1、西方财务会计课后习题答案Chapter 5Short-Term Investments and ReceivablesCheck Points(5 min.) CP 5-11. 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 days, weeks, o
2、r only a few months. A current asset is to be sold within one year or within the companys operating cycle if longer than a year.(10 min.) CP 5-2BALANCE SHEET Current assets: Short-term trading investments, at market value.$74,000INCOME STATEMENT Other revenue and gains (losses): Unrealized loss on i
3、nvestment.$ (6,000)(10 min.) CP 5-31.Paid $100,0002.Unrealized Loss on Investment ($100,000 $98,000)2,000 Short-Term Investment. 2,000Adjusted investment to market value.BALANCE SHEET Current assets: Short-term trading investment, at market value.$98,000INCOME STATEMENT Other revenue (loss): Unreali
4、zed loss on investment$ (2,000)(5 min.) CP 5-4Jennings, the accountant, should not handle the companys cash. With cash-handling duties, the accountant can steal cash and hide the theft by writing off a customers account receivable as uncollectible.(5 min.) CP 5-51.Uncollectible-Account Expense ($900
5、,000 .01).9,000 Allowance for Uncollectible Accounts9,0002.Balance sheet Accounts receivable$90,000 Less Allowance for uncollectible accounts. (9,000) Accounts receivable, net$81,000(5-10 min.) CP 5-61.Accounts Receivable. 800,000 Sales Revenue 800,0002.Cash780,000 Accounts Receivable780,0003.Allowa
6、nce for Uncollectible Accounts. 5,000 Accounts Receivable.5,0004.Uncollectible-Account Expense ($800,000 .01) 8,000 Allowance for Uncollectible Accounts.8,000(10 min.) CP 5-71.Accounts ReceivableBeg. bal.90,000Net credit sales800,000Collections780,000Write-offs5,000End. bal.105,000 Amount customers
7、owe the company2.Allowance for Uncollectible AccountsBeg. bal.9,000Write-offs5,000Uncollectible- account expense8,000End. bal.12,000 Amount Spitzerexpects not to collect3. and 4.BALANCE SHEET: Accounts receivable, net ($105,000 $12,000)$93,000 Amount Spitzer expects to collectINCOME STATEMENT: Sales
8、 revenue.$800,000 Uncollectible-account expense8,000(5-10 min.) CP 5-8(a)Accounts Receivable.700,000 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.7,000 Allowance for Uncollectib
9、le Accounts.7,000Allowance for Uncollectible AccountsBeg. bal.8,000Write-offs6,000Uncollectible account expenseX= 7,000End. bal.9,000(10 min.) CP 5-91. and 2.Accounts ReceivableBeg. bal.100,000Net credit sales700,000Collections720,000Write-offs6,000End. bal.74,000Allowance for Uncollectible Accounts
10、Beg. bal.8,000Write-offs6,000Uncollectible account expense7,000End. bal.9,0003.BALANCE SHEET Accounts receivable.$74,000 Less Allowance for uncollectible accounts (9,000) Accounts receivable, net.$65,000(5-10 min.) CP 5-10a.May19Note Receivable R. Kroll.100,000 Cash100,000b.Nov.19Cash103,000 Note Re
11、ceivable R. Kroll.100,000 Interest Revenue ($100,000 .06 6/12)3,000(10 min.) CP 5-111. Interest for:20X7($200,000 .09 8/12).$12,00020X8($200,000 .09).18,00020X9($200,000 .09 4/12).6,0002. Tradewinds Bank has a note receivable and interest revenue. Mike Toby has a note payable and interest expense.3.
12、 Payoff at November 30, 20X7:Principal.$200,000Interest ($200,000 .09 7/12). 10,500Total.$210,500(10 min.) CP 5-1220X5a.Aug. 31Note Receivable L. Holland1,000 Cash.1,000To lend money.20X6b.June 30Interest Receivable ($1,000 .09 10/12).75 Interest Revenue. 75To accrue interest revenue.20X6c.Aug. 31Ca
13、sh ($1,000 + $90).1,090 Interest Receivable. 75 Interest Revenue ($1,000 .09 2/12).15 Note Receivable1,000To collect on note receivable.(5-10 min.) CP 5-13a.BALANCE SHEETJune 30, 20X6 Current assets: Note receivable $1,000 Interest receivable. 75b.INCOME STATEMENTYear ended June 30, 20X6 Revenues: I
14、nterest revenue.$ 75c.BALANCE SHEETJune 30, 20X7 Nothing to report because the note was collected on August 31, 20X6.d.INCOME STATEMENTYear ended June 30, 20X7 Revenues: Interest revenue.$ 15(10 min.) CP 5-14Req. 120X6Cash + Short-term investments$4,000 + $15,000Acid-test ratio=+ Net current receiva
15、bles=+ $73,000Total current liabilities$101,000=.91The companys acid-test ratio compares favorably to the industry average of .90.Req. 2One days sales=$743,000=$2,036365Days sales in averageaccounts receivableAverage net=accounts receivable=($73,000 + $68,000) / 2One days sales$2,036=35 daysThe comp
16、anys days-sales-in-receivables ratio (35) is okay relative to the 30-day period of the credit terms. (10-15 min.) CP 5-15Income StatementBalance SheetDebitCreditDebitCredit1.ClassificationsBalanceBalanceBalanceBalanceService revenueXOther assets.XProperty, plant, and equipment.XCost ofs sold.XCash.X
17、Notes payable.XUnearned revenues.XAllowance for doubtful accounts.XOther expensesXAccounts receivableXAccounts payableXMillions2.Service revenue$23,613Cost ofs sold. (11,620)Other expenses. (12,569)Net income (net loss).$ (576)3.Current ratio=$239 + $4,417 $389=1.48$607 + $2,285Exercises(10-15 min.)
18、 E 5-11.This is a trading investment because Exxonintends to sell the stock within a short time.2.Dec. 20Short-Term Investment (10,000 $60).600,000 Cash.600,000Purchased investment.Dec. 31Short-Term Investment (10,000 $63) $600,000.30,000 Unrealized Gain on Investment30,000Adjusted investment to mar
19、ket value.3.BALANCE SHEET Current assets: Short-term trading investment, at market value.$630,000INCOME STATEMENT Other revenue and gains: Unrealized gain on investment$ 30,000(10-20 min.) E 5-2INCOME STATEMENT Other revenue and (expense): Dividend revenue$ 500 Unrealized gain on investment ($101,00
20、0 $98,000).3,000BALANCE SHEET Current assets: Short-term investments, at market value.$101,000(15-30 min.) E 5-3Req. 1CashShort-Term InvestmentDividend Revenue110,00067,00067,0002,0001,700* 1,700*65,00072,000Unrealized Gain (Loss)On InvestmentGain on Sale Of Investment2,0007,000_*2,000 shares $.85 =
21、 $1,700Req. 2December 31BALANCE SHEET20X320X4Current assets: Short-term investments $65,000 $ Year EndedINCOME STATEMENT20X320X4Other revenue and expense: Dividend revenue $ 1,700 $ Unrealized (loss) on investment.(2,000) Gain on sale of investment. 7,000(5-10 min.) E 5-4MEMORANDUMDATE: TO: Bob ORei
22、llyFROM: Student NameRE: Essential element of internal control over collection from customersSeparation 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
23、 accounting duties. Otherwise, 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 5-5JournalDATEACCOUNT TITLES AND EXPLANATIONDEBITCREDIT20X8Dec.31Year-end entry: Doubtful-Account Expense ($600,000 .01)
