ATG 301 INTERMEDIATE ACCOUNTING I FINAL EXAMINATION
BRADLEY UNIVERSITY
ATG 301 INTERMEDIATE ACCOUNTING
JOHN GILLETT
PROFESSOR, CPA, Ph.D.
NAME: _______________________
Instructions:
1)
A maximum of two hours is allowed to complete this examination.2)
This is a closed book examination.3)
Only simple non-programmable calculators will be allowed.4)
Mark your answer clearly, in pencil on the Scantron Form5)
Notes and other work will not be considered in determining a grade.6)
If you have questions regarding this examination please refer to the TAC student guide for direction about whom to contact.7)
The Scantron Form and the Examination must be returned at the end of the examination8)
This examination covers material drawn from the Thirteenth Edition of Intermediate Accounting by Kieso, Weygandt, and Warfield. Chapters included in this examination are:Chapter Title
One Financial Accounting and Accounting Standards
Two Conceptual Framework Underlying Financial Accounting Three The Accounting Information System
Four Income Statement and Related Information Five Balance Sheet and Statement of Cash Flows
Six Accounting and the Time Value of Money Seven Cash and Receivables
Eight Valuation of Inventories: A Cost-Basis Approach Nine Inventories: Additional Valuation Issues
Ten Acquisition and Disposition of Property, Plant, and Equipment
Eleven Depreciation, Impairments, and Depletion Twelve Intangible Assets
Thirteen Current Liabilities and Contingencies Eighteen Revenue Recognition
ATG 301 INTERMEDIATE ACCOUNTING I FINAL EXAMINATION
Page 2 of 8
1. One objective of financial reporting is to provide
a) information about the investors in the business entity.
b) information about the liquidation values of the resources held by the enterprise.
c) information that is useful in assessing cash flow prospects.
d) information that will attract new investors. 2. Companies that are listed on a stock exchange are required to submit their financial statements to the
a) AICPA. b) APB. c) FASB. d) SEC.
3. The underlying theme of the conceptual framework is
a) decision usefulness. b) understandability. c) reliability.
d) comparability.
4. A decrease in net assets arising from peripheral or incidental transactions is called a(n) a) capital expenditure.
b) cost. c) loss. d) expense.
5. Issuance of common stock for cash affects which basic element of financial statements? a) Revenues
b) Losses c) Liabilities d) Equity
6. Which basic assumption may not be followed when a firm in bankruptcy reports financial results?
a) Economic entity assumption. b) Going concern assumption. c) Periodicity assumption. d) Monetary unit assumption.
7. Revenue generally should be recognized a) at the end of production.
b) at the time of cash collection. c) when realized.
d) when realized or realizable and earned.
8. When a corporation pays a note payable and interest,
a) the account notes payable will be increased. b) the account interest expense will be
decreased.
c) the will debit notes payable and interest
expense.
d) they will debit cash.
9. An adjusting entry should never include a) a debit to an expense account and a credit to a
liability account.
b) a debit to an expense account and a credit to a revenue account.
c) a debit to a liability account and a credit to revenue account.
d) a debit to a revenue account and a credit to a liability account.
10. The failure to properly record an adjusting entry to accrue an expense will result in an:
a) understatement of expenses and an understatement of liabilities.
b) understatement of expenses and an overstatement of liabilities.
c) understatement of expenses and an overstatement of assets.
d) overstatement of expenses and an understatement of assets.
11. Allen Corp.’s liability account balances at June 30, 2011, included a 10% note payable in the amount of $2,400,000. The note is dated October 1, 2009, and is payable in three equal annual payments of $800,000 plus interest. The first interest and principal payment was made on October 1, 2010. In Allen’s June 30, 2011, balance sheet, what amount should be reported as accrued interest payable for this note?
a) $180,000. b) $120,000. c) $60,000. d) $40,000.
