MINISTRY OF RESEARCH, TECHNOLOGY AND HIGHER EDUCATION UNIVERSITY OF JENDERAL SOEDIRMAN FACULTY OF ECONOMICS AND BUSINESS ‘Adi Por HA Banyan St 78 Parvohe $312 Phe: (28) 6190, asin (28) tne Wet fehamnedac tl cata gana d MIDTERM EXAM IN’ (NATIONAL PROGRAM ACADEMIC YEAR 20172018 Sabject Advanced Financial Accounting I Day/Date ‘Tuesday. Apri 19,2018 Lecturer = Dra Trini Aofah, MSi,Ak,CA Time (08:00 AM Chass ‘Accounting nt Progam Room a2 ‘Character = Open Book Duration 80 minutes NOTICE: PLEASE DON’T USE ANY GADGET. PROBLEM 1 > -% : ‘The accounts of Lincoln International, a U.S. corporation, show $81,300 accounts receivable and $38,900 accounts payable at December 31, 2011, before adjusting entries are made. An analysis of the balance reveals the following: Account Receivable: Receivable denominated in U.S. dollars $28,500 Receivable denominated in 20,000 Swedish krona ‘11,800 Receivable denominated in 25,000 British pounds 41,000 Total i300 Account Payable: Payable denominated in U.S. dollars $6,850 Payable denominated in 10,000 Canadian dollars 7,600 Payable denominated in 15,000 British pounds 24,450 ‘Total $38,900 ‘Current exchange rates for Swedish krona, British pounds, and Canadian dollars at December 31, 2011, are $0.66, $1.65, and $0.70, respectively. REQUIRE! 1, Determine the net exchange gain or loss that should be reflected in Lincoln's income statement for 2011 from year-end exchange adjustments. 2. ‘Determine the amounts at which the account receivable and account payable should be included in Lincoln's December 31, 2011 balance sheet 3, Prepare journal entries to record collection of the receivables in 2012 when the spot rates for Swedish krona and British pounds are $0.67 and $1.63, respectively4, Prepare journal entries to record settlement of accounts payable in 2012 when the spot rates for Canadian dollars and British pounds are $0.71 and $1.62, respectively. PROBLEM 2 13-5 (On April 1, 2011, Bay delivers merchandise to Ram for 200,000 pesos when the ‘spot rate for pesos in 6.0496 pesos. The receivable from Ram is due May 30. Also on April 1, Bay hedges its foreign currency asset and enters into a 60-day forward contract to sell 200,000 peso’ at a forward rate of 6.019 pesos. The spot rate on May 30 was 5.992 pesos. REQUIRED: 1. Prepare journal entries to record the receivable from the sales transaction and the forward contract on April 1. 2. Prepare journal entries to record collection of the receivable and settlement of the forward contract on May 30. PROBLEM3 w-1. Pla purchased a 40% interest in Sor, a foreign company, on January 1, 2011, for $342,000, when Sor’s stockholders’ equity consisted of 3,000,000 LCU capital stock and 1,000,000 LCU retained earnings. Sor’s functional currency is its local currency unit. The exchange rate at this time was $0.15 per LCU. Any excess allocated to patents is to be amortized over 10 years. ‘A summary of changes in the stockholders’ equity of Sor during 2011 (including relevant exchange rates) is as follows: 160s | Bchange | 05) Rate Dollars ‘Stockholders’ equity January 1, 2011 | 4,000,000 | $0.18 C | $600,000 Netincome "800,000 149A) 112,000 Dividends {400,000,014 C | (66,000) Equiy adjustment (5,000) ‘Stockholders’ equity December 31, 2011 0.13 C | $572,000"_42QUIRED: determined the following: 1, Excess patent from Pla’s Investment in Sor on January 1, 2011. 2, Excess patent amortization for 2011 3. Unamortized excess patent at December 31, 2011 4. Equity adjustment from patents for 2011 . Income from Sor for’ 2011 6. Investment in Sor balance at December 31, 2011. PROBLEM 4 5" : ‘The following information has been accumulated for use in preparing segment disclosures for Wod Corporation (in thousands}: fe . Gales to Sales to Affiliated gota Sales. ___Comtamery _ Omron ‘Apparel 3164 64 Construction 42 a18 Furniture 208 : aie Lumber and wood 175 265 products Paper 90 - 90 Textiles 50 170 20 ‘Tobacco 93 93 Total nd ccs REQUIRED: 1. Determine Wod’s reportable segments under the 10 percent revenue test. 2. Are additional reportable segments required under the 75 percent revenue test? 3. Prepare a schedule to disclose revenue by operating segment for external reporting. Assume that the paper and tobacco segments, both sold in grocery stores, share similar operating characteristics on four of the five aggregation criteria. GOOD LUCK..