F2: Matching, Foreign Currency Accounting, and Other Financial Statement Presentations

Question 1

Collection of Royalties Paid in Advance

Answer 1

Cash

Unearned Royalty

Question 2

Recognizing Earned Royalties

Answer 2

Unearned Royalty

Earned Royalty

Question 3

Franchisor’s JE to Record Initial Franchise Fees Received

Answer 3

Cash
Notes Receivable
Discount on Notes Receivable
Unearned Franchise Fee Revenue

Question 4

Franchisee’s JE to Record a Franchise

Answer 4

Franchises
Discount on Notes Payable
Notes Payable
Cash

Question 5

To Record an Asset Exchange With a Gain

Answer 5

Building
Accumulated Depreciation - cars
                  Cars
                  Gain on disposal of cars
                  Gash

Question 6

Asset Exchange with No Boot

Answer 6

Machine B

Machine A

Question 7

Asset Exchange- Boot is Paid

Answer 7

Machine B
Machine A
Cash

Question 8

Asset Exchange- Boot is Received (<25% Rule)

Answer 8

Machine B (plug)
Cash
Machine A
Gain on Exchange

Question 9

Asset Exchange- Boot is Received (>25% Rule)

Answer 9

Machine B (plug)
Cash
Machine A
Gain on Exchange

Question 10

Gain on Involuntary Conversion

Answer 10

Cash
Building
Gain on involuntary conversion (condemnation)

Question 11

Purchase of Foreign Currency

Answer 11

Purchases

Accounts Payable

Question 12

To Recognized Foreign Currency Gain at Year-End

Answer 12

Accounts Payable

Foreign Exchange Transaction Gain