会计英语Assignment with answer (easy).docx

1、目录Lesson 1 Accounting: An Information System2Lesson 2 Asset Section of Balance Sheet3&3Lesson 3Liabilities and Owners' Equity Section of Balance Sheet3Lesson 4Income Statement4Lesson 5Ledger Accounts5Lesson 6Journals6Lesson 7An Illustration7Lesson 8Adjusted Procedure9Lesson 9A Worksheet10Les

2、son 10 Closing Procedures12Lesson 11 Cash Control13Lesson 12 A Bank Reconciliation14Lesson 14 Losses from Uncollectible Accounts15Lesson 15 Promissory Notes16Lesson 16 Inventory Measurement17Lesson 17 Long-Term Assets19Lesson 18 Depreciation Methods19Lesson 20 Bonds Payable20Lesson 22 Corporation Ac

3、counting:Capital Stock21Lesson 23 Corporation Accounting:RetainedEarnings22Lesson 24 The Statement of Cash Flows23Lesson 9 A Worksheet1. Jurassic Park Co. prepares monthly financial statements from a work sheet. Selected portions ofJanuary work sheet showed the following data.JURASSIC PARK CO.WORKSH

4、EET(PARTIAL)FOR MONTH ENDED JANUARY 31,2005Dr.Cr,Dr.Cr.(a) 15001,756(b) 2576,939(c)50150(a) 15001,500(b) 257257(c)5050BalanceTrial BalanceAccount TitleDe CcSupplies3,256Accumulated Depreciation6,682Interest Payable100Supplies ExpenseDepreciation ExpenseInterest ExpenseDuring February no events occur

5、red that affected these accounts, but at the end of February the following information was available.(a) Supplies on hand$715(b) Monthly depreciation $257(c ) Accrued interest$50Instructions: Reproduce the data that would appear in the February work sheet, and indicate the amounts that would be show

6、n in the February income statement.Answer:Dr. Supplies Expense1041Cr. Supplies on hand1041Dr. Depreciation Expense257Cr. Accumulated Depreciation257Dr. Interest Expense50Cr. Expense payable50Following should be shown in Feb. income statementJURASSIC PARK CO.WORK SHEET(PARTIAL) FOR MONTH ENDED Feb 28

7、, 2005Trial BalanceAdiustmentsAdjusted Trial BalanceAccount TitleDr.Cr.Dr.Cr.Dr.Cr.Supplies1,756(a)1041715Accumulated Depreciation6,939(b) 2577196Interest Payable150(c)50200Spplies Expense(a) 10411041Depreciation Expense(b) 257257Interest Expense(c)5050（本章未完，接下页）Spplies Expense1041Depreciation Expen

8、se257Interest Expense502. When the accounts of Daniel Barenboim Inc. are examined, the adjusting data listed below are uncovered on December 31, the end of an annual fiscal period.1) The prepaid insurance account shows a debit of $5,280 , representing the cost of a 2-year fire insurance policy dated

9、 August 1 of the current year.2) On November 1, Unearned Rental Revenue was credited for $1,800, representing revenue from a subrental for a 3-month period beginning on that date.3) Interest of $770 has accrued.Instructions: Prepare in general journal form (a) the adjusting entry for each item and (

10、b) the reversing entry for each item where appropriate.Answer:GENERAL JOURNALDate Account Titles and ExplanationDebit Credit(a) adjusting entryDec 31 Insurance expense 1100Prepaid insurance 1100Apportioning insurance expense recorded on Aug 1 Dec 31 Unearned Rental revenue 1200Rental Revenue 1200Rec

11、ognize rental revenue from Nov. 1 till Dec 31 Dec 31 Interest expense 770Interest payable 770Interest of $770 has accrued.(b) the reversing entry Jan 11nterest payable 770Interest expense 770Reversing entry of Dec 31Lesson 10 Closing Procedures1. The adjusted trial balance of Lopez Company shows the

12、 following data pertaining to sales at the end of its fiscal year, October 31,2005: Sales $800,000, Transportation out $12,000, Sales Returns and Allowances $24,000 and Sales Discounts $15,000.Instructions： Prepare separate closing entries for (1) sales and (2) the contra accounts to sales.Answer:(1

