国际交流学院ACC第一次作业.doc

Question 1a) Bad Debts Expense 58000 Accounts receivable 58000 b) Bad debts expense = Accounts received 5 - the beginning bad debts expense = 920000 5 - 32000 = 14000 Bad Debts Expense 14000 Allowance for Doubtful Debts 14000c) Bad debts expense = Accounts received 5 + the beginning bad debts expense = 920000 5 + 23000 = 69000 Bad Debts Expense 69000 Allowance for Doubtful Debts 69000d) The disadvantage of the direct write-off method is that it makes no attempt to show accounts receivable in the balance sheet at the account actually expected to the received.Question 2(a) a)GENERAL JOURNALDate Account titlesDebts Credit Apr.46671113141621222326272930Inventory Accounts Payable Accounts Receivable Sales Cost of Goods Sold Inventory Accounts Payable Inventory Freight-out Cash Accounts Payable Cash Discount ReceivedCash Discount Allowed Accounts Receivable Inventory Cash Cash Inventory Inventory Accounts Payable Freight-in Cash Cash Sales Cost of Goods Sold Inventory Inventory Cash Accounts Payable Cash Discount Received Sales Returns and Allowances Cash Inventory Cost of Goods Sold Accounts Received Sales Cost of Goods Sold Inventory 649055004400330220616053901104840550630011081406732253063009977407033006490550044003302206036.8123.25500484055063001108140673225306174126997740703300c) FUNKY FASHION DISTRIBUTING PTY LTDIncome Statementfor the month ended 30 April Operating revenue Sales revenue Gross sales revenue 17710 Less: Sales revenue and allowance (99) Net sales revenue 17611 Less: Cost of goods sold (14355) Gross profit 3256 Other operating revenue Discount received 126 126 3382 Operating expenses Selling expenses Freight-out 220 220 Financial expenses Discount allowed 110 110 (330) Profit before income tax 3052(b)GENERAL JOURNALDateAccount titlesDebitCreditSept. 36913PurchasesAccounts PayableAccounts PayablePurchases Returns and AllowanceAccounts ReceivableSalesAccounts PayableCashDiscount Received875100700775875100700759.515.5Question 3a) Cost of goods available for sale = 1100538506440073300822009= 550023100308002640019800= 105600b) FIFO:Ending inventory = 920008550 = 24200COGS = Cost of goods available for sale Ending inventory = 105600 24200 = 81400LIFO:Ending inventory = 5110061650 = 15400COGS = Cost of goods available for sale Ending inventory = 105600 15400 = 90200Average cost: Weighted average unit cost = Cost of goods available for sale total units available for sale = 10560014850 = 7.1 Ending inventory = 27507.1 = 19525 COGS = 105600 19525 = 86075 Prove the accuracy of the cost of goods sold:FIFO: proof of cost of goods soldDateUnits Unit CostTotal CostOct.1110055500 33850623100 94400730800 192750822000Total 1210081400LIFO: proof of cost of goods soldDateUnits Unit CostTotal CostOct.252200919800 193300826400 94400730800 32200613200Total 1210090200C) FIFO is the method that the inventory amount for the balance sheet is the highest.LIFO is the method that the cost of goods sold for the income statement is the highest.Question 4a) Straight-line methodDAISY LTDCalculation =AnnualdepreciationexpenseEnd of yearDepreciationamount Depreciationrate AccumulateddepreciationCarryingamount201027000020%5400054000256000201127000020 54000108000202000201227000020 54000162000148000201327000020 54000216000 94000201427000020 54000270000 40000Total $270000 Diminishing-balance method Depreciation rate = 1.5 0.2 = 0.3 Depreciation expense = carrying amount at beginning of yearDAISY LTDCalculation =AnnualdepreciationexpenseEnd of yearDepreciationamount Depreciationrate AccumulateddepreciationCarryingamount201031000030%9300093000217000201121700030 65100158100151900201215190030 45570203670106330201310633030 31899235569 7443120147443130 34 431*257898 40000Total $270000b) The depreciation rate of the straight-line method 20 smaller than the depreciation rate of the diminishing-balance method 30, the straight-line method would result in the higher reported profit in 2010. Also, the depreciation rate of the straight-line method is unchanged , and the depreciation rate of the diminishing-balance method is becoming smaller and s