1. A.

Dr. Interest expense Cr. Interest payable B. Dr. Salary expense Cr. Salary payable c. Dr. Depreciation expense Cr. Accumulated depreciation D. Dr. Supplies Cr. Supplies expense E. Dr. Rent expense Cr. Prepaid rent F. Dr. Account receivable Cr. Service revenue G. Dr. Rent revenue Cr. Unearned rent revenue H. Dr. Utilities expense Cr. Utilities payable i. Dr. Prepaid advertising Cr. Advertising expense Dr Bad debt expense Cr. Allowance for doubtfull account

123.000 123.000 2.000.000 2.000.000 2.100.000 2.100.000 800.000 800,000 4,400,000 4,400,000 25,000,000 25,000,000 2,500,000 2,500,000 1,800,000 1,800,000 700,000 700,000 1.150.000 1,150,000

J.

2. PT PERAK INCOME STATMENT FOR THE YEAR ENDED DECEMBER 31,2008

Sales Sales discount Net sales COGS : Beggining Inventory Purchase Purchase return and allowance Purchase discount Freight-in COGP Ending Inventory

2.150.0000 (105.000) 2.045.000 82.000 950.000 (90.000) (88.000) 34.000 888.000 (70.000)

(818.000)

Gross profit Selling expense Administrative expense Other Income and expense Interest revenue Gain on sale Loss on sale`` Income From Operation Interest expense Income before income tax Income tax Income from continuing Operation Discontinued Operation Loss on operation less aplicable Income taxes 47.400 Loss on disposal less aplicable Income taxes 13.200 Net Income EPS Income from continuing Operation Loss on operating Loss on disposal Net income

1.227.000 243.000 187.000 50.000 11.000 (31.000) (430.000)

30.000 827.000 (76.000) 751,000 (225.300) 525.700

(110.600) (30.800) (141.400) 384.300 0,6571 (0,1382) (0,0385) 0,4804

3.

VIVALDI CORPORATION Statement of Financial Position December 31, 2010 Assets Non-current assets Long-term investments Investments in bonds Investments in capital shares Total long-term investments Property, plant, and equipment Land Buildings

$299,000 277,000 $ 576,000 260,000 $1,040,000

Less: Accum. depreciation Equipment Less: Accum. depreciation Total property, plant, and equipment Intangible assets Franchise Patent Total intangible assets Total non-current assets Current assets Inventories Accounts receivable Less: Allowance for doubtful Accounts Trading securities Cash Total current assets Total assets

352,000 600,000 60,000

688,000 540,000 1,488,000

160,000 195,000 355,000 2,419,000 597,000 435,000 25,000 410,000 153,000 197,000 1,357,000 $3,776,000

Equity and Liabilities Equity Share capitalordinary ($5 par) Retained earnings* Accumulated other comprehensive Income Less: Treasury shares Total equity Non-current liabilities Bonds payable Long-term notes payable Provision for pensions Total non-current liabilities Current liabilities Short-term notes payable $1,000,000 130,000 80,000 191,000 $1,019,000

$1,000,000 900,000 80,000 1,980,000 $ 90,000

Accounts payable Dividends payable Accrued liabilities Total current liabilities Total liabilities Total equity and liabilities

455,000 136,000 96,000 777,000 2,757,000 $3,776,000

*Computation of Retained Earnings: Sales Investment revenue Cost of goods sold Selling expenses Administrative expenses Interest expense Net income Beginning retained earnings Net income Ending retained earnings

$7,900,000 63,000 (4,800,000) (2,000,000) (900,000) (211,000) $ 52,000 $ 78,000 52,000 $ 130,000

4. 7/1 Accounts ReceivableSinulingga Co. Sales ($10,000 X 98%) 7/5 Cash [$12,000 X (1 .09)] Loss on Sale of Receivables Accounts Receivable ($12,000 X 98%) Sales Discounts Forfeited 7/9 Accounts Receivable Sales Discounts Forfeited ($9,000 X 2%) Cash Finance Charge ($6,000 X 6%) Notes Payable 7/11 Accounts ReceivableSinulingga Co. 200 5,640 360 6,000 180 180 10,920 1,080 11,760 24 9,800 9,800

Sales Discounts Forfeited ($10,000 X 2%) 12/29 Allowance for Doubtful Accounts Accounts ReceivableSinulingga Co. [$9,800 + $200 = $10,000 (10% X $10,000) = $9,000] 9,000

200

9,000

12/31 Bad Debt Expense Allowance for Doubtful Accounts ($350,000 $275,000)

75,000

75,000

5. April 1 Petty Cash Cash Inventory (Transportation in) Supplies Expense Postage Expense Accounts ReceivableEmployees Miscellaneous Expense Cash Over and Short Cash ($200 $12) Petty Cash Cash 200 200 60 25 40 17 36 10 188 100 100

April 10

April 20