FM-BINUS-AE-FSM-144/R0

BACHELOR OF ACCOUNTANCY
FACULTY OF ECONOMICS & COMMUNICATION
BINA NUSANTARA UNIVERSITY
JAKARTA
ASSESSMENT FORM
Course: ACCT6033 - Financial Accounting I
Method of Assessment: Case Study (Individual)
Semester/Academic Year : 3/2021-2022

Name of Lecturer : Tommy Andrian, S.E., M.Ak., CertDA.

Date : 13 September 2021
Class : Accounting
Topic : Cash & Receivables, Valuation of Inventories, Acquisition and Disposition of Property Plant, and Equipment,
Intangible Asset

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Group Members :
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Student Outcomes:
(SO 3) Mampu secara mandiri menginterpretasi laporan keuangan entitas tersendiri dengan mengaplikasikan prinsip akuntansi atas transaksi sesuai dengan standar akuntansi
keuangan umum dan standar akuntansi keuangan ETAP yang berlaku

Able to independently interpret the financial statements of a separate entity by applying accounting principles to transactions in accordance with general financial accounting
standards and applicable ETAP financial accounting standards
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Learning Objectives:
(L.Obj 3.1) Mampu secara mandiri menyusun laporan keuangan entitas tersendiri dengan mengaplikasikan prinsip akuntansi atas transaksi sesuai dengan standar akuntansi
keuangan umum dan standar akuntansi keuangan ETAP yang berlaku.
Able to independently prepare financial statements of separate entities by applying accounting principles to transactions in accordance with general financial accounting
standards and applicable ETAP financial accounting standards

(L.Obj 3.2) Mampu secara mandiri menganalisis laporan keuangan entitas tersendiri dengan mengaplikasikan prinsip akuntansi atas transaksi sesuai dengan standar akuntansi
keuangan umum dan standar akuntansi keuangan ETAP yang berlaku
Able to independently analyze the financial statements of a separate entity by applying accounting principles to transactions in accordance with general financial accounting
standards and applicable ETAP financial accounting standards

(L.Obj 3.3) Mampu secara mandiri menginterpretasi laporan keuangan entitas tersendiri dengan mengaplikasikan prinsip akuntansi atas transaksi sesuai dengan standar akuntansi
keuangan umum dan standar akuntansi keuangan ETAP yang berlaku
Able to independently interpret the financial statements of a separate entity by applying accounting principles to transactions in accordance with general financial accounting
standards and applicable ETAP financial accounting standards

(Score x
No Assessment criteria Weight Excellent (85 - 100) Good (75-84) Average (65-74) Poor (0 - 64) Score
Weight)
Able to independently Able to Able to Deficient ability to
Cash and prepare, analyze, and independently independently prepare, analyze,
Receivables interpret Bad-Debt prepare, analyze, prepare, analyze, and interpret Bad-
Reporting—Aging and interpret Bad- and interpret Bad- Debt Reporting—
based on general Debt Reporting— Debt Reporting— Aging based on
financial accounting Aging based on Aging based on general financial
standards and general financial general financial accounting
1 25%
applicable ETAP accounting accounting standards and
financial accounting standards and standards and applicable ETAP
standards correctly applicable ETAP applicable ETAP financial
without any errors financial accounting financial accounting
standards correctly accounting standards
with minor errors standards correctly
with some errors
Able to independently Able to Able to Deficient ability to
2 Valuation of 25% prepare and interpret independently independently prepare and
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(Score x
No Assessment criteria Weight Excellent (85 - 100) Good (75-84) Average (65-74) Poor (0 - 64) Score
Weight)
Inventories Specific Identification, prepare and prepare and interpret Specific
FIFO, and Average- interpret Specific interpret Specific Identification,
Cost based on general Identification, Identification, FIFO, and Average-
financial accounting FIFO, and Average- FIFO, and Average- Cost based on
standards and Cost based on Cost based on general financial
applicable ETAP general financial general financial accounting
financial accounting accounting accounting standards and
standards correctly standards and standards and applicable ETAP
without any errors applicable ETAP applicable ETAP financial
financial accounting financial accounting
standards correctly accounting standards
with minor errors standards correctly
with some errors
Able to independently Able to Able to Deficient ability to
prepare, analyze, and independently independently prepare, analyze,
Acquisition and interpret land, prepare, analyze, prepare, analyze, and interpret land,
Disposition of buildings, and and interpret land, and interpret land, buildings, and
Property Plant, and depreciation based on buildings, and buildings, and depreciation based
Equipment general financial depreciation based depreciation based on general financial
accounting standards on general financial on general financial accounting
3 25%
and applicable ETAP accounting accounting standards and
financial accounting standards and standards and applicable ETAP
standards correctly applicable ETAP applicable ETAP financial
without any errors financial accounting financial accounting
standards correctly accounting standards
with minor errors standards correctly
with some errors
4 Intangible Asset 25% Able to independently Able to Able to Deficient ability to
prepare, analyze, and independently independently prepare, analyze,
interpret Franchise, prepare, analyze, prepare, analyze, and interpret
Patents, and Trademark and interpret and interpret Franchise, Patents,
based on general Franchise, Patents, Franchise, Patents, and Trademark
financial accounting and Trademark and Trademark based on general
standards and based on general based on general financial
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(Score x
No Assessment criteria Weight Excellent (85 - 100) Good (75-84) Average (65-74) Poor (0 - 64) Score
Weight)
applicable ETAP financial accounting financial accounting
financial accounting standards and accounting standards and
standards correctly applicable ETAP standards and applicable ETAP
without any errors financial accounting applicable ETAP financial
standards correctly financial accounting
with minor errors accounting standards
standards correctly
with some errors
  Total Score: ∑(Score x Weight)  

Remarks:
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ASSESSMENT METHOD

Case Study:

Case 1 (25%)
Xtive Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Xtive’s Accounts
Receivable was $885,000 and Allowance for Doubtful Accounts had a credit balance of $40,000. The year-end balance reported in the statement of
financial position for Allowance for Doubtful Accounts will be based on the following aging schedule.
Days Account Outstanding Amount Probability of Collection
Less than 16 days $450,000 0.97
16-30 days 200,000 0.90
31-45 days 100,000 0.88
46-60 days 80,000 0.80
61-75 days 40,000 0.55
Over 75 days 15,000 0.00

Required:
1. What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Give your analysis of the result!
2. Show how accounts receivable would be presented on the statement of financial position and give your interpretation!
3. What is the dollar effect of the year-end bad debt adjustment on the before-tax income? Please explain!

