Questions and Answers of Accounting 28th Edition

Peak’s Office Furniture (ABN 12 345 678 910) is located at 45 Main Road, Brighton NSW 2999. On 4 May 2022, the business sold office equipment to Tan’s Accounting Services for its premises at 72
From the accounts and values of Fred McKay as at 31 March 2022, prepare an accounting equation summary for assets, liabilities and owner’s equity. List the assets under the headings of current and
Using the solution from question 3.8, prepare a balance sheet for Fred McKay as at 31 March 2022.Question 3.8From the accounts and values of Fred McKay as at 31 March 2022, prepare an accounting
For each company below, fill in the missing data. Each company is independent. Sales Beginning finished goods Cost of goods manufactured Ending finished goods Cost of sales Gross profit Expenses
Pete’s Computer Shop is a sole trader run by Pete Narellan. The unadjusted trial balance of Pete’s Computer Shop is shown below.Required(a) Prepare a worksheet for Pete’s Computer Shop. Use the
Swansea Ltd prepared the unadjusted trial balance as at 30 June 2019 shown below.The following information and events are yet to be recorded by the company on 30 June 2019.1. Inventory on hand after
Online electronics retailer Kogan has announced an initial public offering to raise $50 million, with plans to list on the ASX at the end of June.Kogan, founded in 2006, said it would have a market
For each company below, fill in the missing data. Each company is independent. Sales Beginning finished goods Cost of goods manufactured Ending finished goods Cost of sales Income Statement Company X
Innovative Computers Pty Ltd began manufacturing inexpensive computers for the student market on 1 July 2018. The variable costs of manufacturing each computer are as follows.During the year ended 30
The three major inputs into the manufacturing process are direct materials, direct labour and factory overheads. If the costs of any of these are not controlled, they may inflate the cost of
Listed below are selected financial data from the accounting records of Innovative Computers Pty Ltd for the year ended 30 June 2019.Required(a) Prepare an income statement for the year ended 30 June
Smart Manufacturing Systems Pty Ltd provides the following information.Required(a) Calculate total manufacturing costs for the period ending 30 June 2019.(b) Calculate cost of goods manufactured for
Below is selected financial data extracted from the accounting records of Wilson Manufacturing Pty Ltd for the year ended 30 June 2019.Required(a) Prepare a cost of goods manufactured statement for
Information from the records of Smart Manufacturing Systems Pty Ltd for the year ended 30 June 2019 is given below.Required(a) Calculate the cost of work in process inventory on 1 July 2018. Factory
Information from the records of Manufacturing Systems Pty Ltd for the year ended 30 June 2019 is given below.Required(a) Calculate the ending work in process inventory on 30 June 2019. Factory
During the year ended 30 June 2019, Beautiful Bottles Pty Ltd incurred the following costs.The company charges factory overhead costs to work in process inventory and finished goods inventory, using
During the year ended 30 June 2019, Fast Fones Industries Pty Ltd incurred the following costs.The company charges factory overhead costs to work in process inventory and finished goods inventory
Smart Manufacturing Systems Pty Ltd’s accountant recently prepared the following data from the company’s accounting records for the year ended 30 June 2019.Factory overhead is applied at the rate
During the year ended 30 June 2019, Beautiful Bottles Pty Ltd incurred the following costs in connection with its production activities.Required(a) Calculate the relationship between factory overhead
Telecommunications company Toronto Ltd signed a 15‐year deal to sell capacity on its cable network to a rival company for $200 million. The deal was completed on the last day of Toronto Ltd’s
Read the following extract from an article about a business venture of the Bob Jane company.Is prudence still a virtue?The concept of prudence and its use, or non-use, in financial reporting has been
Your friend Ninette Nobis was a tourism management student when you were at university together and is now a manager of an upmarket hotel in the Exquisite Hotels chain. Because of the impact of an
Transactions affecting Bradford Ltd’s accounts receivable for the year ended 30 June are presented below. On 1 July of the previous year, the opening balance of the Allowance for Doubtful Debts
The simplified financial statements of Titanium Ltd appear below.Additional information 1. Dividends declared and paid were $26 400.2. During the year equipment was sold for $10 200 cash. The
An analysis of the accounts of Beautiful Bottles Pty Ltd reveals the following manufacturing cost data for the month ended 30 June 2019.Required(a) Prepare the cost of goods manufactured schedule for
The following accounts and amounts (balances are normal balances) were taken from the records of Prider Manufacturers Ltd at 30 June 2019.Required(a) Prepare a cost of goods manufactured statement
The following data were taken from the records of Manik Manufacturing Ltd for the year ended 30 June 2019.Required(a) Prepare the cost of goods manufactured schedule for the year ended 30 June
