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Mau de Thi CK-CMBCTCQT1
Mau de Thi CK-CMBCTCQT1
Mau de Thi CK-CMBCTCQT1
The following information relates to the inventory on hand of ABC company at 31 Dec 2021:
Item Quantity Cost per Cost to Cost of Estimated NRV Adjust
unit $ replace $ completion Selling ($)
and disposal Price $
$
A 100 70 40 10 80 70 0
B 50 80 90 20 90 70 10
C 70 90 70 20 100 80 10
D 200 100 80 20 110 90 10
NRV = Sale price – Cost of completion – Selling cost.
Required
Provide optimal solution for the value of inventory on hand at 31 Dec 2021 in accordance with the
requirements of IAS 2. Prepare the necessary entries.
value of inventory on hand at 31 Dec 2021: 70x100+70x50+80x70+90x200=34.100
10x50+10x70+10x200=3.200
Dr COGS: 3.200
Cr inventory: 3.200
Câu 2
In the 31 Dec 2021 annual report of ABC Ltd, the equipment A was reported as follows:
Equipment A (at cost) $ 800 000
ABC Ltd measure the equipment by the revaluation model. At 31 Dec 2021, Equipment A was
revalued to $ 500,000.
Required : Prepare the journal entries to revalue the equipment A at 31 Dec 2021,
………………………………………………………………………………………………………
b) Using netting approach
………………………………………………………………………………………………………
Câu 3
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Give the whether each of the following would be a liability, a provision or a contingent liability, or none
of the above, in the financial statements of Company A as at the end of its reporting
period of 30 June 2019. Assume that Company A’s financial statements are authorised for issue
on 24 August 2019.
(a) Damages awarded against Company A resulting from a court case decided on 26 June 2020.
The judge has announced that the amount of damages will be set at a future date, expected to
be in September 2020. Company A has received advice from its lawyers that the amount of
the damages could be anything between $20 000 and $7 million.
(b) The Company A manufactures clothes washers. It sells €900,000 of washing
machines during its most recent month of operations. It has warranty claims
with customer, it provides for an estimated warranty expense of 2% of revenues.
(c) Company A still owes Z Ltd $2,800 cleaning service charge for the four months starting on
01/01/2020.
........................................................................................................................................................
Câu 4
ABC Construction Company recognizes revenue over time according to percentage of completion for its
long-term construction contracts. During 2016, ABC began work on a $6,000,000 fixed-fee construction
contract, which was completed in 2019. The accounting records disclosed the following data at year-end:
2019 $3,200.000
Required: What the amount of gross profit on this contract should ABC have recognized in 2017, 2018?
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