44K6.1

Financial Accounting 1 –
ACC2001
CHAPTER ASSIGNMENT
(Chapter 5)

Questions
Complex 

Moderate 

How many
questions that
you did answer?
List the question
that you are not
able to answer.

Simple 

__3_/3

Brief Exercises
Complex 

Moderate 

How many brief
exercises that
you did answer?

List the brief
exercises that
you are not able
to answer.

Simple 

__5_/5

Exercises
Complex 

Moderate 

How many
exercises that
you did answer?
List the exercises
that you are not
able to answer.

Simple 

__13_/13

Problems & Critical Thinking
Complex 
Moderate 
How many
__5_/5

© 2020 by Dr. Nguyen Huu Cuong

Simple 

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problems that
you did answer?
List the problems
that you are not
able to answer.

Student Information
Full Name Ngơ Thị Lan Dung
Class
44k06.1
Phone
0372532461
Email

Self-evaluation
(Out of ten)

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10/10


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44K6.1

Financial Accounting 1 –
ACC2001
CHAPTER ASSIGNMENT
(Chapter 5)

FINANCIAL ACCOUNTING: TOOLS FOR DECISION-MAKING, 7th Canadian Edition
(Kimmel P.D. et al., 2017) – CHAPTER 5
BRIEF EXERCISES
BE5-4:
Pocras Corporation
Debit merchandise inventory $32,000
Credit Accounts Payable
$32,000
Wydell Inc.
Debit cost of goods sold
$14,400
Credit merchandise inventory
$14,400
Debit accounts
Credit receivable sales

$32,000
$32,000


BE5-5:
2 Jan
Debit inventory
$45,000
Credit accounts payable
$45,000
5 Jan
Debit inventory
Credit cash

$900

6 Jan
Debit accounts payable
Credit Inventory

$900
$6,000
$6,000

11 Jan
Debit accounts payable
$45,000
Credit inventory (45,000 - 6,000) x 2% = $780
Credit cash
$44,220
BE5-12:
2 Jan
Credit purchase

$45,000
Debit accounts payable
$45,000

© 2020 by Dr. Nguyen Huu Cuong

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5 Jan
Credit purchase
Debit cash

$900
$900

6 Jan
Credit accounts payable
Debit purchase

$6,000
$6,000

11 Jan
Credit accounts payable
$45,000
Debit purchase (45,000 - 6,000) x 2% = $780
Debit cash

$44,220

© 2020 by Dr. Nguyen Huu Cuong

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4


44K6.1

Financial Accounting 1 –
ACC2001
CHAPTER ASSIGNMENT
(Chapter 5)

EXERCISES
E5-4:
(a)
3 April
Debit inventory
$28,000
Credit account payable
$28,000
6 April
Debit inventory
Credit cash

$700
$700


7 April
Debit supplies
$5,000
Credit account payable
$5,000
8 April
Debit account payable
Credit inventory

$3,500
$3,500

30 April
Debit account payable (28,000 – 3,500) = $24,500
Credit cash
$24,500
(b)
12 April
Debit account payable $24,500
Credit inventory (28,000 – 3,500) x 1% = $245
Credit cash
$24,255
E5-6:
They shouldn’t do this, because the discount for paying early is 1%. It’s lower than the interest of
short-term loan (8%)

© 2020 by Dr. Nguyen Huu Cuong

“Liberal Arts - Self-initiative - Pragmatism”


5


PROBLEMS

P5-2A:
(a)
Phantom Book Warehouse Ltd. is a wholesaler. Its suppliers are publishers and its customers are
book stores.
(b)
June 1
Debit Merchandise Inventory (180 x 16) = $2,880
Credit Accounts Payable
$2,880
June 3
Debit Accounts Receivable (220 x 25) = $5,500
Credit Sales
$5,500
Debit Cost of Goods Sold (220 x 17) = $3,740
Credit Merchandise Inventory
$3,740
June 5
Debit Accounts Payable
$160
Credit Merchandise Inventory
$160
June 8
Debit Accounts Receivable (80 x 22) = $1,760
Credit Sales

