accounting samples
fergamo
tasksample.docx
Formality: prepare the tasks in excel, answering each question in an excel spreadsheet of the same file.
Question 1
On January 1st, 2018, the company DECORA, SA acquires a machine, useful life 5 years for a purchase price 25.000 eur.
In payment, the company issues an installment note payable for this amount, plus interests at 12 percent per annum (or 1 percent per month).
This note will be paid in 5 monthly installments of 5.151 eur, beginning on January 1st.
You can see the amortization table allocating payments between interest and principal below:
|
Period |
Payment Date |
Monthly Payment |
Interest expense |
Reduction in Unpaid Balance |
Total amortized amount |
|
1 |
January |
5.151 |
250 |
4.901 |
4.901 |
|
2 |
February |
5.151 |
201 |
4.950 |
9.851 |
|
3 |
March |
5.151 |
151 |
5.000 |
14.851 |
|
4 |
April |
5.151 |
101 |
5.050 |
19.900 |
|
5 |
May |
5.151 |
51 |
5.100 |
25.000 |
1. From the table indicate the total amount of interests paid over the 5 installments
2. Prepare the journal entry to record the first monthly payment January 1st
3. Indicate the liability amount on March 31 that will appear in the Balance Sheet
Weight: 20% weight
Question 2
Weight: 30% weight
Question 3
For the following statements provide an appropriate explanation.
a) Nice things company records depreciation on a furniture. Explain how it affects its Balance Sheet and the Income Statement
b) If a company records depreciation in every closing, which is the accounting principle that is it applying? What does it mean?
Weight: 10% weight
Question 4
a) Which is the only plant asset does not decline in service potential over the course of its useful life and it is never depreciate it?
b) Given the following account balances at year end, compute the total intangible assets on the Balance Sheet of Anisha Enterprises:
Cash 1.500.000
Accounts receivable 4.000.000
Trademarks 1.000.000
Goodwill 4.500.000
Weight: 20% weight
Question 5
On January 1, 2021, Laurion Corporation sells 1 million (1.000 bonds each with a 1.000-dollar face value) of 5%, 20-year bonds payable to an underwriter at a price of 95% of their face value. Interest is payable semiannually on June 1 and December 1. On January 1, 2021, Laurion receives 950.000-dollar cash from the underwriter and records a net liability of this amount (1.000.000$*0,95 = 950.000 dollar)
1. Which is the amount and the meaning of the discount? When is it paid?
2. Prepare the entry on January 1 of the issuance of the bonds
Weight: 20% weight
