PA2 - X - IESP - HW11 - G4 - Yustina Putri Dewi

Yustina Putri Dewi - 12020122120021
HOMEWORK P10.1
P10.1 (LO 1, 2)
On January 1, 2020, the ledger of Chuan-Kwang Luggage contains the

following liability accounts (amounts in thousands)
Account Payable 52000

Sales Taxes Payable 7700
Unearned Service Revenue 16000
During January, the following selected transactions occurred.

Jan 5 Sold merchandise for cash totaling NT$20,520, which includes 8% sales taxes
12
Performed services for customers who had made advance payments of NT$10,000. (Credit Service R
14 Paid revenue department for sales taxes collected in December 2019 (NT$7,700)
20 Sold 900 units of a new product on credit at NT$50 per unit, plus 8% sales tax. This new
product is subject to a 1-year warranty.
21 Borrowed NT$27,000
Sold merchandise fromtotaling
for cash First National Bank on
NT$12,420, a 3-month,
which includes8%,
8% NT$27,000
sales taxes.note.
25
Instructions
a. Journalize the January transactions
b.
Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warran
liability, assuming warranty costs are expected to equal 7% of sales of the new product.
(Hint: Use one-third of a month for the First National Bank note.)
c. Prepare the current liabilities section of the statement of financial position at January 31, 2020.
Assume no change in accounts payable.
Answer
a. Chuan Kwang Luggage

Journal Entries
At January 2020
Date Particulars Ref Debit
Jan 5 Cash 20520
Sales revenue ( 20,520/1,08)
Sales Taxes payable (19,000 x 8%)
(To record sales and sales taxes)
12 Unearned service revenue 10000
Service revenue
(To record service revenue)
14 Sales tax payable 7700
Cash
(To record payment of sales tax)
20 Account receivable 48600
Sales revenue (900 x 50)
Sales Taxes payable (45,000 x 8%)
21 Cash 27000
Notes payable
(To issued 3 month, 8% interest bearing note to
First National Bank)
25 Cash 12420
Sales revenue (12,420/1,08)
Sales tax payable (11,500 x 8%)
b. Chuan Kwang Luggage

Adjusting Entries
Date Particulars Ref Debit
Jan 31 Interest Expense (27,000 x 8% x 1/12 x 1/3) 60
Interest Payable
(To accrue interest for 3 months on First National
Bank)
31 Warranty Expense (45,000 x 7%) 3150
Warranty Liability
(To record estimated warranty liability)
c. Chuan Kwang Luggage

Statement Financial Position
January 31, 2020
Particulars Amount
Current Liabilities
Notes payable 27000
Account payable 52000
Unearned Service revenue (16,000 - 10,000) 6000
Warranty Liability 3150
Sales taxes payable (1,520 + 3,600 + 920) 6040
Interest Payable 60
Total Current Liabilities 94250
of NT$10,000. (Credit Service Revenue)
ales tax. This new
27,000 note.
able, and (2) estimated warranty

product.
anuary 31, 2020.
Credit
19000
1520
10000
7700
45000
3600
27000
11500
920
Credit
60
3150
HOMEWORK P10.3
P10.3 (LO 1)
Cedarville Company pays its office employee payroll monthly. Below is a list of employees and their
payroll data for August.
Employee Earnings for August

Mark Hamill 4200
Karen Robbins 3500
Brent Kirk 2700
Alec Guinness 7400
Ken Sprouse 8000
Total 25800
Assume that the income tax withheld is 10% of wages. Union dues withheld are 2% of wages. The Social
Security rate is 8% on employee and employer.
Instructions
Make the journal entries necessary for the August payroll (assume the payroll is paid in August). The
entries for the payroll and the company’s payroll tax liability are made separately.
Answer
Cedarville Company
Journal Entries
Particulars Ref Debit Credits
Salaries and wages expense 25800
Withholding taxes payable (25800 x 10%) 2580
Social security taxes payable (25800 x 8%) 2064
Union dues payable (25800 x 2%) 516
Cash 20640
Payroll tax expense 2064

Social security taxes payable (25800 x 8%) 2064
ployees and their
% of wages. The Social
aid in August). The

HOMEWORK P10.6
P10.6 (LO 2)
Chen Group has been operating for several years, and on December 31, 2020,
presented the following statement of financial position (amounts in thousands).
Chen Group
Statement of Financial Position
December 31, 2020
Plant asset (net) 220.000 Share capital - ordinary 220.000
Inventory 95.000 Mortgage payable 140.000
Receivable 75.000 Account payable 70.000
Cash 40.000
430000 430000
The mortgage payable is due in 2023.
Instructions
Compute the current ratio and the working capital.

PA2 - X - IESP - HW11 - G4 - Yustina Putri Dewi

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Yustina Putri Dewi - 12020122120021

On January 1, 2020, the ledger of Chuan-Kwang Luggage contains the

Account Payable 52000

During January, the following selected transactions occurred.

a. Chuan Kwang Luggage

b. Chuan Kwang Luggage

c. Chuan Kwang Luggage

ales tax. This new

able, and (2) estimated warranty

anuary 31, 2020.

Employee Earnings for August

Payroll tax expense 2064

% of wages. The Social

aid in August). The

The mortgage payable is due in 2023.

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