,000) 30,00012 2,000 2,00015 Not a transaction of the business.15-31 4,000 4,000 8,000 Service revenue 15-31 (1,400) (1,400) Salary expense (1,000) (1,000) Rent expense(300) (300) Utilities expense31 500 (500)31 10,000 10,00031 (1,500) (1,500)Bal. 20,300 4,000 1,500 30,000 500 10,000 40,000 5,30055,800 55,800Chapter 2 Transaction Analysis 61(continued) E 2-4 Req. 2a. $55,800b. $4,000c. $10,500 ($500 + $10,000)d. $45,300 ($55,800 – $10,500, or $40,000 + $5,300)e. $5,300 (Revenue, $8,000 minus total expenses of $2,700, equals net income, $5,300.)62Financial Accounting 6/e Solutions Manual(10-15 min.) E 2-5JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Oct. 6 Cash………………………………………..40,000Common Stock……………………….40,000 Issued stock to owner.9 Land………………………………………...30,000Cash…………………………………….30,000 Purchased land.12 Medical Supplies…………………………2,000Accounts Payable……………………2,000 Purchased supplies on account.15 Not a transaction of the business.15-31 Cash………………………………………..4,000Accounts Receivable……………………4,000Servi ce Revenue……………………..8,000 Performed service for cash and on account.15-31 Salary Expense…………………………..1,400Rent Expense……………………………..1,000Utilities Expense (300)Cash…………………………………….2,700 Paid expenses.31 Cash (500)Medical Supplies (500)Sold supplies.31 Cash………………………………………..10,000Note Payable…………………………..10,000 Borrowed money.31 Accounts Payable……………………….1,500Cash…………………………………….1,500 Paid on account.(10-15 min.) E 2-6 Req. 1Total assets = $145 million ($100 + $60 – $55 + $35 + $26 – $21)Req. 2Company owes $41 million [$60 – $55 + $35 + $22 – $21]Req. 3Net income = $4 million ($26 – $22)Chapter 2 Transaction Analysis 63(10-20 min.) E 2-7 Req. 1 (journal entries)JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Aug. 1 Cash……………………………………………19,500Common Stock…………………………...19,500 Issued common stock to owner.2 Office Supplies (800)Accounts Payable (800)Purchased office supplies on account.4 Land……………………………………………14,000Cash………………………………………..14,000 Paid cash for land.6 Cash……………………………………………2,000Service Revenue…………………………2,000 Performed services for cash.9 Accounts Payable (100)Cash (100)Paid cash on account.17 Accounts Receivable……………………….1,200Service Revenue…………………………1,200 Performed service on account.23 Cash (900)Accounts Receivable (900)Received cash on account.31 Salary Expense………………………………1,000Rent Expense (500)Cash………………………………………..1,500 Paid cash expenses.(continued) E 2-7Req. 2Ending cash = $6,800($19,500 – $14,000 + $2,000 – $100 + $900 – $1,500)Expects to collect on account = $300 ($1,200 – $900)Total liabilities = $700 ($800 – $100)Net income (profit) = $1,700 ($2,000 + $1,200 – $1,000 – $500)64Financial Accounting 6/e Solutions Manual(20-30 min.) E 2-8 Req. 1Cash Accounts ReceivableAug. 1 19,500 Aug. 4 14,000 Aug. 17 1,200 Aug. 23 9006 23 2,0009009311001,500Aug. 31 300Aug. 31 6,800Office Supplies LandAug. 2 800 Aug. 4 14,000Aug. 31 800 Aug. 31 14,000Accounts Payable Common StockAug. 9 100 Aug. 2 800 Aug. 1 19,500 Aug. 31 700 Aug. 31 19,500 Service Revenue Salary ExpenseAug. 6 2,000 Aug. 31 1,00017 1,200 Aug. 31 1,000Aug. 31 3,200Rent ExpenseAug. 31 500Aug. 31 500(continued) E 2-8Req. 2Coaxial Electronic Systems, Inc.Trial BalanceAugust 31, 20X6ACCOUNT DEBIT CREDITCash…………………………...$ 6,800Accounts receivable (300)Office supplie s (800)Land…………………………...14,000Accounts payable…………..$ 700Common stock………………19,500Service revenue……………..3,200Salary expense………………1,000Rent expense (500)Total…………………………...$23,400 $23,400Req. 3Total a ssets ($6,800 + $300 + 800 + $14,000)……..$21,900Total liabilities (700)Total stockholders’ equity ($21,900 –$700)………$21,200Chapter 2 Transaction Analysis 65(10-15 min.) E 2-9JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT1. Cash…………………………………..10,000Common Stock…………………..10,000 Issued common stock.2. Cash…………………………………..7,000Note Payable……………………..7,000 Borrowed money; signed note payable.3. Land…………………………………..31,000Cash………………………………..8,000Note Payable……………………..23,000 Purchased land by paying cashand signing a note payable.4. Supplies (600)Accounts Payable (600)Purchased supplies on account.5. Cash (100)Su pplies (100)Sold supplies for cash.6. Equipment……………………………6,000Cash………………………………..6,000 Paid cash for equipment.7. Accounts Payable (300)Cash (300)Paid cash on account.Cash balance = $2,800 ($10,000 + $7,000 – $8,000 + $100 – $6,000 – $300)Company owes $30,300 ($7,000 + $23,000 + $600 – $300)(10-20 min.) E 2-10Req. 1Whirlpool Appliance ServiceTrial BalanceJune 30, 20X6ACCOUNT DEBIT CREDIT Cash…………………………...$ 9,000Accounts receivable………..15,500Building……………………….40,250Land…………………………...29,000Accounts payable………….. $ 4,300Note payable………………… 13,000Common stock……………… 48,800Retained earnings………….. 