The following demonstration problem illustrates the use of the general journal, the four special journals introduced here, and the general ledger with two subsidiary ledgers.Sidney Carton began
Tymonns Traders Ltd uses sales and purchases journals in its accounting system. The following transactions occurred during April 2019.Required(a) Complete the requirements below, assuming the
On 30 June 2019 the following information appeared in the accounting records of Ndung and Mkoka.• Balance of Accounts Receivable Control account, $3725• Total of schedule of accounts receivable,
Bonnie and Clyde have a partnership to run their human resource management services firm.Account balances related to their equity for the year ended 30 June 2020 are as follows.Profit of $124 000 for
On 1 March 2017, James Taylor decided to open Taylor’s Tailormade that makes suits, trousers and jackets, and repairs and alters clothes. He contributed for this purpose sewing equipment $46 000
Lewis Edwards decides to branch out on his own and set up his own private practice as an accountant. Events occurring in March 2019 are as follows. Ignore GST.Required(a) After analyzing the events
Peter’s Personal Training Service had been in business for several years. In June 2019, as a result of a dispute with the owner, the accountant of the business disappeared and took all the records
In December 2019, Mike Mills opened a miniature golf course to cater for the summer holiday tourists and completed the transactions below during its first month of operations. For the sake of
In September 2019, Niem Duong opened a car hire business. The following transactions occurred during the first month of the business (ignore GST).Required(a) Journalize the above transactions.(b)
Your first assignment on your new job was to determine why the 31 December 2018 trial balance did not balance. In your review of the records you uncovered a number of errors described below.1. The
‘Why would we bother classifying assets in order of their liquidity on a balance sheet? After all, the value placed on assets is not a true reflection of how much we could sell them for.’ Discuss.
At the end of the first year of operations, Arch Etec, owner of Architect Designs, engaged you to prepare yearly financial statements for the year ended 30 June 2019, on both the cash basis and the
Victoria Holmes registered as a financial adviser several years ago. An income statement for the current period, prepared using cash accounting, is presented below. GST is ignored.Additional data 1.
Listed below are ledger accounts that appear in the adjusted trial balance columns of a worksheet.Complete the tabulation shown below by entering a tick in the appropriate worksheet column where the
Trev’s Gardening Services purchased a trailer on 1 July 2019 for $26 200. It was estimated to have a useful life of 5 years and a residual value at the end of that time of $2800.Required(a) What is
Investment Guru provides investment advice to customers for fees. On 30 June 2019, it completed its first year of operations. Some of the ledger account balances of the business, before any yearend
Monthly Foodies’ Magazine’s ledger includes the following accounts: Subscription Revenue, Unearned Subscriptions Revenue, Prepaid Insurance, Insurance Expense, Prepaid Rent and Rent Expense.The
The draft accounts for the year ended 30 June 2019 and a balance sheet as at that date for S. Steiner are submitted to you. Towards the end of the financial year her accountant resigned and she
JetSki Hire runs a business on the Murray River hiring out jet skis to holiday makers, tour operators and for corporate training sessions. The unadjusted trial balance of JetSki Hire is shown below
Tania Angus established Angus’s Phone App Productions in 2018 and kept her accounting records on a cash basis. During 2018, Tania decided to switch her accounting to the accrual basis and has asked
Miranda’s Motor Mechanics analysed the accounting records and other data for the business. The following information is made available for the year ended 30 June 2019.1. Salaries and wages owing to
The unadjusted trial balance of the general ledger of Antonio’s Small Appliance Repair Service on 30 June 2019 is presented below (ignore GST).Additional data for adjustment purposes 1. Supplies on
Gavin’s Gardening Equipment Hire’s unadjusted trial balance of the business appears as shown below. Ignore GST.Additional information 1. Expired insurance amounts to $750.2. June electricity
The unadjusted trial balance of Helena’s Hire Cars is shown below (ignore GST).Additional information 1. Petrol purchased on credit for $680 and used during the last week in June has not been paid
Lana Priest set up a home sewing business on 1 July 2019. Usually, Lana collects $20 per hour for sewing on the completion of each day’s work and pays for the maintenance of her machine with
Craig’s Car Detailing Service had the following accounts and account balances in the adjusted trial balance columns of its worksheet for the year ended 30 June 2019.Required(a) Record the required
