● ĐỀ 1 (21_AP04)
Problem 1: The ledger of Felix Rental agency on March 31 of the current
year includes the following selected accounts before adjusting entries
have been prepared
[127,135, LO3 149, 1(LO2,3) 150, 152, DO OT 3.2 156, e3.5 158, e3.7 158,
e3.13 161
BE3.2, BE3.3, BE3.4, BE3.5, BE3.6, and DO IT! 3.2]
DEBIT
Prepaid Insurance
4200
Supplies
3400
Equipment
30000
CREDIT
Accumulated
DepreciationEquipment
10500
Notes Payable
25000
Unearned Rent
Revenue
10000
Rent Revenue
60000
Interest Expense
Salaries and Wages
Expense
0
14000
An analysis of the accounts shows the following:
1. The equipment depreciates $500 per month
2. The unearned rent revenue represents $10,800 collected on
January 1 for the period January 1 through March 31
3. Interest of $750 is accrued on the notes payable
4. Supplies on hand total $1,100
5. The company paid $4,200 on January 1 for a 2 year
insurance policy
Instructions:
Prepare the adjusting entries at March 31, assuming that adjusting
entries are made quarterly. Additional accounts are: Depreciation
Expense, Insurance Expense, Interest Payable, and Supplies Expense.
Giải
The equipment depreciates $500 per month
→ The depreciation for the quarter is $500 x 3 = 1500$
The company paid $4,200 on January 1 for a 2 year insurance policy
→ Insurance expense is $4,200/24 x 3 = 525$
Adjusting entries:
1. Depreciation expense
1500
Accumulated depreciation -equipment
1500
2. Unearned rent revenue
10,800
Rent revenue
10,800
3. Interest expense
750
Interest payable
750
4. Supplies expense
2,300
Supplies
2,300
5. Insurance expense
525
Prepaid insurance
525
Problem 2: Super Sale Company in the exclusive distributor for a
revolutionary bookbag. The product sells for $60 per unit and has a
Contribution margin ratio of 40%. The company’s fixed cost are
$360,000 per year. The company plans to sell $17,000 bookbags this
year.
Required:
1. What are the variable cost per unit? (1đ)
2. What is the break-even point in units and in sales dollars? (1,5đ)
3. What sales level in units and in sales dollars in required to earn an
annual profit of $90,000? (1đ)
4. Assume that through negotiation with the manufacturer the Super
Sale Company is able to reduce its variable costs by $3 per unit.
What is the company’s new break-even point in units and in sales
dollars?(1,5đ)
Giải
1, Selling price: $60
Contribution margin ratio: 40% = 0.4
Fixed cost: $360,000/year
Units: 17,000
Contribution margin ratio = Contribution margin/Total sales
= (Total sales - Total variable cost)/Total sales
= (Sale/unit - Variable/unit) : Sale/unit
= 0.4
⇔ (60 - Variable cost/unit) : 60 = 0.4
⇔ The variable cost per unit = 36$
2,
The break-even point in units
= Fixed cost/(Selling price - Variable cost per unit)
= 360,000/(60-36) = 15,000 units
The break-even point in sales dollars = 15,000 x 60 = 900,000$
3,
Sales level in units
= (Fixed cost + Desired profit) : (Selling price/unit - Variable cost/unit)
= (360,000 + 90,000) : (60-36) = 18,750 units
Sales level in sales dollars = 18,750 x 60 = 1,125,000$
4, New variable cost per unit = 36-3 = 33
The new break-even point in units = 360,000/(60-33) = 13,333 units
The new break-even point in sales dollars = 13,333 x 60 = 799,980$
● ĐỀ 2 (AF222_04)
Question 1: Outback Outfitters sells recreational equipment. One of the
company’s products, a small camp stove, sells for $50 per unit. Variable
costs are $32 per stove, and fixed cost associated with the stove total
$108,000 per month. At present, the company is selling 8,000 stoves per
month.
Required:
1. Compute the break-even point in number of stoves and in total
sales dollars.
2. If the variable costs per stove increase as a percentage of the
selling price, will it result in a higher or a lower break-even point?
Why? (Assume that the fixed cost remain unchanged)
3. The sales manager is convinced that a 10% reduction in the selling
price would result in a 25% increase in monthly sales of stoves.
Then what would be the change in net operating income?
4. How many stoves would have to be sold at the new selling price to
yield a minimum net operating income of $35,000 per month?