21,350*Dividends……………………..6,000Service revenue…………….. 22,00066Financial Accounting 6/e Solutions ManualSalary expense………………8,000Utilities expense…………….1,400Delivery expense (300)Total…………………………...$109,450 $109,450 *Total debits…………………………………………$109,450 Total credits, ex cluding retained earnings…… (88,100) Retained earnings…………………………………$ 21,350 (continued) E 2-10Req. 2Whirlpool Appliance ServiceIncome StatementMonth Ended June 30, 20X6Service revenue………………...$22,000Salary expense…………………$8,000Ut ilities expense………………..1,400Delivery expense (300)Total expenses…………………. 9,700Net income………………………$12,300 (15-25 min.) E 2-11Car Connection, Inc.Trial BalanceDecember 31, 20X3ACCOUNT DEBIT CREDIT Cash…………………………...$ 4,600*Accounts receivable……….. 12,600*Inventory……………………... 17,000Supplies (600)Land…………………………... 55,000Accounts payable…………..$13,100*Common stock………………48,300*Sales revenue……………….. 35,700Cost of goods sold…………. 3,900Salary expense……………… 1,700Rent expense (800)Utilities expense……………. 900* _______Total…………………………...$97,100 $97,100_____*Explanations:Cash: $4,200 + $400 = $4,600Accounts Receivable: $13,000 – $400 = $12,600Accounts Payable: $12,000 + $1,000 – $100 + $200 = $13,100Common Stock: $47,900 + $400 = $48,300Utilities Expense: $700 + $200 = $900(5-15 min.) E 2-12 Cash Accounts Receivable(a) 12,500 (b) 1,500 (f) 8,300(d) 1,800 Bal. 8,300(e) 400(g) 2,000Bal. 6,800Office Supplies Office Furniture(c) 800 (a) 9,000Bal. 800 Bal. 9,000Accounts Payable Common Stock(e) 400 (c) 800 (a) 21,500Bal. 400 Bal. 21,500 Dividends Service Revenue(g) 2,000 (f) 8,300 Bal. 2,000 Bal. 8,300 Salary Expense Rent Expense(d) 1,800 (b) 1,500Bal. 1,800 Bal. 1,500(10-20 min.) E 2-13Req. 1LaVell Oxford, AttorneyTrial BalanceJuly 31, 20X8ACCOUNT DEBIT CREDITCash…………………………...$ 6,800Accounts receivable………..8,300Office supplies (800)Office furniture………………9,000Accounts payable…………..$ 400Common stock………………21,500Dividends……………………..2,000Service revenue……………..8,300Salary expense………………1,800Rent expense……………….. 1,500Total…………………………...$30,200 $30,200Req. 2The business performed well during July. The result of operations was net income of $5,000, as shown by the income statement accounts:Service revenue………………….$ 8,300Salary expense………..$1,800Rent expense…………. 1,500Total expenses……………….. (3,300)Net income……………………….. $ 5,000(20-30 min.) E 2-14Reqs. 1 and 3Cash Accounts ReceivableDec. 2 7,000 Dec. 2 500 Dec. 18 1,7009 800 3 3,00012 200Bal. 4,100Supplies EquipmentDec. 5 300 Dec. 3 3,000Furniture Accounts PayableDec. 4 3,600 Dec. 4 3,6005 300Bal. 3,900 Common Stock DividendsDec. 2 7,000Service Revenue Rent ExpenseDec. 9 800 Dec. 2 50018 1,700Bal. 2,500Utilities Expense Salary ExpenseDec. 12 200(continued) E 2-14Req. 2JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Dec. 2 Cash……………………………………..7,000Common Stock……………………..7,0002 Rent Expense (500)Cash (500)3 Equipment……………………………...3,000Cash………………………………….3,0004 Furniture………………………………..3,600Accounts Payable………………….3,6005 Supplies (300)Accounts Payable (300)9 Cash (800)Service Revenue (800)12 Utilities Expense (200)Cash (200)18 Accounts Receivable…………………1,700Service Revenue…………………...1,700 (continued) E 2-14Req. 4Matthew Rogers, Certified Public Accountant, P.C.Trial BalanceDecember 18, 20XXACCOUNT DEBIT CREDIT Cash…………………………...$ 4,100Accounts receivable………..1,700Supplies (300)Equipment……………………3,000Furniture……………………...3,600Accounts payable…………..$ 3,900Common stock………………7,000Dividends……………………..—Service revenue……………..2,500Rent expense (500)Utilities expense (200)Salary expense………………—Total…………………………...$13,400 $13,400(20-40 min.) E 2-15a. Net income for March – Given as follows:Retained EarningsFeb. 28 Bal. 7,000MarchMarch dividends 15,800 net income X = $19,300Mar. 31 Bal. 10,500$7,000 + X – $15,800 = $10,500X = $19,300b. Total cash paid during March:CashFeb. 28 Bal. 11,600March receipts 81,200 March payments X = $87,800Mar. 31 Bal. 5,000$11,600 + $81,200 – X = $ 5,000X = $87,800 (continued) E 2-15c. Cash collections from customers during March:Accounts ReceivableFeb. 28 Bal. 24,300March saleson account 49,400 March collections X = $47,000 Mar. 31 Bal. 26,700$24,300 + $49,400 – X = $26,700X = $47,000d. Cash paid on a note payable during March:Note PayableFeb. 28 Bal. 13,900 March MarchX =17,500 payments on note X new borrowing 25,000Mar. 31 Bal. 21,400 $13,900 + $25,000 – X = $21,400X = $17,500(20-30 min.) E 2-16Req. 1Road Runner, Inc.Trial BalanceDecember 31, 20X5Cash…………………………...$ 4,200Accounts receivable………..7,200Supplies (800)Land…………………………...34,000Accounts payable…………..