Tugas Kelompok ke-1

(Minggu 3)
Team Member 3

1. Ahmad Satrio Gunawan (2001671805)

2. M. Fariz Ali Rahman (2001671616)
3. Raisul Maarif (2001669870)
4. Rizal Irfani (2001673281)

Case 1

For each of the following transactions below, prepare the journal entry (if
one is required) to record the initial transaction and then prepare the
adjusting entry, if any, required on September 30, the end of the fiscal
year.

(a) On September 1, paid rent on the track facility for three months,
$210,000.

(b) On September 1, sold season tickets for admission to the racetrack.

The racing season is year-round with 25 racing days each month.
Season ticket sales totaled $840,000.

(c) On September 1, borrowed $300,000 from First National Bank by

issuing a 9% note payable due in three months.

(d) On September 5, schedules for 20 racing days in September, 25

racing days in October, and 15 racing days in November were printed
for $3,000.

(e) The accountant for the concessions company reported that gross
receipts for September were $160,000. Ten percent is due to the track
and will be remitted by October 10.

Answer :

a. General Entries
01 September Prepaid rent.........................210,000
Cash.210,000
Adjusting Entries
30 September Rent Expense70,000
Prepaid Expenses...$70,000
($210,000 / 3 months = $70,000)

b. General Entries
01 September Cash................................840,000
Unearned Ticket Revenue840,000

Adjusting Entries

ACCT6174 Introduction to Financial Accounting

 30 September Unearned Ticket Revenue.70,000
Ticket Revenue..70,000
($840,000 / 12month = $ 70,000)

c. General Entries
01 September Cash .300,000
Notes payable...........300,000
Adjusting Entries
30 September Interest Expense..2,250
Interest Payable..............2,250
($300,000 / 9% / 12month = $ 2,250)

d. General Entries
05 September Prepaid Printing3,000
Cash....3,000
Adjusting Entries
30 September Printing Expense.1,000
Prepaid Printing...........1,000
($3,000 x 20 / 60(20+25+15 = $1,000)

e. General Entries
Nothing

Adjusting Entries
Account Receivable .160,000
Concessions Revenue160,000

Case 2
Ben Cartwright Pest Control has the following balances in selected
accounts on December 31, 2014.

Accounts Receivable 0

Accumulated Depreciation Equipment 0

Equipment 6,650

Interest Payable 0

ACCT6174 Introduction to Financial Accounting

 Notes Payable 20,000

Prepaid Insurance 3,000

Salaries and Wages Payable 0

Supplies 2,940

Unearned Service Revenue 36,000

All of the accounts have normal balances. The information below has been
gathered at December 31, 2014.

1. Depreciation on the equipment for 2014 is 1,250.

2. Ben Cartwright Pest Control borrowed 20,000 by signing a 6%, one-

year note on July 1, 2014.

3. Ben Cartwright Pest Control paid 3,000 for 12 months of insurance

coverage on October 1, 2014.

4. Ben Cartwright Pest Control pays its employees total salaries of

10,000 every Monday for the preceding 5-day week (Monday-
Friday). On Monday, December 27, 2014, employees were paid for
the week ending December 24, 2014. All employees worked the five
days ending December 31, 2014.

5. Ben Cartwright Pest Control performed disinfecting services for a

client in December 2014. The client will be billed 3,000.

6. On December 1, 2014, Ben Cartwright Pest Control collected

36,000 for disinfecting processes to be performed from December
1, 2014, through May 31, 2015.

7. A count of supplies on December 31, 2014, indicates that supplies of

750 are on hand.

Instructions

Prepare in journal form with explanations, the adjusting entries for the
seven items listed for Ben Cartwright Pest Control.

Answer :

1. Depreciation expense.1,250
Accumulated Depreciation Equipment
1,250

2. Interest expense.600
Interest
Payable..600

ACCT6174 Introduction to Financial Accounting

 (20,000 x 6% x (6 months/12 months) = 600)

3. Insurance expense750
Prepaid Insurance...................................................750
(3,000 / 12 months x 3 months = 750)

4. Salaries and Wages Expense .10,000

Salaries and Wages
Payable..10,000
Because, salaries of 10,000 every Monday for the
preceding 5-day week (Monday-Friday)

5. Accounts Receivable3,000
Service Revenue
3,000

6. Unearned Service Revenue36,000

Service Revenue
36,000

7. Supplies Expense..2,190
Supplies.
.2,190
(2,940 - 750 = 2,190)

Case 3
These financial statement items (in thousands) are for Chen Company at
year-end, July 31, 2014.
Salaries and wages payable 4,580 Note payable (Non-Current)
3,300

Salaries and wages expense 45,700 Cash

22,200

Utilities expense 19,100 Accounts receivable

9,780

Equipment 24,000 Accumulated depreciationequip.

6,000

Accounts payable 4,100 Dividends

4,000

ACCT6174 Introduction to Financial Accounting

Service revenue 58,100 Depreciation expense
4,000

Rent revenue 6,500 Retained earnings (8/1/2013) 30,000

Share capital-ordinary 16,200

Instructions

(a) Prepare an income statement and a retained earnings statement for

the year.

(b) Prepare a classified statement of financial position at July 31, 2014.

Answer:

a.
CHEN COMPANY
Income Statement
For the Year Ended July 31, 2014
Revenues
Commision revenue....................................................................
58,100
Rent revenue..............................................................................
6,500
Total revenues............................................................................
64,600

Expenses
Salaries expense.........................................................................
45,700
Utilities expense.........................................................................
19,100
Depreciation expense.................................................................
4,000
Total expense.............................................................................
68,800
Net loss.......................................................................................
4,200

CHEN COMPANY
Retained Earnings Statement
For the Year Ended July 31, 2014

Retained Earnings, August 1, 2013......................................................