Giải
Selling/unit = $50
Variable/unit = $32
Fixed cost = $108,000
Units/month= 8,000
1,
The break-even point in number of stoves
= Fixed cost/(Selling/unit - Variable/unit)
= 108,000/(50-32) = 6,000 units
The break-even point in total sales dollars = 6,000 x 50= 300,000$
2, If the variable costs per stove increase
→ The contribution margin (Selling - Variable) decrease
→ So, we need to sell more units to recover fixed cost
→ It result in a higher break-even point
3, The new selling price = 50 x 90% = 45$
New monthly sales of stoves = 8,000 x 125% = 10,000 units
Net operating income = Contribution margin x Units sold
→ The change in net operating income
= New (Contribution margin x Units) - Old (Contribution margin x
Units)
= (45-32) x 10,000 - (50-32) x 8,000 = -14,000$
4, Units sold at the new selling price to yield a minimum net operating
income of $35,000 per month
= (Fixed cost + Net operating income) : Contribution margin
= (108,000 + 35,000) : (45-32) = 11,000 units
Question 2: The trial balance for Bamboo Travel Agency on October 31
is shown as follows, before monthly adjusting entries have been
prepared:
DEBIT
Cash
15,200
Supplies
2,500
CREDIT
Prepaid Insurance
Equipment
600
5,000
Note Payable
5,000
Accounts Payable
2,500
Unearned Service
Revenue
1,200
Common Stock
10,000
Retained Earnings
Dividends
0
500
Service Revenue
10,000
Salaries and Wages
Expense
4,000
Rent Expense
9,000
$28,700
$28,700
An analysis of the accounts shows the following:
1. Expired insurance for the month is $100
2. Depreciation for the month is $50
3. Services related to unearned service revenue in October worth
$600 were performed.
4. Services performed but not recorded at October 31 are $300
5. Interest accrued at October 31 is $95
Instructions:
Prepare the adjusting entries on October 31. Additional accounts are:
Depreciation Expense, Insurance Expense, Interest Expense, Accounts
Receivable and Interest Payable.
Giải
Adjusting entries:
1. Insurance expense
100
Prepaid insurance
100
2. Depreciation expense
50
Accumulate depreciation
3. Unearned service revenue
Service revenue
4. Account receivable
Service revenue
5. Interest expense
Interest Payable
50
600
600
300
300
95
95
● ĐỀ 3 (RS22_03)
Problem 1: The ledger of Perez Agency on March 31 of the current year
includes the following selected accounts before adjusting entries have
been prepared
DEBIT
Prepaid Insurance
3600
Supplies
2800
Equipment
25000
CREDIT
Accumulated
DepreciationEquipment
8400
Notes Payable
20000
Unearned Rent
Revenue
10200
Rent Revenue
60000
Interest Expense
Salaries and Wages
Expense
0
14000
An analysis of the accounts shows the following
a. The equipment depreciates $400 per month
b. One-third of the unearned rent revenue was earned during
the quarter
c. Interest totaling $500 is accrued on the notes payable for
the quarter
d. Supplies on hand total $900
e. Insurance expires at the rate of $200 per month
Instructions:
Prepare the adjusting entries on March 31, assuming that adjusting
entries are made quarterly. Additional accounts are: Depreciation
Expense, Insurance Expense, Interest Payable, and Supplies Expense.
Giải
The equipment depreciates $400 per month
→ The depreciation for the quarter is $400 x 3 = 1200$
One-third of the unearned rent revenue was earned during the quarter:
→ The unearned rent revenue for the quarter is $10200 : 3 = 34000$
Insurance expires at the rate of $200 per month
→ Insurance expense for the quarter is $200 x 3 = 600$
Adjusting entries:
1. Depreciation expense
1200
Accumulate-Depreciation expense
1200
2. Unearned rent revenue
34000
Rent revenue
3400
3. Interest expense
500
Notes payable
500
4. Supply expense ($2800-$900=1900$)
1900
Supplies
1900
5. Insurance expense
600
Prepaid insurance
600
Problem 2: Raveen Products sells camping equipment. One of the
company’s products, a camp lantern, sells for $90 per unit. Variable
costs are $63 per lantern, and fixed cost associated with the lantern total
$135,000.
Required:
1. Compute the company’s break-even point in the number of
lanterns and in total sales dollars (1,5d)
2. If the variable costs per lantern increase as a percentage of the
selling price, will it result in a higher or a lower break-even point?
