Chapter 5 EOC assignment

Complex  Moderate  Simple How many questions that List the question that you are not List the brief List the exercises that you are not able to answer... FINANCIAL ACCOUNTING: TOOLS F

Complex  Moderate  Simple How many

questions that

List the question

that you are not

List the brief

List the exercises

that you are not

able to answer

Problems & Critical Thinking

Complex  Moderate  Simple How many 5_/5

problems that

you did answer?

List the problems

that you are not

FINANCIAL ACCOUNTING: TOOLS FOR DECISION-MAKING, 7th Canadian Edition (Kimmel P.D et al., 2017) – CHAPTER 5

BRIEF EXERCISES

BE5-4:

Pocras Corporation

Debit merchandise inventory $32,000

Credit Accounts Payable $32,000

Wydell Inc

Debit cost of goods sold $14,400

Credit merchandise inventory $14,400

Debit Merchandise Inventory (180 x 16) = $2,880

Credit Accounts Payable $2,880

June 3

Debit Accounts Receivable (220 x 25) = $5,500

Credit Sales $5,500

Debit Cost of Goods Sold (220 x 17) = $3,740

Credit Merchandise Inventory $3,740

June 5

Debit Accounts Payable $160

Credit Merchandise Inventory $160

June 8

Debit Accounts Receivable (80 x 22) = $1,760

Credit Sales $1,760

Debit Cost of Goods Sold (80 x 17) = $1,360

Credit Merchandise Inventory $1,360

June 9

Debit Sales Returns and Allowances $264

Credit Accounts Receivable $264

June 11

Debit Merchandise Inventory (130 x 15) = $1,950

Credit Accounts Payable $1,950

June 12

Debit Cash (5,500 – 110) = $5,390

Debit Sales Discounts (5,500 x 2%) = $110

Credit Accounts Receivable $5,500

June 17

Debit Cash $1,466.08

Debit Sales Discounts (1,760 – 264) x 2% = $29.92

Credit Accounts Receivable (1,760 – 264) = $1,496

June 22

Debit Accounts Receivable (125 x 25) = $3,125

Credit Sales $3,125

Debit Cost of Goods Sold (125 x 17) = $2,125

Credit Merchandise Inventory $2,125

June 25

Debit Sales Returns and Allowances $375

Credit Accounts Receivable $375

Debit Merchandise Inventory (15 x 17 ) = $255

Credit Cost of Goods Sold $255

Debit sale account 20,000 x 2% = $400

Credit account receivable $20,000

Credit sales $27,000

Debit cost of goods sold $20,000

Credit inventory $20,000

September 28

Debit Sales Returns and Allowances $10,000

Credit account receivable $10,000

Debit Sales Returns and Allowances $85

Credit account receivable $85

P5-5A

Debit Sales Discount ($3,500 × 2%) = $70

Credit Accounts Receivable $3,500

(b) The stakeholders who are harmed are the creditors since they are giving a discount that is

not warranted They are losing their money on the activity they could be earning bygetting paid in good time The company itself is as well harmed since Jamie Caterino hascreated a bad name among the creditors In some cases, the company benefits by keepingtheir money for a long duration of time and still getting the discount

wrong and she should therefore not put herself in that state just because somebody told her

to do it that way She does have a choice in the issue since always have a choice in how they conduct themselves She could have gone above Jamie Caterino and report what she was told to do If they tell her to continue with the practice as well, she cansnub them or search for another job She should not make herself responsible for immoral behavior under any circumstances

FINANCIAL ACCOUNTING: TOOLS FOR DECISION-MAKING, 7th Canadian Edition (Kimmel P.D et al., 2017) – CHAPTER 10

QUESTIONS

Q4:

a company has sold gift cards to customers

Debit Cash

Credit Gift card liability

the gift cards are redeemed

Debit Gift card liability

Credit Revenue

Q6:

Non-current portion of debt that a company owns.A company's total debt can be divided into two parts, the current portion of all its debt obligations and the long term portion of all its debt obligations These items are often found on a company's balance sheet

Q11:

An entity should present current and non-current liabilities as separate classifications in its statement of financial position

BRIEF EXERCISES

BE10-2:

(a) April 30

Debit Property Tax Expense ($36,000÷12 x 4) = 12,000

Credit Property Tax Payable 12,000

(b) July 15

Debit Property Tax Payable 12,000

Debit Property Tax Expense ($36,000 ÷12 x 2.5) = 7,500

Debit Prepaid Property Tax ($36,000 ÷12 x 5.5) = 16,500

Credit Cash 36,000

(c) Dec 31

Property Tax Expense 16,500

Prepaid Property Tax 16,500

Debit Interest Expense 250

Credit Interest Payable 250

INTRODUCTION TO FINANCIAL ACCOUNTING (VERSION 2019B) by Dauderis, H

& Annand, D – CHAPTER 9

DQ 3 Known current liabilities are which the payee, amount, and timing of payment are

known These are different from estimated current liabilities which the amount is not

INTRODUCTION TO FINANCIAL ACCOUNTING (VERSION 2019B) by Dauderis, H

& Annand, D – CHAPTER 10

INTERMEDIATE FINANCIAL ACCOUNTING - VOLUME 2 (2019 - REVISION A) by Arnold, G & Kyle, S – CHAPTER 12

b Vacation pay liability at December 31 = $24,720

Sick pay liability at December 31 = $0

E12-10