Soluzioni esercizi appendix H

SOLUTIONS TO EXERCISES

EXERCISE H-1

(a) Estimated warranties outstanding:

Month Estimate Units Defective Outstanding

November 840 620 220

December 990 500 490

Total 1,830 1,200 710

₤15 = ₤10,650.

Estimated warranty liability—710 X

(b) Warranty Expense (1,830 X ₤15) ................................ 27,450

Warranty Liability.............................................. 27,450

Warranty Liability........................................................ 16,800

Repair Parts....................................................... 16,800

₤15)

(c) Warranty Liability (500 X .................................... 7,500

Repair Parts....................................................... 7,500

EXERCISE H-2

(a) KESETE ONLINE AG

Partial Statement of Financial Position

Current liabilities

Accounts payable .......................................................... € 63,000

Long-term debt due within one year............................. 40,000

Unearned ticket revenue ............................................... 21,000

Warranty liability ........................................................... 18,000

Sales taxes payable ....................................................... 10,000

Interest payable ............................................................. 8,000

Total current liabilities ........................................... €160,000

EXERCISE H-2 (Continued) €140,000 (€300,000

(b) Kesete Online AG’s working capital is − €160,000)

(€300,000 ÷ €160,000). Although a current

and its current ratio is 1.88:1

ratio of 2:1 has been considered the standard for a good credit rating,

many companies operate successfully with a current ratio

below 2:1.

EXERCISE H-3

(a) Rent Expense .......................................... 720

Cash ................................................ 720

(b) Jan. 1 Leased Asset—Equipment..................... 103,084

Lease Liability ................................ 103,084

EXERCISE H-4

Mar. 31 Vacation Benefits Expense.......................... 1,920

Vacation Benefits Payable

€96)

(10 X 2 X .................................. 1,920

X 8%)

31 Pension Expense (€30,000 ................ 2,400

Pension Liability............................. 2,400

SOLUTIONS TO PROBLEMS

PROBLEM H-1A

(a) Jan. 1 Cash........................................................... 15,000

Notes Payable.................................. 15,000

5 Cash.......................................................... 9,752

(€9,752 ÷ 106%)

Sales Revenue ...... 9,200

Sales Taxes Payable

(€9,752 – €9,200).......................... 552

12 Unearned Service Revenue..................... 9,000

Service Revenue ............................. 9,000

14 Sales Taxes Payable................................ 5,800

Cash ................................................. 5,800

20 Accounts Receivable............................... 38,584

Sales Revenue................................. 36,400

Sales Taxes Payable

(700 X €52 X 6%) ......................... 2,184

25 Cash.......................................................... 13,144

(€13,144 ÷ 106%)

Sales Revenue .... 12,400

Sales Taxes Payable

(€13,144 – €12,400) ..................... 744

(b) (1) Jan. 31 Interest 100

Expense

Interest Payable

€15,000X8%X1/12)

( 100

(2) Jan. 31 Warranty 1,456

Expense

Warranty (€36,400 X 4%)

Liability ...... 1,456

PROBLEM H-1A (Continued)

(c) Current liabilities

Notes payable................................................................ €15,000

Accounts payable ......................................................... 42,500

Unearned service revenue (€15,000 – €9,000)............. 6,000

(€552 + €2,184 + €744)

Sales taxes payable ................ 3,480

Warranty liability ........................................................... 1,456

Interest payable............................................................. 100

Total current liabilities......................................... €68,536

PROBLEM H-2A

(a) Amsrud Enterprises should record the Haber Co. lease as a finance

lease because the lease term is about 86% of the estimated economic

life of the second property.

Both the Lennon Ltd. and Schell Ltd. leases should be reported as

operating leases because neither meets any of the four conditions that

would require treatment as a finance lease.

(b) The Haber Co. lease is a finance lease. The entry to record the finance

lease on January 1, 2017, therefore is as follows:

Leased Asset—Equipment ............................ 62,000

Lease Liability ........................................ 62,000

(c) The Lennon Ltd. lease is an operating lease. The entry to record the

lease payment in 2017, therefore is as follows:

Rent Expense ................................................. 4,800

Cash ........................................................ 4,800

PROBLEM H-1B

(a) Jan. 5 Cash......................................................... 17,496

÷ 108%)....

Sales Revenue (₤17,496 16,200

Sales Taxes Payable

(₤17,496 – ₤16,200)..................... 1,296

12 Unearned Service Revenue.................... 10,000

Service Revenue ............................. 10,000

14 Sales Taxes Payable............................... 7,700

Cash ................................................. 7,700

20 Accounts Receivable.............................. 34,992

Sales Revenue................................. 32,400

Sales Taxes Payable

₤54 X 8%)

(600 X ........................ 2,592

21 Cash......................................................... 18,000

Notes Payable ................................. 18,000

25 Cash......................................................... 12,420

÷ 108%)....

Sales Revenue (₤12,420 11,500

Sales Taxes Payable

(₤12,420 – ₤11,500) .................... 920

(b) (1) Jan. 31 Interest Expense ............................. 30

Interest Payable ....................... 30

X 6% X 1/12 =

(₤18,000

₤90; ₤90 X 1/3)

(2) Jan. 31 Warranty Expense .......................... 1,620

Warranty X 5%).........

Liability (₤32,400 1,620