$1,760
Debit Cost of Goods Sold (80 x 17) = $1,360
Credit Merchandise Inventory
$1,360
June 9
Debit Sales Returns and Allowances $264
Credit Accounts Receivable
$264
June 11
Debit Merchandise Inventory (130 x 15) = $1,950
Credit Accounts Payable
$1,950
June 12
Debit Cash
(5,500 – 110) = $5,390
Debit Sales Discounts (5,500 x 2%) = $110
© 2020 by Dr. Nguyen Huu Cuong

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44K6.1

Financial Accounting 1 –
ACC2001
CHAPTER ASSIGNMENT
(Chapter 5)


Credit Accounts Receivable

$5,500

June 17
Debit Cash
$1,466.08
Debit Sales Discounts (1,760 – 264) x 2% = $29.92
Credit Accounts Receivable
(1,760 – 264) = $1,496
June 22
Debit Accounts Receivable (125 x 25) = $3,125
Credit Sales
$3,125
Debit Cost of Goods Sold (125 x 17) = $2,125
Credit Merchandise Inventory
$2,125
June 25
Debit Sales Returns and Allowances $375
Credit Accounts Receivable
$375
Debit Merchandise Inventory (15 x 17 ) = $255
Credit Cost of Goods Sold
$255
June 29
Debit account payable (2,880 - 160) = $2,720
Credit cash
$2,720
P5-3A
(a)

September 2
Debit equipment $65,000
Credit account payable
$65,000
September 4
Debit supplies $4,000
Credit cash
$4,000

© 2020 by Dr. Nguyen Huu Cuong

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September 6
Debit inventory $65,000
Credit account payable
$65,000
September 7
Debit inventory
Credit cash

$1,600
$1,600

September 8
Debit account payable
Credit supplies


$5,000
$5,000

September 9
Debit account receivable
Credit sales

$20,000
$20,000

Debit cost of goods sold
Credit inventory

$15,000
$15,000

September 10
Debit freight out $375
Credit cash
$375
September 17
Debit cash
$19,600
Debit sale account 20,000 x 2% = $400
Credit account receivable
$20,000
September 20
Debit Accounts Payable (65,000 – 5,000) = $60,000
Credit Inventory

(60,000× 1%) = $60
Credit Cash
$59,940
September 21
Debit inventory $6,000
Credit cash
$6,000
September 22
Debit account receivable

© 2020 by Dr. Nguyen Huu Cuong

$27,000
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8


44K6.1

Financial Accounting 1 –
ACC2001
CHAPTER ASSIGNMENT
(Chapter 5)

Credit sales
Debit cost of goods sold
Credit inventory

$27,000

$20,000
$20,000

September 28
Debit Sales Returns and Allowances $10,000
Credit account receivable
$10,000
Debit Inventory
$7,500
Credit Cost of Goods Sold
$7,500
(b)
October 3
Debit account payable $60,000
Credit cash
$60,000
the cost of missing = $60
P5-4A
(a)
3 April
Debit inventory $3,200
Credit account payable $3,200
5 April
Debit inventory $286
Credit cash $286
7 April
Debit account receivable
Credit sales
Debit cost of goods sold
Credit merchandise


© 2020 by Dr. Nguyen Huu Cuong

$9,750
$9,750
$5,850
$5,850

“Liberal Arts - Self-initiative - Pragmatism”

9


9 April
Debit Accounts Payable $320
Credit Inventory
$320
11 April
Debit Accounts Payable (3,200 – 320) = $2,880
Credit Inventory
(2,880× 1%) = $28.8
Credit Cash
$2,851.2
14 April
Debit cash
$4,150
Credit account receivable
$4,150
16 April
Debit inventory $1,300

Credit account payable $1,300
17 April
Debit Accounts Payable $100
Credit Inventory
$100
20 April
Debit account receivable
Credit sales
Debit cost of goods sold
Credit merchandise

$11,100
$11,100
$6,200
$6,200

24 April
Debit Accounts Payable (1,300 – 100) = $1,200
Credit Inventory
(1,200× 2%) = $24
Credit Cash
$1,176
25 April
Debit cash
$4,375
Credit account receivable
$4,375
27 April
Debit Sales Returns and Allowances
Credit account receivable