ATG 301 INTERMEDIATE ACCOUNTING I FINAL EXAMINATION
12. In order to be classified as an extraordinary item in the income statement, an event or transaction should be
a) unusual in nature, infrequent, and material in amount.
b) unusual in nature and infrequent, but it need not be material.
c) infrequent and material in amount, but it need not be unusual in nature.
d) unusual in nature and material, but it need not be infrequent.
13. Which item below is not a current liability? a) Unearned revenue
b) Stock dividends distributable
c) The currently maturing portion of long-term debt
d) Trade accounts payable
14. Stine Corp.’s trial balance reflected the following account balances at December 31, 2010:
Accounts receivable (net) $24,000 Trading securities 6,000 Accumulated depreciation on equipment and
furniture 15,000 Cash 11,000 Inventory 30,000 Equipment 25,000 Patent 4,000 Prepaid expenses 2,000 Land held for future business site 18,000
In Stine’s December 31, 2010 balance sheet, the current assets total is?
a) $90,000. b) $82,000. c) $77,000. d) $73,000.
15. Which factor would be greater -- the present value of $1 for 10 periods at 8% per period or the future value of $1 for 10 periods at 8% per period? a) Present value of $1 for 10 periods at 8% per
period.
b) Future value of $1 for 10 periods at 8% per period.
c) The factors are the same. d) Need more information.
16. In which account are post-dated checks received classified?
a) Receivables
b) Prepaid expenses c) Cash
d) Payables
17. What is the normal journal entry when writing-off an account as uncollectible under the allowance method?
a) Debit Allowance for Doubtful Accounts, credit Accounts Receivable.
b) Debit Allowance for Doubtful Accounts, credit Bad Debt Expense.
c) Debit Bad Debt Expense, credit Allowance for Doubtful Accounts.
d) Debit Accounts Receivable, credit Allowance for Doubtful Accounts.
18. Lawrence Company has cash in bank of $15,000, restricted cash in a separate account of $4,000, and a bank overdraft in an account at another bank of $2,000. Lawrence should report cash of
a) $13,000. b) $15,000. c) $18,000. d) $19,000.
19. Smithson Corporation had a 1/1/10 balance in the Allowance for Doubtful Accounts of $10,000. During 2010, it wrote off $7,200 of accounts and collected #2,100 on accounts previously written off. The balance in Accounts Receivable was $200,000 at 1/1 and $240,000 at 12/31. At 12/31/10, Smithson estimates that 5% of accounts receivable will prove to be uncollectible. What is Bad Debt Expense for 2010?
a) $2,000. b) $7,100. c) $9,200. d) $12,000.
20. If a petty cash fund is established in the amount of $250, and contains $150 in cash and $95 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts
a) Petty Cash, $75. b) Petty Cash, $100.
c) Cash, $95; Cash Over and Short, $5. d) Cash, $100.
ATG 301 INTERMEDIATE ACCOUNTING I FINAL EXAMINATION
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21. Finley, Inc.’s checkbook balance on December 31, 2010 was $21,200. In addition, Finley held the following items in its safe on December 31.
(1) A check for $450 from Peters, Inc. received December 30, 2010, which was not included in the checkbook balance.
(2) An NSF check from Garner Company in the amount of $900 that had been deposited at the bank, but was returned for lack of sufficient funds on December 29. The check was to be redeposited on January 3, 2011. The original deposit has been included in the December 31 checkbook balance.
(3) Coin and currency on hand amounted to $1,450.
The proper amount to be reported on Finley’s balance sheet for cash at December 31, 2010 is a) $21,300.
b) $20,400. c) $22,200. d) $21,750.
22. Where should goods in transit that were recently purchased f.o.b. destination be included on the balance sheet?
a) Accounts payable b) Inventory
c) Equipment
d) Not on the balance sheet
23. The accountant for the Pryor Sales Company is preparing the income statement for 2010 and the balance sheet at December 31, 2010. Pryor uses the periodic inventory system. The January 1, 2010 merchandise inventory balance will appear a) only as an asset on the balance sheet. b) only in the cost of goods sold section of the
income statement.
c) as a deduction in the cost of goods sold section of the income statement and as a current asset on the balance sheet. d) as an addition in the cost of goods sold
section of the income statement and as a current asset on the balance sheet.
