西方財務(wù)會計全英文版 第五章 課后練習 答案

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1、Chapter 5 Short-Term Investments and Receivables Check Points (5 min.) CP 5-1 1. Trading investments are reported at their current market value. 2. A trading investment is always a current asset because the investor intends to sell the trading investment in the very near future —

2、 days, weeks, or only a few months. A current asset is to be sold within one year or within the company’s operating cycle if longer than a year. (10 min.) CP 5-2 BALANCE SHEET Current assets: Short-term trading investments, at market value.. $74,000 INCOME STATEMENT Oth

3、er revenue and gains (losses): Unrealized loss on investment……………………... $ (6,000) (10 min.) CP 5-3 1. Paid $100,000 2. Unrealized Loss on Investment ($100,000 – $98,000)… 2,000 Short-Term Investment……………………………….. 2,000 Adjusted investment to mark

4、et value. BALANCE SHEET Current assets: Short-term trading investment, at market value………. $98,000 INCOME STATEMENT Other revenue (loss): Unrealized loss on investment…………………………… $ (2,000) (5 min.) CP 5-4 Jennings, the ac

5、countant, should not handle the company’s cash. With cash-handling duties, the accountant can steal cash and hide the theft by writing off a customer’s account receivable as uncollectible. (5 min.) CP 5-5 1. Uncollectible-Account Expense ($900,000 .01)….. 9,000 Allowance for Uncolle

6、ctible Accounts…………… 9,000 2. Balance sheet Accounts receivable………………………………… $90,000 Less Allowance for uncollectible accounts…….. (9,000) Accounts receivable, net…………………………… $81,000 (5-10 min.) CP 5-6 1. Accounts Receivable…………………………………. 800,

7、000 Sales Revenue……………………………………… 800,000 2. Cash……………………………………………………… 780,000 Accounts Receivable……………………………… 780,000 3. Allowance for Uncollectible Accounts…………….. 5,000 Accounts Receivable………………………………. 5,000 4. Uncollectible-Account E

8、xpense ($800,000 .01)… 8,000 Allowance for Uncollectible Accounts…………. 8,000 (10 min.) CP 5-7 1. Accounts Receivable Beg. bal. 90,000 Net credit sales 800,000 Collections 780,000 Write-offs 5,000 End. bal. 105,000 Amount customers owe the

9、 company 2. Allowance for Uncollectible Accounts Beg. bal. 9,000 Write-offs 5,000 Uncollectible- account expense 8,000 End. bal. 12,000 Amount Spitzer expects not to collect 3. and 4. BALANCE SHEET: Accounts receivable, net ($1

10、05,000 – $12,000)………………………… $93,000 Amount Spitzer expects to collect INCOME STATEMENT: Sales revenue…………………………………... $800,000 Uncollectible-account expense……………… 8,000 (5-10 min.) CP 5-8 (a) Accounts Receivable……………………….. 7

11、00,000 Sales Revenue……………………………. 700,000 (b) Cash……………………………………………. 720,000 Accounts Receivable……………………. 720,000 (c) Allowance for Uncollectible Accounts….. 6,000 Accounts Receivable……………………. 6,000 (d) Uncollectible-Account Expense………….. 7,

12、000 Allowance for Uncollectible Accounts.. 7,000 Allowance for Uncollectible Accounts Beg. bal. 8,000 Write-offs 6,000 Uncollectible – account expense X = 7,000 End. bal. 9,000 (10 min.) CP 5-9 1. and 2. Accounts Receivable Beg. bal. 100,000 Net

13、 credit sales 700,000 Collections 720,000 Write-offs 6,000 End. bal. 74,000 Allowance for Uncollectible Accounts Beg. bal. 8,000 Write-offs 6,000 Uncollectible – account expense 7,000 End. bal. 9,000 3. BALANCE SHEET Accounts receivable…………………………

14、…. $74,000 Less Allowance for uncollectible accounts… (9,000) Accounts receivable, net………………………. $65,000 (5-10 min.) CP 5-10 a. May 19 Note Receivable — R. Kroll…….. 100,000 Cash……………………………… 100,000 b. Nov. 19 Cash………………………………… 103,000 No

15、te Receivable — R. Kroll….. 100,000 Interest Revenue ($100,000 .06 6/12)……… 3,000 (10 min.) CP 5-11 1. Interest for: 20X7 ($200,000 .09 8/12)………………. $12,000 20X8 ($200,000 .09)………………………. 18,000 20X9 ($200,000 .09 4/12)………………. 6,000 2. Trad

