P9-3 (L01) (LCNRV—Cost-of-Goods-Sold and Loss) Malone Company determined its

ending inventory at cost and atLCNRV at December 31, 2017, December 31, 2018, and
December 31, 2019, as shown below.
Cost NRV
12/31/17 $650,000 $650,000
12/31/18 780,000 712,000
12/31/19 905,000 830,000
Instructions
(a) Prepare the journal entries required at December 31, 2018, and at December 31,
2019, assuming that a perpetual inventory system and the cost-of-goods-sold method of
adjusting to LCNRV is used.
(b) Prepare the journal entries required at December 31, 2018, and at December 31,
2019, assuming that a perpetual inventory is recorded at cost and reduced to LCNRV
using the loss method.

Jawab :
a. 12/31/18 (Cost-of-goods-sold Method)
Cost of Goods Sold ........................................................... 68,000
Inventory .................................................................... 68,000

12/31/19
Cost of Goods Sold ........................................................... 75,000
Inventory .................................................................... 75,000

b. 12/31/18 (Loss Method)

To write down inventory to market:

Loss Due to Market Decline of Inventory................... 68,000

Allowance to Reduce Inventory to Market ...... 68,000

12/31/19
To write down inventory to market:

Loss Due to Market Decline of Inventory................... 7,000

Allowance to Reduce Inventory to Market
[($905,000 – $830,000) – $68,000] ................... 7,000

E12-4 (L01,2,5) (Intangible Amortization) The following is selected information for

Alatorre Company.
1. Alatorre purchased a patent from Vania Co. for $1,000,000 on January 1, 2015. The
patent is being amortized over its remaining legal life of 10 years, expiring on
January 1, 2025. During 2017, Alatorre determined that the economic benefits of the
patent would not last longer than 6 years from the date of acquisition. What amount
should be reported in the balance sheet for the patent, net of accumulated
amortization, at December 31, 2017?

Amortization for 2015 and 2016 ($1,000,000/10) X 2 .......... $200,000

2017 amortization: ($1,000,000 – $200,000) ÷ (6 – 2).......... 200,000
 Accumulated amortization, 12/31/12 .....................................$400,000

Presented below is information related to equipment owned by Finley Company at

December 31, 2012.
Cost $7,000,000
Accumlated depreciation to date , 800,000
Expected future net cash flows 5,000,000
Fair value 3,400,000
Assume that Finley will continue to use this asset in the future. As of December 31, 2012,
the equipment has a remaining useful life of 4 years.
Instructions
(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31,
2012.
(b) Prepare the journal entry to record depreciation expense for 2013.
(c) The fair value of the equipment at December 31, 2013 is $4,100,000. Prepare the journal
entry (if any) necessary to record this increase in fair value.

Solution 11-136
(a) December 31, 2012
Loss on Impairment.................................................. 2,800,000
Accumulated Depreciation—Equipment............. 2,800,000
Note: The assent fails the recoverability test ($5,000,000 < $6,200,000)

Cost.................................................. $7,000,000
Accumulated depreciation................ 800,000
Carrying amount............................... 6,200,000
Fair value ......................................... 3,400,000
Loss on impairment.......................... $2,800,000

(b) December 31, 2013

Depreciation Expense .............................................. 850,000
Accumulated Depreciation—Equipment............. 850,000

New carrying amount ....................... $3,400,000

Useful life ........................................ 4 years
Depreciation per year....................... $ 850,000

(c) No entry necessary. Restoration of any impairment loss is not permitted

E12-13 (L04) (Copyright Impairment) Presented below is information related to

copyrights owned by Mare Company at December 31, 2017.
Cost $3,600,000
Carrying amount 3,100,000
Expected future net cash fl ows 2,800,000
Fair value 1,900,000
Assume that Mare Company will continue to use this copyright in the future. As of
December 31, 2017, the copyright is estimated to have a remaining useful life of 5 years.
Instructions
(a) Prepare the journal entry (if any) to record the impairment of the asset at December
31, 2017. The company does not use accumulated amortization accounts.
(b) Prepare the journal entry to record amortization expense for 2018 related to the
copyrights.
(c) The fair value of the copyright at December 31, 2018, is $2,000,000. Prepare the
journal entry (if any) necessary to record the increase in fair value.

