44K6.1

Financial Accounting 1 –
ACC2001
CHAPTER ASSIGNMENT
(Chapter 5)

Questions
Complex 

Moderate 

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questions that
you did answer?
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that you are not
able to answer.

Simple 
___/3

Brief Exercises
Complex 

Moderate 

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exercises that
you did answer?
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exercises that
you are not able
to answer.

Simple 

__5_/5

Exercises
Complex 

Moderate 

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exercises that
you did answer?
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that you are not
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Simple 

___/13

Problems & Critical Thinking
Complex 
Moderate 
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__5_/5
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Simple 

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

Student Information
Full Name
Class
44k06.1
Phone
Email
Self-evaluation
(Out of ten)

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2



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
Credit inventory
$45,000

Debit accounts payable
$45,000
5 Jan
Credit inventory
Debit cash

$900
$900

6 Jan
Credit accounts payable
Debit Inventory

$6,000
$6,000

11 Jan
Credit accounts payable
$45,000
Debit inventory (45,000 - 6,000) x 2% = $780
Debit 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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3


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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6


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

“Liberal Arts - Self-initiative - Pragmatism”

7


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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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


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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

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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:
Accounting for the Sale of Gift Certificates
The sale of a gift certificate should be recorded with a debit to Cash and a credit to a liability
account such as Gift Certificates Outstanding.
Note that revenue is not recorded at this point. Rather, the retailer is recording its
obligation/liability to provide merchandise or services for the amount of the certificate sold.
Accounting for the Redemption of a Gift Certificate
When a gift certificate is presented to the retailer, revenue will be recorded by the retailer for the
amount of merchandise or services that were provided. This is done with a debit to the liability

account Gift Certificates Outstanding and a credit to a revenue account.
Q6:
Non-current portion of debt that a company owns. Think of this as a component of what a
company has for debt that is not a short-term obligation.
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. In this case here, this line item is the non-current portion of its debt.
Q11:
IAS 1, Presentation of Financial Statements, paragraph 60 stipulates that an entity should present
current and non-current liabilities as separate classifications in its statement of financial position,
except when a presentation based on liquidity provides more relevant and reliable information.
Whatever the method of presentation, an entity should disclose the amount expected to be settled
after more than 12 months and less than 12 months.

© 2020 by Dr. Nguyen Huu Cuong

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14


44K6.1

Financial Accounting 1 –
ACC2001
CHAPTER ASSIGNMENT
(Chapter 5)

© 2020 by Dr. Nguyen Huu Cuong


“Liberal Arts - Self-initiative - Pragmatism”

15


BRIEF EXERCISES
BE10-2:
(a) April 30 Property Tax Expense ($36,000÷12 x 4)
Property Tax Payable
(b) July 15 Property Tax Payable
Property Tax Expense ($36,000 ÷12 x 2.5)
Prepaid Property Tax ($36,000 ÷12 x 5.5)
Cash
(c) Dec 31 Property Tax Expense
Prepaid Property Tax
BE10-4
a) July 1 Cash
Bank Loan Payable
b) Aug 1 Interest Expense ($60,000 x 5% x 1/12)
Cash
Aug 31 Interest Expense
Interest Payable
Sept 1 Interest Payable
Cash
Oct 1 Interest Expense
Cash
c) Oct 1 Bank Loan Payable
Cash

© 2020 by Dr. Nguyen Huu Cuong


12,000
12,000
12,000
7,500
16,500
36,000
16,500
16,500
60,000
60,000
250
250
250
250
250
250
250
250
60,000
60,000

