EconomicFacultY

UniversitYof Indonesia
Mid SemesterTest
Subject : IntermediateAccountingI
Day : 20 October2008
Time : 150minutes
ClosedBooks

rstanding of accounting conceptsmore than

your accounting technical skill. Please .""i thu questions carefully before provide the answers!
l;;;;"" not niore than 150minuteslo work on this exam

Problem | (20%')
characteristic,or constraint
State and explain briefly the accounting assumption,principle, qualitative
that is most applicablein the following cases'
(Do not useconservatism')
a. All paymentslessthan Rp 100.000are expensedas incurred.
period to period'
b. The company employs the sameinventory valuation method from
are not allowed to consider its
61', When choosing an accounting principle or method, companies
effect on net income.
d. Assuming that rupiahs today will buy as much as twenty years ago.
e. Rent paid in advanceis recordedas prepaid rent'
f. Financial statementsare preparedeachyear.
g. All significant post-balancesheeteventsare reported'
h. personal transactionsof the proprietor are distinguishedfrom businesstransactions.
i. Balance Sheetof banks are different from balance sheetof other industry'
j. When in doubt,the recognitionof revenueshouldbe postponeduntil realised.

Problem 2 (20o/"\
below
a. Explain the differences between US GAAP, PSAK and IFRS for each of the items stated
using the following format :

No Items US GAAP PSAK IFRS

in Interest Paid c? qlFin
I Classification
cash flow lnterest Received c>? o? /in
statement Dividend Paid Fr @e / Fin
Dividend Received C,[,
/ it''
6(

b. Below is part of an Indirect Method Statementof Cash Flows. Explain why we need to adjust the
following items to net income using the following format:
Cashflow from
nnerqfins activities:
Net Income
$320,750
Adiustment:
Depreciation ExPeIEe- s88.400
Amo*ization of 16,300
Intangibles
Gain on sale of Plant (8,700)
assets
(11.000)
lncreasein AR.1@9!)
15.500 e
Gc.easein inventory
Decreasein AP
(9.s00) 91,000
Net cash Provided bY
411,750
ooerating activities

Problem 3 (15 %)
all paymentsby check' The following information
Rouges Company deposits all receipts and makes
available from the cash records:

MARCH 31 BANK RECONCILIATION

Rp 26.746.000
Balance Per bank
2.100.000
Add: DePositsin transit
(.3.800.000)
Deduct: Outstanding checks
BalancePer books Rp2r-0a6.000

Month of APril Results

27.99s.00028.8s5.000

Apttt (not includedin April

""t" ""tlected

Afit NSF of a customerreturnedby the

"F"k
recorded bv bank as a c
'k,)?o
\)r\ tlos\f\o9
Instructions
for April30!
Preparebankreconciliation

Problem 4(2Oo \
the following balances:
The trial balancebefore adjustmentof Pratt company reports
 Dr. Cr.
Accountsreceivable $100.000
Allowancefor doubtfulaccounts $ 2,500/
Sales(all on credit) 750,000
r ?ra
\v rL
Salesreturnsandallowances 40.000 ) I Ir

Instructions
(a) Preparethe entriesfor estimatedbad debtsassumingthat doubtfulaccountsare estimatedto be
(1) d1qof grossaccountsreceivableand(2)_1!eof net sales.
(b) Assumethat all the informationabove is the same,exceptthat the Allowance for Doubtful
Accountshasa debit balanceof $2,500insteadof a creditbalance.How will this difference
affectthejournal entriesin part (a)? \-/

Problem5 (20o )
Tom Corporationhad incomefrom continuingoperations(unadjusted)of $800,000(after taxes)in
2007.|naddition,the followinginformation,whichhasnot beenconsidered.
is asfollows.
l. 1n2007,Tom experienced
an uninsured
earthquake
lossin theamountof $200,000.
q<-

J. A machinewas sold for $140,000cashduring the year at a time when its book value was
$110,000.(Depreciation
hasbeenproperlyrecorded.)
The companyoftensellsmachineryof this
tYPe' c/nt< gc11

v'3 - Tom decidedto discontinueits stereodivision in 20A7. During the currentyear,the loss on the
disposalof this componentof thebusinesswas$150,000lessapplicable taxes. Dir
c
Instructions
a' Presentin good form the incomestatementof Tom Corporationfor 2007startingwith "income
from continuingoperations" basedon US GAAP. Assumethat Tom'stax rateis 30%.you don,t
needto presentthe earningsper share.
b. would thepresentation abovebe similaror differenceunderIFRS?

Problem6 (5%) V

Whatarereversingentries?Do reversingentriesalwaysoptionalor cantheybe necessary?