会计学：企业决策的基础exercises-chapter4答案解析.docVIP

Solutions to Exercises Ex 4–1 a. Book value b. Materiality c. Matching principle d. Unrecorded revenue e. Adjusting entries f. Unearned revenue g. Prepaid expenses h. None (This is an example of “depreciation expense.”) Ex. 4–2 Income Statement Balance Sheet Adjusting Entry Revenue ( Expenses = Net Income Assets = Liabilities + Owners’Equity a NE I D D NE D b NE I D NE I D c I NE I I NE I d NE I D NE I D e NE I D D NE D f I NE I NE D I Ex. 4–3 a. Rent Expense 240,000 Prepaid Rent 240,000 To record rent expense for May ($1,200,000 ( 5 months = $240,000 per month). b. Unearned Ticket Revenue 148,800 Ticket Revenue 148,800 To record earning portion of season ticket revenue relating to May home games. Ex. 4–4 a. (1) Interest Expense 375 Interest Payable 375 $50,000 x 9% annual rate x 1/12 = $375. (2) Accounts Receivable 10,000 Consulting Fees Earned 10,000 To record ten days of unbilled consulting fees at $1,000 per day. b. $2,250 ($50,000 x 9% x 6/12 = $2,250) c. $15,000 ($25,000 - $10,000 earned in December, 2002) Ex. 4–5 a. The balance of TWA’s Advance Ticket Sales account represents unearned revenue—that is, amounts collected from customers prior to rendering the related services (air travel). As TWA has an obligation to render these services, the Advanced Ticket Sales account appears among the liabilities in TWA’s balance sheet. b. TWA normally reduces the balance of this liability account by rendering services to customers—that is, by providing flights for which the customers have purchased tickets. On some occasions, however, TWA reduces the balance of this liability by making cash refunds to customers. Ex. 4–6 a. 1. Interest Expense 1,200 Interest Payable 1,200 To record interest accrued on bank loan during December. 2. Depreciation Expense: Office Building 1,100 Accumulat