1621_ACCT6174_TABE_TK1-W3-S4-R1_TEAM1

Tugas Kelompok ke-1 (Minggu 3) Team Member 3 1. 2. 3. 4.

Ahmad Satrio Gunawan M. Fariz Ali Rahman Raisul Ma’arif Rizal Irfani

(2001671805) (2001671616) (2001669870) (2001673281)

Case 1 For each of the following transactions below, prepare the journal entry (if one is required) to record the initial transaction and then prepare the adjusting entry, if any, required on September 30, the end of the fiscal year. (a) On September 1, paid rent on the track facility for three months, $210,000. (b) On September 1, sold season tickets for admission to the racetrack. The racing season is year-round with 25 racing days each month. Season ticket sales totaled $840,000. (c) On September 1, borrowed $300,000 from First National Bank by issuing a 9% note payable due in three months. (d) On September 5, schedules for 20 racing days in September, 25 racing days in October, and 15 racing days in November were printed for $3,000. (e) The accountant for the concessions company reported that gross receipts for September were $160,000. Ten percent is due to the track and will be remitted by October 10. Answer : a. General Entries 01 September

Prepaid rent.........................210,000 Cash…………………………………….210,000

Adjusting Entries 30 September Rent Expense……………………70,000 Prepaid Expenses………………...$70,000 ($210,000 / 3 months = $70,000) b. General Entries 01 September

Cash................................840,000 Unearned Ticket Revenue…840,000

Adjusting Entries

ACCT6174 – Introduction to Financial Accounting

30 September

Unearned Ticket Revenue…….70,000 Ticket Revenue………………………..70,000 ($840,000 / 12month = $ 70,000)

c. General Entries 01 September Cash …………………………………….300,000 Notes payable…………………………...........300,000 Adjusting Entries 30 September Interest Expense…………………..2,250 Interest Payable………..…………..…..........2,250 ($300,000 / 9% / 12month = $ 2,250) d. General Entries 05 September

Prepaid Printing………………3,000 Cash…………………………………....3,000

Adjusting Entries 30 September Printing Expense…………….1,000 Prepaid Printing…………...........1,000 ($3,000 x 20 / 60(20+25+15 = $1,000) e. General Entries Nothing Adjusting Entries Account Receivable …………….160,000 Concessions Revenue……………160,000

Case 2 Ben Cartwright Pest Control has the following balances in selected accounts on December 31, 2014. Accounts Receivable Accumulated Depreciation – Equipment Equipment Interest Payable

€

0 0 6,650 0

ACCT6174 – Introduction to Financial Accounting

Notes Payable

20,000

Prepaid Insurance

3,000

Salaries and Wages Payable Supplies

0 2,940

Unearned Service Revenue

36,000

All of the accounts have normal balances. The information below has been gathered at December 31, 2014. 1. Depreciation on the equipment for 2014 is €1,250. 2. Ben Cartwright Pest Control borrowed €20,000 by signing a 6%, oneyear note on July 1, 2014. 3. Ben Cartwright Pest Control paid €3,000 for 12 months of insurance coverage on October 1, 2014. 4. Ben Cartwright Pest Control pays its employees total salaries of €10,000 every Monday for the preceding 5-day week (MondayFriday). On Monday, December 27, 2014, employees were paid for the week ending December 24, 2014. All employees worked the five days ending December 31, 2014. 5. Ben Cartwright Pest Control performed disinfecting services for a client in December 2014. The client will be billed €3,000. 6. On December 1, 2014, Ben Cartwright Pest Control collected €36,000 for disinfecting processes to be performed from December 1, 2014, through May 31, 2015. 7. A count of supplies on December 31, 2014, indicates that supplies of €750 are on hand. Instructions Prepare in journal form with explanations, the adjusting entries for the seven items listed for Ben Cartwright Pest Control. Answer : 1. Depreciation expense………………….1,250 Accumulated Depreciation – 1,250

Equipment………………

2. Interest expense………………………….600 Interest Payable…………………………………………………..600

ACCT6174 – Introduction to Financial Accounting

(€20,000 x 6% x (6 months/12 months) = €600) 3. Insurance expense………………………750 Prepaid Insurance...................................................750 (€3,000 / 12 months x 3 months = €750) 4. Salaries and Wages Expense ……….10,000 Salaries and Wages Payable………………………………..10,000 Because, salaries of €10,000 every Monday for the preceding 5-day week (Monday-Friday)

5. Accounts Receivable…………………………………3,000 Service Revenue…………………………………………………… 3,000 6. Unearned Service Revenue………………………36,000 Service Revenue…………………………………………………… 36,000 7. Supplies Expense……………………………………..2,190 Supplies………………………………………………………………. .2,190 (€2,940 - €750 = €2,190)

Case 3 These financial statement items (in thousands) are for Chen Company at year-end, July 31, 2014. Salaries and wages payable 3,300

¥ 4,580

Salaries and wages expense

45,700

Note payable (Non-Current)

¥

Cash

22,200 Utilities expense

19,100 9,780

Accounts receivable

Equipment

24,000 6,000

Accumulated depreciationequip.

