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

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