13、) Dr. Sales800,000Cr. Income Summary800,000 Dr. Income Summary51,000Cr.Transportation out12,000Sales Returns and Allowances24,000Sales Discounts15,0002. Presented below is information related to Gonzales Corporation for the month of January 2005.Cost of goods sold Freight-out Insurance expense Rent

14、expense$ 208,000Salary expense$61,0007,000Sales discounts8,00012,000Sales returns and allowances13,00020,000Sales350,000Instructions： Prepare the necessary closing entries.Answer:Dr. Sales350,000Cr.Sales returns and allowances13,000Sales discounts8,000Income Summary329,000Dr. Income Summary308,00020

15、8,0007,00012,00020,00061,000Cr. Cost of goods sold Freight-out Insurance expense Rent expense Salary expenseLesson 11 Cash Control(1) The former bookkeeper of White Electric Supply is currently in prison for stealing nearly $416,000 in less than five years.Her method was crude and simple. She would

16、write a check for the correct amount payable to a supplier for, say, $15,000. However, she would record in the company's check register an amount significantly greater, say, $20,000. She would then write a check payable to herself for the $5,000 difference. In the check register, next to the num

17、ber of each check she had deposited in her personal bank account, she would write the word “void"，making it appear as though the check had been destroyed. This process went undetected for nearly five years.Instruction: What controls must have been lacking at White Electric Supply to enable the

18、bookkeeper to steal nearly $416,000 before being caught?Answer:Following controls must have been lacking:(2) Cash is handled separately from the recording of cash transactions.(3) Check register is checked against bank statement by an independent accountant at end of each period.Lesson 12 A Bank Rec

19、onciliation1) Shown below is the information needed to prepare a bank reconciliation for Data Flow, Inc. at December 31:2) At Dec. 31, cash per the bank statement was $15,981; cash per the company5s records was $17,445.3) Two debit memoranda accompanied the bank statement: service charges for Dec. o

20、f $24, and a $600 check drawn by Jane Jones marked “NSF”.4) Cash receipts of $4,353 on Dec 31 were not deposited until January 4.5) The following checks had been issued in Dec but were not included among the paid checks returned by the bank: no.620 for $978, no.630 for $2,052 and no.641 for $483.Ins

21、truction: Prepare a bank reconciliation at Dec 31.Answer:Data Flow, Inc.Bank ReconciliationDec. 31Balance per bank statement15,981Add: Deposits not yet credited by bank4,35320,334Less: Outstanding checks (list)9782,052 4833513Adjusted balance16,821Balance per books17,445Add: Items credited by bank,

22、not yet entered on books017,445Less: Items charged by bank, not yet entered on books (list)24600624Adjusted balance16,8212. Assume that the following information relates to your most recent bank statement dated Sept. 30:$3,468.52Balance per bank statement at Sept. 30Checks written that had not clear

23、ed the bank as of Sept 30:#203 University tuition$2,200.00#211 October apartment rent350.00Interest amounting to $3.75 was credited to your account by the bank in Sept. The bank's service charge for the month was $5.00. You looked in your checkbook and discovered its balance was $919.77. Instruc

24、tion: Prepare a bank reconciliation to determine your correct checking account balance. Explain why neither your bank statement nor your checkbook shows this amount.Answer:Data Flow, Inc.Bank ReconciliationDec. 31Balance per bank statement3468. 52Add: Deposits not yet credited by bank3,469Less: Outs

25、tanding checks (list)2,2003502550Adjusted balance919Balance per books919.77Add: Items credited by bank, not yet entered on books3.75924Less: Items charged by bank, not yet entered on books55Adjusted balance919Neither your bank statement nor your checkbook shows this amount because of outstanding ite

26、ms.Lesson 14 Losses from Uncollectible Accounts1. (Estimates Related to Credit Sales) Maps & Globes, Inc., is a manufacturer that makes all sales on 30-day credit terms. Annual sales are approximately $25 million. At the end of 2000, accounts receivable were presented in the company's balanc

27、e sheet as follows:Accounts Receivable from Customers$2,350,000Less: Allowance for Doubtful Accounts70,000During 2001, $740,000 in accounts receivable were written off as uncollectible. Of these accounts written off, receivables totaling $24,000 were unexpectedly collected. At the end of 2001, an ag

28、ing of accounts receivable indicated a need for an $80,000 allowance to cover possible failure to collect the accounts currently outstanding.Instruction: prepare following entries:a. One entry to summarize all accounts written off against the allowance for doubtful accounts during 2001.b. Entry to r

