會計(jì)學(xué)原理課后題答案

Chapter^

CompletingtheAccountingCycle

QUESTIONS

1.Closingentriesaffecttemporaryaccounts:revenues,expenses,withdrawals,and

incomesummary.Specifically,closingentriesattheendofanaccountingperiod

preparetherevenues(andgains),expenses(andlosses),andwithdrawalsaccounts

forthenextperiodbygivingthemzerobalances.Closingentriesalsoupdatethe

ownefscapitalaccountfortheeventsoftheyearjustfinished.Closingentriesdo

notaffecttheassetandliabilityaccounts(permanentaccounts).

2.(i)Closingentriespreparethetemporaryaccounts—revenueandexpense(andgain

andloss)accountsandwithdrawals—forthenextperiodbygivingthemzero

balances,(ii)Closingentriesalsoupdatetheowner'scapitalaccountfortheevents

oftheperiodjustcompleted.

3.Thefour-stepclosingentryprocessis:(i)closetherevenue(andgain)accountsto

theIncomeSummaryaccount,(ii)closetheexpense(andloss)accountstothe

IncomeSummaryaccount,(iii)closetheIncomeSummaryaccounttotheowner's

capitalaccount,and(iv)closethewithdrawalsaccounttotheowner'scapital

account.

4.TheIncomeSummaryaccountisusedtosummarizetheperiod'srevenuesand

expenses.Asaresult,ittemporarilyhasabalanceequaltothenetincome(ornet

loss)fortheperiod.(Instructornote:Closingcanbeaccomplishedwithoutthe

IncomeSummaryaccountbyclosingrevenueandexpenseaccountsdirectlytothe

owner'scapitalaccount.)

5.Yes,anerrorwouldhaveoccurredbecauseapost-closingtrialbalanceshouldonly

includepermanentaccounts,andDepreciationExpenseisatemporaryaccountthat

shouldhavebeenclosed.Ifanexpenseappearsonthepost-closingtrialbalance,

theamountsofnetincome,totalassets,andtotalequityareallinerror(overstated).

6.Aworksheetcanbeusedtocollectandorganizedataforpreparing(i)adjusting

entries,(ii)closingentries,and(iii)financialstatements.Aworksheetcanalsobe

usedforwhat/fanalysis,forhelpwithauditadjustments,andforpreparinginterim

financialstatements.

7.TheadjustmentsintheAdjustmentscolumnsofaworksheetareidentifiedbyletters

tolinkthedebitswiththecreditstoensurethattheentriesarecompleteandin

balance(debits=credits)andforreferencepurposes(audittrail).Theletterscan

alsobeusedtoidentifythereasonsfortheentriesandhelpsimplifypreparationof

theactualadjustingjournalentries.

8.Acompany'soperatingcycleisthenormaltimebetweenpayingcashfor

merchandiseinventoryorforemployeesalariesinprovidingcustomerservicesand

thereceiptofcashfromcustomersinexchangeforthoseproductsorservices.

9.Assetsonatypicalclassifiedbalancesheetincludecurrentassetsandnoncurrent

assets—wherenoncurrentassetsusuallyincludelong-terminvestments,plant

assets,andintangibleassets.Liabilitiesaretypicallyclassifiedascurrentand

noncurrent.Notethatthetermsshort-termandlong-termaresometimesusedfor

currentandnoncurrent.

10.Unearnedrevenueisreportedasaliability—usuallyacurrentliability.

11.Plantassets(alsocalledproperty,plantandequipmentorlong-livedassets)are

tangiblelong-livedassetsusedtoproduceorsellgoodsorservices.

12.AReversingentriessimplifysubsequententriesforaccruedexpensesandaccrued

revenuesbyeliminatingtheneedtorecordtheremovaloftheaccruedliabilityor

accruedreceivablewhentheaccrualissettled.

