Solutions2

(Example-2 ile ilgili konuların ayrıntılı açıklaması Chapter 3’dedir)

	Debit	Credit
Notes payable	32,000
Bank loans (ST)		32,000

	Debit	Credit
Social security premiums payable	14,000
Bank loans (ST)		14,000

	Debit	Credit
Accounts payable	18,000
Bank loans (ST)		18,000

	Debit	Credit
Bank loans (ST)	30,000
Bank accounts		30,000

	Debit	Credit
Interest expense	5,000
Bank accounts		5,000

	Debit	Credit
Bank accounts	100,000
Advance payments received		100,000

Total VAT = 400,000 * 0.18 = 72,000 TL.

Payment = 100,000 + 72,000 (total VAT) = 172,000 TL.

Remaining amount = (400,000 + 72,000) – 172,000 (payments) – 100,000 (advance payment) = 200,000 TL.

	Debit	Credit
Bank accounts	172,000
Notes receivable	200,000
Advance payments received	100,000
Domestic sales		400,000
VAT payable		72,000

a. VAT = 24,000 * 0.18 = 4,320 TL.

Total payment received = 24,000 + 4,320 = 28,320 TL.

	Debit	Credit
Bank accounts	28,320
Unearned revenue		28,320

One-month revenue = 24,000 / 6 = 4,000 TL.

One-month VAT = 4,320 / 6 = 720 TL.

	Debit	Credit
Unearned revenue	4,720
Domestic sales		4,000
VAT payable		720

5. a.

	Debit	Credit
Bank accounts	40,000
Bank loans (ST)		40,000

Interest = 40,000 * 0.12 * 120/360 = 1,600 TL.

	Debit	Credit
Interest expense	1,600
Bank loans (ST)	40,000
Bank accounts		41,600

	Debit	Credit
Bank accounts	70,000
Bank loans (ST)		70,000

126 days of interest = 70,000 * 0.12 * 126/360 = 2,940 TL.

	Debit	Credit
Interest expense	2,940
Accrued expenses		2,940

Total interest for 182 days = 70,000 * 0.12 * 182/360 = 4,247 TL.

Interest belonging to 2013 = 4,247 – 2,940 = 1,307 TL.

Total payment = 70,000 (principal) + 4,247 (total interest) = 74,247

	Debit	Credit
Interest expense	2,940
Accrued expenses	1,307
Bank loans (ST)	70,000
Bank accounts		74,247

50,000 * 1.52 = 76,000 TL.

	Debit	Credit
Bank accounts	76,000
Bank loans (ST)		76,000

Interest (in USD) = 50,000 * 0.05 * 91/360 = 632 USD

Interest in TL = 632 * 1.56 = 986 TL.

Principal in TL = 50,000 * 1.56 = 78,000 TL.

Total payment in TL = 78,000 + 986 = 78,986

	Debit	Credit
Interest expense	986
Bank loans (ST)	76,000
Foreign exchange loss	2,000
Bank accounts		78,986

Interest (in USD) = 50,000 * 0.05 * 91/360 = 632 USD

Interest in TL = 632 * 1.50 = 948 TL.

Principal in TL = 50,000 * 1.50 = 75,000 TL.

Total payment in TL = 75,000 + 948 = 75,948

	Debit	Credit
Interest expense	948
Bank loans (ST)	76,000
Foreign exchange gain		1,000
Bank accounts		75,948

a. 85,000 * 2.15 = 182,750 TL.

	Debit	Credit
Bank accounts	182,750
Bank loans (ST)		182,750

Interest for 160 days (in Euro) = 85,000 * 0.04 * 160/360 = 1,511 Euro

Interest for 160 days (in TL) = 1,511 * 2.22 = 3,354 TL.

Principal in TL = 85,000 * 2.22 = 188,700 TL.

	Debit	Credit
Interest expense	3,354
Accrued expenses		3,354
Foreign exchange loss	5,950
Bank loans (ST)		5,950

Interest for 160 days (in Euro) = 85,000 * 0.04 * 160/360 = 1,511 Euro

Interest for 160 days (in TL) = 1,511 * 2.12 = 3,203 TL.

Principal in TL = 85,000 * 2.12 = 180,200 TL.

	Debit	Credit
Interest expense	3,203
Accrued expenses		3,203
Bank loans (ST)	2,550
Foreign exchange gain		2,550

	Debit	Credit
Bank accounts	65,000
Short-term portion of long-term debt		23,020
Bank loans (LT)		41,980

No	Beginning balance	Payment	Interest	Principal	Ending balance
1	65,000	2,630	845	1,785	63,215
2	63,215	2,630	822	1,808	61,407
3	61,407	2,630	798	1,832	59,575

	Debit	Credit
Interest expense	845
Short-term portion of long-term debt	1,785
Bank Accounts		2,630

	Debit	Credit
Interest expense	701
Short-term portion of long-term debt	1,929
Bank Accounts		2,630
Bank loans (LT)	15,171
Short-term portion of long-term debt		15,171

10.

No	Beginning balance	Payment	Interest	Principal	Ending balance
1	5,000,000	711,888	350,000	361,888	4,638,112
2	4,638,112	711,888	324,668	387,220	4,250,892
3	4,250,892	711,888	297,562	414,326	3,836,566

	Debit	Credit
Bank accounts	5,000,000
Short-term portion of long-term debt		749,108
Bank loans (LT)		4,250,892

	Debit	Credit
Interest expense	350,000
Short-term portion of long-term debt	361,888
Bank Accounts		711,888

Interest for 71 days = 4,638,112 * 0.07 (six-month interest) * 71/182 = 126,656 TL.

	Debit	Credit
Interest expense	126,656
Accrued expenses		126,656
Bank loans (LT)	414,326
Short-term portion of long-term debt		414,326

Interest belonging to 2013 = 324,668 – 126,656 = 198,012 TL.

	Debit	Credit
Interest expense	198,012
Accrued expenses	126,656
Short-term portion of long-term debt	387,220
Bank accounts		711,888

11.

	Debit	Credit
Bank accounts	36,000,000
Capital		8,000,000
Additional paid-in capital		28,000,000

12.

First legal reserves120,000 * 0.05 = 6,000 TL.

Then first dividend must be calculated. First dividend is 5 % of the capital.

First dividend: 900,000 * 0.05 = 45,000 TL.

Remaining income = 120,000 – 6,000 – 45,000 = 69,000 TL.

Second dividend = 69,000 * 0.4 = 27,600 TL.

If a company distributes second dividend then it must appropriate 10 % of the second dividend as second legal reserves.

Second legal reserves = 27,600 * 0.1 = 2,760 TL.

Retained earnings = 69,000 – 27,600 – 2,760 = 38,640 TL.

	Debit	Credit
Net period income	120,000
Legal reserves - 1^st legal reserves: 6,000 - 2^nd legal reserves: 2,760		8,760
Retained earnings		38,640
Payable to shareholders		72,600

MAN202

Principles of Accounting II