24. If the beginning inventory for 2010 is overstated, the effects of this error on cost of goods sold for 2010, net income for 2010, and assets at December 31, 2011, respectively, are
a) overstatement, understatement, overstatement.
b) overstatement, understatement, no effect. c) understatement, overstatement,
overstatement
d) understatement, overstatement, no effect. 25. During 2010, Larue Co., a manufacturer of chocolate candies, contracted to purchase 100,000 pounds of cocoa beans at $4.00 per pound, delivery to be made in the spring of 2011. Because a record harvest is predicted for 2011, the price per pound for cocoa beans had fallen to $3.10 by December 31, 2010.
Of the following journal entries, the one which would properly reflect in 2010 the effect of the commitment of Larue Co. to purchase the 100,000 pounds of cocoa is
a) Cocoa Inventory 400,000
...Accounts Payable 400,000 b) Cocoa Inventory 310,000
Loss on Purchase Commitments 90,000
...Accounts Payable 400,000 c) Estimated Loss on Purchase
Commitments
90,000
...Estimated Liability on
on ... .Purchase Commitments
90,000 d) No entry would be necessary in 2010
26. The following information is available for October for Barton Company.
Beginning inventory $..50,000 Net purchases 150,000
Net sales 300,000
Percentage markup on cost 66.67%
A fire destroyed Barton’s October 31 inventory, leaving undamaged inventory with a cost of $3,000. Using the gross profit method, the estimated ending inventory destroyed by fire is a) $17,000.
b) $77,000. c) $80,000. d) $100,000.
ATG 301 INTERMEDIATE ACCOUNTING I FINAL EXAMINATION
27. On April 1, 2009, Verlin Co. purchased new machinery for $240,000. The machinery has an estimated useful life of five years, no salvage value, and depreciation is computed by the sum-of-the-years’-digits method. The accumulated depreciation on this machinery at March 31, 2011, should be
a) $160,000. b) $144,000. c) $96,000. d) $80,000.
28. Which of the following methods of amortization is normally used for intangible assets?
a) Sum-of-the-years’-digits b) Straight-line
c) Units of production d) Double-declining-balance
29. Wriglee, Inc. went to court this year and successfully defended its patent from infringement by a competitor. The cost of this defense should be charged to
a) patents.
b) legal fees and amortized over 5 years or less. c) expenses of the period.
d) patents and amortized over the remaining useful life of the patent.
30. Which of the following sets of conditions would give rise to the accrual of a contingency under current generally accepted accounting principles?
a) Amount of loss is reasonably estimable and event occurs infrequently.
b) Amount of loss is reasonably estimable and occurrence of event is probable.
c) Event is unusual in nature and occurrence of event is probable.
d) Event is unusual in nature and event occurs infrequently.
31. Palmer Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 boxtops from Palmer Frosted Flakes boxes and $1.00. The company estimates that 60% of the boxtops will be redeemed. In 2010, the company sold 675,000 boxes of Frosted Flakes and customers redeemed 330,000 boxtops receiving 110,000 bowls. If the bowls cost Palmer Company $2.50 each, how much liability for outstanding premiums should be recorded at the end of 2010?
a) $25,000 b) $37,500 c) $62,500 d) $87,500
32. The revenue recognition principle provides that revenue is recognized when
a) it is realized. b) it is realizable.
c) it is realized or realizable and it is earned. d) none of these.
33. The debit for a sales tax properly levied and paid on the purchase of machinery preferably would be a charge to
a) the machinery account.
b) a separate deferred charge account.
c) miscellaneous tax expense (which includes all taxes other than those on income).
d) accumulated depreciation -- machinery. 34. When computing the amount of interest cost to be capitalized, the concept of “avoidable interest” refers to
a) the total interest cost actually incurred. b) a cost of capital charge for stockholders’
equity.
c) that portion of total interest cost which would not have been incurred if expenditures for asset construction had not been made. d) that portion of average accumulated
expenditures on which no interest cost was incurred.