$ 5,800Note payable…………………5,000Common stock………………20,000Retained earnings…………..7,300Service revenue……………..9,100Salary expense………………3,400Advertising expense………. 900 _______Totals………………………….$50,500 $47,200Out of balanceby $3,300The correct balance of Accounts Receivable is $3,900 ($7,200 – $3,300). After this correction, total debits will be $47,200 ($50,500 – $3,300), the same as total credits.(continued) E 2-16Req. 2Road Runner, Inc.Trial BalanceDecember 31, 20X5Cash ($4,200 –$400)……………………$ 3,800Accounts receivable($7,200 –$3,300 + $7,000)..............10,900 Supplies.. (800)Land ($34,000 + $80,000)………………114,000Accounts payable ($5,800 + $2,000)…$ 7,800 Note payable ($5,000 + $80,000)……...85,000 Common stock…………………………..20,000 Retained earnings………………………7,300 Service revenue ($9,100 + $7,000)……16,100 Salary expense ($3,400 + $400)………3,800Advertising expense ($900 + $2,000). 2,900Tot als……………………………………...$136,200 $136,200Req. 3a. Total assets = $129,500 ($3,800 + $10,900 + $800 + $114,000).b. Road Runner is profitable, as indicated by the excess of revenue ($16,100) over totalexpenses ($6,700 = $3,800 + $2,900).(10-15 min.) E 2-17San Francisco:Income statement June July Medical expense…………..$40,000 $ -0- Balance sheet June 30 July 31 Cash…………………………$55,000 $23,000*Accounts payable…………40,000 8,000** Bay Area:Income statement June July Service revenue…………..$40,000 $ -0- Balance sheet June 30 July 31 Cash………………………… $ -0- $32,000Accounts receivable……..40,000 8,000**Explanation:San Francisco’s expense is Bay Area’s revenue.San Francisco’s cash payment is Bay Area’s cash receipt.San Francisco’s account payable is Bay Area’s account receivable. __________*$55,000 – $32,000 = $23,000**$40,000 – $32,000 = $ 8,000。

西方财务会计 chapter.ppt

Equity: Residual or ownership interest
Investment by Owners: Increases in net assets
Distributions to Owners: Decreases in net assets
Comprehensive Income: Changes in equity from nonowner sources
And a measurement-communication activity---The usefulness of accounting information depends on effective measurement of the economic activities and effective communication of those measurements to users of that information.
income statement balance sheet
REVENUES
Revenues are the gross increases in owners’ (stockholders’) equity that result from operating the business.
Generally, revenues result from the sale of merchandise, the performance of services, the rental of property, or the lending of money.
Losses: Decreases in equity from incidental
transactions

西方财务会计课后习题答案

西方财务会计课后习题答案Chapter 6 Merchandise Inventory and Cost of Goods Sold379Chapter 6Merchandise Inventory and Cost of Goods SoldCheck Points(10 min.) CP 6-1Nissan North AmericaBalance Sheet December 31, 20X6Current assets:Inventory (300 @ $80)………………….. $24,000Nissan North America Income StatementYear Ended December 31, 20X6Sales revenue [700 ($80 + $40)]……….$84,000 Cost of goods sold (700 @ $80)………… 56,000 Gross profit…………………………………. $28,000Chapter 6 Merchandise Inventory and Cost of Goods Sold379 (10-15 min.) CP 6-21. (Journal entries)Inventory………………………………….. 100,000 Accounts Payable……………………. 100,000Cash ($140,000 ⨯ .20)……………………28,000 Amounts Receivable ($140,000 ⨯ .80).. 112,000Sales Revenue………………………... 140,000 Cost of Goods Sold…………………….. 60,000Inventory ($100,000 ⨯ .60)…………..60,0002. (Financial statements)BALANCE SHEET Current assets: Inventory ($100,000 – $60,000)………………. $40,000 INCOME STATEMENT Sales revenue………………………………………$140,000 Cost of goods sold………………………………..60,000Gross profit………………………………………… $ 80,000Chapter 6 Merchandise Inventory and Cost of Goods Sold379Billions Inventory………………………… 6.4 Cash…………………………... 6.4Accounts Receivable…………. 28.5 Sales Revenue………………. 28.5 Cost of Goods Sold…………… 6.2 Inventory……………………... 6.2 Cash……………………………… 26.3Accounts Receivable……….26.3Chapter 6 Merchandise Inventory and Cost of Goods Sold379 1. Inventory costs are increasing from $10 to $14 to $18 per unit.2. FIFO results in the highest cost of ending inventory ($360) because under FIFO the ending inventory is costed at the last costs incurred during the period. When costs are increasing, the last costs are the highest costs.FIFO results in the lowest cost of goods sold . This occurs because the oldest costs are assigned to cost of goods sold. When costs are increasing, the oldest costs are the lowest.FIFO results in the highest gross profit because cost of goods sold, the expense, is the lowest. (Sales revenue is unaffected by the inventory costing method.)3. LIFO results in the lowest cost of ending inventory ($240) because under LIFO, the ending inventory is costed at the oldest costs. When