東吳大學 104 學年度轉學生 ( 含進修學士班轉學生 ) 招生考試試題第 1 頁, 共 6 頁

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1 東吳大學 104 學年度轉學生 ( 含進修學士班轉學生 ) 招生考試試題第 1 頁, 共 6 頁 系考試級時間科本科 目總分作答規定 a. 本試卷請依國際會計準則 (IAS) 或國際財務報導準則 (IFRS) 之規定作答 b. 除題目另有說明, 答案請四捨五入計算至整數位 c. 分錄之會計科目請以英文作答 d. 若為計算題, 務請列示計算過程, 否則不予計分 試題 ( 共計 10 大題, 請小心作答, 避免疏漏 ) 1. (10%) Presented below is information related to Cereal Inc. Cost Retail Inventory, 12/31/14 $ 375,000 $ 550,000 Purchases 1,369,000 2,050,000 Purchase returns 90, ,000 Purchase discounts 27,000 Gross sales (after employee discounts) 2,110,000 Sales returns 145,000 Markups 180,000 Markup cancellations 60,000 Markdowns 75,000 Markdown cancellations 35,000 Freight-in 63,750 Employee discounts granted 20,000 Loss from breakage (normal) 10,000 Abnormal shortage 43,000 65,000 Sales discounts 30,000 Freight-out 13,000 Assume that Cereal Inc. uses the conventional retail inventory method, please compute the cost of its ending inventory at December 31, ( 比率部分 : 若無法整除者, 請計算至小數點後兩位, 如 xx.xx%, 金額部分 : 請計算至整數位 ) 2. (10%) Glaus Leasing Company agrees to lease machinery to Jensen Corporation on January 1, The following information relates to the lease agreement. (1) The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. (2) The cost of the machinery is $525,000, and fair value of the asset on January 1, 2015, is $700,000. (3) At the end of the lease term, the asset reverts to the lessor. At the end of the lease term, the asset has a guaranteed residual value of $100,000. Jensen depreciates all of its equipment on a straight-line basis.

2 東吳大學 104 學年度轉學生 ( 含進修學士班轉學生 ) 招生考試試題第 2 頁, 共 6 頁 (4) The lease agreement requires equal annual rental payments, beginning on January 1, (5) Glaus desires a 10% rate of return on its investments. Jensen s incremental borrowing rate is 11%, and it is impracticable to determine the lessor s implicit rate. (Assume the accounting period ends on December 31.) [Round all numbers to the nearest dollar.] (a) Calculate the amount of the annual rental payment required. (b) Prepare the journal entries Jensen would make in 2015 related to the lease arrangement. (c) Prepare the journal entries Glaus would make in (10%) The following defined pension data of Webb Corp. apply to the year Defined benefit obligation, 1/1/15 (before amendment) $560,000 Plan assets, 1/1/15 546,200 On January 1, 2015, Webb Corp., through plan amendment, grants past service benefits having a present value of 120,000 Discount (interest) rate 9% Service cost 58,000 Contribution (funding) 60,000 Actual return on plan assets 49,158 Benefits paid to retirees 40,000 (a) Prepare the journal entry to record 2015 pension expense. (b) Indicate the balances of defined benefit obligation (DBO), plan assets and pension liability on December 31, (15%) The first audit of books of McElroy Company was made for the year ended December 31, In examining the books, the auditor found that certain items had been overlooked or incorrectly handled in the last 3 years. These items are: (1) At the beginning of 2013, the company purchased a machine for $510,000 (residual value of $51,000) that had a useful life of 5 years. The bookkeeper used straight-line depreciation but failed to deduct the residual value in computing the depreciation base for the 3 years. (2) A large piece of equipment was purchased on January 3, 2014, for $40,000 and was charged to Repairs Expense. The equipment is estimated to have a service life of 8 years and no residual value. Assume McElroy normally uses the straight-line depreciation method for this type of equipment. (3) In January 2014, McElroy purchased a two-year insurance policy costing $10,000. It debited Insurance Expense and credited Cash. The company made no adjusting entries at the end of 2014.

3 東吳大學 104 學年度轉學生 ( 含進修學士班轉學生 ) 招生考試試題第 3 頁, 共 6 頁 (4) McElroy consistently omitted from the records wages earned by workers but not paid at December 31. The amounts omitted were: December 31, 2013 $80,000 December 31, 2014 $85,000 December 31, 2015 $93,000 (5) McElroy had not set up an allowance for estimated uncollectible receivables. McElroy decided to set up such an allowance for the estimated probable losses, as of December 31, 2015, for 2014 accounts of $70,000, and for 2015 accounts of $150,000. McElroy also decided to correct the charge against each year so that it shows the losses (actual and estimated) relating to that year s sales. The company has written off accounts to bad debt expense as follows. In 2014 In accounts $40,000 $200, accounts 160,000 Prepare the journal entries necessary in 2015 to correct the books, assuming that the books have been closed. Disregard effects of corrections on income tax. 5. (5%) In 2015, Nilsen Construction Corp. began construction work under a 3-year contract. The contract price was $1,000,000. Nilsen uses the percentage-of-completion method for financial accounting purposes. The income to be recognized each year is based on the proportion of cost incurred to total estimated costs for completing the contract. The financial statement presentations relating to this contract at December 31, 2015, are shown below. Statement of Financial Position Construction in process $ 65,000 Less: Billings 61,500 Costs and recognized profit in excess of billings 3,500 Accounts receivable 18,000 Income Statement Income (before tax) on the contract recognized in 2015 $ 19,500 (a) How much cash was collected in 2015 on this contract? (b) What was the initial estimated total income before tax on this contract? 6. (8%) Assume that on January 1, 2015, Boson Company contracted with Hit Construction Co. to have a building constructed, that qualifies for interest capitalization. Boson Company had the specific construction debt