ATG 301 INTERMEDIATE ACCOUNTING I FINAL EXAMINATION
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35. Dodson Company traded in a manual pressing machine for an automated pressing machine and gave $8,000 cash. The old machine cost $93,000 and had a net book value of $71,000. The old machine had a fair market value of $60,000.
Which of the following is the correct journal entry to record the exchange?
a) Equipment 68,000 Loss on Exchange 11,000 Accumulated Depreciation 22,000 ...Equipment 93,000 ...Cash 8,000 b) Equipment 68,000 ...Equipment 60,000 ...Cash 8,000 c) Cash 8,000 Equipment 60,000 Loss on Exchange 11,000 Accumulated Depreciation 22,000 ...Equipment 101,000 d) Equipment 123,000 ...Accumulated Depreciation 22,000 ...Equipment 93,000
36. If an industrial firm uses the units-of-production method for computing depreciation on its only plant asset, factory machinery, the credit to accumulated depreciation from period to period during the life of the firm will
a) be constant.
b) vary with unit sales. c) vary with sales revenue. d) vary with production.
37. Solar Products purchased a computer for $13,000 on July 1, 2010. The company intends to depreciate it over 4 years using the double-declining balance method. Salvage value is $1,000. Depreciation for 2010 is
a) $6,500 b) $3,250 c) $4,875 d) $3,000
38. Gardner Corporation purchased a truck at the beginning of 2010 for $75,000. The truck is estimated to have a salvage value of $3,000 and a useful life of 120,000 miles. It was driven 18,000 miles in 2010 and 32,000 miles in 2011. What is the depreciation expense for 2011?
a) $20,000 b) $53,333 c) $19,200 d) $32,000
39. Newell, Inc. purchased equipment in 2009 at a cost of $600,000. Two years later it became apparent to Newell, Inc. that this equipment had suffered an impairment of value. In early 2011, the book value of the asset is $360,000 and it is estimated that the fair value is now only $240,000. The entry to record the impairment is
a) No entry is necessary as a write-off violates the historical cost principle.
b) Retained Earnings 120,000
...Accumulated Depreciation --
of ...Equipment
120,000 c) Loss on Impairment of Equipment 120,000
...Accumulated Depreciation --
of ...Equipment
120,000 d) Retained Earnings 120,000
...Reserve for Loss on Impairment
Impa..of Equipment
120,000
40. During 2010, Eldred Corporation acquired a mineral mine for $1,500,000 of which $200,000 was ascribed to land value after the mineral has been removed. Geological surveys have indicated that 10 million units of the mineral could be extracted and 1,200,000 units were sold. What is the amount of depletion expensed for 2010? a) $130,000.
b) $156,000. c) $180,000. d) $195,000.
41. Checkers uses the periodic inventory system. For the current month, the beginning inventory consisted of 1,200 units that cost $12 each. During the month, the company made two purchases: 500 units at $13 each and 2,000 units at $13.50 each. Checkers also sold 2,150 units during the month. Using the LIFO method, what is the ending inventory?
a) $20,073. b) $18,600. c) $20,925. d) $18,950.
ATG 301 INTERMEDIATE ACCOUNTING I FINAL EXAMINATION
42. Walsh Retailers purchased merchandise with a list price of $50,000, subject to trade discounts of 20% and 10%, with no cash discounts allowable. Walsh should record the cost of this merchandise as
a) $35,000. b) $36,000. c) $39,000. d) $50,000.
43. Of the following questions, which one would not be answered by the statement of cash flows? a) Where did the cash come from during the
period?
b) What was the cash used for during the period?
c) Were all the cash expenditures of benefit to the company during the period?
d) What was the change in the cash balance during the period?
44. An increase in inventory balance would be reported in a statement of cash flows using the indirect method (reconciliation method) as a(n) a) addition to net income in arriving at net cash flow from operating activities.
b) deduction from net income in arriving at net cash flow for operating activities.
c) cash outflow from investing activities. d) Cash outflow from financing activity.