29、ecord the $24,000 in accounts receivable that were unexpectedly collected.c. The adjusting entry required at Dec. 31,2001, to increase the allowance for doubtful accounts to $80,000.Answer:a. Dr. Allowance for Doubtful Account 740,000 Cr.Accounts Receivable740,000Dr. .Accounts Receivable 24,000Cr. A

30、llowance for Doubtful Accounts 24,000Dr. Cash24,000Cr.Accounts Receivable24,000b. Dr. Uncollectible Accounts Expense 10,000(80,000-70,000=10,000)Cr. Allowance for Doubtful Accounts 10,0002. Estimates Related to Accounts ReceivablePublic Image, a firm, uses the balance sheet approach to estimate unco

31、llectible accounts expense. At year-end an aging of the accounts receivable produced the following classification:Not yet due$333,0001-30 days past due135,00031-60 days past due58,50061-90 days past due13.500Over 90 days past due 22,500$ 562,500 ectible for theabove five age groups to be as follows:

32、 Groupl, 1%; Group2, 3%; Group3, 10%; Group4, 20%; and Group 5, 50%. The Allowance for Doubtful Accounts before adjustment at Dec. 31 showed a credit balance of $8,100.Instruction:a .Prepare the adjusting entry needed to bring the Allowance for Doubtful Accounts to the proper amount b .On January 10

33、 of the following year, Public Image learned that an account receivable that had originated on Sept 1 in the amount of $8,550 was worthless because of the bankruptcy of the customer. Prepare the journal entry required on January 10 to write off this account.Answer:a. (333000*.01 +135000*.03+58500*.1

34、+13500*.2+22500*58100)=19,080Dr. Uncollectible Accounts Expense 19,080Cr. Allowance for Doubtful Accounts19,080b. Dr. Allowance for Doubtful Accounts 8,550Cr. Accounts Receivable8,550Lesson 15 Promissory NotesOn Oct 1, 2004, Jeppo Farm Equipment Company sold a pecan-harvesting machine to Lujan Broth

35、ers Farm, Inc. Lujan Brothers Farm gave Jeppo a 1 -year, $100,000, 12% note (a realistic rate of interest for a note of this type). The note required interest to be paid annual on Oct 1. Jeppo's financial statements are prepared on a calendar-year basis.Instruction:Assuming Lujan Brothers Farm f

36、ulfills all the terms of the note, prepare the necessary journal entries for Jeppo Farm Equipment Company for the entire term of the note.AnswerOct 1,2004 Dr. Notes ReceivableOr. RevenueDec 31,2004 Dr. Interest ReceivableCr. Interest RevenueOct 1,2005 Dr. Cash100,000100,0003,0003,000112,000Cr. Inter

37、est ReceivableInterest RevenueNotes Receivable30009000100,000Lesson 16 Inventory Measurement1. The Audiophile sells C-440, a state-of-the art speaker system. During the current year, The Audiophilepurchased nine of these speaker systems at the following dates and acquisition costs:DateUnits Purchase

38、dunit CostTotal CostOct.123,0006,000Nov. 1733,2009,600Dec. 143,25013,000Available for sale during the year928,600On Nov 21, The Audiophile sold four of these speaker systems to the Boston Symphony. The other five C -440s remained in inventory at Dec 31.Instruction:Assume that The Audiophile uses a p

39、erpetual inventory system. Compute (1) the cost of goods sold relating to the sale of C-440 speakers and (2) the ending inventory of these speakers at Dec 31, using each of the following flow assumption: a. Average cost b. First-in, first-out (FIFO) c. Last-in, first-out (LIFO)Answer:a. Average cost

40、(1) Cost of goods sold (at average cost):Average unit cost at Nov. 21 ($6000+$9600) / 5units3120Cost of goods sold (4 units * $3120 per unit)12480(2) Inventory at Dec 31 (at average cost)Units remaining after sale of Nov. 21 (1 unit 3120)3120Units purchased on Dec.1 (4 units 3250)13000Total cost of