Case 2 (25%)
Melisa’s record of transactions concerning part X for the month of September was as follows.
Purchases Sales
April 1 (balance on hand) 100 @ $5.00 April 5 300
4 400 @ 5.10 12 200
11 300 @ 5.30 27 800
18 200 @ 5.35 28 150
26 600 @ 5.60
30 200 @ 5.80
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Required:
a. Compute the inventory at April 30 on each of the following bases. Assume that perpetual inventory records are kept in units only. (Carry unit
costs to the nearest cent.)
1. Specific identification; ending inventory is comprised of 100 units from beginning inventory and 250 units from the April 26 purchase.
2. First-in, first-out (FIFO).
3. Average-cost.
b. If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, what amount would be shown as
ending inventory in 1, 2, and 3 above? Explain the result! (Carry average unit costs to four decimal places, and total costs to two decimal
places.)

Case 3 (25%)
Texas Co started as a company on January 2, 2023, but was unable to begin manufacturing activities until July 1, 2023, because new factory
facilities were not completed until that date. The Land and Buildings account reported the following items during 2023.
Jan 31 Land and building $160,000
Feb 28 Cost of removal of building 9,800
May 1 Partial payment of new construction 60,000
May 1 Legal fees paid 3,770
June 1 Second payment on new construction 40,000
June 1 Insurance premium 2,280
June 1 Special tax assessment 4,000
June 30 General expenses 36,300
July 1 Final payment on new construction 30,000
Dec 31 Asset write-up 53,800
399,950
Dec 31 Depreciation—2023 at 1% 4,000
Dec 31, 2023 Account balance 395,950

The following additional information is to be considered.

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1. To acquire land and building, the company paid €80,000 cash and 800 shares of its 8% preference shares, par value €100 per share. The
shares trade in an active market at €117 per share.
2. Cost of removal of old buildings amounted to €9,800, and the demolition company retained all materials of the building.
3. Legal fees covered the following.
Cost of organization $610
Examination of title covering purchase of land 1,300
Legal work in connection with construction contract 1,860
$3,770
4. Insurance premium covered the building for a 2-year term beginning May 1, 2023.
5. The special tax assessment covered street improvements that are permanent in nature.
6. General expenses covered the following for the period from January 2, 2023, to June 30, 2023.
President’s salary $32,100
Plant superintendent’s salary—supervision of new building 4,200
$36,300
7. Because of a general increase in construction costs after entering into the building contract, the board of directors increased the value of the
building €53,800, believing that such an increase was justified to reflect the current market at the time the building was completed. Retained
earnings was credited for this amount.
8. Depreciation for 2023—1% of asset value (1% of €400,000, or €4,000).

Required:
a. Prepare entries to reflect correct land, buildings, and depreciation accounts at December 31, 2023 and explain your answer!
b. Show the proper presentation of land, buildings, and depreciation on the statement of financial position at December 31, 2023 and interpret
the result!

Case 4 (25%)
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Information concerning Angelica’s intangible assets is as follows.

1. On January 1, 2022, Angelica signed an agreement to operate as a franchisee of AXA Copy Service for an initial franchise fee of R$75,000.
Of this amount, R$15,000 was paid when the agreement was signed, and the balance is payable in annual payments of R$15,000 each,
beginning January 1, 2023. The agreement provides that the down payment is not refundable and no future services are required of the
franchisor. The present value at January 1, 2022, of the four annual payments discounted at 14% (the implicit rate for a loan of this type) is
R$43,700. The agreement also provides that 5% of the revenue from the franchise must be paid to the franchisor annually. Sandro’s revenue
from the franchise for 2022 was R$900,000. Sandro estimates the useful life of the franchise to be 10 years.
2. Angelica incurred R$65,000 of experimental and development costs in its laboratory to develop a patent that was granted on January 2, 2022.
Legal fees and other costs associated with registration of the patent totaled R$17,600. Angelica estimates that the useful life of the patent will
be 8 years. The patent has yet to achieve economic viability.
3. A trademark was purchased from Idea Company for R$36,000 on July 1, 2019. Expenditures for successful litigation in defense of the
trademark totaling R$10,200 were paid on July 1, 2022. Sandro estimates that the useful life of the trademark will be 20 years from the date
of acquisition.

Required:
a. Prepare a schedule showing the intangible assets section of Sandro’s statement of financial position at December 31, 2022. Show supporting
computations in good form and explain the result!
b. Prepare a schedule showing all expenses resulting from the transactions that would appear on Sandro’s income statement for the year ended
December 31, 2022. Show supporting computations in good form and give your interpretation!

Note for Lecturers:

1. This assignment is done individually by each student.
2. Collection of softcopy assignments can be done during the last week of lecture and related to the discussion this assignment can be discussed
with the lecturer.
3. Assessment Activity Weight Score:
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Assessment Activity Weight

Mid Exam 30%
Final Exam 40%
Case Study 20%
Assignment (By Lecturers) 10%