45. When preparing a statement of cash flows (indirect method), an increase in ending inventory over beginning inventory will result in an adjustment to reported net earnings because
a) cash was increased while cost of goods sold was decreased.
b) cost of goods sold on an accrual basis is lower than on a cash basis.
c) acquisition of inventory is an investment activity.
d) inventory purchased during the period was less than inventory sold resulting in a net cash increase.
Use the following data for questions 46 and 47. Napier Co. provided the following information on
selected transactions during 2011:
Purchase of land by issuing bonds $...250,000 Proceeds from issuing bonds 500,000 Purchases of inventory 950,000 Purchases of treasury stock 150,000 Loans made to affiliated corporations 350,000
Dividends paid to preferred stockholders 100,000 Proceeds from issuing preferred stock 400,000 Proceeds from sale of equipment 50,000
46. The net cash provided (used) by investing activities during 2011 is
a) $50,000. b) $(300,000). c) $(550,000). d) $(1,250,000).
47. The net cash provided by financing activities during 2011 is
a) $550,000. b) $650,000. c) $800,000. d) $900,000.
48. Lindsay Corporation had net income for 2011 of $3,000,000. Additional information is as follows:
Depreciation of plant assets $...1,200,000 Amortization of intangibles 240,000
Increase in accounts receivable 420,000 Increase in accounts payable 540,000
Lindsay’s net cash provided by operating activities for 2011 was
a) $4,560,000. b) $4,440,000. c) $4,320,000. d) $1,680,000.
49. The purpose of Statements of Financial Accounting Concepts is to
a) establish GAAP.
b) modify or extend the existing FASB Standards Statement.
c) form a conceptual framework for solving existing and emerging problems.
d) determine the need for FASB involvement in an emerging issue.
50. Nichols Company had 500 units of “Dink” in its inventory at a cost of $5 each. It purchased, for $2,400, 300 more units of “Dink.” Nichols then sold 600 units at a selling price of $10 each, resulting in a gross profit of $2,100. The cost flow assumption used by Kingman
a) is FIFO. b) is LIFO.
c) is weighted average.
d) cannot be determined from the information given.
ATG 301 INTERMEDIATE ACCOUNTING I SEPTEMBER 2010 FINAL EXAMINATION
Page 8 of 8
ATG 301 INTERMEDIATE ACCOUNTING ANSWER KEY AND SELECTED NOTES
FINAL EXAMINATION Page 1 of 9
BRADLEY UNIVERSITY
ATG 301: INTERMEDIATE ACCOUNTING
ANSWER KEY AND NOTES
JOHN GILLETT
PROFESSOR, CPA, Ph.D.
QUESTION ANSWER COMMENTS
1.
C
by definition
Financial Reporting の目的の一つは、「Cash flow の側
面に関する情報を提供する事」である。a)は、投資家につ
いての情報となっているので注意。
2.
D
by requirement
上場会社は、Financial Reporting を SEC に提出しなけれ
ばならない。
3.A
by definition
conceptual framework は、「意思決定に有益な事」が重要
である。
4.C
by definition
偶発的に資産が減少する事を「Loss」と言う。
5.
D
The issuance of CS for cash is recorded by a debit to Cash
and a credit to Stockholders’ Equity.
Common Stock の発行仕訳は
Dr. Cash / Cr. Stockholders’ Equity
であり、資産と資本勘定に影響を与える。
6.
B
Bankruptcy violates the going concern assumption
Bankruptcy となった場合には、going concern assumption
の前提が崩れる。
7.
D
by definition
ATG 301 INTERMEDIATE ACCOUNTING ANSWER KEY AND SELECTED NOTES
FINAL EXAMINATION Page 2 of 9
8.
C
The payment is in cash so you credit Cash and debit Notes
Payable and Interest Expense.
Note の元本と、利息支払いの際の仕訳は、
Dr. Note payable
Interest expense / Cr. Cash
である。
9.
