Questions and Answers of Accounting 28th Edition

The Marketing Store was established as a sole trader business, specialising in providing marketing services, on 1 January 2019. The owner, Jenny Smart, contributed $100 000 in cash to the business
Financial balances for the car hire business of John’s Limos on 31 March 2019 are provided below in a table in accounting equation form similar to the chapter illustrations.During April, the
Financial balances for Ho Ming Wee, Solicitor, on 30 June 2019 are given below in a table in accounting equation form similar to the chapter illustrations.During the early part of July, the business
Emma Lu obtained registration to practise as a naturopath, and spent the month of July 2019 setting up her business — E. Lu, Naturopath.Emma prepared a new balance sheet after each transaction
Tran’s Clothing Alterations began operations on 1 August 2019 and completed the following transactions during the first month.1. Tran deposited $18 000 of her personal funds in a current account at
Baker’s Bread Shop was established on 1 April 2019 with an initial investment of $100 000 by the owner. During the first few weeks of business, the owner employed a part-time accountant (with only
Yamindi was raised on a farm in the Northern Territory. While in high school, he was an active member of the local rural youth club and raised several prize animals that he sold at auction at state
The following transactions were undertaken by Massenburg Personnel Services during the month of February 2019. Ignore GST.1. Invoiced a client for providing advice on current employment legislation,
The general journal of Lenore Grunweld, Property Adviser, contained the entries below for the month of July 2019. GST is ignored.Required(a) Post the transactions to T accounts. The chart of accounts
The following information relates to the business of Man Ting’s Travel Agency for the month of June 2019.Required(a) Prepare general journal entries to record the above events, as appropriate, in
In December 2019, the following transactions occurred in Macchiato’s Coffee Roasters business that supplies cafés and also sells direct to the public.Required(a) Prepare general journal entries
Kelly’s Cleaning Services T accounts for 30 April 2020 were as follows:Required(a) Analyse the above accounts and describe in chronological order the transactions that have been recorded. Cash at
On 1 July 2018 Nicole Andreou opened a beauty parlour. The following transactions occurred during the first month of operations (ignore GST).Use the following account titles and numbers: Cash at
The 31 May 2020 trial balance of Amy Wait, Physiotherapist, is shown below. Ignore GST.The following transactions were completed during June.Required(a) Prepare journal entries to record each
Roger’s Repair Services had the following transactions during April and May 2019.Required(a) Assuming that the accounting period is a calendar year, prepare general journal entries for Roger’s
Flaherty Ltd sells two types of shoes, men’s shoes and women’s shoes. During the financial year ended 30 June 2019, fixed costs were $460 800 and sales were in the ratio of three units (pairs) of
Newbery and Newstead is a public accounting firm specialising in auditing local medium-sized businesses. Fees charged for each audit are determined on the basis of identifiable hours worked on an
Hotbox Ltd produces pizza boxes using two processes — cutting and packaging. The production budget for the year ending 30 June 2019 estimated raw materials use of $400 000, factory overhead of $270
Internet Inhand Ltd began producing netbooks on 1 July 2019. A unit of production passes through two processes — manufacturing and finishing. Production data for the month of July are presented
Tsoulos, Tsoulakis and Associates is a small firm of architectural consultants. At 1 July 2018, three architects other than the principals, Tony Tsoulos and Maria Tsoulakis, are employed. The
Melaleuca Manufacturing Ltd produces timber felling machines for the forestry industry around the world. Its two machines are the Tree Toppler, which cuts down trees and clears undergrowth, and the
Lucerne Ltd sells feather quilts and has never used CVP analysis in its 4‐year history. The manager provides you with the following sales and cost data for the first 4 years of
SpeedBurn Ltd manufactures DVD burners and is considering expanding production. A distributor has asked the company to produce a special order of 3000 DVD burners. The burners will be sold using a
A to Z Pty Ltd has provided the following planned per‐unit cost and sales data for the year ended 30 June 2020.Fixed factory overhead costs are $1 056 000 per year, and the annual fixed selling and
AEK Ltd has prepared its income statement, summarised below, for the year ended 30 June 2019.The company is evaluating three independent situations and has asked for your assistance.Required(a) If