$85
$85

P5-5A

© 2020 by Dr. Nguyen Huu Cuong

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10


44K6.1

Financial Accounting 1 –
ACC2001
CHAPTER ASSIGNMENT
(Chapter 5)

(a)
1 May
Debit Inventory
$5,800
Credit Accounts Payable
$5,800

3 May
Debit Inventory $145
Credit Cash

$145

4 May
Debit account receivable $3,500
Credit Sales
$3,500
Debit Cost of Goods Sold $2,100
Credit Inventory
$2,100
7 May
Debit Freight Out $90
Credit Cash
$90
8 May
Debit Accounts Payable $200
Credit Inventory
$200
9 May
Debit Accounts Payable ($5,800 – $200) = $5,600
Credit Inventory
($5,600 × 1%) = $56
Credit Cash
$5,544
11 May
Debit Supplies $400
Credit Cash
$400
14 May
Debit Cash
($3,500 – $70) = $3,430

Debit Sales Discount ($3,500 ì 2%) = $70
Credit Accounts Receivable
$3,500

â 2020 by Dr. Nguyen Huu Cuong

“Liberal Arts - Self-initiative - Pragmatism”

11


15 May
Debit Cash
$1,000
Credit Account receivable $1,000
18 May
Debit Inventory
$2,000
Credit Accounts Payable $2,000
21 May
No entry required (freight paid by Harlow)
22 May
Debit Cash $6,500
Credit Sales
$6,500
Debit Cost of Goods Sold $3,900
Credit Inventory
$3,900
29 May
Debit Sales Returns and Allowances $100

Credit Cash
$100
Debit Inventory
$60
Credit Cost of Goods Sold
$60
31 May
Cost of Goods Sold
$149
Inventory $5,249 – $5,100 = $149
Unadjusted balance in Inventory account = $3,500 + $5,800 + $145 – $2,100 – $200 – $56 +
$2,000 – $3,900 + $60 = $5,249

© 2020 by Dr. Nguyen Huu Cuong

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12


44K6.1

Financial Accounting 1 –
ACC2001
CHAPTER ASSIGNMENT
(Chapter 5)

CRITICAL THINKING
CT5-5:
(a) The ethical considerations in this case are that Jamie Caterino has deceptively been

swindling the company's creditors the whole time he was the assistant treasurer. As well,
he is now disclosing to Rita Pelzer that he has been doing this and is asking her to
continue doing the same which is very unethical thing to do. It puts Rita Pelzer in a bad
state since Jamie Caterino is telling her that everyone performs business in this manner
when that is not true.
(b) The stakeholders who are harmed are the creditors since they are giving a discount that is
not warranted. They are losing their money on the activity they could be earning by
getting paid in good time. The company itself is as well harmed since Jamie Caterino has
created a bad name among the creditors. In some cases, the company benefits by keeping
their money for a long duration of time and still getting the discount.
(c) Rita Pelzer should not continue the practice that was initiated by Jamie Caterino. This is
wrong and she should therefore not put herself in that state just because somebody told her
to do it that way. She does have a choice in the issue since always have a choice in how
they conduct themselves. She could have gone above Jamie Caterino and report what she
was told to do. If they tell her to continue with the practice as well, she cansnub them or
search for another job. She should not make herself responsible for immoral behavior
under any circumstances

© 2020 by Dr. Nguyen Huu Cuong

“Liberal Arts - Self-initiative - Pragmatism”

13


FINANCIAL ACCOUNTING: TOOLS FOR DECISION-MAKING, 7th Canadian Edition
(Kimmel P.D. et al., 2017) – CHAPTER 10
QUESTIONS
Q4:
a company has sold gift cards to customers

Debit Cash
Credit Gift card liability
the gift cards are redeemed
Debit Gift card liability
Credit Revenue
Q6:
Non-current portion of debt that a company owns. A company's total debt can be divided into
two parts, the current portion of all its debt obligations and the long term portion of all its debt
obligations. These items are often found on a company's balance sheet.
Q11:
An entity should present current and non-current liabilities as separate classifications in its
statement of financial position