costs are increasing, the oldest costs are the lowest costs.LIFO results in the highest cost of goods sold . This occurs because the last costs of the period are assigned to cost of goods sold. When costs are increasing, the last costs are the highest.LIFO results in the lowest gross profit because cost of goods sold, the expense, is the highest. (Sales revenue is unaffected by the inventory costing method.)Chapter 6 Merchandise Inventory and Cost of Goods Sold379a b cAverageCost FIFO LIFOCost of goods sold: Average (50 @ $15*) $750 FIFO (10 @ $10) + (25 @ $14) + (15 @ $18) $720 LIFO (25 @ $18) + (25 @ $14) $800 Ending inventory: Average (10 @ $15*) $150 FIFO (10 @ $18) $180 LIFO (10 @ $10) $100 _____*Average cost = ($100 + $350 + $450)= $15per unit (10 + 25 + 25)Chapter 6 Merchandise Inventory and Cost of Goods Sold379 (10-15 min.) CP 6-6Kinko’sIncome StatementYear Ended December 31, 20XXAverage FIFOLIFO Sales revenue (600 ⨯ $20)$12,000 $12,000 $12,000 Cost of goods sold (600 ⨯ $9.90*)5,940 (100 ⨯ $9) + (500 ⨯ $10)5,900 (600 ⨯ $10)6,000Gross profit 6,060 6,100 6,000 Operating expenses 4,000 4,0004,000Net income $ 2,060 $ 2,100 $ 2,000 _____ *Beginning inventory (100 @ $9.20)………….. $ 920 Purchases (700 @ $10)…………………………7,000Goods available…………………….…………… $7,920 Average cost per unit $7,920 / 800 units… $ 9.90Chapter 6 Merchandise Inventory and Cost of Goods Sold379(10 min.) CP 6-7Kinko’sIncome StatementYear Ended December 31, 20XXAverage FIFOLIFO Sales revenue (600 ⨯ $20)$12,000 $12,000 $12,000 Cost of goods sold (600 ⨯ $9.90*) 5,940(100 ⨯ $9) + (500 ⨯ $10)5,900 (600 ⨯ $10)______ ______ 6,000Gross profit 6,060 6,100 6,000 Operating expenses 4,000 4,0004,000Income before income tax $ 2,060 $ 2,100 $ 2,000 Income tax expense (40%) $ 824 $ 840 $ 80*From CP 6-6(5 min.) CP 6-8Lands’ End managers can delay purchases of invent ory until the next year. Under LIFO, high inventory costs that would haveMethod tominimize income tax expense. Method to maximize reported income(beforetax).Chapter 6 Merchandise Inventory and Cost of Goods Sold379 been paid for inventory do not become expense as cost of goods sold in the current year. As a result, the current year’s income statement reports a higher net income than Lands’ End would have reported if the company had replaced inventory before year end.Chapter 6 Merchandise Inventory and Cost of Goods Sold379(5-10 min.) CP 6-9Millions BALANCE SHEET Current assets: Inventories, at market (which is lower than cost).. $ 330 INCOME STATEMENT Cost of goods sold [$1,001 + ($333 – $330)]………… $1,004Chapter 6 Merchandise Inventory and Cost 379 (10 min.) CP 6-101. FIFO2. LIFOGross profit percentage: Gross profit = $460* = 46% $340**= 34%Net sales revenue $1,000 $1,000 _____ * $1,000 – $540 = $460 ** $1,000 – $660 = $340 Inventory turnover: Cost of goods sold =$540 $660Average inventory ($100 + $360) / 2 ($100 + $240) / 2 = 2.3 times = 3.9 times 3. Gross profit percentage — FIFO looks better. 4. Inventory turnover — LIFO looks better.Chapter 6 Merchandise Inventory and Cost 3791. Beginning inventory……………………………...$ 300,000+ Purchases……………………………………….…1,600,000= Goods available…………………………………...1,900,000– Cos t of goods sold………………………………. (1,800,000) = Ending inventory……………………………….…$ 100,0002. Beginning inventory…………………………….. $ + Purchases……………………………………….… 1,600,000 = Goods available…………………………………... – Cost of goods sold: Salesrevenue……………………….$3,000,000 Less estimated gross profit (40%) (1,200,000)Estimated cost of goods sold………………. (1,800,000) = Estimated cost of ending inventory…………...$ 100,000sameChapter 6 Merchandise Inventory and Cost 379Correct Amount (Millions)a. Inventory ($333 + $3)………………………………… $ 336b. Net sales (unchanged)………………………………. $1,755c. Cost of goods sold ($1,001 – $3)…………………... $ 998d. Gross profit ($754 + $3)……………………….……..$ 757(10 min.) CP 6-131. Last yea r’s reported gross profit was understated .Correct gross profit last year was $5.6 million ($4.0 + $1.6).2. This year’s gross profit is overstated .Correct gross profit for this year is $3.2 million ($4.8 – $1.6).3. Lang’s perspective is better becau se correcting the error changes the trend of correct gross profit from up (good) to down (bad), as follows: Millions Last Year This Year Trend Reported gross profit…….. $4.0 $4.8 Up (Good) Correct gross profit………. $5.6 $3.2 Down (Bad)Chapter 6 Merchandise Inventory and Cost 3791. Ethical. There is nothing wrong with buying inventory whenever a company wishes.2. Ethical . Same idea as 1.3. Unethical . The company falsified its reported amounts of inventory and net income.4. Unethical . The company falsified its reported inventory purchases, cost of goods sold, and net income in order to cheat the government (and the people) out of income tax.5. Unethical . The company falsified its reported amount of inventory in order to cheat the government (and the people) out of taxes.Chapter 6 Merchandise Inventory and Cost 379 Exercises(15-20 min.) E 6-1Req. 1 (journal entried)Perpetual System1. Purchases: Thousands Inventory...................................... 