B
by definition
修正仕訳において、
Dr. Expense / Cr. Revenue
となる仕訳は発生しない。
10.
A
The entry to accrue an expense is to debit the expense and
credit the liability. By not having the debit to an expense,
you understate expense and by not having the credit to a
liability you understate liabilities.
修正仕訳において、Expense を計上し忘れた場合は、
Expense、Liability 共に「Understatement」となる。
11.
D
The NP starts at 2,400,000 on Oct 1, 2009 and would be
reduced by the 800,000 Oct 1, 2010 payment, making the
balance 1,600,000 on Oct 1, 2010. To make the 2010
statement, you would have to debit Interest Expense and
Interest Payable for 1,600,000 x 0.10 x 3/12 = 40,000 so on
June 30, 2011, you would show an accrued interest
payable of 40,000.
Notes Payable は、2009 年 10 月 1 日に発行され、2010
年 10 月 1 日に 800,000 の元本支払いが完了している。
その結果 2010 年期末において、3 か月分の経過利息が
発生している。
利息金額の計算式は、
1,600,000 x 0.10 x 3/12 =40,000
となり、40000 が interest payable として計上されてい
る。
12.A
by definition
定義通り。
ATG 301 INTERMEDIATE ACCOUNTING ANSWER KEY AND SELECTED NOTES
FINAL EXAMINATION Page 3 of 9
13.
B
Stock Dividends Distributable account is an equity account
reduced when we issue the stock. All other accounts are
current liabilities.
Stock Dividends Distributable 勘定は、株式配当の際の勘
定であり、これは Equity 勘定で Current Liabilities 勘定で
はない。残りは全て Current Liabilities である。
14.
D
the CA are AR 24,000 + Trading Sec. 6,000 + Cash 11,000
+ Inv. 30,000 + Prepaid Exp. 2,000 = 73,000
Current Assets の総額は以下の通り。
AR 24,000 + Trading Sec. 6,000 + Cash 11,000 +
Inventory 30,000 + Prepaid Exp. 2,000 = 73,000
15.
B
PV is always less than 1 while FV is always greater than 1.
Present Value は常に 1 より小さく、Future Value は常に
1 より大きい。
16.
A
Postdated checks are not considered cash, so they are
receivables until they are no longer postdated.
Postdated checks(先日付小切手)は、予定期日が到来する
前は Receivables として計上する。
17.
A
When an account is recorded under the allowance method,
by definition you debit the Allowance account and credit
AR.
Account receivable の貸し倒れが発生した場合の仕訳は、
Dr. Allowance for Doubtful Accounts
Cr. Accounts Receivable.
となり、I/S インパクトは発生しない。
18.
B
The restricted cash can not be considered as cash since it
is restricted. The bank overdrafts at another bank must be
considered as an AP. If it was in the same bank we would
reduce the cash for the bank overdraft.
まず Restricted Cash(拘束性預金)は、引き出し制限がかか
っているため Cash とはならない。bank overdrafts(当座貸
越)は、同一銀行内であれば Cash との相殺を行うが、別の
銀行であれば Account Payable として扱う。
ATG 301 INTERMEDIATE ACCOUNTING ANSWER KEY AND SELECTED NOTES
FINAL EXAMINATION Page 4 of 9
19.
B
The Allowance account started with a credit balance of
10,000. The write off of 7,200 is a debit to that account
while the collection of 2,100 is a credit to the Allowance
account. The balance in the Allowance is now a credit of
$4,900. The credit should be 240,000 x 0.05 = 12,000 so
Bad Debt Expense must be debited and the Allowance
account must be credited for 7,100 to make a credit
balance of 12,000.
Allowance account は、期初 10,000 で当期 7,200 の貸し倒
れが発生した。当期末に計上が必要な Allowance 残高は、
期末 AR の 5%である。そのため Bad Debt Expense(BDE)
は、以下の計算により求める事が出来る。
BDE=ADA(期末)+貸し倒れ―ADA(期首)-回収=12,000
+7,200―10,000-2,100=7,100
20.