The accounts below are taken from the ledger of Bartel Music Consulting on 30 June 2019, the end of the current financial year.Required(a) Record the closing entries that affected the accounts.(b)
The following unadjusted trial balance was taken from the ledger of Miranda’s Management Services on 30 June 2019.Required(a) Prepare a 10‐column worksheet using the following additional
The adjusted trial balance columns in the worksheet of Elliot Painting Services are as follows.Required(a) Complete the worksheet.(b) Prepare the closing entries necessary at 30 June 2019, assuming
Michael Rau founded Michael’s Fishing Supplies on 1 July 2019. The adjusted trial balance at 30 June 2020 (the end of the financial year) is shown below.Required(a) Prepare closing entries to be
You are provided with the worksheet for Norman Pty Ltd for the year ended 30 June 2019. The adjustments have already been made and the worksheet begins with the adjusted trial balance.Assume all
The unadjusted trial balance of Innovative Computers Pty Ltd on 30 June 2019 is presented below.The following additional information is available.1. The inventories as of 30 June 2019 were as
You are provided with the cost of goods manufactured statement and income statement for Prider Manufacturers Ltd.Required(a) Prepare the closing entries for Prider Manufacturers Ltd. Direct
The listing of the ledger accounts (unadjusted) of Smart Manufacturing Systems Pty Ltd at 30 June 2019 is provided. All ledger balances are normal balances.Additional information relating to the
Basic Chemicals Ltd produces a highly flammable chemical product. The company experienced a flood on 1 April 2019 that destroyed its entire work in process inventory but did not affect the raw
Moore Manufacturing Pty Ltd makes refrigerators and is trying to determine the cost of its ending work in process. The accountant has put together the following data for the year ended 30 June
Macquarie Manufacturing Ltd prepared the following planned production data for the forthcoming year ending 30 June 2019.Required(a) Prepare a table showing the predetermined factory overhead rate
Beautiful Bottles Pty Ltd, bottle manufacturer for the food industry, has just installed a job order costing system. The company uses machine hours to apply its overhead to work in process. On 1 May
Green Consultants Pty Ltd specialise in consulting on landscape design. The company developed a predetermined charge-out rate based on hours for each of its consultants on 1 July 2019 to assign the
Fine Furniture Ltd had a balance in its Work in Process Inventory account on 1 October 2019 of $13 600 made up of two jobs: Job 730, $6400; and Job 731, $7200. At the end of October, costs assigned
Refer to the latest financial report of JB Hi-Fi Limited on its website, www.jbhifi.com.au, and answer the following questions.1. Is it likely that JB Hi-Fi Limited would have to confront such
Imelda Instruments Ltd manufactures two products: missile range instruments and space pressure gauges. During January, 53 range instruments and 360 pressure gauges were produced, and overhead costs
Swiss Chocolates Ltd produces blocks of chocolate. Raw materials in the form of cocoa solids, milk and sugar are added at the beginning of the process, flavouring, fruit and nuts are added half-way
Eatern and Sons Ltd accounts for its manufacturing costs using a job order costing system and has provided the following production data during June 2019.• Job Z241 was in process as of 1 June with
Abbott Ltd produces a chemical used to clean showers in a single process in the Production Department. Raw materials in the form of chemicals are added at the beginning of the process, and a litre
The April 2019 transactions of Jackson Productions Ltd, which uses a job order costing system, are shown below. (Ignore GST.)1. Raw materials purchased, $342 000.2. Raw materials issued to
Powerhouse Ltd purchased machinery on 2 January 2019, at a cost of $800 000. The machinery is depreciated using the straight‐line method over a useful life of 8 years with a residual value of $80
The purchases and sales of Big Flower Pty Ltd of one brand of lawn fertiliser for the year ended 31 December 2019 are contained in the schedule below.The selling price up to 30 June was $12 per unit
In groups of four or five, consider the following information.On 1 July 2019, Stevenson Pty Ltd, a proprietary company with three shareholders, acquired some property by issuing 100 000 shares to the
Part A Branxton Ltd’s inventory on 1 April 2019 had a cost of $100 000 and a retail value of $170 000.During April, the company’s net purchases cost $216 000 and had a net retail value of $324
Toowoomba Irrigation Ltd began operations in the south‐east Queensland region in July 2015.During the annual audit for the year ended 30 June 2020, it was discovered that errors had been made in
Bristols Bicycles maintains inventory records under the perpetual inventory system. At 30 June 2019, the inventory balance determined by the system showed a value of $300 000. However, on conducting
Terrific Town Houses Ltd is a large company registered in South Australia for the purpose of constructing blocks of home units and town houses. The company conducts its activities in all states. The
What items must be included in an entity’s annual financial report?
