Chapter 11 Current Liabilities and Payroll Instructions 1. Journalize the transactions. - Journalize the following adjusting entries on December 31: a. Salaries accrued: sales salaries, Rp4,275,000; officers salaries, Rp2,175,000; office Salaries, Rp825.000. The payroll taxes are immaterial and are not accrued. b. Vacation pay, Rp13,350,000 mprehensive Problem 3 Selected transactions completed by PT Cempaka during its first fiscal year ended December 31, 2016, were as follows: Jan. 3. Issued a check to establish a petty cash fund of Rp1,500,000 Feb. 26. Replenished the petty cash fund, based on the following summary of petty cash receipts: office supplies, Rp1.680,000; miscellaneous selling expense, Rp 570.000 miscellaneous administrative expense, Rp 0,000 Apr. 14. Purchased Rp 3.200.000 of merchandise on account, terms 1/10, n/30. The perpetual inventory system is used to account for inventory. May 13. Paid the invoice of April 14 after the discount period had passed. 17. Received cash from daily cash sales for Rp 21,200,000. The amount indicated by the cash register was Rp21.240.000 June 2. Received a 60-day, 8% note for Rp180,000,000 on the Riana account. Aug. 1. Received amount owed on June 2 note, plus interest at the maturity date. 24. Received Rp7,600,000 on the Finanda account and wrote off the remainder owed on a Rp9,000,000 accounts receivable balance. The allowance method is used in accounting for uncollectible receivables.) Sept. 15. Reinstated the Finanda account written off on August 24 and received Rp. 100.000 cash in full payment. 15. Purchased land by issuing a Rp670,000,000, 90-day note to PT Sahara, which discounted it at 9%. 17. Sold office equipment in exchange for Rp 135.000.000 cash plus receipt of a Ro100.000.000, 90-day, 9% note. The equipment had a cost of Rp320.000.000 and accumulated depreciation of Rp 1,000,000 as of October 17. Nov. 30. Journalized the monthly payroll for November, based on the following data: Salaries Deductions Sales salaries Rp135,000,000 income tax withheld Rp39,256,000 Office salaries 77,250,000 Old-ages Insurance withheld 12.735.000 Rp212,250,000 Healthcare insurance withheld 3.184.000 Nov. 30. Journalized the employer's payroll taxes on the payroll Dec. 14. Journalized the payment of the September 15 note at maturity 31. The pension cost for the year was Rp190,400,000, of which Rp 139,700,000 was paid to the pension plan trustee. Instructions 1. Journalize the selected transactions. Based on the following data, prepare a bank reconciliation for December of the current year: Balance according to the bank statement at December 31, Rp.283,000,000 b alance according to the ledger at December 31, Rp 245.410,000 Chapter 11 Current Liabilities and Payroll ncorrectly recorded in the entry or entries to tries as of December c. Checks outstanding at December 31, Rp68,540,000. d. Deposit in transit, not recorded by bank, Rp29,500,000 e Bank debit memo for service charges, Rp750,000. f. A check for check for Rp12,700,000 in payment of an invoice was incorrectly reco accounts as Rp12,000,000. Based on the bank reconciliation prepared in (2), journalize the entry or ente made by PT Cempaka Based on the following selected data, journalize the adjusting entries as of 31 of the current year: Estimated uncollectible accounts at December 31, Rp16,000,000, based on of accounts receivable. The balance of Allowance for Doubtful Accounts at De 31 was Rp2,000,000 (debit). b. The physical inventory on December 31 indicated an inventory shrinkage of Rp3,300.00 c. Prepaid insurance expired during the year, Rp22,820,000. d. Office supplies used during the year, Rp3.920,000. e. Depreciation is computed as follows: 16,000,000, based on an Asset Buildings Office Equip. Store Equip Cost Rp900,000,000 246,000,000 112,000,000 Residual Value Rp 26,000,000 12,000,000 Acquisition Date January 2 January 3 July 1 Depreciation Useful Life Method In Years Used 50 Double-declining-balang 5 Straight-line 10 Straight-line Cases &P f. A patent costing Rp18,000,000 when acquired on January 2 has a remaining ke life of 10 years and is expected to have value for eight years. g. The cost of mineral rights was Rp546,000,000. Of the estimated deposit of 910.00 tons of ore, 50,000 tons were mined and sold during the year. h. Vacation pay expense for December, Rp10,500,000 i. A product warranty was granted beginning December 1 and covering a one or period. The estimated cost is 4% of sales, which totaled Rp1.900,000,000 in December 1. Interest was accrued on the note receivable received on October 17. 5. Based on the following information and the post-closing trial balance that follows, prop a statement of financial position in report form at December 31 of the current year The merchandise inventory is stated at cost by the FIFO method. The product warranty payable is a current liability. Vacation pay payable: Current liability Rp7,140,000 Long-term liability 3,360,000 The unfunded pension liability is a long-term liability. Notes payable: Current liability Rp70,000,000 Long-term liability 630,000,000 PT Cempaka Post-Closing Trial Balance December 31, 2016 Debit Balances Petty Cash ............... .... Cash ... Notes Receivable...... Accounts Receivable.... Allowance for Doubtful Accounts. 