1. At December 31, 2013, Company reported the
following as plant assets (in rupiah).
Land
|
4.000.000.000
|
|
Buildings
|
57.000.000.000
|
|
Less: Accumulated depreciation-buildings
|
11.400.000.000
|
45.600.000.000
|
Equipment
|
60.000.000.000
|
|
Less: Accumulated depreciation-equipment
|
8.000.000.000
|
52.000.000.000
|
Total plant assets
|
101.600.000.000
|
During 2014, the following selected cash
transactions occurred
April 1 Purchased land for Rp.2.400.000.000.
May 1 Sold equipment that cost Rp.840.000.000 when
purchased on January 1, 2010. The equipment was sold for Rp.492.000.000
June 1 Sold land purcashed on June 1, 2004 for
Rp.2.000.000.000. The land cost Rp.620.000.000
July 1
Purchased equipment for Rp.2.560.000.000
Dec. 31 Retired equipment that cost Rp.600.000.000
when purchased on December 31, 2004.
No
residual value was received.
Dec. 31 Buildings
were purchased on January 1 2013 with Rp.7.000.000.000 residual value.
Instructions
(a)
Journalize the above transaction. The company uses double declining
balance for buildings and straight line method for equipment. The buildings are
estimated to have a 50-year life. The equipment is estimated to have a 10-year
useful life and no residual value. Update depreciation on assets disposed of at
the time sale or retirement
(b)
Record adjusting entries for depreciation for 2014.
(c)
Prepare the plant assets section of statement of financial position at
December 31, 2014.
2. At the beginning of 2014, Morgana Company
acquired equipment costing $40.000. It was
estimated that this equipment would have a
useful life of 6 years and a residual value of
$4.000 at that time. The straight-line method
of depreciation was considered the most
appropriate to use with this type of equipment.
Depreciation is to be recorded at the end
of each year.
During 2016 (the third year of the equipment’s
life), the company’s
engineers reconsidered their expectations, and
estimated that the equipment’s useful life
would probably be 7 years (in total) instead of
6 years. The estimated residual value
wasn’t changed at that time. However, during
2019 the estimated residual value was
reduced to $2.200.
Instructions
Indicate how much depreciation expense and
accumulated depreciation each year (2014 until
2020)
3. On January 1, 2014, the ledger of Zahrawie
Company contains the following liability accounts.
Accounts Payable
|
¥ 42.000
|
Sales Taxes Payable
|
5.800
|
Unearned Service Revenue
|
15.000
|
During January, the following selected
transaction occurred.
Jan. 1 Borrowed ¥ 15.000 in cash from Platteville
Bank on a 4-month, 6%, ¥ 15.000 note.
5 Sold merchandise for cash totaling ¥ 9.434,
wich includes 6% sales taxes.
12 Provided services for costumers who had made
advance payment of ¥ 9.000.
(Credit
Service Revenue)
14 Paid government treasurer’s department for
sale taxes collected in December 2013,
¥
5.800.
20 Sold 700 units of a new product on credit at
¥ 44 per unit, plus 6% sales tax.
25 Sold merchandise for cash totaling ¥ 16.536,
which not includes 6% sales taxes.
Instructions
a) Journalize the January transactions
b) Journalize the adjusting entries at January
31 for the outstanding notes payable.
c) Prepare the current liabilities section of
the statement of financial position at Jan 31,
2015. Assume no change in accounts payable.
4. The following is taken from the joyco
Corporation statement of financial position.
Joyco Corporation
Statement of Financial Position
(partial)
December 31, 2014
Non current liabilities
Bonds Payable (face value $1.800.000), 7%, due
Jan 1, 2025 $ 1.600.000
Current liabilities
Interest Payable (for 6 months July1-Dec 31
56.000
Interest is payable semi annually on Jan 1 and
July 1. The bonds are callable on any
semiannual interest date. Joyco uses
straight-line amortization for any bond premium or
discount. From Dec 31, 2014 the bonds will be
outstanding for an additional 10 years (10
months).
Instructions
a) Journalize the payment of bond interest on
Jan 1, 2015
b) Prepare the entry to amortize bond discount
and to pay the interest due on July 1, 2015,
assuming the interest wasn’t accrued on June
30. (Amortization $4.500)
4. Penner Co. Sold R $ 300.000, 10%, 10-year bonds
on January 1, 2014, the bonds were date January 1, and interest in paid on
January 1 and July 1. The bonds were sold out at 104.
Instructions
(a) Prepare the journal entry to record the
issuance of the bonds on January 1, 2014.
(b) At December 31, 2014, the amount of unamortized
bond premium is $ 10.800. Show the statement of financial position presentasion
of accrued interest and the bond liability at December 31, 2014.
(c) On January 1, 2016, when the carrying value of
the bonds was $ 309.600, the company redeemed the bond at 105. Record the
redemption of the bonds assuming that interest for the period has already been
paid.