30,000
Less: Net Loss.......................................................................................
4,200
25,800

ACCT6174 Introduction to Financial Accounting

Less: Dividends....................................................................................
4,000
Retained Earnings, July 31, 2014........................................................
21,800

b.

CHEN COMPANY
Statement of Financial Position
July 31, 2014

Assets
Current Assets
Cash...........................................................................................
22,200
Accounts receivable...................................................................
9,780
31,980
Property, plant, and equipment
Equipment.................................................................................
24,000
Less: Accumulated depreciation equip......................................
6,000
Total assets.....................................................................................
18,000
49,980

Liabilities and Stockholders Equity

Current Liabilities
Account payable........................................................................
4,100
Salaries and wages payable.......................................................
4,580 8,680
Long-term Liabilities
Note payable (Non-Current)...............................................
3,300
Stockholders equity
Share capital-ordinary...............................................................
16,200
Retained earnings......................................................................
21,800 38,000

49,980

ACCT6174 Introduction to Financial Accounting

Case 4
Vanguard Company had the following adjusted trial balance at December
31, 2014.

VANGUARD COMPANY

Adjusted Trial Balance

For the Year Ended December 31, 2014

Account Titles Debits Credits

Cash 12,800

Accounts Receivable 8,800

Equipment 15,900

Accounts Payable 4,400

Accumulated 7,400
DepreciationEquip.

Share Capital - Ordinary 17,000

Retained Earnings 25,500

Dividends 16,000

Service Revenue 68,000

Unearned Rent Revenue 1,800

Rent Revenue 6,500

Salaries and Wages Expense 55,700

Depreciation Expense 6,000

Supplies Expense 200

Utilities Expense
14,900

130,300 130,300

Instructions:
(a) Journalize the entries required to close the accounts.

(b)Prepare a retained earnings statement for the year ended December

31, 2014.

Answer:

ACCT6174 Introduction to Financial Accounting

a.
Computation of Net Income:
Service revenue 68,000
Rent revenue 6,500
Total revenue 74,500
Expenses :
Salaries & wages expense 55,700

Depreciation expense 6,000

Supplies expense 200
Utilities expense 14,900 76,800
Net Loss 2,300

Closing Entries

Dec. 31 Service Revenue...................................................... 68,000

Rent Revenue........................................................... 6,500
Income Summary..............................................
74,500
(To close revenue account)

31 Income Summary.................................................... 76,800

Salaries & wages expense................................
55,700
Depreciation expense......................................
6,000
Supplies expense.............................................
200
Utilities expense..............................................
14,900
(To close expense account)

31 Income Summary.................................................... 2,300

Retained Earnings............................................
2,300
(To close net income to retained earnings)

31 Retained Earnings.................................................. 16,000

Dividends.........................................................
16,000
(To close dividends to retained earnings)

b.
VANGUARD COMPANY
Retained Earnings Statement

ACCT6174 Introduction to Financial Accounting

 For the Year Ended Dec 31, 2014

Retained Earnings, January 1, 2014......................................................

25,500
Less: Net Loss......................................................................................
2,300
23,200

Less: Dividends....................................................................................
16,000
Retained Earnings, December 31, 2014..............................................
7,200

Case 5
Presented below is an adjusted trial balance for Cowell Company, at
December 31, 2014.

Cash 10,700 Accounts payable 10,000

Accounts receivable 20,000 Notes payable 9,000
Prepaid insurance 15,000 Accumulated depreciation
Equipment 35,000 equipment 14,000
Depreciation expense 7,000 Service revenue 30,000
Dividends 1,500 Retained earnings 12,000
Advertising expense 1,400 Unearned service revenue 11,000
Rent expense 800 Share capital-ordinary 12,000
Salaries and wages expense 5,000
Insurance expense 1,600
98,000
98,000

Instructions

(a) Prepare closing entries for December 31, 2014.

(b) Determine the balance in the retained earnings account after the
entries have been posted.

Answer:

ACCT6174 Introduction to Financial Accounting

a.
Computation of Net Income:
Service revenue 30,000
Total revenue 30,000
Expenses :

Depreciation expense 7,000

Advertising expense 1,400
Rent expense 800
Salaries & wages expense 5,000
Insurance expense 1,600
Total Expenses 15,800
Net Income 14,200

Closing Entries

Dec. 31 Service Revenue..................................................... 30,000

Income Summary..........................................
30,000
(To close revenue account)

31 Income Summary.................................................... 15,800

Depreciation expense......................................
7,000
Advertising expense.........................................
1,400
Rent expense...................................................
800
Salaries & wages expense................................
5,000
Insurance expense..........................................
1,600
(To close expense account)

31 Income Summary................................................... 14,200

Retained Earnings...........................................
14,200
(To close net income to retained earnings)

31 Retained Earnings................................................. 1,500

Dividends.......................................................
1,500
(To close dividends to retained earnings)

ACCT6174 Introduction to Financial Accounting

b.

COWELL COMPANY
Retained Earnings Statement
For the Year Ended Dec 31, 2014

Retained Earnings, January 1, 2014......................................................

12,000
Less: Net Loss......................................................................................
14,200
26,200

Less: Dividends....................................................................................
1,500
Retained Earnings, December 31, 2014..............................................
24,700

ACCT6174 Introduction to Financial Accounting