SOLUTIONS OF EXAMPLE-1:
 (Example-1 ile ilgili konular覺n ayr覺nt覺l覺 aç覺klamas覺 Chapter 1 ve 2’dedir)
 1.  
      Purchase price = 150 * 220 = 33,000 TL
      Transportation = 700 TL
      Total cost          = 33,000 + 700 = 33,700 TL
     
      33,000 * 0.18 = 5,940 TL VAT for purchase price
      700 * 0.18 = 126 TL VAT for transportation.
      Total VAT = 5,940 + 126 = 6,066 TL
 
 
Debit
Credit
Merchandise Inventory
33,700
 
VAT deductible
6,066
 
   Accounts payable
 
38,940
   Cash
 
826
     
      Accounts payable = 33,000 (purchase price) + 5,940 (VAT for purchase price)
      Cash = 700 TL (transportation) + 126 (VAT for transportation). We assume that transportation is paid from cash.
 
2.  
      a.   90 * 130 * 2.36 = 27,612 TL purchase price
            Transfer fee = 280 TL
            Total payment = 27,612 + 280 = 27,892
 
 
Debit
Credit
Advance payments
27,892
 
   Bank accounts
 
27,892
 
      b.   Total cost at this step:
            Purchase price             = 27,612 TL (paid in advance)
            Transfer fee                 = 280 TL (paid in advance)
            Import duty                  = 1,950
            Excise tax                    = 5,900 TL
            Total cost                    = 35,742 TL
 
 
Debit
Credit
Merchandise Inventory
35,742
 
VAT deductible
6,400
 
   Advance payments
 
27,892
   Bank accounts
 
14,250
 
Total payment = 1,950 (import duty) + 5,900 (excise tax) + 6,400 (VAT) = 14,250 TL.
 
      c.   800 * 0.18 = 144 TL (VAT)
 
 
Debit
Credit
Merchandise Inventory
800
 
VAT deductible
144
 
   Bank accounts
 
944
 
Total cost = 35,742 + 800 = 36,542 TL.
Unit cost = 36,542 / 90 = 406.02 TL.
 
3.  
       a.  
 
Debit
Credit
Advance payments
1,900
 
   Bank accounts
 
1,900
 
      b.   Total cost at this step:
            Purchase price             = 200 * 90 * 1.75 = 31,500 TL
            Fund                            = 1,900 TL (paid in advance)
            Import duty                  = 2,200
            Excise tax                    = 6,700 TL
            Total cost                    = 42,300 TL
 
 
Debit
Credit
Merchandise Inventory
42,300
 
VAT deductible
7,300
 
   Advance payments
 
1,900
   Bank accounts
 
16,200
   Accounts payable
 
31,500
 
Purchase price (31,500 TL) will be paid later. So, it is recorded as accounts payable.
Total payment = 2,200 (import duty) + 6,700 (excise tax) + 7,300 (VAT) = 16,200 TL.
 
      c.   900 * 0.18 = 162 TL VAT
 
Debit
Credit
Merchandise Inventory
900
 
VAT deductible
162
 
   Bank accounts
 
1,062
 
Total cost = 42,300 + 900 = 43,200 TL.
Unit cost = 43,200/ 200 = 216 TL.
 
4.   a.  
 
Debit
Credit
Advance payments
6,000
 
   Bank accounts
 
6,000
 
      b.   Total cost at this step:
            Purchase price             = 250 * 170 * 2.38 = 101,150 TL
            Fund                            = 6,000 TL (paid in advance)
            Import duty                  = 8,000
            Excise tax                    = 21,800 TL
            Total cost                    = 136,950 TL
 
 
Debit
Credit
Merchandise Inventory
136,950
 
VAT deductible
23,600
 
   Advance payments
 
6,000
   Bank accounts
 
53,400
   Notes payable
 
101,150
 
Purchase price (101,150 TL) will be paid later. Since the firm accepted a draft it is recorded as notes payable.
Total payment = 8,000 (import duty) + 21,800 (excise tax) + 23,600 (VAT) = 53,400 TL.
 
      c.   1,000 * 0.18 = 180 TL VAT
 
Debit
Credit
Merchandise Inventory
1,000
 
VAT deductible
180
 
   Bank accounts
 
1,180
 
Total cost = 136,950 + 1,000 = 137,950 TL.
Unit cost = 137,950/ 250 = 551.8 TL.
 