D
When the account is replenished, it must be returned to a
$250 balance. Since it has 150 in cash, we must credit
Cash for $100 and debit Petty Cash for $100.
Petty Cash(設定額$250)に$150 の残高があるため、差額の
$100 が補充される。Petty Cash が補充される際には、以
下の仕訳が発生する。
Dr. Petty Cash 100 / Cr. Cash 100
21.
C
The check for $450 in (1) is considered cash. The NSF
check for $900 was included in cash and now must be
removed. The coin and currency on hand are considered
cash. Therefore, 21,200 + 450 - 950 + 1,450 = 22,200
与件の中で、Cash となるのは(1)Check、(4)Coin and
Currency である。また、(2)NSF は一旦 Cash として計上さ
れたものの、不渡りとなったため Cash から除外する必要
がある。よって、Cash 残高は、
21,200 + 450 - 950 + 1,450 = 22,200
となる。
22.
D
Title does not pass until it reaches the destination, so they
are not included in the buyer’s inventory.
f.o.b. destination で商品を仕入れた場合、所有権は目的地に
到着するまでは売主の物なので、買主は自分の Inventory
に含めてはいけない。
ATG 301 INTERMEDIATE ACCOUNTING ANSWER KEY AND SELECTED NOTES
FINAL EXAMINATION Page 5 of 9
23.
B
The beginning inventory is considered to be part of
Goods Available and after Ending Inventory is
subtracted, becomes part of CGS. Only the ending
inventory is considered an asset on the BS.
Inventory の Beginning 残高は、I/S の COGS の一部として
表示される。参考までに COGS は、Inventory(BB)+当期仕
入―Inventory(EB)で計算される。
24.
B
Inventory errors are self-correcting over a two year
cycle. An error in Beginning Inventory will correct
the previous year. If 2010 beginning inventory is
overstated, cost of goods sold is overstated and net
income is understated.
Inventory の残高に Error があった場合には、翌年自動的
に Error による影響は解消される。2010 年の
Inventory(期初)が過大(overstated)であれば、Cost Of
Goods Sold は overstated であり、net income は
understated となる。
25.
C
The drop in price (4.00-3.10) must be recorded in
the year it occurred. 0.90(100,000) = 90,000
仕入れ価格の減少による発生する、仕入れ契約上の損失
は、(@4.00-@3.10) x 100,000=90,000 となる。
26.A
まず初めに原価率を計算します。Mark up on cost 66.67%とあ りますので、原価 100%に対して、利益を 66.67%加算している ことになります。従って、原価 100 に対して利益が 66.67、売 価は合計で 166.67 になります。 原価率は 100 / 166.67 で約 60%となります。以上より Goods available は 50,000 + 150,000 = 200,000、焼失した inventory は、200,000 – 0.6(300,000)= $20,000 と予想されます。しか し、$3,000 分は無傷でしたので、$17,000 が焼けてしまったこ とになります。27.
B
The sum of the years is 5 + 4 + 3 + 2 + 1 = 15
Two years has passed so 9/15 x (240,000) should be in
accumulated depreciation
sum of the years は 5 + 4 + 3 + 2 + 1 = 15 であり、使用開
始から 2 年が経っているため、accumulated depreciation
は、9/15 x (240,000)=144,000 と求められる。
ATG 301 INTERMEDIATE ACCOUNTING ANSWER KEY AND SELECTED NOTES
FINAL EXAMINATION Page 6 of 9
28.
B
by definition
Intangible Asset は、原則 Straight-Line で償却される。
29.
D
The cost of a successful patent infringement case is
capitalized and amortized
successful patent infringement により発生したコストは、
特許に資産計上され償却される。
30.
B
by definition
Loss Contingency は、発生確率が「Probable」で損失額が
「Reasonably Estimate」の場合に Loss を計上しなければ
ならない。
31.B
Liability は、以下の計算により求められる。
0.60 x 675,000 = 405,000
405,000 - 330,000 = 75,000
75,000/3 x (2.50-1.00) = 37,500 ※
※Cereal Bowl は 2.5 ドルだが、顧客から 1 ドル送っても
らうため、会社の実質負担は 1.5 ドル。
32.C
by definition
定義通り。
33.