© 2020 by Dr. Nguyen Huu Cuong

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14


44K6.1

Financial Accounting 1 –
ACC2001
CHAPTER ASSIGNMENT
(Chapter 5)

BRIEF EXERCISES
BE10-2:
(a) April 30

Debit Property Tax Expense ($36,000÷12 x 4) = 12,000
Credit Property Tax Payable
12,000
(b) July 15
Debit Property Tax Payable
12,000
Debit Property Tax Expense ($36,000 ÷12 x 2.5) = 7,500
Debit Prepaid Property Tax ($36,000 ÷12 x 5.5) = 16,500
Credit Cash
36,000
(c) Dec 31
Property Tax Expense 16,500
Prepaid Property Tax
16,500

BE10-4:
(a) July 1
Debit Cash 60,000
Credit Bank Loan Payable 60,000
(b) Aug 1
Debit Interest Expense ($60,000 x 5% x 1/12) 250
Credit Cash 250
Aug 31
Debit Interest Expense 250
Credit Interest Payable 250
Sept 1
Debit Interest Payable 250
Credit Cash 250
Oct 1
Debit Interest Expense 250

Credit Cash 250
(c) Oct 1
Debit Bank Loan Payable 60,000
Credit Cash 60
© 2020 by Dr. Nguyen Huu Cuong

“Liberal Arts - Self-initiative - Pragmatism”

15


© 2020 by Dr. Nguyen Huu Cuong

“Khai phóng - Tự thân - Hữu ích”

16


44K6.1

Financial Accounting 1 –
ACC2001
CHAPTER ASSIGNMENT
(Chapter 5)

INTRODUCTION TO FINANCIAL ACCOUNTING (VERSION 2019B) by Dauderis, H.
& Annand, D – CHAPTER 9
DISCUSSION QUESTIONS
DQ 1Current Liabilities:
- Liabilities that business owners must settle within twelve months or one operating cycle of the

balance sheet date
- Recorded in the balance sheet in the order of their due dates
Long-Term Liabilities:
- Payables that are due beyond twelve months or one operating cycle; also called “non-current
liabilities” or “long term debt
- Written in separate formal documents that include the important details such as principal
amount, interest, and due date
DQ 2 Notes payable, wages and salaries, property taxes, insurance, interest, dividends, utilities,
employee benefits, and short-term bank loans
DQ 3 Known current liabilities are which the payee, amount, and timing of payment are
known. These are different from estimated current liabilities which the amount is not
known
DQ 4 Leases, mortgage, bonds payable, bank notes, bank loans, pension obligations, deferred
taxes, post-employment benefits, car payments, and other loans for equipment, land, or
machinery
DQ 5 Contingent liability is a liability which will depend on the outcome of the future event
such a legal case against the company in the court of law.
Estimated liability is a liability which is estimated for example the electricity bills or workers
overtime etc.

© 2020 by Dr. Nguyen Huu Cuong

“Liberal Arts - Self-initiative - Pragmatism”

17


EXERCISES
E9-3
a. July 1, 2019

Debit account 112 $300,000
Credit account 341
$300,000
b. July 31, 2019
Debit account 635
3.5% x $300,000 x 30/365 = $863.01
Credit account 112
$863.01
c. August 15, 2019
d. August 15, 2019
Debit account 341 $300,000
Debit account 635
3.5% x $300,000 x 15/365 = $431,51
Credit account 112
$300,431.51
E9-4
a.
Debit account 6415 $82,000 x 2% = $1,640
Credit account 352
$1,640
b.
Debit account 352
$2,000
Credit account 156
$2,000
c. 740 + 1,640 – 2,000 = 380
E9-6
a.
Debit account 3334 $500
Credit account 112

$500
b.
Debit account 821 15,000 x 40% = $6,000
Credit account 3334
$6,000
c.
Debit account 3334 $500
Credit account 112
$500