16、ewinds Bank has a note receivable and interest revenue. Mike Toby has a note payable and interest expense. 3. Payoff at November 30, 20X7: Principal…………………………………………. $200,000 Interest ($200,000 .09 7/12)………………. 10,500 Total………………………………………………. $210,500 (10 min.) CP 5-12

17、 20X5 a. Aug. 31 Note Receivable — L. Holland…………… 1,000 Cash………………………………….……. 1,000 To lend money. 20X6 b. June 30 Interest Receivable ($1,000 .09 10/12). 75 Interest Revenue………………………... 75 To accrue interest revenue.

18、 20X6 c. Aug. 31 Cash ($1,000 + $90)………………………... 1,090 Interest Receivable……………………... 75 Interest Revenue ($1,000 .09 2/12). 15 Note Receivable………………………… 1,000 To collect on note receivable. (5-10 min.) CP 5-13 a. BALANCE SHE

19、ET June 30, 20X6 Current assets: Note receivable…………………………………… $1,000 Interest receivable…………………………….…. 75 b. INCOME STATEMENT Year ended June 30, 20X6 Revenues: Interest revenue……………………………….…. $ 75 c. BALANCE SHEET June 30

20、, 20X7 Nothing to report because the note was collected on August 31, 20X6. d. INCOME STATEMENT Year ended June 30, 20X7 Revenues: Interest revenue……………………………….…. $ 15 (10 min.) CP 5-14 Req. 1 20X6 Cash + Short-term inves

21、tments $4,000 + $15,000 Acid-test ratio = + Net current receivables = + $73,000 Total current liabilities $101,000 = .91 The company’s acid-test ratio compares favorably to the industry average of .90. Req. 2 One day’s sales = $743,000 = $2,036 365

22、 Days’ sales in average accounts receivable Average net = accounts receivable = ($73,000 + $68,000) / 2 One day’s sales $2,036 = 35 days The company’s days’-sales-in-receivables ratio (35) is okay relative to the 30-day period of the credit terms.  (10-15 m

23、in.) CP 5-15 Income Statement Balance Sheet Debit Credit Debit Credit 1. Classifications Balance Balance Balance Balance Service revenue……… X Other assets………….. X Property, plant, and equipment………….. X Cost of services s

24、old.. X Cash……………………. X Notes payable………... X Unearned revenues…. X Allowance for doubtful accounts... X Other expenses……… X Accounts receivable… X Accounts payable…… X Millions 2. Service revenue……

25、………………………………… $23,613 Cost of services sold……………………………….. (11,620) Other expenses………………………………………. (12,569) Net income (net loss)……………………………….. $ (576) 3. Current ratio = $239 + $4,417 – $389 = 1.48 $607 + $2,285 Exercises (10-15 min.) E 5-1 1. This is a tr

26、ading investment because Exxon intends to sell the stock within a short time. 2. Dec. 20 Short-Term Investment (10,000 $60)…. 600,000 Cash………………………………………. 600,000 Purchased investment. Dec. 31 Short-Term Investment [(10,000 $63

27、) – $600,000]……………….. 30,000 Unrealized Gain on Investment……… 30,000 Adjusted investment to market value. 3. BALANCE SHEET Current assets: Short-term trading investment, at market value………. $630,000 INCOME STATEMENT Other revenu

28、e and gains: Unrealized gain on investment…………………………… $ 30,000 (10-20 min.) E 5-2 INCOME STATEMENT Other revenue and (expense): Dividend revenue……………………………………… $ 500 Unrealized gain on investment ($101,000 – $98,000). 3,000 BALANCE SHEET Current assets:

29、 Short-term investments, at market value…………. $101,000 (15-30 min.) E 5-3 Req. 1 Cash Short-Term Investment Dividend Revenue 110,000 67,000 67,000 2,000 1,700* 1,700* 65,000 72,000 Unrealized Gain

30、(Loss) On Investment Gain on Sale Of Investment 2,000 7,000 _____ *2,000 shares $.85 = $1,700 Req. 2 December 31 BALANCE SHEET 20X3 20X4 Current assets: Short-term investments…………………… $65,000 $ — Year Ended INCOME STATEMENT 20X3 20X4