2,200 Accounts Payable...................... 2,200 2. Sales: Cash ($3,500 ⨯ .20) (700)Accounts Receivable ($3,500 ⨯ .80). 2,800 Sales Revenue…………….………. 3,500 Cost of Goods Sold………………….. 2,100 Inventory………………….……….... 2,100Req. 2 (financial statement amounts)BALANCE SHEET Thousands Current assets:Inventory ($370 + $2,200 – $2,100)... $ 470 INCOME STATEMENT Sales revenue……………………………. $3,500 Cost of goods sold……………………… 2,100 Gross profit………………………………. $1,400Chapter 6 Merchandise Inventory and Cost 379JournalDATEACCOUNT TITLES AND EXPLANATIONDEBITCREDIT1 Inventory ($640 + $1,870 + $900)………. 3,410Accounts Payable………………………3,410 2 Accounts Receivable (17 @ $500)……... 8,500 Sales Revenue…………………………..8,500Cost of Goods Sold………………………. 2,800* Inventory…………………………………2,8003 Sale s revenue……………………………… $8,500 Cost of goods sold……………………….. 2,800 Gross profit………………………………… $5,700 Ending inventory ($800 + $3,410 – $2,800)……... $1,410 _____*(9 @ $160) + (8 @ $170) = $2,800Chapter 6 Merchandise Inventory and Cost 379 1.InventoryBegin. Bal. ( 5 units @ $160) 800 PurchasesOct. 8( 4 units @ $160) 64015 (11 units @ $170) 1,870 Cost of goods sold 26 ( 5 units @ $180) 900(17 units @ $?) ? Ending bal.( 8 units @ $?) ?Cost of Goods Sold Ending Inventory (a) Specificunit cost (6 @ $160) + (11 @ $170) = $2,830 (3 @ $160) + (5 @ $180) = $1,380 (b) Average cost 17 ⨯ $168.40* = $2,863 8 ⨯ $168.40* = $1,347 _____*Average cost per unit =($800 + $640 + $1,870 + $900)=$168.40(5 + 4 + 11 + 5)(c) FIFO (9 @ $160) + (8 @ $170) = $2,800 (5 @ $180) + (3 @ $170) $1,410(d) LIFO (5 @ $180) + (11 @ $170) + (1 @ $160) $2,930(8 @ $160) $1,2802. LIFO produces the highest cost of goods sold. FIFO produces the lowest cost of goods sold.Chapter 6 Merchandise Inventory and Cost 379The increase in inventory cost from $160 to $170 to $180 per unit causes the difference in cost of goods sold.Chapter 6 Merchandise Inventory and Cost 379 (15-20 min.) E 6-4Cost of goods sold: LIFO ($2,930) – FIFO ($2,800)………………………… $130 Income tax rate……………………………………….. .35 LIFO advantage in tax savings………………………….. $ 46(15 min.) E 6-51. a. FIFOCost of goods sold: (5 @ $90) + (5 @$95)……………...$925 Ending inventory: 7 @$95………………………………$665b. LIFOCost of goods sold: 10 @$95……………………………..$950 Ending inventory: (5 @ $90) + (2 @$95)……………... $6402.VPA, Inc.Income StatementMonth Ended May 31, 20XXSales revenue (3 @ $150) + (7 @ $155)…………….$1,535Chapter 6 Merchandise Inventory and Cost 379Cost of goo ds sold……………………………………. 925 Gross profit…………………………………………….. 610 Operating expenses…………………………………... 310 Income before income tax…………………………… 300 Income tax expense (40%)…………………………… 120 Net income……………………………………………… $ 180Chapter 6 Merchandise Inventory and Cost379(15 min.) E 6-6Millions 1.Gross profit: FIFO LIFOSales revenue…………………………………… $4.9 $4.9Cost of goods soldFIFO: 600,000 ⨯ $7…………………………… 4.2LIFO: (400,000 ⨯ $5) + (100,000 ⨯ $6) + (100,000 ⨯$7)……………………… 3.3Gross profit……………………………………… $ .7 $1.62. Gross profit under FIFO and LIFO differ because inventorycosts decreased during the period.If you base your prediction on the decrease in inventory unitcost, then, yes , you would predict that LIFO gross profit would be higher.But if you assume that FIFO produces higher gross profit,then, no , the actual result does not follow your prediction.Chapter6 Merchandise Inventory and Cost379 DATE: _____________TO: Rick TaborFROM: Student NameSUBJECT: Proposal for Saving Income TaxWe can save income tax by buying above-normal quantities of inventory before the end of the year. Inventory costs are rising, and the company uses the LIFO inventory method. Under LIFO, the higher cost of year-end purchases of inventory goes straight into cost of goods sold. This increases cost of goods sold and decreases net income and income taxes. Because our inventory levels are lower than normal, we need the inventory anyway. In effect, we can use our cash to buy inventory or to pay income taxes. I think it would be wiser to buy inventory.Chapter 6 Merchandise Inventory and Cost379Specific unit cost 1. Used to account for automobiles, jewelry, andart objects.Average 2. Provides a middle-ground measure of endinginventory and cost of goods