5.  
 
FIFO
No
Purchased
Units sold
 
Unit cost
Cost of merchandise sold
Balance
1
Beginning inventory
 
 
 
300*20=6,000
2
400
 
 
 
300*20=6,000
400*23=9,200
3
 
550
300*20=6,000
250*23=5,750
11,750
150*23=3,450
4
250
 
 
 
150*23=3,450
250*18=4,500
5
300
 
 
 
150*23=3,450
250*18=4,500
300*17=5,100
6
 
600
150*23=3,450
250*18=4,500
200*17=3,400
11,350
100*17=1,700
7
200
 
 
 
100*17=1,700
200*21=4,200
8
 
230
100*17=1,700
130*21=2,730
4,430
70*21=1,470
 
 
WEIGTED AVERAGE
No
Purchased
Units sold
 
Unit cost
Cost of merchandise sold
Balance
1
Beginning inventory
 
 
 
300*20=6,000
2
400
 
 
 
300*20=6,000
400*23=9,200
3
 
550
6,000+ 9,200 / 700
= 21.71
550*21.71 =
11,941
150*21.71=3,257
4
250
 
 
 
150*21.71=3,257
250*18=4,500
5
300
 
 
 
150*21.71=3,257
250*18=4,500
300*17=5,100
6
 
600
3,257+4,500+5,100 / 700 = 18.37
600*18.37 =
11,022
100*18.37=1,837
7
200
 
 
 
100*18.37=1,837
200*21 = 4,200
8
 
230
1,837+4,200 / 300
= 20.12
230*20.12 =
4,628
70*20.12=1,408
 
     
 
6.  
      a.
 
Debit
Credit
Prepaid expenses (ST)
60,000
 
Prepaid expenses (LT)
60,000
 
 Bank accounts
 
120,000
 
      b.  
 
Debit
Credit
General administrative expenses
5,000
 
   Prepaid expenses (ST)
 
5,000
 
      c.  
 
Debit
Credit
General administrative expenses
5,000
 
   Prepaid expenses (ST)
 
5,000
 
     
 
Debit
Credit
Prepaid expenses (ST)
30,000
 
   Prepaid expenses (LT)
 
30,000
     
 
7.        
     
Debit
Credit
Subsidiaries
800,000
 
Bank accounts
 
800,000
 
           
 
 
8.  
 
Debit
Credit
Long-term financial investments
8,000
 
   Bank accounts
 
8,000
 
9.  
            a.
 
Debit
Credit
Affiliates
300,000
 
   Bank accounts
 
300,000
 
            b.  
     
 
Debit
Credit
Bank accounts
340,000
 
    Affiliates
 
300,000
    Gain on sale of financial fixed assets
 
40,000
 
      c.  
 
Debit
Credit
Bank accounts
250,000
 
Loss on sale of financial fixed assets
50,000
 
   Affiliates
 
300,000
 
 
10.
      a.  
 
 
Debit
Credit
Advance payments
272,000
 
    Bank accounts
 
272,000
           
 
      b.   Total VAT = 700,000 * 0.18 = 126,000 TL
 
 
Debit
Credit
Machinery ad equipment
700,000
 
VAT deductible
126,000
 
   Advance payments
 
272,000
   Bank accounts
 
326,000
   Notes payable
 
228,000
 
      Total payment = 200,000 + 126,000 (VAT) = 326,000 TL.
      Remaining amount = 826,000 (cost + VAT) – 272,000 (advance payments) – 326,000 (200,000 + 126,000) = 228,000 TL.
 
11.
 
      a.  
 