13.AThefollowingreversingentrycouldbemadeasofthefirstdayofthenext

accountingperiod,afterthepost-closingtrialbalanceiscompletedandfinancial

statementsareprepared.

SalariesPayable.......................................................500

SalariesExpense...........................................500

14.ThefivecategoriesofnoncurrentassetsonBestBuy'sbalancesheetare:Property

andEquipment,Goodwill,Tradenames,Long-terminvestments,andOtherassets.

15.CircuitCityhassevencurrentliabilityaccounts:Merchandisepayable,Expenses

payable,Accruedexpensesandothercurrentliabilities,Accruedcompensation,

Accruedincometaxes,Short-termdebt,andCurrentinstallmentsoflong-termdebt.

16.RadioShackhasfourcurrentassetaccounts:Cashandcashequivalents;Accounts

andnotesreceivable,net;Inventories;andOthercurrentassets.

17.TheclosingentryrecordedonSeptember30,2006,totransferthecompany'snet

incometoitsRetainedEarningsaccountwouldlikelyhavebeen(inmillions):

IncomeSummary......................................................1,989

RetainedEarnings........................................1,989

?McGraw-HillCompanies,2009

182FundamentalAccountingPrinciples,19thEdition

QUICKSTUDIES

QuickStudy4-1(10minutes)

IncomeSummarybalanceafterclosingrevenuesandexpenses

Revenues:$42,000+$8,000..........................=$50,000Cr.

Expenses:$31,000+$11,000+$5,000..........=-47,000Dr.

Creditbalance(equaltonetincome)............=$3.000Cr.

M.Irvine,Capitalaccountbalanceafterallclosingentries

Beginningbalance......................................$35,000

Plusnetincome..........................................3,000

38,000

Lesswithdrawals........................................9,200

Endingbalance...........................................$28.800

QuickStudy4-2(5minutes)

/D

\fAnalyzingtransactionsandevents.

t/c

\Journalizingtransactionsandevents.

l/e\

\/JPostingthejournalentries.

fb\

\/)Preparingtheunadjustedtrialbalance.

/Dn

K

g\Journalizingandpostingadjustingentries.

7

/a\Preparingtheadjustedtrialbalance.

K/J

/hPreparingthefinancialstatements.

\l

/d\Journalizingandpostingclosingentries.

K71Preparingthepost-closingtrialbalance.

QuickStudy4-3(10minutes)

LE

NC

E

3-A

4.B

5.F

6.A

78.D

QuickStudy4-4(10minutes)

Currentassets

Cash.......................................................$7,000

Accountsreceivable..............................18,000

Officesupplies.......................................2,860

Prepaidinsurance.................................3,500

Totalcurrentassets..............................$31.360

Currentliabilities

Accountspayable..................................$11,000

Unearnedservicesrevenue..................3,000

Totalcurrentliabilities..........................$14.000

Currentratio=$31,360/$14,000=2.24

QuickStudy4-5(10minutes)

ComputationofJ.Fischer,CapitalfortheDec.31,2009,balancesheet

J.Fischer,Capital(beginning).................$36,000

Addnetincome($90,000-$61,000).........29,000

65,000

Lesswithdrawals......................................(18：0001

J.Fischer,Capital(ending).....................$47.000

QuickStudy4-6(5minutes)

a.Id.B

b.Be.B

c.If.B

QuickStudy4-7(5minutes)

a.1d.5

b.3e.4

c.2

?McGraw-HillCompanies,2009

184FundamentalAccountingPrinciples,19thEdition

QuickStudy4-8(20minutes)

EDGARDOCOMPANY

Worksheet

UnadjustedAdjustedIncome

TrialBalanceAdjustmentsTrialBalanceStatementBalanceSheet

AccountTitleDr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.