41、5 units in inventory6120b. (1) Cost of goods sold (FIFO basis)(2 units 3000 + 2 units 3200)12400(2)Inventory at Dec 31 (4 units 3250 + 1 unit 3200)16200(1) Cost of goods sold (LIFO basis):(3 units 3200 + 1 units 3000)12600(2) Inventory at Dec 31 (4 units 3250 + 1 unit 3000)16000（本章未完，接下页）2. A note t

42、o the recent financial statements of the Quaker Oats Company includes the following information:Inventories: Inventories are valued at the lower-of-cost -or -market, using various cost methods. The percentage of year-end inventories valued using each of the methods is as follows:June 3 (fiscal year-

43、end)Average cost 54%LIFO29%Instruction:a. Does the company's use of three different inventory methods violate the accounting principle of consistency?b. Assuming that the replacement cost of inventories has been steadily rising, would the company's reported net income be higher or lower if a

44、ll inventories were valued by the FIFO method?Answer:a. No, it doesn't violate the accounting principle of consistency. Accounting principle of consistency requires that once a company has adopted a particular accounting method, it should follow that method consistently, rather than switch metho

45、ds from one year to the next.b. Higher, because if all inventories were valued by the FIFO method when pricie rises, cost of goods sold would be lower.Lesson 17 Long-Term Assets&Lesson 18 Depreciation Methods1. On April 1, 1998, Argo Industries purchased new equipment at a cost of $325,000. The

46、useful life of this equipment was estimated at 5 year, with a residual value of $25,000. For income tax purposes, however, this equipment is classified as “3-year property15.Instructions:Compute the annual depreciation expense for each year until this equipment becomes fully depreciated under each d

47、epreciation method listed below.a. Straight-line, with depreciation for fractional years rounded to the nearest whole month.b. 200%-declining-balance, with the half-year convention. Limit depreciation in 2003 to an amount that reduces the undepreciated cost to the estimated residual value.Answer:yea

48、ra straight-line(3 year)Method of Depreciationastraight-line(5 year) 2(b30%-declining-balance199875,00045,000650001999100,00060,0001040002000100,00060,00062400200125,00060,000374402002060,000224642003015,0008696Totals300.000306000300.000Assume that you recently applied for a student loan in order to

49、 go to graduate school. As part of the application process, your bank requested a list of your assets. Aside from an extensive CD collection, your only other asset is a pick-up truck. You purchased the truck six years ago for $15000. Its current fair market value is approximately $5000.Instruction:A

50、ssume that the truck has been used solely in a delivery service business that you operated while in college. For tax purposes, how much has the truck been depreciated over the past six years? (Double-declining Balance Method)Answer: Depreciation rate=200%*1 /6=33%BeginningAmount ofPeriod ofOriginalA

51、ccumulatedBeginning NetTwice Straight-lineDepreciationUseful LifeCostDepreciationBook valuePercentageExpense115000015000 X33%=4950215000495010050 X33%=331731500082676734 X33%=2222415000104894511 X33%=1489515000119773023 X33%=997615000129752025 X33%=668Total Depreciation Taken13643Lesson 1 Accounting

52、: An Information System1. Boeing Company is the largest manufacturer of commercial aircraft in the United States and is a major employer in Seattle, Washington. Explain why each of the following individuals or organizations would be interested in financial information about the company.a. California

53、 Public Employees Retirement System, one of the world's largest pension fundsb. Boeing's top managementAnswer:c. California Public Employees Retirement System, as a potential investor, would be interested in financial information of the company, to determine whether to buy the stock of Boein

54、g.d. Top management would be interested in financial information about the company, to evaluate the operating activities during the period, find weakness in operation, and bring up new operation plan for next period.2. You are a plant manager of a facility that manufactures low-cost computers intend

55、ed primarily for sale to secondary schools and to individual college students. What are some of the decisions you must make and how would management accounting information help you make those decisions?Answer: Manufacturing a product like computers involves many important decisions. For example: Fro

56、m which suppliers should you purchase the parts you need? How should you sell or market your products? To what extent should you rely on parts and labor from countries other than your own? At what price should you sell your computers? Management accounting information is intended to provide internal

57、 decision makers information that is useful in answering these and other questions. For example, in pricing your product, what it cost to produce is an imiportant consideration.Lesson 20 Bonds Payable1. On March 31, Bancor Corporation received authorization to issue $30 million of 12%, 30-year debenture bonds. Interest payment dates were march 31 and Sept 30. The bonds were all issued at par on April 30, one month a