EXAM 1 for ACC 311

# EXAM 1 for ACC 311 - Problem 1 General Journal Date...

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Problem 1 General Journal Page 1 Date Accounts Debit Credit Installment Accounts Receivable \$800,000 Installment Sales \$800,000 Cash \$300,000 Installment Accounts Receivable \$300,000 Cost of Installment Sales \$480,000 Inventory \$480,000 Installment Sales \$800,000 Cost of Installment Sales \$480,000 Deferred Gross Profit \$320,000 Deferred Gross Profit \$180,000 Realized Gross Profit \$180,000 Realized Gross Profit \$180,000 Income Summary \$180,000 Beginning Inventory \$0 + Purchases \$400,000 - Ending Inventory \$80,000 Cost of Goods Sold \$320,000 Installment Sales \$800,000 Cost of Installment Sales - \$320,000 Gross Profit \$480,000 \$480,000 = 60% \$800,000 Problem 4

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1. Service Cost = \$600; Debit 2. Interest Cost = \$420; Debit 3. Actual Return = \$480; Credit 4. Unexpected Gain = \$225; Credit 5. Amortization of PSC = \$85; Debit 6. Liability Increase = \$545; Debit 7. Pension Expense = \$850; Debit 8. Cash = \$1200; Credit 9. OCI (PSC) = \$85; Credit 10. OCI (G/L) = \$320; Debit 11. Pension Asset/Liability = \$115; Debit Pension Expense \$850 Other Comprehensive Income (G/L) \$320 Pension Asset/Liability \$115 Cash \$1,200 Other Comprehensive Income (PSC) \$85 Problem 5
1. This is a Sales-Type Lease. The Assets Fair Value of \$500,000 (\$50,000 x 10) does not equal the book value of the lessor, which is \$450,000 (the cost, \$45,000 x 10). 2. \$500,000.00 = x (Pv 6 periods at 8%) \$500,000.00 = x (4.62288) \$500,000/4.6288 = \$108,157.68 3. Date Annual Lease Payments Executory Costs Interest (.08%) on Lease Receivable Lease Receivable Recovery Lease Receivable 1/1/2011 \$500,000.00 12/31/2011 \$108,157.68 \$0.00 \$40,000.00 \$68,157.68 \$431,842.32 12/31/2012 \$108,157.68 \$0.00 \$34,547.39

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## This note was uploaded on 06/23/2010 for the course ACC 311 taught by Professor John during the Spring '10 term at Acadia.

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EXAM 1 for ACC 311 - Problem 1 General Journal Date...

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