Aussie Sporting Company Pty Ltd produces two types of sporting balls: basketballs and footballs.During the year ended 30 June 2019 it sold the balls in the proportion of three basketballs for every
Copeland Hotels Ltd provide three levels of rooms in their hotels. The following planning data are provided for the year ended 31 December 2020:Fixed hotel overhead costs are $24 360 000 per year,
Cruz Manufacturing Ltd’s sales slumped badly in 2019. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 600 000
Sheds Ahead Ltd produces outdoor sheds for domestic use. The manager in charge of production has been asked to prepare a production budget, a direct materials budget and a direct labour budget for
Sami Stitches Ltd produces two types of sewing machines, a standard model and a deluxe model.The budgeted factory overhead costs for the production operation during 2020 are as follows.Production of
Gasmania Pty Ltd produces patio heaters for household use. The following information has been gathered so that a production budget, a direct materials budget and a direct labour budget for part of
KK Pty Ltd is a small manufacturing business. For the year ending 30 June 2019, the company achieved sales of $2 772 000 and a gross profit margin of 30%. Although satisfied with this result,
The following actual balance sheet was prepared for Colombo Clocks Ltd as at 31 March 2020.At 31 March you are also provided with the following information.1. Sales forecasts available for 2020:
Fab and Fast Ltd buys and sells motor vehicle accessories. The firm’s estimated sales and expenses for the first 4 months of 2020 are shown below.Actual sales for December 2019 were $900 000 and
Bristol Brights purchases and installs sky lights. The entity’s estimated sales and expenses for the first 4 months of 2020 are below.Actual sales for November and December 2019 were $825 000 and
Prue Williamson Marketing Services is preparing a budget for the quarter year ended 31 December 2020. The information available for the budget is as follows.1. Prue’s hourly charge-out rate for the
Ruthven Manufacturing Ltd is preparing a master budget for the first quarter of the financial year ending 31 March 2021, and has compiled the following data.1. The firm sells a single product at a
Advantage Manufacturing is preparing a master budget for the quarter ending 30 September 2020, and has compiled the data shown below.1. The firm sells a single product at a price of $60 per unit. The
Penny Farthing, proprietor of the Healthy Holiday Resort, had generally been satisfied with the results of her resort in past years. However, she had felt for some time that business always seemed to
Awesome Appliances operates two departments — whitegoods and electronics. During the year ended 30 June 2020, the store had the following financial results.In addition, indirect expenses that were
Daisy Discount Store operates two departments — stationery and kitchenware. During the year ended 30 June 2020, the store had the following financial results.In addition, indirect expenses that
Perfect Health Pharmacy allocates indirect expenses to its three departments on the basis of sales.For the year ended 30 June 2019, the following allocations were made.Assume that, during the year
Perjaya Plastics Ltd has prepared the following fixed budget performance report for the production department’s financial results during the year ended 30 June 2020.Required(a) Should the
Dairy Delights operates with three departments. The owner–manager wants to close Department B because it continually shows a loss. During the past year ending 30 June 2020, the departmental
Fabric Wholesalers Ltd operates three departments. The accessories department has not been performing very well and has shown a loss for the past 3 years according to the company’s income
Daisy Supermarket operates four departments. Management is concerned about the financial results of the dried goods department, which has shown a loss for the past 3 years according to the
Rugged Rooms Ltd is a rug and drapery retailer. Rugged Rooms specialises in selling floor rugs and window dressings. The following information was derived from the shop’s accounting records for the
Cranford Cars Ltd operates a car sales business with two departments — new cars and secondhand cars. The company’s accountant has prepared an income statement for the year ending 30 June 2020.The
Versatile Vacuums sells two products — domestic and commercial. The store’s income statement for the year ending 30 June 2020 has been prepared from the accounting records.The company’s records
The fixed budget performance report for the year ended 30 June 2020 for Motueka Mint is as follows.Required(a) Convert the fixed budget performance report prepared by Motueka Mint to a flexible