A
All costs of getting an asset ready for its intended use are
capitalized as part of the asset.
PPE を購入した場合に、使用を開始するために発生した費
用は、一旦 PPE に計上され Useful Life で減価償却され
る。
34. C
by definition
Avoidable interest とは、Fixed Asset の製造や建設がもし無
ければ、それに対する借り入れを行なう必要が無く、従っ
て避けることが出来たであろう利息のこと。
ATG 301 INTERMEDIATE ACCOUNTING ANSWER KEY AND SELECTED NOTES
FINAL EXAMINATION Page 7 of 9
35.
A
The old machine must be removed from the books so debit
Accumulated Depreciation 22,000 and credit Equipment
93,000; cash is used so credit Cash for 8,000. The FV of
the old machine (60,000) + the cash are debited to
equipment.
Old Machine は帳簿から外され、New Machine を資産計上
する。その際の計上額は、Old Machine(FV)+Boot Given
=68,000 である。Old Machine の BV と FV の差額が Loss
となる。
36.
D
by definition
定義通り。
37.
B
SV is not considered in the DD since it is 4 years. 1/4 =
25% x 2 = 50%
0.50(13,000) for half a year = $3,250
DDB の計算において注意が必要なのは、SV を BV から引い
てはいけないという事である。
償却率 1÷4 = 25% x 2 = 50%
償却額 0.50×13,000 ÷2(半年) = $3,250
38.C
75,000 - 3,000 = 72,000
72,000/120,000 x 32,000 = 19,200
Usage Method により、減価償却額は以下の通り求められ
る。
75,000 ― 3,000 = 72,000
72,000÷120,000 x 32,000 = 19,200
39.
C
An impairment loss must be recorded as a Loss with a
corresponding credit to Accumulated Depreciation.
Impairment Loss は、Accumulated Depreciation に追加計
上される。
40.
B
$1,300,000 x 1,200,000/10,000,000 = 156,000
Depletion Expense は、以下の通り計算される。
$1,300,000 x 1,200,000/10,000,000 = 156,000
ATG 301 INTERMEDIATE ACCOUNTING ANSWER KEY AND SELECTED NOTES
FINAL EXAMINATION Page 8 of 9
41.
D
The ending inventory would be 1,550 units priced at (1,200
x 12) + (350 x 13) = 18,950
Ending Inventory(個数 1,550)の残高は、以下の通り計算
される。LIFO method なので新しく仕入れたものから順に
売れていく。
(1,200 x 12) + (350 x 13) = 18,950
42.B
50,000 - 0.20 (50,000) = 40,000
40,000 - 0.10 (40,000) = 36,000
当初仕入れ値が、20%、10%と 2 回にわたって値下げされ
ている。期末の Inventory 残高は以下の通り。
50,000 ×(1- 0.20 ) = 40,000
40,000 ×(1- 0.10 ) = 36,000
43.
C
The cash flow statement shows where cash came from,
where it went and if there were any changes in cash
balance. Only answer C is feasible.
Cash Flow statement は、Cash がどこから来てどのように
使われ、最終的な残高がいくらになったのかを示す計算書
である。
44.
B
Changes in CA and CL are shown in operations and an
increase in inventory means some cash was not used for
operations, so it must be deducted.
流動資産、流動負債の変動は、Operating Activity の中に
記載される。
45.B
by definition
定義通り。
46.B
(350,000) - 50,000
Investing activities の計算式は、
▲350,000 + 50,000=▲300,000 である。
47.B
500,000 - 150,000 - 100,000 + 400,000
Financing activities の計算式は、
500,000 - 150,000 - 100,000 + 400,000=650,000
である。
ATG 301 INTERMEDIATE ACCOUNTING ANSWER KEY AND SELECTED NOTES
FINAL EXAMINATION Page 9 of 9