PrepaidRent....................4,000(a)80032003,200

ServicesRevenue........65,000(b)95065,95065,950

Wagesexpense______...30,000(c)75030,75030,750

AccountsReceivable.....(b)950950950

WagesPayable.............(c)750750750

RentExpense...............(a)800800800

QuickStudy4-9(15minutes)

Dec.31ServicesRevenue.......................................26,000

IncomeSummary................................26,000

Toclosetherevenueaccount.

31IncomeSummary.......................................20,000

WagesExpense...................................16,800

RentExpense......................................3,200

Toclosetheexpenseaccounts.

31IncomeSummary.......................................6,000

P.Simms,Capital................................6,000

TocloseIncomeSummaryaccount.

31P.Simms,Capital.......................................1,600

P.Simms,Withdrawals......................1,600

Toclosethewithdrawalsaccount.

QuickStudy4-10(5minutes)

TheonlyaccountfromQS4-9thatwouldappearinpost-closingtrial

balanceisP.Simms,Capital.

QuickStudy4-11A(10minutes)

2009

Jan.1ManagementFeesEarned..........................24,000

AccountsReceivable..........................24,000

Toreverseaccruedrevenue.

16Cash.............................................................37,500

ManagementFeesEarned.................37,500

Torecordcollectionofmanagementfees.

?McGraw-HillCompanies,2009

186FundamentalAccountingPrinciples,19thEdition

EXERCISES

Exercise4-1(35minutes)

Closingentries

⑴ServicesRevenue........................................401114,530

IncomeSummary.................................901114,530

Toclosetherevenueaccount.

(2)IncomeSummary........................................90163,360

DepreciationExpense..........................60317,000

SalariesExpense.................................62232,500

InsuranceExpense..............................6374,420

RentExpense.......................................6409,440

Toclosetheexpenseaccounts.

(3)IncomeSummary.........................................90151,170

R.Cruz,Capital.....................................30151,170

TocloseIncomeSummaryaccount.

(4)R.Cruz,Capital.............................................30146,770

R.Cruz,Withdrawals...........................30246,770

Toclosethewithdrawalsaccount.

Postedaccounts

R.Cruz,CapitalNo.301SalariesExpenseNo.622

DatePRDebitCreditBalanceDatePRDebitCreditBalance

Mar.3165,000Mar.3132,500

(3)51,170116,170(2)32,5000

(4)46,77069,400

R.Cruz,WithdrawalsNo.302InsuranceExpenseNo.637

DatePRDebitCreditBalanceDatePRDebitCreditBalance

Mar.3146,770Mar.314,420

(4)46,7700(2)4,4200

ServicesRevenueNo.401RentExpenseNo.640

DatePRDebitCreditBalanceDatePRDebitCreditBalance

Mar.31114,530Mar.319,440

(1)114,5300(2)9,4400

DepreciationExpenseNo.603IncomeSummaryNo.901

DatePRDebitCreditBalanceDatePRDebitCreditBalance

Mar.3117,000(1)114,530114,530

(2)17,0000(2)63,36051,170

(3)51,1700

?McGraw-HillCompanies,2009

SolutionsManual,Chapter4187

Exercise4-2(40minutes)

SantaraMarketingCompany

Worksheet

AdjustedPost-Closing

TrialBalanceClosingEntryInformationTrialBalance

No.Ac8unt~ntteDr.Cr.Dr.Cr.Dr.Cr.

101Cash________________11,90011300

106Accountsreceivable.....24,00024,000

153Equipment.......................41,00041,000

154Accumulateddepre-

dation—Equipment........16)50016,500

193Franchise..........................30,00030,000

201Accountspayable............14,00014,000

209Salariespayable_______3)2003,200

233Unearnedfees..................2,6002,600

301T.Santara,Capital______66,701(4)14,400(3)18^9970,600

302T.Santara,Withdrawals.....14,400(4)14,400

01Marketingfeesearned.....83,000(1)83,000

611Depreciationexpense—

Equipment___________11>000(2)11,000

622Salariesexpense..............33,034(2)33,034

640Rentexpense...................12,616(2)12,616

677Miscellaneousexpense.....8,051(2)8,051

901Incomesummary______(2)64,701(1)83,000

____________(3)10299__________________

Totals______________18&001186.0011804)0180.400106.90010&900

?McGraw-HillCompanies,2009

188FundamentalAccountingPrinciples,19thEdition

Exercise4-3(30minutes)

1.

