2020 Fall IFRS/GAAP Accounting Standard Homework
Due date: December 14, 2020. 11:59 pm
Mail to: tjjung@szu.edu.cn
Name
Student ID
E-Mail
Score
/ 100 points
1. Email me your answers by the due date.
2. You need to use the accounting terms in English.
3. Abbreviation is allowed.
1. Use the following information for questions (a) – (e) (10 points)
ABC Company began business on December 1, 2020.
The following is selected information related to ABC Company at December 31,
2020.
Equipment
160,000
Utilities Expense
24,000
Cash
56,000
Accounts Receivable
108,000
Service Revenue
432,000
Rent Expense
52,000
Accounts Payable
64,000
Share Capital-Ordinary
112,000
Dividends
60,000
Salaries and Wages Expense
188,000
Notes Payable
40,000
1-(a). At December 31, 2020, assets total
1-(b). At December 31, 2020, liabilities total
1-(c). Net income for the month of December is
1-(d). Retained earnings at December 31, 2020 is
1-(e). Equity at December 31, 2020, is
Answer:
Answer:
Answer:
Answer:
Answer:
2. Under a double-entry system, show how each item is entered in the ledger by
using debit or credit to indicate the increase or decrease in the affected account.
(10 points)
Debit or Credit
1. An increase in Salaries and Wages Expense.
2. A decrease in Accounts Payable.
3. An increase in Prepaid Insurance.
4. An increase in Share Capital-Ordinary.
5. A decrease in Supplies.
6. An increase in Dividends.
7. An increase in Service Revenue.
8. A decrease in Accounts Receivable.
9. An increase in Rent Expense.
10. A decrease in Equipment.
3. ABC signs a three-month note payable that is signed on Oct. 1 in the amount of
$50,000 with annual interest of 6%. What is the adjusting entry to be made on Oct.
31 for the interest expense accrued to that date, if no entries have been made
previously for the interest? (4 points)
Oct. 31
Dr.
(a)
(b)
Cr.
(c)
(d)
4. ABC purchased $3,000 of supplies on September 1st and his inventory at the end
of September shows $500 of supplies remaining. What adjusting entry should ABC
make on September 31? (4 points)
Oct. 31
Dr.
(a)
(b)
Cr.
(c)
(d)
5. Prepare a classified statement of financial position in good form as of October 31,
2020.
Provide the sum of ‘Total Assets’ and ‘Total liabilities and equity’.
Provide subtotals for current assets, Property, plant, and equipment, long-term
investments, current liabilities, and non-current liabilities. (5 points)
Accumulated depreciation−equip. 5,655 Machinery 6,500