Debit
Credit
Advance payments
5,000
 
   Bank accounts
 
5,000
 
      b.   Total cost at this step:
            Purchase price             = 2,500,000 * 2.37 = 5,925,000 TL
            Bank’s fee                   = 5,000 TL (paid in advance)
            Import duty                  = 296,000 TL
            Total cost                    = 6,226,000 TL
 
 
 
Debit
Credit
Machinery and equipment
6,226,000
 
VAT deductible
1,120,000
 
   Advance payments   5,000
   Bank accounts
 
7,341,000
 
      c.   25,000 * 0.18 = 4,500 TL (VAT)
 
 
Debit
Credit
Machinery and equipment
25,000
 
VAT deductible
4,500
 
   Bank accounts
 
29,500
     
Total cost = 6,226,000 + 25,000 = 6,251,000 TL.
 
12.500,000 * 0.18 = 90,000 TL VAT
 
 
Debit
Credit
Buildings
500,000
 
General administrative expenses
4,000
 
VAT deductible
90,000
 
   Bank accounts
 
594,000
 
13.
 
 
Debit
Credit
Vehicles
40,000
 
Selling, marketing, and delivery expenses
15,000
 
VAT deductible
9,900
 
   Bank accounts
 
64,900
 
14.     
 
      a.   Rate = 1 / 5 = 0.2
     
Year
Beginning balance
Rate X 2
Depreciation
Ending balance
1
1,200,000
0.4
480,000
720,000
2
720,000
0.4
288,000
432,000
3
432,000
0.4
172,800
259,200
4
259,200
0.4
103,680
155,520
5
155,520
 
155,520
0
 
      b.  
 
Debit
Credit
Service cost
172,800
 
   Accumulated depreciation
 
172,800
 
      c.   1,200,000 / 5 = 240,000 TL.
 
15.
 
      a.   Rate = 1 / 10 = 0.1
     
Year
Beginning balance
Rate X 2
Depreciation
Ending balance
1
2,500,000
0.2
500,000
2,000,000
2
2,000,000
0.2
400,000
1,600,000
3
1,600,000
0.2
320,000
1,280,000
 
b.  
 
Debit
Credit
Manufacturing overhead
320,000
 
   Accumulated depreciation
 
320,000
 
 
c.       2,500,000 / 10 = 250,000 TL.
 
16.
 
a. Rate = 1 / 50 = 0.02
     
Year
Beginning balance
Rate X 2
Depreciation
Ending balance
1
20,000,000
0.04
800,0000
19,200,000
2
19,200,000
0.04
768,000
18,432,000
3
18,432,000
0.04
747,280
17,694,720
 
b.  
 
Debit
Credit
General administrative expenses
747,280
 
   Accumulated depreciation
 
747,280
 
 
c.  20,000,000 / 50 = 400,000 TL.
 
17.
      a.  
 
Debit
Credit
Bank accounts
700,000
 
Accumulated depreciation
900,000
 
   Machinery and equipment
 
1,500,000
   Gain on sale of tangible assets
 
100,000
 
      b.  
 
Debit
Credit
Bank accounts
450,000
 
Accumulated depreciation
900,000
 
Loss on sale of tangible assets
150,000
 
   Machinery and equipment
 
1,500,000
 
18.
 
Debit
Credit
Franchise
150,000
 
   Bank accounts
 
150,000
 
19.
 
Debit
Credit
Rights
25,000,000
 
  Bank accounts
 
25,000,000
 
20.Purchase price = 2,500,000 * 2.35 = 5,875,000
 
 
Debit
Credit
Patents
5,875,000
 
   Bank accounts
 
5,875,000
 
21.
a.  Rate = 1 / 15 = 0.066
     
Year
Beginning balance
Rate X 2
Depreciation
Ending balance
1
30,000,000
0.132
3,960,000
26,040,000
2
26,040,000
0.132
3,437,280
22,602,720
3
22,602,720
0.132
2,983,559
19,619,161
 
b.  
 
Debit
Credit
Selling, maketing, and delivery expenses
2,983,559
 
   Accumulated amortization
 
2,983,559
 
 
      c.  30,000,000 / 15 = 2,000,000 TL.
22.
 
Debit
Credit
B’s assets
280,000,000
 
Goodwill
40,000,000
 
   B’s liabilities
 
180,000,000
   Bank accounts
 
140,000,000