SOAL 1

TokTok (T&T) Company has an investment in bond securities of company DNY. The bond has
nominal value $100.000, 5 year, with a 7% interest rate and a 5% yield. The bond was purchased
on December 31, 2019, for $108.658,95. The interest will be paid every end of year. The
contractual cash flow of the bond includes only interest and principal payment.
The fair value of the bond at year end as follows.
31-Dec-20 31-Dec-21 31-Dec-22 31-Dec-23 31-Dec-24
Fair Value $106.500 $107.500 $105.650 $103.000 $100.000
Required:
a. If T&T has business model held for collection for the DNY Bond, prepare the journal entries
to record:
- purchase the bond
- all transaction or event related to the bond during 2020
- receive the final payment related to the bond in 2024
b. If T&T has business model held for trading for the DNY Bond, prepare the journal entries to
record:
- purchase the bond
- all transaction or event related to the bond during 2020
- selling the bond on 30 June 2021 at $109.800

SOAL 2
Sleep and Eat (SnE) company is an emerging national wide company that provides
accommodation, food, and beverages in some tourist destination places. SnE has a policy to
expand the business in other places and investing idle cash in securities. SnE currently made an
investment in the company's principal suppliers, Fresh Fruit (FF) Company. SnE invest $
22.500.000 in 2.250.000 ordinary shares of FF, that represented a 22,5% ownership interest in
FF. SnE has significant influence over the operation of FF. Besides, SnE has equity investment
for trading in Wulung Motor and Awei Mobile for idle cash. During this year, SnE purchased
100.000 shares of Wulung Motor for $1.400.000 and 500.000 shares of Awei Mobile at $20 per
share. SnE has passive interest of Wulung Motor (10%) and Awei Mobile (15%)
At the end of 2022, each investee company reported the profit for that year and declared the
dividend as follows.
Fresh Fruit Wulung Motor Awei Mobile
Net Income 2022 $100.000.000 $6.800.000.000 $8.000.000.000
Dividend $1.000.000 $3.000.000 $2.000.000

The fair market value of the equity securities at the end of this year as follows.
Fresh Fruit Wulung Motor Awei Mobile
Fair Market Value at
$15/shares $13/shares $21/shares
31 Dec 2022
Required:
Prepare the journal entries related to the equity investment of SnE during 2022 to record
- Purchase the equity securities
- Dividend Declaration
- Parent's Income and Adjustment

SOAL 3
Hayes Corp. is a manufacturer of truck trailers. On January 1, 2018, Hayes Corp. leases ten
trailers to Lester Company under a six-year noncancelable lease agreement. The following
information about the lease and the trailers is provided:
1. Equal annual payments that are due on January 1 each year provide. Hayes Corp. with an
8% return on net investment (present value factor for 6 periods at 8% is 4.99271).
2. Titles to the trailers pass to Lester at the end of the lease
3. The fair value of each trailer is €60.000. The cost of each trailer to Hayes Corp. is €54.000.
Each trailer has an expected useful life of nine years.
4. Collectability of the lease payments is probable.
Required:
a. Calculated the annual lease payment
b. Prepare lease amortization schedule fo Hayes Corp. for the first three yeas.
c. Prepare the journal entries for the lessor for 2018 to record the lease agreement, the reciept of
the lease rentals, and the recognition of revenue (assume the use of a perpetual inventory method
and round all amounts to the nearest dollar)

SOAL 4
Ventura Corporation purchased machinery on January 1, 2018 for $630.000. The company used
the sum-of-the-years'-digit method and no salvage value to depreciate the asset for the first wo
years of its estimated six year life. In 2020, Ventura changed to straight-line depreciation method
for this asset. The following facts pertain
2018 2019
Straight-line $105.000 $105.000
Sum-of-the-years'-digit 180.000 150.000

Ventura is subject to a 40% tax rate

Determine:
1. The cumulative effect of this accounting change on beginning retained earnings.
2. The amount that Ventura should report for depreciation expense on its 2019 income statement
SOAL 5
The following facts relate to Alschuler plc.
1. Deferred tax liability, January 1, 2019, £40,000.
2. Deferred tax asset, January 1, 2019, £0.
3. Taxable income for 2019, £115,000.
4. Pretax financial income for 2019, £200,000.
5. Cumulative temporary difference at December 31, 2019, giving rise to future taxable
amounts, £220,000.
6. Cumulative temporary difference at December 31, 2019, giving rise to future deductible
amounts, £35,000.
7. Tax rate for all years, 40%.
8. The company is expected to operate profitably in the future.
Instructions
a. Compute income taxes payable for 2019.
b. Prepare the journal entry to record income tax expense, deferred income taxes, and income
taxes payable for 2019.
c. Prepare the income tax expense section of the income statement for 2019, beginning with the
line “Income before income taxes.”

SOAL 6
From 2011 through 2019 as follows.
Income (Loss) Tax Rate
2011 29.000 30%
2012 40.000 30%
2013 22.000 35%
2014 48.000 50%
2015 -150.000 40%
2016 90.000 40%

Pretax financial income (loss) and taxable income (loss) were the same for all years since Lanier
has been in business. Assume the carryback provision is employed for net operating losses. In
recording the benefits of a loss carryforward, assume that it is probable that the related benefits
will be realized.
Instructions:
a. What entry(ies) for income taxes should be recorded for 2015?
b. Indicate what the income tax expense portion of the income statement for 2015 should
look like. Assume all income (loss) relates to continuing operations.
c. What entry for income taxes should be recorded in 2016?
d. How should the income tax expense section of the income statement for 2016 appear?
SOAL 7
Assume that on December 31, 2018, Stora Enso (FIN) signs a 10-year, non-cancelable lease
agreement to lease a storage building from Sheffield Storage.
The following information pertains to this lease agreement
The agreement requires equal rental payments of €71,830 beginning on December 31, 2018
The fair value of the building on December 31, 2018, is €525,176.
The building has an estimated economic life of 12 years, a guaranteed residual value of €10,000,
and an expected residual value of €7,000. Stora Enso depreciates similar building using the
straight-line method.
The lease is non-renewable. At the termination of the lease, the building reverts to the lessor
Stora Enso's incremental borrowing rate is 8% per year. The lessor's implicit rate is 8% per year
Instruction: Prepare the journal entries for the lessor and lessee for 2018 & 2019.

SOAL 8
Hemera SA had a defined benefit obligation of R$3,100,000 and plan assets of R$2,900,000 at
January 1, 2019. Hemera's discount rate is 6%. In 2019, actual return on plan assets is
R$160,000. Hemera contributed R$200,000 to the pension fund and paid benefits of R$150,000.
Service cost for 2019 is R$50,000; Hemera reports that the defined benefit obligation at
December 31, 2019, is R$3,600,000.
Determine:
a) pension expense for 2019
b) pension assets at December 31, 2019
c) Pension asset and liability gains and losses.
Indicate how pension gains and losses will be reported by Hemera in the statement of
comprehensive income and the statement of financial position.