SOLUTION 1 : CONCEPTUAL FRAMEWORK OF ACCOUNTING

1. Relevance; faithful representation 2. confirmatory value 3. Comparability 4. rational; systematic (kalimat ini ada di buku sama persis) 5. The materiality convention 6. consistency 7. Conservatism (bisa juga measurement) 8. full disclosure 9. periodicity 10. revenue recognition

SOLUTION 2 Untuk soal POIN B ini, maksud kalimat nomer 2 adalah ARE NOT ON HAND YA.. b. Use the following transaction and adjustment data 1. December 20, 2010 : Purchased $30,000 of office supplies with cash. 2. December 31, 2010 : Determined that $10,000 of office supplies are not hand.
a.

Reversing Entries Not Used

initial salary entry 20-Des10 salaries expense cash 7.000 7.000

adjusting entry 31-Des10

salaries expense salaries payable

3.500 3.500

closing entry 31-Des10

income summary salaries expense

10.500 10.500

reversing entry 01-Jan11

NO ENTRY IS MADE

subsequent salaries entry 20-Jan11 salaries payable salaries expense cash

3.500 7.000 10.500

Reversing Entries Used

initial salary entry 20-Des10

salaries expense cash

7.000 7.000

adjusting entry 31-Des10

salaries expense salaries payable

3.500 3.500

closing entry 31-Des10

income summary salaries expense

10.500 10.500

reversing entry 01-Jan-11

salaries payable salaries expense

3.500 3.500

subsequent salaries entry 20-Jan-11 salaries expense cash

10.500 10.500

purpose of the reversing entry: SIMPLICITY

b.

Reversing Entries Not Used

initial salary entry 20-Des10 office supplies cash 30.000 30.000

adjusting entry 31-Des10

office supplies expense office supplies

10.000 10.000

closing entry 31-Des10

income summary 10.000 office supplies expense

20.000

reversing entry 01-Jan11

NO ENTRY IS MADE

Reversing Entries Used

initial salary entry 20-Des10

office supplies expense cash

30.000 30.000

adjusting entry 31-Des10

office supplies 20.000 office supplies expense

20.000

closing entry 31-Des10

income summary 10.000 office supplies expense

10.000

reversing entry 01-Jan-11

office supplies expense office supplies

20.000 20.000

purpose of the reversing entry: CONSISTENCY

SOLUTION 3
SALES REVENUE DEDUCT COGS: BEG INVENTORY PURCHASE PURCHASE DISCOUNT ENDING INVENTORY GROSS PROFIT SELLING EXPENSE GENERAL N ADMIN EXPENSE OTHER INCOME N EXPENSE: DIVIDEN REVENUE 1400000 152000 820000 -18000 -125000 COGS

829000 571000 -128000 -210000

8000

INCOME FROM OPERATION INTEREST EXPENSE INCOME BEFORE TAX INCOME TAX INCOME FROM CONTINUING OPERATION DISCONTINUED OPERATION LOSS OF DISPOSITION(NET OF TAX) NET INCOME

241000 -17000 224000 -67200 156800

-42000 114800

EPS

2.87

SOLUTION 4
a) Statement of Financial Position

DESIRE INC. Statement of Financial Position December 31, 2010

ASSETS Current Assets
Cash Short-term Investments Accounts Receivable Less: Allowance for Doubtful Accounts Inventories

200,000 100,000 200,000 (10,000) 190,000 230,000 720,000

Total Current Assets Non-current Assets

Long-term Investments Investment in Held-for-collection securities Investment in Bond-sinking-fund Investment in Held-for-speculation Land Investment in Held-for-future-use Land

300,000 250,000 60,000 290,000 900,000

Property, Plant, Equipment

Land Building Less: Accumulated Depreciation Equipment Less: Accumulated Depreciation

500,000 1,040,000 (360,000) 450,000 (180,000) 270,000 1,450,000 680,000

Intangible Assets Franchise Goodwill

165,000 100,000 265,000

Total Non-current Assets Total Assets LIABILITIES & EQUITY Current Liabilities
Note Payable - short term Accounts Payable Unearned Revenue Taxes Payable

2,615,000 3,335,000

150,000 100,000 5,000 100,000 355,000

Total Current Liabilities Non-current Liabilities

Note Payable - long term Bonds Payable

250,000 960,000 1,210,000

Total Non-current Liabilities Equity

Share Capital - Preference Share Capital - Ordinary Share Premium - Ordinary Retained Earnings

450,000 100,000 900,000 320,000 1,770,000

Total Equity

Total Liabilities & Equity b) The difference between IFRS & PSAK in classification on Statement of Financial Position:

3,335,000

PSAK, clearly says that the classification in Assets section are based on liquidity, which
the more liquid assets should be presented above the less liquid ones. This classification is also required in Liabilities section (the liabilities that due first should also present first in the section).

IFRS, also requires Assets to be classified by liquidity and Liabilities by their due dates.
But IFRS gives more flexibility to the sequence of appearance (the more liquid assets may be presented under the less liquid ones). Nevertheless, the sequence in Assets section must be consistent with the Liabilities section.

SOLUTION 5
PT. Merdeka Statement of Cash Flow For period ended December 31,2010 Cash Flows from Operations Net Income Adjustments to reconcile net income to net cash provided by operating activities: +/+ Addition Depreciation Expense Building Depreciation Expense - Equipment Patent Amortization Loss on Sale of Equipment Increase in Current Liabilities -/- Deduction Increase in Current Assets other than Cash Net cash provided by operating activities Cash Flows from Investing Activities Sale of Equipment Addition to the Building Investments in Stock Net cash used by investing activities Cash Flows from Financing Activities Issuance of Bonds Payment of Cash Dividends Purchase of Treasury Stock Net cash provided by financing activities Net increase in cash

$55,000

$4,000 9,000 2,500 2,000 13,000 (29,000) 1,500 56,500

10,000 (27,000) (16,000) (33,000)

50,000 (30,000) (11,000) 9,000 32,500

SOLUTION 6

SOLUTION 7 a) Investment Cash

b) Recorded investment Less:

100.000 100.000

100.000 (100.000 x 0,75132) (5.000 x 2,48658)

Present Value of $100.000 due in 3 years at 10% Present Value of $5.000 interest receivable annually for 3 years at 10% Loss on impairment

(75.132) (12.434) (87.566) 12.434

c) Bad debt expense

12.434 12434

Allowance for doubtful account d) Allowance for doubtful account 12.343 Bad debt expense

12434