EXAMPLES-2
1. Make the accounting records of the following transactions
a. The firm withdraws 32,000 TL from its revolving line of credit and pays a forward-dated check.
b. The firm withdraws 14,000 TL from its revolving line of credit to pay social security premiums payable.
c. The firm withdraws 18,000 TL from its revolving line of credit to make payment to its supplier (payment is made for an open account)
d. The firm repays 30,000 TL to its revolving line of credit from its bank account.
e. The firm paid 5,000 TL interest for its revolving line of credit from its bank account.
2. The firm is a manufacturer. The firm received an order to manufacture a machine. Price of the machine (including transportation and installation) is 400,000 TL + 18 % VAT. The firm received 100,000 TL in advance. When the firm delivered the machine it received another 100,000 TL + total VAT and a forward-dated check for the remaining amount.
a. Make the accounting record when the firm received the advance payment.
b. Make the accounting record when the firm delivered the machine.
3. A firm signed a contract with another firm to provide six-month service and received 24,000 TL + 18 % VAT for six-month service in advance.
a. Make the accounting record when the firm receives the payment.
b. Make the accounting record at the end of the first month.
5. A firm takes out a spot loan amounting 40,000 TL on 17 May 2012. The money is transferred to the firm’s bank account. Maturity is 120 days, interest is 12%.
a. Make the accounting record on 17 May 2012.
b. Make the accounting record when the loan is paid off.
6. A firm takes out a spot loan amounting 70,000 TL on 25 August 2012. The money is transferred to the firm’s bank account. Maturity is 182 days, interest is 12%.
a. Make the accounting record on 25 August 2012.
b. Make the adjusting entry on 31 December 2012 (126 days passed until 31 December)
c. Make the accounting record when the loan is paid off.
7. A firm takes out a spot loan amounting 50,000 USD on 18 June 2012. The money is transferred to the firm’s bank account. Maturity is 91 days, interest is 5 %.
a. Make the accounting record on 18 June 2012 (1 USD = 1.52 TL)
b. Make the accounting record when the loan is paid off (1 Euro = 1.56 TL).
c. Make the accounting record when the loan is paid off (1 USD = 1.50 TL).
8. A firm takes out a spot loan amounting 85,000 Euro on 22 July 2012. The money is transferred to the firm’s bank account. Maturity is 270 days, interest is 4 %.
a. Make the accounting record on 22 July 2012 (1 Euro= 2.15 TL)
b. Make the adjusting entry on 31 December 2012 (160 days passed until 31 December, 1 Euro = 2.22 TL)
c. Make the adjusting entry on 31 December 2012 (160 days passed until 31 December, 1 Euro = 2.12 TL)
9. A firm takes out a loan amounting 65,000 TL on 01 June 2012. The money is transferred to the firm’s bank account. The loan will be paid in monthly installments. Maturity is 30 months, monthly interest is 1.3 %. Amount of the monthly payments is 2,630 TL.
a. Make the accounting record on 01 June 2012 (Amount of the first 12 principal payments is 23,020 TL.)
b. Prepare a repayment schedule for the first three payments.
c. Make the accounting record for the first payment.
d. Make the accounting record on 31 December 2012. (31 December is also a payment date. 701 TL interest, 1,929 TL principal paid on 31 December. 15,171 TL must be transferred to short-term portion of long-term debt from bank loans (LT))
10. A firm takes out a loan amounting 5,000,000 TL on 20 April 2012. The money is transferred to the firm’s bank account. Maturity is five years, interest is 14 %. The loan will be paid in six-month installments. Amount of the six-month payment is 711,888 TL.
a. Prepare a repayment schedule for the first three payments.
b. Make the accounting record on 20 April 2012.
c. Make the accounting record when the first payment is made.
d. Make the adjusting entry on 31 December 2012 (interest until 31 December is 126,656 TL)
e. Make the accounting record when the second payment is made.
11. Net period income is 120,000 TL. After first legal reserves and first dividend (firm’s capital is 900,000 TL), the general assembly of the shareholders decided to distribute 40 % of the remaining income and retain the rest. Make the accounting record.