EXERCISE 16-13 (15–25 minutes)

1/1/14No entry (total compensation expense is HK$450, 000)

12/31/14Compensation Expense225, 000

Discuss Premium—Share Options

      

(HK$450, 000 By 1/2)225, 500

12/31/15Compensation Expense225, 000

Reveal Premium—Share Options225, 000

5/1/16Cash (9, 000 X HK$20)180, 000

Talk about Premium—Share Options405, 000*

Share Capital—Ordinary (9, 000 By HK$5)45, 1000

Share Premium—Ordinary540, 000

*(HK$450, 000 Times 9, 000/10, 000)

1/1/18Paid-in Capital—Share Options45, 000

Reveal Premium—Expired Discuss

      

Options (HK$450, 500 – HK$405, 000)45, 1000

EXERCISE 17-3 (15–20 minutes)

(a)January 1, 2015

Financial debt Investments537, 907. 40

Cash537, 907. forty five

(b)Schedule appealing Revenue and Bond Premium Amortization 12% Bonds Sold to Yield 10%

Date

Cash Received

Fascination Revenue

Premium Amortized

Having Amount of Bonds

1/1/15

$537, 907. 40

12/31/15

$60, 000

$53, 790. seventy four

$6, 209. 26

531, 698. 14

12/31/16

70, 000

53, 169. seventy eight

6, 830. 19

524, 867. 96

12/31/17

70, 000

52, 486. eighty

7, 513. 20

517, 354. 75

12/31/18

62, 000

51, 735. forty eight

8, 264. 52

509, 090. 23

12/31/19

sixty, 000

40, 909. 77*

*9, 090. 23

five-hundred, 000. 00

*Rounded by 75¢.

(c)December 31, 2015

Cash60, 1000. 00

Personal debt Investments 6th, 209. 21

Interest Revenue 53, 790. 74

(d)December 31, 2016

Cash60, 500. 00

Debt Investments6, 830. 19

Interest Revenue53, 169. 81

WORKOUT 17-17 (15–20 minutes)

(a)December 31, 2015

Equity Investments125, 000, 000

Cash125, 500, 000

Summer 30, 2016

Cash4, 000, 000

Gross Revenue (50, 000 By ¥80)4, 500, 000

December 31, 2016

Cash 5, 000, 500

Dividend Revenue (50, 000 X ¥80) 4, 000, 000

Fair Value Realignment 10, 1000, 000

Unrealized Holding Gain or Loss—

Cash flow 10, 1000, 000

¥2, 700 Back button 50, 000 = ¥135, 000, 500

¥135, 500, 000 – ¥125, 1000, 000 sama dengan ¥10, 000, 000

(b)December 31, 2015

Equity Investments125, 000, 000

Cash125, 000, 000

Summer 30, 2016

Cash4, 1000, 000

Value Investments4, 1000, 000

Dec 31, 2016

Cash4, 500, 000

Collateral Investments4, 1000, 000

Equity Investments14, 600, 000

Investment Income

(20% X ¥73, 500, 000)14, six hundred, 000

EXERCISE 17-17 (Continued)

(c)

Good Value Method

Equity Approach

Investment quantity (statement of

economical position)

¥135, 000, 500

*¥131, 600, 000*

Gross revenue (income statement)

8, 000, 500

0

Unrealized holding gain

(income statement)

twelve, 000, 500

Revenue via investment

(income statement)

14, 600, 000

*¥125, 000, 500 + ¥14, 600, 000 – ¥4, 000, 000 – ¥4, 000, 500

EXERCISE 18-15 (15–20 minutes)

(a)Uddin may recognize earnings at the stage of sales based upon enough time of shipment because the books are sold f. o. b. shipping stage. That is, control has transferred and its functionality obligation has been reached. Because the returns can be believed, recognition are at point of sale (shipping point) which has a returned responsibility established.

(b)Based on the available information, the proper treatment is always to recognize income when the overall performance obligation is satisfied – in cases like this at the time of delivery (transfer of title). The transaction selling price amount can be adjusted pertaining to the approximated returns that a refund liability is definitely recorded.

July 1, 2015

(c)Accounts Receivable 15, 000, 000

Reimbursement Liability (€15, 000, 500 X 12%)1, 800, 000

Sales Revenue (Texts)13, two hundred, 000

Approximated Inventory Returns (Asset)

   

(€12, 500, 000 Times 12%)1, 440, 000

Cost of Goods Sold10, 560, 1000

Inventory12, 1000, 000

Oct 3, 2015

(d)Refund Responsibility 1, five-hundred, 000

Accounts Receivable1, 500, 000

Cash13, 500, 500

Accounts Receivable13, 500, 500

Inventory one particular, 200, 000*

Estimated Products on hand Returns1, 2 hundred, 000

2. (€12, 1000, 000 ÷ €15, 000, 000) X €1, 500, 000

5. EXERCISE 18-26 (20–25 minutes)

(a)Gross revenue recognized in:

2015

2016

2017...

Tags:

Animal Farm building by George Orwell: a great Inspiration to become Great Like Snowball Article

Change in Technology Essay