Why? (1d)
3. At present, the company is selling 8,000 lanterns per month. The
sales manager is convinced that a 10% reduction in the selling
price will result in a 25% increase in the number of lanterns sold
each month. Then what would be the change in net operating
income? (1,5d)
4. Refer to the data in (3) above. How many lanterns would have to
be sold at the new selling price to yield a minimum net operating
income of $72,000 per month? (1d)
Giải
1, The company’s break-even point in the number of lanterns:
Fixed cost/(selling price -variable cost per unit)
= 135,000/(90-63) = $5000
The company’s break-even point in total sales dollars:
= $5000x90 = $450,000
2, If the variable costs per lantern increase
→ The contribution margin (Selling - Variable) decrease
→ So, we need to sell more units to recover fixed cost
→ It results in a higher break-even point
3, (Minh) The new selling price = 90 x 90% = 81$
New monthly sales of lantern = 8,000 x 125% = 10,000 units
Net operating income = Contribution margin x Units sold
→ The change in net operating income
= New (Contribution margin x Units) - Old (Contribution margin x Units)
= (81-63) x 10,000 - (90-63) x 8,000 = -36,000$
3, (Độ) The new selling price = 90 x 90% = 81$
New monthly sales of lantern = 8,000 x 125% = 10,000 units
New revenue = 10,000 x 81 = 810,000$
New variable cost = 10,000 x 63 = 630,000$
→ New total costs = 135,000 + 630,000 = 765,000$
→ New net operating income = New revenue - New total cost
= 810,000 - 765,000 = 45,000$
Old net operating income = 8000 x 90 - 8000 x 63 - 135,000
= 81,000$
→ The change in net operating income = 45,000 - 81,000 = -36,000$
4, Units sold at the new selling price to yield a minimum net operating
income of $72,000 per month
= (Fixed cost + Net operating income) : Contribution margin
= (135,000 + 72,000) : (81-63) = 11,500 units
● ĐỀ 4 (đề số 1 khóa 12)
Question 1: Transactions for Adam Company for the month of
September-the first month if operatuib are presented below:
1. Invested $35,000 cash in business
2. Purchased $400 of office supplies on credit
3. Purchased office equipment for $10,000, paying $2,000 in cash
and the remainder on credit
4. Provided services to clients for $4,000 on account
5. Paid $700 cash for the current month’s rent
6. Paid $200 cash on account for office supplies purchased in
transaction 2
7. Received a bill for $600 for advertising for the current month
8. Paid $2,200 cash for office salaries
9. Received payment of $3,000 from clients for service performed in
transaction 4
10.Paid cash $2,000 for one-year insurance policy
Instruction:
1. Prepare journal entries to record the above transactions (3đ)
2. Post to the ledger accounts (1,5đ)
3. Prepare a trial balance on September 30? (1,5đ)
Giải
1, Journal entries:
Titles
Debit
Credit
1. Cash
$35,000
Owner’s capital
$35,000
2. Office supplies
400
Accounts payable
400
3. Office equipment
10,000
Cash
2,000
Accounts payable
8,000
4. Accounts receivable
4,000
Service revenue
4,000
5. Rent expense
700
Cash
700
6. Accounts payable
200
Cash
200
7. Advertisement expense
600
Accounts payable
600
8. Office salaries expense
2,200
Cash
2,200
9. Cash
3,000
Accounts receivable
3,000
10. Prepaid insurance
2,000
Cash
2,000
* Note: Prepaid insurance expense chỉ xuất hiện trong adjusting entries
vì sau quá trình dùng -> hao phí
2, Ledger accounts:
3,
Cash
Office supplies
Adam Company
Trial balance
September 30
Debit
$30,900
400
Credit
Office equipment
Account receivable
Prepaid insurance
Accounts payable
Owner’s capital
Service revenue
Rent expense
Advertisement expense
Salaries expense
10,000
1,000
2,000
8,800
35,000
4,000
700
600
2,200
$47,800
$47,800
Question 2: (bài này giống question 1 đề 2) Outback Outfitters sells
recreational equipment. One of the company’s products, a small camp
stove, sells for $50 per unit. Variable costs are $32 per stove, and fixed
cost associated with the stove total $108,000 per month, At present, the
company is selling $8,000 stoves per month.
Required:
1. Compute the break-even point in number of stoves and in total
sales dollars (1đ)
2. If the variable costs per stove increase as a percentage of the
selling price, will it result in a higher or a lower break-even point?
Why?
(Assume that the fixed cost remain unchanged) (1đ)
3. The sales manager is convinced that a 10% reduction in the selling
price would r
4. Result in a 25% increase in a monthly sales of stoves.
5. How many stoves would have to be sold at the new selling price to
yield a minimum net operating income of $35,000 per month (1đ)