31、Other revenue and expense: Dividend revenue…………………………… $ 1,700 $ — Unrealized (loss) on investment…………. (2,000) — Gain on sale of investment……………….. — 7,000 (5-10 min.) E 5-4 MEMORANDUM DATE: TO: Bob O’Reilly FROM: Student Name RE: E

32、ssential element of internal control over collection from customers Separation of duties is the essential element in a system to ensure that cash received by mail from customers is properly handled and accounted for. It is very important to separate cash-handling duties from accounting duties. Ot

33、herwise, an employee can steal a cash receipt from a customer and cover the theft by writing off the customer account as uncollectible. Student responses may vary. (15-20 min.) E 5-5 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 20X8 Dec. 31 Year-end e

34、ntry: Doubtful-Account Expense ($600,000 .01)………………………... 6,000 Allowance for Doubtful Accounts. 6,000 BALANCE SHEET Current assets: Accounts receivable, net of allowance for doubtful accounts of $6,9001…………... $84,1002 _____

35、 _____ 1$900 + $6,000 = $6,900 2$91,000 – $6,900 = $84,100 (15 min.) E 5-6 Req. 1 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Oct. Accounts Receivable……………………... 100,000 Sales Revenue………………………….. 100,

36、000 Oct. Cash………………………………………….. 94,000 Accounts Receivable…………………... 94,000 Oct. Allowance for Uncollectible Accounts… 1,700 Accounts Receivable…………………... 1,700 Oct. Uncollectible-Account Expense ($100,000 .02)……………………………..

37、 2,000 Allowance for Uncollectible Accounts 2,000 Req. 2 Accounts Receivable Allowance for Uncollectible Accounts 28,000 94,000 1,600 100,000 1,700 1,700 2,000 32,300 1,900 Net accounts receivable = $30,400 ($32,300 – $1,900) The st

38、ore expects to collect an amount approximating the net receivable. Req. 3 BALANCE SHEET Current assets: Accounts receivable, net of allowance for uncollectible accounts of $1,900………………… $30,400 (10-15 min.) E 5-7 Req. 1 Journal DATE ACCOUNT TITLES AND EXPLANATION DEB

39、IT CREDIT Oct. Uncollectible-Account Expense….. 1,700 Accounts Receivable…………….. 1,700 Req. 2 Net accounts receivable is $32,300, the balance in Accounts Receivable, computed as follows: Accounts Receivable Beg. bal. 28,000 Cr. sales 100,000 Collections 94,000

40、 Write-offs 1,700 End. bal. 32,300 The store does not expect to collect the full $32,300 because some credit customers are likely not to pay their accounts. (15-30 min.) E 5-8 Req. 1 The credit balance at December 31 in Allowance for Doubtful Accounts should be $13,400.

41、 ($106,000 .005) + ($78,000 .015) + ($70,000 .06) + ($15,000 .50) = $13,400. The current balance is $7,400. Thus, the balance of the allowance account is too low. Req. 2 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Doubtful-Account Expense…………….. 6,000 Allowa

42、nce for Doubtful Accounts…. 6,000 Allowance for Doubtful Accounts 7,400 6,000 13,400 Req. 3 BALANCE SHEET Current assets: Cash………………………………………….. $ XX Short-term investments…………………... XX Accounts receivable, net of allowance for do

43、ubtful accounts of $13,400…….. 255,600* _____ *Another way to report accounts receivable is Accounts receivable………………………. $269,000 Less Allowance for doubtful accounts… (13,400) 255,600 (15-20 min.) E 5-9 Req. 1 2% is reasonable because for each year’s sales and fo

44、r the entire three-year period, the ratio of total write-offs to sales is very close to 2%. (Dollars in thousands) 20X4 20X5 20X6 Total Write offs = $139 $138 $144 $421 Sales $6,800 $7,000 $7,100 $20,900 = .0204 = .0197

45、 = .0203 = .0201 Req. 2 Thousands 20X6 Accounts Receivable…………………… 7,100 Sales Revenue………………………... 7,100 Recorded sales on account. 20X6 Bad-Debt Expense ($7,100 .02)……... 142 Allowance for Bad Debts…………… 142 Recorded expense for the ye

46、ar. 20X6 Allowance for Bad Debts………………. 144 Accounts Receivable………………... 144 Wrote off uncollectible receivables. (10-15 min.) E 5-10 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Nov. 1 Note Receivable — Al Sperry………… 40,000 Cash…