Accounts payable

4,100 4,000

Dividends

ACCT6174 – Introduction to Financial Accounting

Service revenue

Rent revenue Share capital-ordinary

58,100 4,000 6,500

Depreciation expense

Retained earnings (8/1/2013) 30,000

16,200

Instructions (a) Prepare an income statement and a retained earnings statement for the year. (b) Prepare a classified statement of financial position at July 31, 2014. Answer: a. CHEN COMPANY Income Statement For the Year Ended July 31, 2014 Revenues Commision revenue.................................................................... ¥58,100 Rent revenue.............................................................................. 6,500 Total revenues............................................................................ ¥64,600 Expenses Salaries expense......................................................................... 45,700 Utilities expense......................................................................... 19,100 Depreciation expense................................................................. 4,000 Total expense............................................................................. 68,800 Net loss....................................................................................... ¥ 4,200

CHEN COMPANY Retained Earnings Statement For the Year Ended July 31, 2014 Retained Earnings, August 1, 2013...................................................... ¥30,000 Less: Net Loss....................................................................................... 4,200 25,800

ACCT6174 – Introduction to Financial Accounting

Less: Dividends.................................................................................... 4,000 Retained Earnings, July 31, 2014........................................................ ¥21,800 b.

CHEN COMPANY Statement of Financial Position July 31, 2014 Assets Current Assets Cash........................................................................................... ¥22,200 Accounts receivable................................................................... 9,780 ¥31,980 Property, plant, and equipment Equipment................................................................................. 24,000 Less: Accumulated depreciation equip...................................... 6,000 Total assets..................................................................................... 18,000 ¥49,980 Liabilities and Stockholders’ Equity Current Liabilities Account payable........................................................................ ¥4,100 Salaries and wages payable....................................................... 4,580 ¥8,680 Long-term Liabilities Note payable (Non-Current)............................................... 3,300 Stockholder’s equity Share capital-ordinary............................................................... 16,200 Retained earnings...................................................................... 21,800 38,000 ¥49,980

ACCT6174 – Introduction to Financial Accounting

Case 4 Vanguard Company had the following adjusted trial balance at December 31, 2014.

VANGUARD COMPANY Adjusted Trial Balance For the Year Ended December 31, 2014

Account Titles Cash

Debits

Credits

₤ 12,800

Accounts Receivable

8,800

Equipment

15,900

Accounts Payable

₤ 4,400

Accumulated DepreciationEquip.

7,400

Share Capital - Ordinary

17,000

Retained Earnings

25,500

Dividends

16,000

Service Revenue

68,000

Unearned Rent Revenue

1,800

Rent Revenue

6,500

Salaries and Wages Expense Depreciation Expense

55,700 6,000

Supplies Expense

200

Utilities Expense 14,900 ₤130,300

₤130,300

Instructions: (a) Journalize the entries required to close the accounts. (b)Prepare a retained earnings statement for the year ended December 31, 2014. Answer:

ACCT6174 – Introduction to Financial Accounting

a. Computation of Net Income: Service revenue Rent revenue Total revenue Expenses : Salaries & wages expense Depreciation expense Supplies expense Utilities expense Net Loss

68,000 6,500 74,500 55,700 6,000 200 14,900

76,800 2,300

Closing Entries Dec.

31

Service Revenue...................................................... Rent Revenue........................................................... Income Summary.............................................. 74,500 (To close revenue account)

68,000 6,500

31

Income Summary.................................................... Salaries & wages expense................................ 55,700 Depreciation expense...................................... 6,000 Supplies expense............................................. 200 Utilities expense.............................................. 14,900 (To close expense account)

76,800

31

Income Summary.................................................... Retained Earnings............................................ 2,300 (To close net income to retained earnings)

2,300

31

Retained Earnings.................................................. Dividends......................................................... 16,000 (To close dividends to retained earnings)

16,000

b. VANGUARD COMPANY Retained Earnings Statement

ACCT6174 – Introduction to Financial Accounting

For the Year Ended Dec 31, 2014 Retained Earnings, January 1, 2014...................................................... 25,500 Less: Net Loss...................................................................................... 2,300 23,200 Less: Dividends.................................................................................... 16,000 Retained Earnings, December 31, 2014.............................................. 7,200

Case 5 Presented below is an adjusted trial balance for Cowell Company, at December 31, 2014.

Cash Accounts receivable Prepaid insurance Equipment Depreciation expense Dividends Advertising expense Rent expense Salaries and wages expense Insurance expense

€10,700 20,000 15,000 35,000 7,000 1,500 1,400 800 5,000 1,600 €98,000 €98,000

Accounts payable €10,000 Notes payable 9,000 Accumulated depreciation— equipment 14,000 Service revenue 30,000 Retained earnings 12,000 Unearned service revenue 11,000 Share capital-ordinary 12,000

Instructions (a) Prepare closing entries for December 31, 2014. (b) Determine the balance in the retained earnings account after the entries have been posted.

Answer:

ACCT6174 – Introduction to Financial Accounting

a. Computation of Net Income: Service revenue Total revenue Expenses :

30,000 30,000

Depreciation expense Advertising expense Rent expense Salaries & wages expense Insurance expense Total Expenses Net Income

7,000 1,400 800 5,000 1,600 15,800 14,200

Closing Entries Dec. 31

Service Revenue..................................................... Income Summary.......................................... 30,000 (To close revenue account)

30,000

31

Income Summary.................................................... Depreciation expense...................................... 7,000 Advertising expense......................................... 1,400 Rent expense................................................... 800 Salaries & wages expense................................ 5,000 Insurance expense.......................................... 1,600 (To close expense account)

15,800

31

Income Summary................................................... Retained Earnings........................................... 14,200 (To close net income to retained earnings)

14,200

Retained Earnings................................................. Dividends....................................................... 1,500 (To close dividends to retained earnings)

1,500

31

ACCT6174 – Introduction to Financial Accounting

b. COWELL COMPANY Retained Earnings Statement For the Year Ended Dec 31, 2014 Retained Earnings, January 1, 2014...................................................... 12,000 Less: Net Loss...................................................................................... 14,200 26,200 Less: Dividends.................................................................................... 1,500 Retained Earnings, December 31, 2014.............................................. 24,700

ACCT6174 – Introduction to Financial Accounting