sold.FIFO 3. Maximizes reported income.LIFO 4. Matches the most current cost of goods soldagainst sales revenue.LIFO 5. Results in an old measure of the cost ofending inventory.LIFO 6. Generally associated with saving incometaxes.FIFO 7. Results in a cost of ending inventory that isclose to the current cost of replacing theinventory.LIFO 8. Enables a company to buy high-costinventory at year end and thereby to decreasereported income.LIFO 9. Enables a company to keep reported incomefrom dropping lower by liquidating older layers ofinventory.LCM 10. Writes inventory down when replacementcost drops below historical cost.Chapter6 Merchandise Inventory and Cost379 Jeffrey CorporationIncome Statement (partial)Year Ended December 31, 20X4Sales revenue ……………………………………………… $225,000 Cost of goods sold [$110,000 + ($18,000 – $17,000)].. 111,000 Gross profit………………………………………………… $114,000Note : Cost was used for beginning inventory because cost waslower than market. Market (replacement cost) was usedfor ending inventory because market was lower thancost.Chapter 6 Merchandise Inventory and Cost379(20-25 min.) E 6-10AB C D E 1WHITEWATER CANOE SALES 2ESTIMATED INCOME UNDER FIFO AND LIFO 3JANUARY 20XX 45FIFO LIFO FIFO LIFO 67 Sales$260,000 $260,000 $260,000 $260,000 89 Cost of goods sold 10 Beginning inventory 63,000 63,000 63,00063,00011 Net purchases 159,000 159,000 182,000 182,000 1213 Goods available 222,000 222,000 245,000245,00014 Ending inventory (85,000) (78,000) (85,000)(78,000)1516 Cost of goods sold 137,000 144,000 160,000 167,000 1718 Gross profit 123,000 116,000 100,00093,00019 Operating expenses 83,000 83,000 83,00083,0002021 Income from operations 40,000 33,000 17,00010,000Chapter 6 MerchandiseInventory and Cost 379 22 Income tax expense16,000 13,200 6,800 4,000 2324 Net income$ 24,000 $ 19,800 $ 10,200 $ 6,000 25Chapter 6 Merchandise Inventory and Cost379(15-20 min.) E 6-11(Amounts in millions)a. $ 1,055 (Let a = beginning inventory;a + $7,344 – $1,294 = $7,105a = $1,055)b. $ 12,459 ($19,564 – $7,105)d. $150,255 ($191,329 – $41,074)c. $151,904 (Let c = Purchases;$19,793 + c – $21,442 = $150,255c = $151,904)e. $ 12,650 ($33,726 – $21,076)f. $ 4,367 ($972 + $3,395)g. $ 546 ($513 + $1,005 – $972)The Coca-Cola CompanyIncome StatementYear Ended December 31, 20XX(Millions)Net sales $19,564Cost of goods soldBeginning inventory $1,055Net purchases 7,344Goods available 8,399Ending inventory (1,294)Cost of goods sold7,105Gross profit 12,459Operating and other expenses7,886Chapter 6 MerchandiseInventory and Cost 379 Income before tax4,573 Income tax expense ($4,573 .333)1,523 Net income $ 3,050Chapter 6 Merchandise Inventory and Cost379(20-30 min.) E 6-12Company Gross Profit Percentage Inventory TurnoverCoca-Cola $12,459 = 63.7% $7,105 = 6.0 times $19,564 ($1,055 + $1,294) / 2Wal-Mart $41,074 = 21.5% $150,255 = 7.3 times $191,329 ($19,793 + $21,442) / 2Intel $21,076 = 62.5% $12,650 = 6.8 times $33,726 ($1,478 + $2,241) / 2Estée Lauder $3,395 = 77.7% $972 = 1.8 times $4,367 ($513 + $546) / 2These ratio values explain the merchandising philosophies of these companies. Wal-Mart has the lowest gross profit percentage (21.5%) and the fastest rate of inventory turnover (7.3 times per year). This makes sense for a volume discounter.Estée Lauder has the highest gross profit percentage (77.7%) and the slowest inventory turnover (1.8 times per year). High markups and low turnover go hand-in-hand.Coca-Cola’s and Intel’s ratios fall between these extremes.Chapter6 Merchandise Inventory and Cost379 These ratio data suggest that Intel is the most profitable company of this group.(10 min.) E 6-13BillionsSales……………………………………………... $45.7Cost of goods soldBeginning inventory……………………….. $ 5.5Purchases……………………………………. 33.2Goods available…………………………….. 38.7Ending inventory…………………………… (6.6)Cost of goods sold…………………………. 32.1Gross profit…………………………………….. $13.6Gross profit percentage = $13.6 = 29.8% $45.7Inventory turnover= $32.1 = 5.3 times($5.5 + $6.6) / 2Chapter 6 Merchandise Inventory and Cost 379 Year ended January 31, 20X4: MillionsBudgeted cost of goods sold ($6,500 1.08)………... $7,020Budgeted ending inventory…………………………….. 2,200Budgeted goods available………….…………………… 9,220Actual beginning inventory……………………………..(1,900)Budgeted purchases…………………………………….. $7,320Chapter 6 Merchandise Inventory and Cost 379Beginning inventory………………………$ 48,00Net purchases………………………………136,000Goods available……….…………………... 184,000 Cost of goods sold: Net sales revenue……………………… $200,000 Le ss estimated gross profit of 40%… (80,000)Estimated cost of goods sold………... 