西方财务会计课后习题完整答案.docVIP

Chapter 5 Short-Term Investments and Receivables Check Points (5 min.) CP 5-1 1. Trading investments are reported at their current market value. 2. A trading investment is always a current asset because the investor intends to sell the trading investment in the very near future — days, weeks, or only a few months. A current asset is to be sold within one year or within the company’s operating cycle if longer than a year. (10 min.) CP 5-2 BALANCE SHEET Current assets: Short-term trading investments, at market value.. $74,000 INCOME STATEMENT Other revenue and gains (losses): Unrealized loss on investment……………………... $ (6,000) (10 min.) CP 5-3 1. Paid $100,000 2. Unrealized Loss on Investment ($100,000 – $98,000)… 2,000 Short-Term Investment……………………………….. 2,000 Adjusted investment to market value. BALANCE SHEET Current assets: Short-term trading investment, at market value………. $98,000 INCOME STATEMENT Other revenue (loss): Unrealized loss on investment…………………………… $ (2,000) (5 min.) CP 5-4 Jennings, the accountant, should not handle the company’s cash. With cash-handling duties, the accountant can steal cash and hide the theft by writing off a customer’s account receivable as uncollectible. (5 min.) CP 5-5 1. Uncollectible-Account Expense ($900,000 ( .01)….. 9,000 Allowance for Uncollectible Accounts…………… 9,000 2. Balance sheet Accounts receivable………………………………… $90,000 Less Allowance for uncollectible accounts…….. (9,000) Accounts receivable, net…………………………… $81,000 (5-10 min.) CP 5-6 1. Accounts Receivable…………………………………. 800,000 Sales Revenue……………………………………… 800,000 2. Cash……………………………………………………… 780,000 Accounts Receivable……………………………… 780,000 3. Allowance for Uncollectible Accounts…………….. 5,000 Accounts Receivable………………………………. 5,000 4. Uncollectible-Account Expense ($800,000 (