1. Pathao, purchased a new delivery truck for $610,000 which was estimated to have a useful life of 10 years with a salvage value of $10,000 at the end of that time. Depreciation has been recorded for 6 years on a straight-line basis. In 2018 (year 7), it is determined that the total estimated life should be 13 years with a salvage value of $5,000 at the end of that time. 

Required: Calculate the depreciation expense for 2018. 

 2. Daraaz Corp. shows the following inventory information for the month of April: April 1 Inventory 150 units @ $4 April 9 Purchased 550 units @ $4.50 April 17 Purchased 350 units @ $4.75 April 30 Purchased 300 units @ $5 Total sales in April were 950 units at a price of $10 per unit. 

Calculate the ending inventory, COGS and Gross profit under FIFO and LIFO, assuming that the company uses periodic inventory system. 

3. On January 01, 2006 Monbana Inc. purchased equipment at a cost of $28,000. The equipment has been depreciated by the straight-line method using 4 years lifetime and $4,000 salvage value. 

Required: Prepare the journal entry to record the disposal of the equipment (selling) assuming that it is sold for $5,000 cash on Jan 01, 2009.

4. Evaly Corporation Comparative Balance Sheets for 2019 & 20 

2020 2019 

Assets Cash Tk. 16,500 Tk. 57,400 Accounts Receivable 90,000 58,000 Inventory 110,000 70,000 Prepaid Expenses 25,500 32,000 Investments (Long Term) 175,000 120,000 Equipment 225,000 200,000 Accumulated Depreciation (45,000) (50,000) Total Assets Tk. 597,000 Tk. 487,400 

Liabilities and Stockholders’ Equity Accounts Payable Tk. 69,800 Tk. 47,000 Salaries Payable 18,200 26,900 Bonds Payable (long term) 196,000 142,000 Total Liabilities 284,000 215,900 Common Stock 39,000 51,000 Retained Earnings 274,000 220,500

 Total Stockholders’ Equity 313,000 271,500 

Total Liabilities and Stockholders’ Equity Tk. 597,000 Tk. 487,400

 Evaly Corporation 

Income Statement 

For the year ended December 31, 2020 Tk. Net Sales 800,000 Cost Of Goods Sold (350,000) Gross Profit 450,000 Operating Expenses (180,000) Income From Operations 270,000 Interest Expense (50,000) Income Before Income Taxes 220,000 Income Tax Expense (160,000) Net Income 60,000 

Additional data:

 1. New equipment costing Tk. 80,000 was purchased for cash during the year.

 2. Old equipment costing Tk. 55,000 with a book value of Tk. 27,500 was sold for Tk. 12,500 cash. There has been a $15000 loss on selling this old equipment.

 3. Cash dividends of Tk. 19,000 were declared and paid.

 4. Depreciation expense of Tk. 35,000 is included in the operating expenses. 

Required: 

a. Prepare a statement of cash flows for 2020 using the indirect method. 

b. Compute the following 6 ratios for 2020 and interpret any 3 ratios of your choice: Return on Asset, Current ratio, Acid Test ratio, Inventory Turnover, Gross Profit Margin & Return on Equity

5. The following information is available for Chal Dal Corporation

1. Cash balance per bank, July 31, $7,263. 

2. July bank service charge not recorded by the depositor $28.

3. Cash balance per books, July 31, $7,284. 

4. Deposits in transit, July 31, $1,500. 

5. Bank collected $900 note for S&S. in July, plus interest $36, less fee $20. The collection has not been recorded by S&S, and no interest has been accrued. 

6. Outstanding checks, July 31, $591.

 Required: Prepare a Bank Reconciliation Statement as at July 31. 

6. Choose a company (local or multinational) of your choice and discuss how this pandemic might have impacted the performance of the company. 

Answer rating: 100% (QA)

1 Beginning balance year 1 610000 Less Salvage value 10000 Depreciable base 600000 Depreciation for 6 years useful life of 10 years 600000106 years 36... View the full answer