120,000 Estimated cost of inventory destroyed.. $ 64,00Another reason managers use the gross profit method to estimate ending inventory is to test the reasonableness of ending inventory from (a) the perpetual inventory records or (b) a physical count.Chapter 6 Merchandise Inventory and Cost 379 Allergan, Inc. Income StatementYear Ended September 30,20X5 20X4 Sales revenue $149,000 $122,000 Cost of goods sold: Beginning inventory$27,000 $12,000 Net purchases 72,00066,000Goods available 99,000 78,000 Ending inventory (16,000)(27,000)*Cost of goods sold 83,00051,000Gross profit 66,000 71,000 Operating expenses 30,00020,000Net income $ 36,000 $ 51,00*$18,000 + $9,000 = $27,000Allergan actually performed poorly in 20X5, compared to 20X4, with net income down from $51,000 to $36,000. The understatement of inventory at the end of 20X4 caused 20X4 netChapter 6 Merchandise Inventory and Cost 379income to be understated. Then this same error caused 20X5 net income to be overstated, giving the false impression that profits were higher in 20X5. In reality, net income was down in 20X5.Chapter 6 Merchandise Inventory and Cost 379 (10 min.) E 6-17Millions INCOME STATEMENT Sales r evenue………………………………………….. $18,144 Cost of goods sold ($5,456 – $100)………………... 5,356 Gross profit…………………………………………….. $12,788(5-10 min.) E 6-18a. Use average cost.b. Use FIFO.c. Use FIFO.d. Use any method. They all produce the same resultsbecause costs are stable. e. Buy inventory late in the year. f. Company is using LIFO.Chapter 6 Merchandise Inventory and Cost 379Req. 1Actual cost of goods sold =1. From purchase in December (30 @ $1,300)…….. $ 39,0002. From purchase in June (50 @ $1,200)……………. 60,0003. From purchase in February (20 @ $1,100)………. 22,0004. From beginning inventory (30 @ $1,000)………...30,000Actual cost of goods sold……………………….. $151,000Req. 2Cost of goods sold with the additional year-end purchase (this would have avoided a LIFO liquidation) = 1. From purchase in December (60* @ $1,300)……. $ 78,000 2. From purchase in June (50 @ $1,200)……………. 60,000 3. From purchase in February (20 @ $1,100)……….22,000Cost of goods sold (with no LIFO liquidation). $160,000 _____*Must purchase a total of 60 units in December to keep ending inventory at 40 units, which was the level of beginning inventory.Chapter 6 Merchandise Inventory and Cost 379 Req. 3The LIFO liquidation• Boosted gross profit by $9,000 ($160,000 – $151,000). • Cost the company $3,600 ($9,000 ⨯ .40) in income tax. • Boosted net income by $5,400 ($9,000 – $3,600).• Was bad for the company because the additional income tax drained off valuable cash. Paying the added tax was not worth the boost in net income because the company would have to replenish its inventory anyway, so it’s better to go ahead and buy the goods before year end. That action would save the cash that was wasted on taxes.Chapter 6 Merchandise Inventory and Cost 379Sales, gross profit, net income, the gross profit percentage, and inventory turnover showed the following trends:Dollars in millions 20X7 20X6 20X5Sales$37.0 $35.9 $33.7 Cost of sales29.728.1 26.3Gross profit 7.37.8 7.4 Net income (net loss) (0.2)0.40.5Gross profit = $7.3 = .197 $7.8 = .217 $7.4= .220percentage $37.0 $35.9 $33.7 Inventory = $29.7 = 4.4 $28.1 = 4.1 $26.3= 4.1turnover ($7.1 + $6.4) / 2 ($6.5 + $7.1) / 2 ($6.4 + $6.5) / 2The gross profit percentage dropped significantly while the rate of inventory turnover improved. This suggests that Zmart was having to discount its merchandise more and more just to sell the goods. The end result was a net loss in 20X7.Chapter 6 Merchandise Inventory and Cost 379 Selling, general and administrative expenses increased significantly, which suggests that Zmart was having to advertise heavily in order to sell its inventory.Chapter 6 Merchandise Inventory and Cost 379Practice Quiz1. d ($7,200 – $5,500 = $1,700)2. b ($2,000 + $6,000 – $5,500 = $2,500)3. a4. c [(3,400 @ $10.75) + (100 @ $10.30) = $37,580]5. d (3,400 @ $10.75 = $36,550)6. a7. d ($144,000 + $216,000 = $360,000)8. c 9. c 10. c[$620,000 – ($70,000 + $400,000 – $40,000) =$190,000]11. b($10,000 + X – $15,000 = $90,000; X = $95,000) 12. c 13. d[($500,000 – $200,000) ($25,000 + $35,000) / 2] = 10 times14. aNet sales = $480,000 ($490,000 – $10,000)COGS= $50,000 + ($230,000 + $20,000 – $6,000– $4,000) – $40,000 =$250,000GP% = ($480,000 – $250,000) / $480,000 = 47.9%Chapter 6 Merchandise Inventory and Cost 379 15. b $53,500 + $75,500 – $93,000 (1 – .30) = $63,90016. b 17. aChapter 6 Merchandise Inventory and Cost 379ProblemsGroup A(20-30 min.) P 6-1AReq. 1Inventory…………………………………….. 9,580,000 Accounts Payable………………………. 9,580,000 Accounts Payable…………………………. 