2009

Dec.31ServicesRevenue........................................40437,200

IncomeSummary..................................90137,200

Toclosetherevenueaccount.

31IncomeSummary.........................................90128,968

DepreciationExpense—Equipment....6122,000

SalariesExpense..................................62221,687

InsuranceExpense...............................6371,562

RentExpense........................................6402,492

SuppliesExpense.................................6521,227

Toclosetheexpenseaccounts.

31IncomeSummary........................................9018,232

N.Ferrara,Capital................................3018,232

TocloseIncomeSummaryaccount.

31N.Ferrara,Capital.......................................3016,000

N.Ferrara,Withdrawals.......................3026,000

Toclosethewithdrawalsaccount.

FERRARACOMPANY

Post-ClosingTrialBalance

December31,2009

DebitCredit

Cash.............................................................$18,000

Supplies.......................................................13,900

Prepaidinsurance.......................................2,000

Equipment....................................................23,000

Accumulateddepreciation-Equipment......$6,500

N.Ferrara,Capital*......................................50,400

Totals...........................................................$56.900$56.900

*$48,168+$8,232-$6,000=$50,400

?McGraw-HillCompanies,2009

SolutionsManual,Chapter4189

Exercise4-4(20minutes)

RESOURCETRUCKINGCOMPANY

IncomeStatement

ForYearEndedDecember31,2009

Truckingfeesearned..................................................$121,000

Expenses

Depreciationexpense—Trucks........................$20,727

Salariesexpense....................................................56,749

Officesuppliesexpense.......................................6,655

Repairsexpense-Trucks....................................10,406

Totalexpenses.......................................................94,537

Netincome....................................................................$26.463

RESOURCETRUCKINGCOMPANY

StatementofOwner'sEquity

ForYearEndedDecember31,2009

J.Reso,Capital,December31,2008.......................$161,901

Add:Netincome........................................................26,463

188,364

Less:Withdrawals......................................................(20,000)

J.Reso,Capital,December31,2009........................$168.364

?McGraw-HillCompanies,2009

190FundamentalAccountingPrinciples,19thEdition

Exercise4-5(20minutes)

RESOURCETRUCKINGCOMPANY

BalanceSheet

December31,2009

Assets

Currentassets

Cash...........................................................$5,800

Accountsreceivable...................................17,500

Officesupplies.............................................3,000

Totalcurrentassets....................................26,300

Plantassets

Trucks..........................................................$156,000

Accumulateddepreciation-Trucks.............(32,136)123,864

Land.............................................................85,000

Totalplantassets........................................208,864

Totalassets....................................................$235.164

Liabilities

Currentliabilities

Accountspayable......................................$9,800

Interestpayable...........................................4,000

Totalcurrentliabilities................................13,800

Long-termnotespayable..............................53,000

Totalliabilities...............................................66,800

Equity

J.Reso,Capital".............................................168,364

Totalliabilitiesandequity............................$235.164

*FromExercise4-4

?McGraw-HillCompanies,2009

SolutionsManual,Chapter4191

Exercise4-6(15minutes)

Note:CurrentassetsandcurrentliabilitytotalsarefromExercise4-4or4-5

Currentassets$26,3001

Currentratio=q

Currentliabilities-$13,800~—

Interpretation:ResourceTruckingCompany'scurrentratioof1.9exceeds

theindustryaverageof1.5.Thisimpliesthecompanyisinaslightlybetter

liquiditypositionthanitscompetitors.Moreover,ifwereviewthemakeup

ofthecurrentratio,weseethatcurrentassetsconsistprimarilyofcash

andaccountsreceivable.Theexistenceofthesemoreliquidassetsisa

positiveattributeforliquiditypurposes.