© 2020 by Dr. Nguyen Huu Cuong

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18


44K6.1

Financial Accounting 1 –
ACC2001
CHAPTER ASSIGNMENT
(Chapter 5)

INTRODUCTION TO FINANCIAL ACCOUNTING (VERSION 2019B) by Dauderis, H.
& Annand, D – CHAPTER 10
EXERCISES
E10- 2
a.
Debit account 213

$50,000
Credit account 411(12)
$50,000
b. share capital
E10- 4
a.
Debit account 421 $100,000
Credit account 338
$100,000
b.
Debit account 338 $100,000
Credit account 111
$100,000
E10- 10
January 15, 2018
Debit account 421 5,000 × (10% × 10) = $5,000
Credit account 338
$5,000
February 15, 2018
Debit account 338 $5,000
Credit account 112
$5,000

© 2020 by Dr. Nguyen Huu Cuong

“Liberal Arts - Self-initiative - Pragmatism”

19



INTERMEDIATE FINANCIAL ACCOUNTING - VOLUME 2 (2019 - REVISION A) by
Arnold, G. & Kyle, S. – CHAPTER 12
EXERCISES
E12-3
a.
Debit account 156 10,000 + 10,000 x 4% = $10,400
Debit account 133
10,000 x 6% = $600
Credit account 331
$11,000
b.
Debit account 153 3,000 + 3,000 x 4% = $3,120
Debit account 133 3,000 x 6% = $180
Credit account 331
$3,300
c.
Debit account 131 $17,600
Credit account 511
$16,000
Credit account 333 $16,000 x (4%+6%) = $1,600
d.
Debit account 111 $5,500
Credit account 511
$5,000
Credit account 333 $5,000 x (4%+6%) = $500
e.
Debit account 111
$780
Credit account 133 (600 + 180) = $780
Debit account 333 (1,600 + 500) = $2,100

Credit account 111
$2,100
E12-4
a.
Debit account 642 $73,000
Debit account 811 $1,200
Credit account 333 (2,200 + 19,000) = $21,200
Credit account 138
$50,000
Credit account 111
$3,000
b.
Debit account 642 73,000 x 5 : 10 = $36,500
Debit account 811 1,200 x 5 : 10 = $500
Credit account 335 $37,000
E12-6
1st January 2016
Debit account 11X: $21.000.000
Credit account 511:
$20.930.000
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20


44K6.1

Financial Accounting 1 –

ACC2001
CHAPTER ASSIGNMENT
(Chapter 5)

Credit account 352:

$70.000

2nd January 2016
Debit account 352(1): $23.333
Credit account 641:
$23.333
Debit account 641(5):
$ 12.000
Credit account 11X (331):
$12.000
31st January 2017:
Debit account 352(1):
Credit account 641:

$23.333
$23.333

Debit account 641(5):
$30.000
Credit account 11X (331):
$ 30.000
31st January 2018:
Debit account 352(1):
$23.333

Credit account 641:
$23.333
Debit account 641(5):
$35.000
Credit account 11X (331):
$35.000
b.
Calculate the amount of unearned revenue to be reported at December 31, 2017
Unearned revenue at December 31, 2017 = (70,000 − 23,333 − 23,333) = $23,334
E12-7
a.
Debit account 622
$24.720
Credit account 335
$24.720
Debit account 3383
Credit account 334

$15.360
$15.360

b. Vacation pay liability at December 31 = $24,720
Sick pay liability at December 31 = $0
E12-10
© 2020 by Dr. Nguyen Huu Cuong

“Liberal Arts - Self-initiative - Pragmatism”

21



a.
Debit account 111 3,000 x 11,000 = $33,000,000
Credit account 511
$33,000,000
Debit account 641 $975,000
Credit account 111
$975,000
Debit account 641 $345,000
Credit account 111
$345,000
Debit account 641 $425,000
Credit account 111
$425,000
b.
2016
300 x 11,000 - 975,000 = 825,000
2017
825,000 - 345,000 = 480,000
2018
480,000 - 425,000 = 55,000

© 2020 by Dr. Nguyen Huu Cuong

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22