The financial statements for the business of Jet’s Ski Equipment are shown below.Additional information 1. All purchases and sales of inventories are on credit.2. On 1 July 2019, J. Waters injected
Some of the most recent financial statements for Hyland Pty Ltd are shown below.Additional information 1. All purchases and sales of inventories are on credit.2. On 1 July 2020, the shareholders
The statement of cash flows for Cash4Cars Ltd follows. Ignore GST.Required(a) Explain the information that would be presented in Note 29 of Cash4Cars Ltd’s financial statements.(b) Explain the
The comparative statements of financial position of Cresta Ltd as at 30 June 2019 and 2020, and the income statement and statement of changes in equity for the year ended 30 June 2020 are shown
Below are the comparative statements of financial position of Lithium Ltd.Additional information 1. Income statement details were: sales revenue $750 000; cost of sales $603 000; expenses $116 360
Karen Broderick commenced business on 1 July 2018. On 30 June 2019, she found that she had written off debts amounting to $1875. In addition, she found it necessary to create an allowance for
Comparative statements of financial position as at 31 December 2020 and 2019 and the income statement for 2020 for W. Yu are set out below.No plant and equipment was sold during the year. W. Yu
The following comparative statements of financial position and income statement are for the business of Bargains Galore Pty Ltd.Additional information 1. All sales and purchases of inventory are on
The financial statements for the business of Trinh’s Nail Supplies for the past two years are presented below.Additional information 1. All purchases and sales of inventories are on credit. All
The comparative statements of financial position of Hutt Electrical as at 30 June 2019 and 2020 and the income statement for the year ended 30 June 2020 are shown below.Additional information 1.
Kim Khan has been in business as a sole trader for the past 5 years. The comparative statements of financial position for the years 2019 and 2020 and a summarized income statement for the year ended
Read the below article and answer the questions that follow.Dick Smith: Former director ‘wasn’t concerned’ by ballooning inventory Failed retailer Dick Smith had too much inventory, including a
Accounting provides much information to help managers make economic decisions in their various workplaces.Required(a) List examples of economic decisions that the following people would need to make
Equity balances for Sen Widyaya appearing in the balance sheets of Widyaya’s Window Washing Services as at 30 June 2019, 2018 and 2017 are set out below.During 2017–2018, Sen withdrew $25 000 for
Toby and Talea McKellar are the joint owners of Beaut Beach Caravan Park, which is near a swimming beach popular during the summer months. The park provides not only camping facilities for caravans
Financial data for Safety Hire as of 30 June 2019 is shown below.Required(a) Prepare an income statement for the month of June and a balance sheet in account format for Safety Hire as at 30 June
During October 2019, Cleo organised a new business, Cleo’s Cafe. After each October transaction, Cleo prepared a balance sheet, as shown below.Required(a) Describe the nature of each of the four
Dawson Industries began operations early in January 2020. On 31 December 2020, records showed the following asset, liability, equity, income and expense amounts.Required(a) Prepare an income
A new business graduate with one subject of accounting prepared the financial statements below for Helen’s Dancing School at the end of the first year of operations.Additional analysis revealed the

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