Week 2 - (for review, see page 230 of the textbook). 6 Dr...

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1 Suggested solutions to preparation questions Week 2 Problem 5.8 1 Dr Inventory $11 240 Cr Accounts payable $11 240 2 Dr Interest expense $330 Cr Interest payable $330 3 No entry. 4 Dr Amortisation expense $14 500 Cr Accumulated amortisation $14 500 5 If direct written-off method is used (no allowance for doubtful debts exists): Dr Bad debts expense $2 100 Cr Accounts receivable $2 100 If indirect method is used (allowance for doubtful debts exists): Dr Allowance for doubtful debts $2 100 Cr Accounts receivable $2 100
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Unformatted text preview: (for review, see page 230 of the textbook). 6 Dr Warranty expense $780 Cr Warranty provision $780 7 No entry. 8 Dr Prepaid insurance $2000 Cr Insurance expense $2000 9 Dr Sales revenue $400 Cr Deposit liability $400 10 Dr Accounts receivable $7 200 Cr Sales revenue $7 200 Dr COGS $3 300 Cr Inventory $3 300 2 Problem 5.15 1 Dr Cash Cr Other liability 2 Dr Other liability Cr Revenue Problems 6.4 1 Conservatism 2 Historical cost, relevance 3 Accounting period 4 Consistency 5 Materiality...
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This note was uploaded on 03/19/2012 for the course ACCT 1511 taught by Professor Kim during the Three '10 term at University of New South Wales.

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Week 2 - (for review, see page 230 of the textbook). 6 Dr...

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