4 東吳大學 104 學年度轉學生 ( 含進修學士班轉學生 ) 招生考試試題第 4 頁, 共 6 頁 $3,000,000, that debt s interest rate is 12%, 3-year note to finance construction of the building, dated April 1, 2015, with interest payable annually on December 31. The excess borrowed funds (not yet using amount) were invested in short-term securities, the rate of return on the investment is 2%. The payments made by Boson during year 2015 to Hit Construction Co. are shown in the schedule below: Amounts April 1 $ 500,000 July 1 1,500,000 December 31 1,000,000 Compute the amount of capitalized interest for year (12%) Comparative statement of financial position accounts of Marcus Inc. are presented below. MARCUS Inc. Comparative Statement of Financial Position Accounts As of December 31, 2015 and 2014 Debit Accounts Cash $ 42,000 $ 33,750 Accounts Receivable 70,500 60,000 Merchandise Inventory 30,000 24,000 Equity Investment (non-trading) 22,250 38,500 Machinery 30,000 18,750 Buildings 67,500 56,250 Land 7,500 $269,750 7,500 $238,750 Credit Accounts Allowance for Doubtful Accounts $ 2,250 $ 1,500 Accumulated Depreciation Machinery 5,625 2,250 Accumulated Depreciation Buildings 13,500 9,000 Accounts Payable 35,000 24,750 Accrued Payables 3,375 2,625 Long-Term Note Payable 21,000 31,000 Share Capital Ordinary, no par 150, ,000 Retained Earnings 39,000 42,625 $269,750 $238,750 Additional information (ignoring taxes): 1. Net income for the year was $42, Cash dividends was declared and paid during the year. 3. A 20% share dividend was declared during the year. 4. Equity investments that cost $25,000 were sold during the year for $28, Machinery that cost $3,750, on which $750 of depreciation had accumulated, was sold for $2,200.

5 東吳大學 104 學年度轉學生 ( 含進修學士班轉學生 ) 招生考試試題第 5 頁, 共 6 頁 Marcus s 2015 income statement follows (ignoring taxes). Sales $540,000 Less: Cost of goods sold Gross margin 380, ,000 Less: Operating expenses (includes $8,625 depreciation and $5,400 bad debts) 120,450 Income from operations 39,550 Other: Gain on sale of equity investment (non-trading) $3,750 Loss on sale of machinery (800) 2,950 Net income $42,500 Prepare the operating activities section of the statement of cash flows using the indirect method and direct method, respectively. 8. (10%) Benson Plastics Company deposits all receipts and makes all payments by check. The following information is available from the cash records: MARCH 31-BANK RECONCILIATION Balance per bank $26,746 Add: Deposits in transit 2,100 Deduct: Outstanding checks (3,800) Balance per books $25,046 Month of April Results Per Bank Per Books Balance April 30 $? $? April receipts 10,784 13,889 April disbursements 11,600 10,080 April note collected 3, April bank service charge April NSF check of a customer returned by the bank (recorded by bank as a charge) Other information: 1. A customer s check for $6,000 had been entered as $9,000 in the cash receipts journal by Benson Plastics on April Check no. 742 in the amount of $419 had been entered in the cash journal as $491, and check no. 747 in the amount of $2300 had been entered as $23. Both checks had been issued to pay for purchases of equipment.

6 東吳大學 104 學年度轉學生 ( 含進修學士班轉學生 ) 招生考試試題第 6 頁, 共 6 頁 (a) Calculate the amount of the April 30: 1. Deposits in transit 2. Outstanding checks (b) What is the April 30 adjusted cash balance? (c) Prepare the general journal entry or entries to correct the Cash account. 9. (10%) The information below pertains to Barkley Company for 2015: (1) The after-tax net income for the year ended December 31, 2015 was $324,000. (2) As of January 1, 2015, 50,000 shares had been issued and were outstanding. (3) 6,000 options were granted on January 1, Each option was exercisable to purchase one ordinary share at $20 per share. On April 1, 2015, 4,000 options had been exercised, and the remaining options were still outstanding at the end of The per share (average) market prices of Barkley s ordinary shares on specific dates or periods were as follows: market price per share March 31, 2015 $30 Dec. 31, Jan. 1~Mar. 31, 2015 (average) 25 Jan. 1~Dec. 31, 2015 (average) 40 (4) On January 1, 2015, Barkley issued 5-year, $400,000 face value, 6% bonds, at par. Interest payment dates are June 30 and December 31. Each $1,000 bond was convertible into 10 ordinary shares of Barkley. On July 1, 2015, $200,000 bonds had been converted into 2,000 ordinary shares. (5) Barkley Company is subject to a 25% income tax rate. Compute basic earnings per share and diluted earnings per share for 2015, respectively. 10. (10%) Presented below are two independent situations. Situation I: Gator Co. acquired 10% of the 200,000 ordinary shares of Ramirez Fashion at a total cost of $14 per share on March 20, On June 30, Ramirez declared and paid a $80,000 cash dividend. On December 31, Ramirez reported net income of $125,000 for the year. At December 31, the market price of Ramirez Fashion was $17 per share. The investment is classified as trading. Situation II: Holmes, Inc. obtained significant influence over Swan Co. by buying 25% of Swan s 50,000 outstanding ordinary shares at a total cost of $10 per share on January 1, On June 15, Swan declared and paid a cash dividend of $50,000. On December 31, Swan reported a net income of $100,000 for the year. At December 31, the market price of Swan was $15 per share. Prepare all necessary journal entries in 2015 for both situations.