(a) December 31, 2017

Loss on Impairment ..................................................................... 1,200,000
Copyrights.......................................................................... 1,200,000

Carrying amount $3,100,000

Fair value 1,900,000
Loss on impairment $ 1,200,000

(b) December 31, 2018

Amortization Expense .................................................................. 380,000
Copyrights.......................................................................... 380,000

New carrying amount $1,900,000

Useful life ÷ 5 years
Amortization $ 380,000

(c) No entry necessary. Restoration of any impairment loss is not permitted for assets held for
future use.

Dexter Company uses special strapping equipment in its packaging business. The
equipment was purchased in January 2011 for $8,000,000 and had an estimated useful life
of 8 years with no salvage value. At December 31, 2012, new technology was introduced
that would accelerate the obsolescence of Dexter’s equipment. Dexter’s controller estimates
that expected future net cash flows on the equipment will be $5,000,000 and that the fair
value of the equipment is $4,400,000. Dexter intends to continue using the equipment, but it
is estimated that the remaining useful life is 4 years. Dexter uses straight-line depreciation.

Instructions
(a) Prepare the journal entry (if any) to record the impairment at December 31, 2012.
(b) Prepare any journal entries for the equipment at December 31, 2013. The fair value of
the equipment at December 31, 2013, is estimated to be $4,600,000.
(c) Repeat the requirements for (a) and (b), assuming that Roland intends to dispose of the
equipment and that it has not been disposed of as of December 31, 2013.

(a) Carrying value of asset: $8,000,000 – $2,000,000* = $6,000,000.

*($8,000,000 ÅÄ 8) Å~ 2
Future cash flows ($5,000,000) < Carrying value ($6,000,000)

Impairment entry:
Loss on Impairment .................................................. 1,600,000*
Accumulated Depreciation.................................. 1,600,000
*$6,000,000 – $4,400,000

(b) Depreciation Expense .............................................. 1,100,000**

Accumulated Depreciation.................................. 1,100,000
**($4,400,000 ÅÄ 4)

(c) No depreciation is recorded on impaired assets to be disposed of. Recovery of impairment

losses are recorded.
 12/31/12 Loss on Impairment ................................ 1,600,000
Accumulated Depreciation ................ 1,600,000

12/31/13 Accumulated Depreciation ...................... 200,000

Recovery of Impairment Loss
($4,600,000 – $4,400,000)............ 200,000

Soal Receivable :
PT Harmoni mempunyai accounts receivable sebagai individual account pada akhir periode
December 31, 2016 sebagai berikut :

Konsumen Jumlah Teridentifikasi

Tidak dapat tertagih
PT Sentosa Rp 50.000.000 Rp 10.000.000
PT Makmur 35.000.000 belum jatuh tempo
PT Sejahtera 63.000.000 20.000.000
PT Damai 42.000.000 belum jatuh tempo
TOTAL Rp 190.000.000

Perusahaan menyiapkan daftar analisa umur piutang atas piutang konsumen lainnya pada December
31, 2016:
Umur piutang Nilai Piutang nilai % piutang tidak tertagih
0 - 30 hari $ 380.000.000 2%
31- 6hari 70.000.000 5%
61 – 60 hari 30.000.000 15%
61 – 120 hari 25.000.000 25%
>120 hari 10.000.000 50%

Instruksi:
1. Tentukan jumlah penyisihan piutang tak tertagih
2. Buatlah jurnal untuk transaksi diatas untuk menyesuaikan nilai tercatat ke nilai yang
diperkirakan dapat direalisasi pada akhir tahun 2017 dengan metode allowance

Jawab

1. Account receivable kepada PT sentosa dan PT sejahtera diidentifikasi tidak dapat tertagih
………………………………………………………………………….= Rp 30.000.000
Piutang individual yang tidak teridentifikasi = Rp 77.000.000 x 2% = Rp 1.540.000

Umur piutang Nilai Piutang nilai % piutang tidak tertagih

0 - 30 hari $ 380.000.000 2% = Rp 7.600.000
31- 6 hari 70.000.000 5% 3.500.000
61 – 60 hari 30.000.000 15% 4.500.000
61 – 120 hari 25.000.000 25% 6.250.000
>120 hari 10.000.000 50% . 5.000.000
TOTAL Rp 58.390.000

2. Bad debt expense 58.390.000

Allowance for bad debt 58.390.000