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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 1
The curent liabulities are the liabilities that business owners must settle within twelve months or
one operating cycle of the balance sheet date.
Long-term liabilities are the payables that are due beyond twelve months or one operating cycle,
also called “non-current liabilities” or “long-term debt”.
DQ 2
Accounts payable,Sales taxes payable,Payroll taxes payable,Income taxes payable,Interest
payable,…
DQ 3
DQ 4
The electricity and natural gas consumed but the bill has not been received
An emergency repair that occurred but the bill has not been received
Real estate taxes that have occurred but the tax bill has not been received
Worker compensation insurance premiums which have occurred but the bill has not been
received
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) Debit 111
Credit 341
b) Debit 635
Credit 11X
d) August 15,2019
e) Debit 341
Debit 635
Credit 11X
E9-4
a) Debit 641:
Credit 352
b) Debit 352:
Credit 156:
E9-6
a) Debit 333:
Credit 11X:
b) Debit 821:
Credit 333:
c) Debit 333:
Credit 11X:

300,000
300,000

863,01
863,01
300,000
1294,52
301294,52
1,640
1,640
2,000
2,000
500
500
6,000
6,000
500
300

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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 50000
Credit Account 411 50000
a)
The credit part of the transaction would be classified on the balance sheet in the equity.
The debit part of the transaction would be recorded as an intangible fixed asset.
E10- 4
a)
May 25
Debit Account 421
Credit Account 338
b)
Jun 26
Debit Account 338
Credit Account 111

100000
100000
100000
100000

E10- 10
Common share dividend to be issued = (5000 × 10%) × $10 = $5000
Jan 15, 2018
Debit Account 421 5000
Credit Account 338 5000

Feb 15, 2018
Debit Account 338 5000
Credit Account 411 5000

© 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.
Inventory was purchased on account at a cost of $10,000, plus applicable taxes.
Debit 156
10.000 + (10.000*40%) = 10.400
Debit 133
600
Credit 331
11.000
b.
Equipment was purchased for cash at a cost of $3,000, plus applicable taxes.
Debit 211
3.000 + (3.000*4%) = 3.120
Debit 133
180
Credit 111

3.300
c.
Sales on account were made for proceeds of $16,000 plus applicable taxes.
Debit 131
17.600
Credit 333
1600
Credit 511
16.000
d.
Cash sales were made for proceeds of $5,000 plus applicable taxes.
Debit 111
5.500
Credit 333
500
Credit 511
5.000
E12-4
E12-6
a.
Prepare all the necessary journal entries for 2016, 2017, and 2018 to reflect the above
transactions.
- 1/1/2016:
Debit 11X:
21.000.000
Credit 511:
20.930.000
Credit 352:
70.000
- 31/12/2016:

Debit 352(1):
23.333
Credit 641:
23.333
Debit 641(5):
12.000
Credit 11X (331):
12.000
- 31/12/2017:
Debit 352(1):
23.333
Credit 641:
23.333
Debit 641(5):
30.000
Credit 11X (331):
30.000
- 31/12/2018:
© 2020 by Dr. Nguyen Huu Cuong

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20


44K6.1

Financial Accounting 1 –
ACC2001
CHAPTER ASSIGNMENT

(Chapter 5)

Debit 352(1):
23.333
Credit 641:
23.333
Debit 641(5):
35.000
Credit 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.
Prepare the journal entries for the current year with respect to the vacation and sick pay.
Debit 622:
24.720
Credit 335:
24.720
Debit 3383:
15.360
Credit 334:
15.360
b.
Calculate the amount of liability to be reported at the end of the current year with respect
to the vacation pay and sick pay
Vacation pay liability at December 31 = $24,720, per part (a)
Sick pay liability at December 31 = $0 (these benefits do not accumulate)
E12-10

a.
2016 Sale revenue:
Debit 11X:
33.000.000
Credit 511:
33.000.000
2016 Actual repair cost:
Debit 641:
975.000
Credit 11X (331):
975.000
2017 Actual repair cost:
Debit 641:
345.000
Credit 11X (331):
345.000
2018 Actual repair cost:
Debit 641:
425.000
Credit 11X(331):
425.000
b.
2016
300 x 11,000 - 975,000 = 825,000

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“Liberal Arts - Self-initiative - Pragmatism”

21



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