4,500,000 243,950,000 100,000,000 470.000.000 16.000 Chapter 11 Current Liabilities and Payroll Merchandise Inventory. Interest Receivable... Prepaid Insurance.... Office Supplies..... Land ....... . . Buildings ........ Accumulated Depreciation-Buildings.... Office Equipment ..... Accumulated Depreciation - Office Equipment Store Equipment...... Accumulated Depreciation--Store Equipment. Mineral Rights ......... Accumulated Depletion.. Patents...... Old-Ages Insurance Payable.. Healthcare Insurance Payable. Employees Income Tax Payable. Work Accident Insurance Payable. Cooperative Fund Payable Salaries Payable........ Accounts Payable .... Interest Payable....... Product Warranty Payable.. Vacation Pay Payable...... Unfunded Pension Liability ... Notes Payable.... PT Cempaka, Capital... 320,000,000 1,875,000 45,640,000 13,400,000 654,925,000 900,000,000 36,000,000 246,000,000 44,000,000 112,000,000 5,000,000 546,000,000 30,000,000 42,000,000 25,470,000 4,710,000 40,000,000 270,000 40,000 157,000,000 131,600,000 28,000,000 76,000,000 10,500,000 50,700,000 700,000,000 2,345,010,000 3,700,300,000 3,700,300,000 Projects CP 11-1 Ethics and professional conduct in business menia Latifah is a certified public accountant (CPA) and staff accountant for Kania and Karina, a local CPA firm. It had been the policy of the firm to provide a holiday bonus equal to two weeks' salary to all employees. The firm's new management team announced November 15 that a bonus equal to only one week's salary would be made available to employees this year. Tania thought that this policy was unfair because she and her coworkers planned chers planned on the full two-week bonus. The two-week bonus had been given for 10 straight years, aight years, so it seemed as though the firm had breached an implied commitment Thus, Tania decided Tenis decided that she would make up the lost bonus week by working an extra iy hours of overtime per week over the next five weeks until the end of the year, Kania and Karina's policy is to pay overtime at 150% of straight time. Tania's supervisor was surprised to see overtime being reported, since there is generally limle additional or unusual client service demands at the end of the calendar year. mo was not suestioned, since firm employees are on the "honor Chapter 11 Current Liabilities and Payroll Instructions 1. Journalize the transactions. - Journalize the following adjusting entries on December 31: a. Salaries accrued: sales salaries, Rp4,275,000; officers salaries, Rp2,175,000; office Salaries, Rp825.000. The payroll taxes are immaterial and are not accrued. b. Vacation pay, Rp13,350,000 mprehensive Problem 3 Selected transactions completed by PT Cempaka during its first fiscal year ended December 31, 2016, were as follows: Jan. 3. Issued a check to establish a petty cash fund of Rp1,500,000 Feb. 26. Replenished the petty cash fund, based on the following summary of petty cash receipts: office supplies, Rp1.680,000; miscellaneous selling expense, Rp 570.000 miscellaneous administrative expense, Rp 0,000 Apr. 14. Purchased Rp 3.200.000 of merchandise on account, terms 1/10, n/30. The perpetual inventory system is used to account for inventory. May 13. Paid the invoice of April 14 after the discount period had passed. 17. Received cash from daily cash sales for Rp 21,200,000. The amount indicated by the cash register was Rp21.240.000 June 2. Received a 60-day, 8% note for Rp180,000,000 on the Riana account. Aug. 1. Received amount owed on June 2 note, plus interest at the maturity date. 24. Received Rp7,600,000 on the Finanda account and wrote off the remainder owed on a Rp9,000,000 accounts receivable balance. The allowance method is used in accounting for uncollectible receivables.) Sept. 15. Reinstated the Finanda account written off on August 24 and received Rp. 100.000 cash in full payment. 15. Purchased land by issuing a Rp670,000,000, 90-day note to PT Sahara, which discounted it at 9%. 17. Sold office equipment in exchange for Rp 135.000.000 cash plus receipt of a Ro100.000.000, 90-day, 9% note. The equipment had a cost of Rp320.000.000 and accumulated depreciation of Rp 1,000,000 as of October 17. Nov. 30. Journalized the monthly payroll for November, based on the following data: Salaries Deductions Sales salaries Rp135,000,000 income tax withheld Rp39,256,000 Office salaries 77,250,000 Old-ages Insurance withheld 12.735.000 Rp212,250,000 Healthcare insurance withheld 3.184.000 Nov. 30. Journalized the employer's payroll taxes on the payroll Dec. 14. Journalized the payment of the September 15 note at maturity 31. The pension cost for the year was Rp190,400,000, of which Rp 139,700,000 was paid to the pension plan trustee. Instructions 1. Journalize the selected transactions. Based on the following data, prepare a bank