Exercise4-7(15minutes)

CurrentCurrentCurrent

AssetsLiabilitiesRatio

Case1$76,000/$26,666=2.85

Case2101,080/64,351=1.57

Case342,863/41,204=1.04

Case482,308/69,156=1.19

Case558,444/84,638=0.69

Analysis:Company1isinthestrongestliquidityposition.Ithasabout

$2.85ofcurrentassetsforeach$1ofcurrentliabilities.Theonlypotential

concernisthatCompany1maybecarryingtoomuchincurrentassetsthat

couldbebetterspentonmoreproductiveassets(notethatitsremaining

competitors'currentratiosrangefrom1.57to0.69).

?McGraw-HillCompanies,2009

192FundamentalAccountingPrinciples,19thEdition

Exercise4-8(20minutes)

Instructornote:Entriesareshownwithoutanaccountreferencecolumnbecausenopostingisrequired.

(a)InsuranceExpense—OfficeEquipment.................470

InsuranceExpense—StoreEquipment..................509

PrepaidInsurance............................................979

Torecordexpiredinsurance.

(b)OfficeSuppliesExpense........................................1,729

OfficeSupplies.................................................1,729

Torecordconsumedsupplies.

(c)DepreciationExpense—OfficeEquipment.............3,300

AccumulatedDepreciation—OfficeEquip......3,300

Torecorddepreciationofofficeequip.

(d)InterestReceivable..................................................636

InterestRevenue..............................................636

Torecordaccruedinterestincome.

(e)OfficeSalariesExpense..........................................716

SalariesPayable...............................................716

Torecordaccruedsalaries.

Exercise4-9(15minutes)

1.C5.C9.B13.D

2.D6.C10.C14.B

3.C7.A11.C15.D

4.A8.D12.A16.A

?McGraw-HillCompanies,2009

SolutionsManual,Chapter4193

Exercise4-10(20minutes)

LinnCompany

Worksheet

BalanceSheet&

AdjustedStatementof

TrialBalanceIncomeStatementOwnersEquity

No.AccountDr.Cr.Dr.Cr.Dr.Cr.

101

Cash___________________8520G8^00

106Accountsreceivable______3533435334

153Trucks__________________41150041>500

154Accumulateddepreciation—16,68316,683

Trucks__________________

183Land___________________30,00030,000

201Accountspayable.................19,10619,106

209

Salariespayable__________453To413To

233Unearnedfees.......................3,7703,770

301D?Linn69/)1269,012

302D.Linn,Withdrawals.............15^3415^34

401

Plumbingfeesearned..........8410Go84,000

611Depreciationexpense—5^615^61

Trucks_________________

622Salariesexpense...................3931239312

640Rentexpense____________12,76812,768

677Miscellaneousexpense___812328232

Totals.__________________196.94119R9416537384,0001314)68112,941

Netincome________°____1&127——18127

Totals.....................................8400084.000131.068131.068

?McGraw-HillCompanies,2009

194FundamentalAccountingPrinciples,19thEdition

Exercise4-11(25minutes)

WorkSheet

AccountTitleDebitCredit

Rentearned.........................................90,000

Salariesexpense.................................39,960

Insuranceexpense..............................5,670

Officesuppliesexpense......................13,230

Bikerepairexpense............................2,790

Depreciationexpense-Bikes............17,190

Totals...................................................78,84090,000

Netincome...........................................11,160

Totals...................................................90.00090.000

2.Closingentries

(1)RentEarned................................................90,000

IncomeSummary................................90,000

Toclosetherevenueaccount.

(2)IncomeSummary.......................................78,840

SalariesExpense.............................................39,960

InsuranceExpense.............................5,670

OfficeSuppliesExpense..............