[기출문제] 서강대학교 통계학개론 (기초통계학) 2024-2 기말 기출문제 (정답 포함)

Preparing Financial Statements Devon, Inc., is a manufacturer of computer accessories and peripherals that was started several years ago by two talented engineers. On December 31, 2020 (fiscal-year-end), the company created a trial balance in preparation of financial statements for the year (see below for the trial balance). In addition, the following information was obtained after the trial balance was created and before adjusting entries or closing entries were prepared. 

1. The company’s remaining supplies was $1,100. 
2. A 6-month casualty insurance policy was purchased on November 1, 2020 for $4,200. 
3. A new equipment with an estimated useful life of five years was acquired on February 1, 2020. The cost of equipment was $14,000. The company uses the straight-line method for depreciation. 
4. On November 1, 2020, the company received $6,000 in advance for a 6-month rental contract. 
5. On December 31, 2020, the company owes wages of $950, which will be paid on January 5, 2021. 
6. On November 30, 2020, the company borrowed $10,000 from Bank of Korea and issued a note payable. The interest will be paid in 6 months (May 31, 2021) with an annual interest rate of 6%. 
7. The company uses the balance sheet approach to estimate uncollectible accounts expense. At year-end, the company had the following groups of accounts receivables: (Group 1) not yet due: $3,200, (Group 2) 1-30 days past due: $2,500, (Group 3) 31-60 days past due: $950, (Group 4) Over 60 days past due: $600. Based on the past experience, the company estimated the percentages of uncollectible as follows: (Group 1) 1%, (Group 2) 3%, (Group 3) 10%, and (Group 4) 50%. 
8. On October 1, 2020 the company purchased 2,000 shares of Monster Beverage Corporation for investment and paid $4.98 per share, plus a brokerage commission of $40. On December 31, 2020 Monster Beverage stock’s market value was $4.92 per share. 
9. On November 30, 2020, the company declared and paid a total of $1,650 dividends to shareholders. 
10. Income tax rate is 40% (round income tax expense to the nearest ones). 

Required: 
1. Provide adjusting journal entries as needed for each of the above. If necessary, explain why you recorded certain entries and amounts. (100 points) 

2. Provide closing journal entries. Clearly show how you arrived at the amounts presented in journal entries. (100 points) 

3. Prepare a balance sheet and income statement. (100 points)

(1) ADJUSTING JOURNAL ENTRIES
                                 DEVON INC.
                                BALANCE SHEET
                             31 DECEMBER 2020
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Assets                                                             | Liabilities & Equity
-----------------------------------------------------------------------------------------
Current Assets                                                      | Liabilities
  Cash                                              95,900         |   Accounts payable                    2,690
  Accounts receivable                                7,250         |   Notes payable                      10,000
  Less: Allowance for impairment                     (502)         |   Wages payable                       2,900
  Accounts receivable, net                           6,748         |   Interest payable                        80
  Supplies                                           1,100         |   Unearned rent revenue                4,000
  Unexpired insurance                                2,800         |   Income tax payable                  35,416
  Investment in securities (at FV)                   9,840         | --------------------------------------------
                                                                  |   Total liabilities                   55,086
  Total Current Assets                              116,388         |
                                                                    | Equity
Non-current Assets                                                 |   Share capital                      30,000
  Land                                              52,000         |   Retained earnings                   94,735
  Tools & equipment                                 14,000         | --------------------------------------------
  Less: Accumulated depreciation                    (2,567)        |   Total equity                       124,735
  Tools & equipment, net                            11,433         |
  Total Non-current Assets                          63,433         | Total Liabilities & Equity           179,821
-----------------------------------------------------------------------------------------
Total Assets                                       179,821         |
-----------------------------------------------------------------------------------------

(2) CLOSING JOURNAL ENTRIES (마감분개)                         DEVON INC.
                    CLOSING JOURNAL ENTRIES
                     Year Ended 31 DEC 2020
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Account                                                      Debit     Credit
-----------------------------------------------------------------------

(1) Close Revenues to Income Summary
Sales revenue                                                172,000
Rent revenue                                                   5,000
    Income Summary                                                      177,000
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Total                                                        177,000   177,000

(2) Close Expenses to Income Summary
Income Summary                                               123,875
    Advertising expense                                                  3,900
    Wages expense                                                       59,700
    Utilities expense                                                   19,400
    Supplies expense                                                    1,200
    Insurance expense                                                   1,400
    Depreciation expense                                                2,567
    Interest expense                                                       50
    Bad debt expense                                                       82
    Unrealized loss on investment                                         160
    Income tax expense                                                  35,416
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Total                                                        123,875   123,875

(3) Close Income Summary (Net Income) to Retained Earnings
Income Summary                                                53,125
    Retained earnings                                                    53,125
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Total                                                         53,125    53,125

(4) Close Dividends to Retained Earnings
Retained earnings                                              1,650
    Dividends                                                           1,650
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Total                                                          1,650     1,650

(3) FINANCIAL STATEMENTS (재무제표)
(3-1) INCOME STATEMENT (손익계산서)
                         DEVON INC.
                       INCOME STATEMENT
                  Year Ended 31 DECEMBER 2020
-----------------------------------------------------------------------
Revenues
  Sales revenue                                                172,000
  Rent revenue                                                   5,000
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Total revenues                                                 177,000

Expenses
  Advertising expense                                             3,900
  Wages expense                                                  59,700
  Utilities expense                                              19,400
  Supplies expense                                                1,200
  Insurance expense                                               1,400
  Depreciation expense                                            2,567
  Bad debt expense                                                   82
  Interest expense                                                   50
  Unrealized loss on investment                                     160
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Total expenses (before income tax)                              88,459
-----------------------------------------------------------------------
Income before income tax                                        88,541
Income tax expense (40%)                                        35,416
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Net income                                                     53,125

(3-2) BALANCE SHEET (대차대조표) — 좌/우 2열(Trial Balance 느낌)
                                 DEVON INC.
                                BALANCE SHEET
                             31 DECEMBER 2020
-----------------------------------------------------------------------------------------
Assets                                                             | Liabilities & Equity
-----------------------------------------------------------------------------------------
Current Assets                                                      | Liabilities
  Cash                                              95,900         |   Accounts payable                    2,690
  Accounts receivable                                7,250         |   Notes payable                      10,000
  Less: Allowance for impairment                     (502)         |   Wages payable                       2,900
  Accounts receivable, net                           6,748         |   Interest payable                        80
  Supplies                                           1,100         |   Unearned rent revenue                4,000
  Unexpired insurance                                2,800         |   Income tax payable                  35,416
  Investment in securities (at FV)                   9,840         | --------------------------------------------
                                                                  |   Total liabilities                   55,086
  Total Current Assets                              116,388         |
                                                                    | Equity
Non-current Assets                                                 |   Share capital                      30,000
  Land                                              52,000         |   Retained earnings                   94,735
  Tools & equipment                                 14,000         | --------------------------------------------
  Less: Accumulated depreciation                    (2,567)        |   Total equity                       124,735
  Tools & equipment, net                            11,433         |
  Total Non-current Assets                          63,433         | Total Liabilities & Equity           179,821
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Total Assets                                       179,821         |
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