reconciliation for December of the current year: Balance according to the bank statement at December 31, Rp.283,000,000 b alance according to the ledger at December 31, Rp 245.410,000 Chapter 11 Current Liabilities and Payroll ncorrectly recorded in the entry or entries to tries as of December c. Checks outstanding at December 31, Rp68,540,000. d. Deposit in transit, not recorded by bank, Rp29,500,000 e Bank debit memo for service charges, Rp750,000. f. A check for check for Rp12,700,000 in payment of an invoice was incorrectly reco accounts as Rp12,000,000. Based on the bank reconciliation prepared in (2), journalize the entry or ente made by PT Cempaka Based on the following selected data, journalize the adjusting entries as of 31 of the current year: Estimated uncollectible accounts at December 31, Rp16,000,000, based on of accounts receivable. The balance of Allowance for Doubtful Accounts at De 31 was Rp2,000,000 (debit). b. The physical inventory on December 31 indicated an inventory shrinkage of Rp3,300.00 c. Prepaid insurance expired during the year, Rp22,820,000. d. Office supplies used during the year, Rp3.920,000. e. Depreciation is computed as follows: 16,000,000, based on an Asset Buildings Office Equip. Store Equip Cost Rp900,000,000 246,000,000 112,000,000 Residual Value Rp 26,000,000 12,000,000 Acquisition Date January 2 January 3 July 1 Depreciation Useful Life Method In Years Used 50 Double-declining-balang 5 Straight-line 10 Straight-line Cases &P f. A patent costing Rp18,000,000 when acquired on January 2 has a remaining ke life of 10 years and is expected to have value for eight years. g. The cost of mineral rights was Rp546,000,000. Of the estimated deposit of 910.00 tons of ore, 50,000 tons were mined and sold during the year. h. Vacation pay expense for December, Rp10,500,000 i. A product warranty was granted beginning December 1 and covering a one or period. The estimated cost is 4% of sales, which totaled Rp1.900,000,000 in December 1. Interest was accrued on the note receivable received on October 17. 5. Based on the following information and the post-closing trial balance that follows, prop a statement of financial position in report form at December 31 of the current year The merchandise inventory is stated at cost by the FIFO method. The product warranty payable is a current liability. Vacation pay payable: Current liability Rp7,140,000 Long-term liability 3,360,000 The unfunded pension liability is a long-term liability. Notes payable: Current liability Rp70,000,000 Long-term liability 630,000,000 PT Cempaka Post-Closing Trial Balance December 31, 2016 Debit Balances Petty Cash ............... .... Cash ... Notes Receivable...... Accounts Receivable.... Allowance for Doubtful Accounts. 4,500,000 243,950,000 100,000,000 470.000.000 16.000 Chapter 11 Current Liabilities and Payroll Merchandise Inventory. Interest Receivable... Prepaid Insurance.... Office Supplies..... Land ....... . . Buildings ........ Accumulated Depreciation-Buildings.... Office Equipment ..... Accumulated Depreciation - Office Equipment Store Equipment...... Accumulated Depreciation--Store Equipment. Mineral Rights ......... Accumulated Depletion.. Patents...... Old-Ages Insurance Payable.. Healthcare Insurance Payable. Employees Income Tax Payable. Work Accident Insurance Payable. Cooperative Fund Payable Salaries Payable........ Accounts Payable .... Interest Payable....... Product Warranty Payable.. Vacation Pay Payable...... Unfunded Pension Liability ... Notes Payable.... PT Cempaka, Capital... 320,000,000 1,875,000 45,640,000 13,400,000 654,925,000 900,000,000 36,000,000 246,000,000 44,000,000 112,000,000 5,000,000 546,000,000 30,000,000 42,000,000 25,470,000 4,710,000 40,000,000 270,000 40,000 157,000,000 131,600,000 28,000,000 76,000,000 10,500,000 50,700,000 700,000,000 2,345,010,000 3,700,300,000 3,700,300,000 Projects CP 11-1 Ethics and professional conduct in business menia Latifah is a certified public accountant (CPA) and staff accountant for Kania and Karina, a local CPA firm. It had been the policy of the firm to provide a holiday bonus equal to two weeks' salary to all employees. The firm's new management team announced November 15 that a bonus equal to only one week's salary would be made available to employees this year. Tania thought that this policy was unfair because she and her coworkers planned chers planned on the full two-week bonus. The two-week bonus had been given for 10 straight years, aight years, so it seemed as though the firm had breached an implied commitment Thus, Tania decided Tenis decided that she would make up the lost bonus week by working an extra iy hours of overtime per week over the next five weeks until the end of the year, Kania and Karina's policy is to pay overtime at 150% of straight time. Tania's supervisor was surprised to see overtime being reported, since there is generally limle additional or unusual client service demands at the end of the calendar year. mo was not suestioned, since firm employees are on the "honor