9,110,000 Cash………………………………………. 9,110,000 Cash………………………………………….. 4,700,000 Accounts Receivable……………………… 8,700,000 Sales Revenue…………………………… 13,400,000 Cost of Goods Sold………………………... 9,880,000 Inventory…………………………………..9,880,000 [$6,300,000 + $1,360,000 + $1,920,000 + (10,000 units ⨯ $30*)] _____ *$1,500,000 / 50,000 units = $30 per unit. Operating Expenses……………………….. 2,130,000Cash ($2,130,000 ⨯2/3)………………….1,420,000 Accrued Liabilities ($2,130,000 ⨯1/3)...710,000Chapter 6 Merchandise Inventory and Cost 379 Income Tax Expense………………………. 556,000 Income Tax Payable……………………..556,000 [($13,400,000 – $9,880,000 – $2,130,000) .40 = $556,000]Chapter 6 Merchandise Inventory and Cost 379Req. 2Inventory Beg. bal. 1,500,000Purchases 9,580,000 COGS 9,880,000End. bal.1,200,000Req. 3Lord & Taylor - Atlanta Income StatementYear Ended January 31, 20X0Sales revenue ……………………………$13,400,000 Cost of goods sold……………………..9,880,000Gross profit……………………………… 3,520,000 Operating expenses……………………2,130,000Inco me before tax……………………… 1,390,000 Income tax expense (40%)…………….556,000Net income………………………………. $ 834,000Chapter 6 Merchandise Inventory and Cost 379 Req. 1The store uses FIFO.This is apparent from the flow of costs out of inventory. For example, the March 8 sale shows a unit cost of $19, which came from the beginning inventory. This is how FIFO, and only FIFO, works.Req. 2Cost of goods sold:27 ⨯ $19= $ 513 23 ⨯ 19 = 4371 ⨯ 20 = 20 25⨯20=500 $1,470Sales 27 + 23 = 50 units ⨯ $36 = $1,8001 + 25 = 26 units ⨯ $37 = 962$2,762 Cost of goods sold……………………………………. (1,470) Gross profit……………………………………………... $1,292Chapter 6 Merchandise Inventory and Cost 379Req. 3Cost of March 31 inventory (24 ⨯ $21) + (10 ⨯ $20).$ 704Chapter 6 Merchandise Inventory and Cost 379 (20-30 min.) P 6-3AReq. 1InventoryBegin. bal. (140 units @ $76) 10,640 Purchases:Dec. 3(217 units @ $81) 17,57712 ( 95 units @ $82) 7,79018 (210 units @ $84) 17,640Cost of goods sold 24 (248 units @ $87) 21,576(696 units @ $?) ? Ending bal.(214 units @ $?) ?Cost of Goods SoldEnding InventoryAverage cost 696 ⨯ $82.6626* $57,533 214 ⨯ $82.6626*$17,690 ____*Average cost =($10,640 + $17,577 + $7,790 + $17,640 + $21,576) =$82.6626 per unit(140 + 217 + 95 + 210 + 248)FIFO (140 @ $76) + (217 @ $81)+ ( 95 @ $82) + (210 @ $84)+ ( 34 @ $87) = $56,605214 @ $87 =$18,618Chapter 6 Merchandise Inventory and Cost 379LIFO (248 @ $87) + (210 @ $84) + ( 95 @ $82) + (143 @ $81) = $58,589 140 @ $76 + (74 @ $81)=$16,634Chapter 6 Merchandise Inventory and Cost 379 (continued) P 6-3AReq. 2LIFO’s cost of goods sold is highest for Hot Wheels because (a) the company’s prices are rising and (b) LIFO assigns to cost of goods sold the cost of the latest inventory purchases. When costs are rising, these latest inventory costs are the highest, and that makes cost of goods sold the highest under LIFO.Req. 3Hot Wheels Motorcycles, Inc.Income StatementMonth Ended December 31, 20XXSales revenue (696 @ $130)…………………….. $90,480Cos t of goods sold………………………………..58,589 Gross profit………………………………………… 31,891 Operating expenses……………………………… 22,000Income before income taxes……………………. 9,891Income tax expense (40%)………………………. 3,956 Net income………………………………………….$ 5,935Chapter 6 MerchandiseInventory and Cost of Goods Sold379(30-40 min.) P 6-4AReq. 1 (partial income statementsBlockbuster Digital ImagesIncome StatementYear Ended December 31, 20XXAVERAGE FIFOLIFO Sales revenue $11,200 $11,200 $11,200 Cost of goods sold 8,392 8,255 8,520 Gross profit $ 2,808 $ 2,945 $ 2,680Computations of cost of goods sold: Average cost = ($1,215 + $2,520 + $2,010 + $1,400 + $2,590)= $3.3569per unit (400 + 800 + 600 + 400 + 700)COGS at average cost = 2,500 $3.3569 = $8,392FIFO COGS = (300 @ $3.00) + (900 @ $3.15) + (600 @ $3.35) + (400 @ $3.50)+ (300 @ $3.70)= $8,255LIFO COGS = (700 @ $3.70) + (400 @ $3.50) + (600 @ $3.35) + (800 @ $3.15)= $8,520。

西方财务会计_chapter8-66页PPT资料

Compute the cost of Heat Co.’s new machine.
6
Determining Cost
List price Salestax@8% Transportationcost Set-up Testing
Total costtoHeatCo.
Date
Description
accounting period. Plant assets are usually depreciable property except for land. Examples:land,buildings,office machines……
2
Accounting for plant assets
Chapter 8
PLANT ASSETS
1
INTRODUCTION
Noncurrent tangible assets. Acquired for use in the operation of the business. The accounts that make up plant assets appear on the balance
4
Asset Acquisition:one piece
Cost
Asset
price
=
+Байду номын сангаас
Reasonable and necessary costs . . .
. . . for getting the asset to the desired location.
. . . for getting the asset ready
Acquisition Disposal(discard,sell,exchange) Depreciation