47、…………………………………. 40,000 Dec. 3 Note Receivable — Acura, Inc……….. 5,000 Service Revenue…………………….. 5,000 16 Note Receivable — Vanguard Co……. 2,000 Accounts Receivable — Vanguard Co. 2,000 31 Interest Receivable…………………….. 656*

48、 Interest Revenue…………………….. 656 _____ ($40,000 .09 2/12) + ($5,000 .12 28/365) + ($2,000 .12 15/365**) = $645 $600 $46 $10 **Fraction can also be stated as .5/12 Harrison earned interest revenue of $656 this year. (15 min.) E 5-11 20X8 2

49、0X9 BALANCE SHEET Current assets: Note receivable…………………………….… $100,000 $ — Interest receivable ($100,000 .08 9/12). 6,000 — INCOME STATEMENT Interest revenue………………………………… 6,000 2,000* _____ *$100,000 .08 3/12 = $2,000 (10 min.) E 5-12 1. Stockt

50、on Bank has interest receivable and interest revenue. California Company has interest payable and interest expense. Interest for one month ($100,000 .06 1/12)……… $500 2. Stockton Bank: Assets = Liabilities + Equity Affected By 0 Interest revenue California Compan

51、y: 0 Interest expense 3. True 4. The net amount of receivables — the amount the company expects to collect — is more interesting because the company will probably collect this amount in cash. 5. Accounts receivable……………………. $XXX Less Allowance for uncollectibles…… (X)

52、 Accounts receivable, net………………. $ XX BALANCE SHEET Current assets: Cash Short-term investments Accounts receivable, net 6. False. The direct write-off method overstates assets because it fails to show the amount of the receivables the company expects to collect. (

53、10-15 min.) E 5-13 Amounts in millions of dollars Short-term Net current (a) Acid-test = Cash + investments + receivables ratio Total current liabilities = $137 + $30 + $37 $40 + $158 = $204 $198

54、 = 1.03 An acid-test ratio of 1.03 is normal. (b) One Sales and days = service revenue = $415 = $1.137 sales 365 365 Days’ sales Average net in average = accounts receivable = ($37 + $42) / 2 receivables One day

55、’s sales $1.137 = 35 days 35 days’ sales in average receivables is okay relative to credit terms of net 30 days. (10-15 min.) E 5-14 Req. 1 Average collection period: Millions of dollars One day’s sales = $256,329 = $702.3 365

56、 Days’ sales in average receivables = ($1,254 + $1,569) / 2 = 2 days (average collection period) $702.3 Req. 2 Wal-Mart’s collection period is short because Wal-Mart sells for cash and on credit cards and bank cards. Receivables are very low. (15-20 min.) E 5-15 Actual

57、without Bank Cards Expected with Bank Cards Sales revenue ……………………... $400,000 $440,000* Cost of goods sold… ……………. $210,000 $231,000** Uncollectible-account expense… 6,000 — Bank-card discount expense…… 4,800*** Other expenses…………………… 68,000

58、 66,000**** Total expenses……………………. 284,000 301,800 Net income…………………………. $116,000 $138,200 Decision: Accept bank cards because of the expected increase in net income. _____ *$400,000 1.10 = $440,000 **$210,000 1.10 = $231,000 ***$440,000 – $200

59、,000 = $240,000 .02 = $4,800 The switch to bank cards should produce bankcard discount expense on only the portion of sales that are made on bank cards. ****$68,000 – $2,000 = $66,000 (15-20 min.) E 5-16 Analysis of T-accounts is helpful, as follows (in millions): Allowances Beg

60、. bal. 68 (a) Write-offs 351 Expense 354 End. bal. 71 (b) Total revenue = $35,400 ($354 ) .01) Trade Receivables Beg. bal. ($2,269 + $68) 2,337 Total revenue 35,400 Write-offs 351 Collections 34,729 (c) End. bal. ($2,586 + $71) 2,657 

61、(10-15 min.) E 5-17 Receivables Beg. bal. 80,000 Sales on account 950,000 Collections must be X = $940,000 Maximum acceptable bal. 90,000 Collections = $940,000 = $940,000 = .91 Beg. bal. + Sales on account $80,000 + $950,000 $1,030,000 Therefore, the percentage discount that Columbia should be willing to absorb is 9% (100% – 91%). 341 Chapter 5 Receivables and Short-Term Investments