Coola Vents Ltd has prepared a fixed budget performance report for the year ended 30 June 2020 as follows.Required(a) Convert the fixed budget performance report prepared by Coola Vents Ltd to a
Universal Solar Ltd operates three departments — a lighting department, a water heating department, and an equipment department. The store’s accountant has prepared an income statement by
Steph Gates, sales manager of Pluto Computers Ltd, was given the following budget performance report for selling expenses in the marketing software department for the month of April 2020.The recently
Wagons and Wheels Ltd is a farm machinery dealership. In recent years, the company has experienced unsatisfactory profit results because of declining sales in the area. At the suggestion of the
Quick Brekkie Ltd is evaluating three comparable investments. Summary data for the three investments, each of which would be paid for in current dollars, are listed below.Required Rank the three
Phone Screens and Computer Screens are two divisions operated as investment centres of Siciliano Ltd. Management wants to know which of the two earned the highest return on investment for the year
The purchasing officer for The Majestic Emporium has prepared a purchases budget for the financial year ending 31 March 2020, based on the following data.The cost of sales is 65% of sales, and the
Greyt Dog Beds Ltd manufactures dog beds specifically designed for greyhounds and whippets. The company purchases all the required materials from external suppliers and designs and assembles the
Ketton Ltd is in the process of preparing direct labour and factory overhead budgets for the year ending 30 June 2020. Relevant data are set out below.Required(a) Prepare the direct labour budget by
Avon Technical Institute has used the following budgeted amounts for its controllable costs during 2020.Required(a) Prepare a budget performance report for 2020 by preparing a budget for each cost
Hua Chang Resort has prepared the following budgeted amounts for its costs for 2020. Hua Chang has 32 luxury rooms available in the resort. It operates 365 days of the year.Required(a) Prepare a
The Cloudlands Spa Resort has 100 residential villas to accommodate guests. The accountant for the resort has asked you, the marketing manager, to prepare a budget for expected relaxation treatment
EBZ Fashion is preparing a quarterly budget covering the 3 months ending 30 September 2020.The information available for the budget is as follows.1. Cash sales represent 80% of all monthly sales;
Stanmore Stationery is preparing a quarterly budget covering the 3 months ending 30 June 2020.The information available for the budget is as follows:1. Cash sales represent 30% of all monthly sales;
Kids Sports Consulting Pty Ltd is a company set up by sports and recreation management students to gain experience in running their own business. It had the following contribution margin income
V. Zarb, the marketing manager for Maltese Treasures Ltd, is preparing a sales budget for the year ended 30 June 2020. In reviewing the actual sales data for the previous year, the sales and
The following expenses budget has been prepared for Abacus Services for the year ending 30 June 2020.Professional salaries, secretarial wages and training are paid in the quarter in which they are
Bounce Athletics Ltd, which develops and runs athletics training programs for primary schools, has budgeted revenue for the first 6 months of 2020 as follows.All revenue is provided on account and
Fly Fast Ltd operates a small charter plane operation in South West Queensland. The airline provides a fly-in fly-out service to mining operations in this area. Currently Fly Fast operates one plane
Long Weekend Ltd suffered a severe drop in sales and profit performance for the year ended 30 June 2019. The income statement revealed that net sales were $1 500 000 with a profit of$310 000. Unit
TMP Human Resource Consulting had the following contribution margin income statement for the year ended 2019.Required Answer each of the following independent situations.(a) Explain how an
Selcombe, Selcombe and Selcombe Media are three generations of the one family involved for nearly 50 years in providing public relations services. The firm is preparing its fees budget for the year
Explain how budgeting helps in running a business efficiently and effectively.
‘The best way to conduct performance evaluation is to determine broad business goals and prepare a financial plan in which senior management is responsible for the whole business.’ Discuss.
Read the following and answer the questions below.The costs of hosting the Olympic Games During Olympic years there is a tangible sense of anticipation for many people who enjoy watching or
The following actual balance sheet was prepared for Martin’s Musical Supplies Ltd as at 30 September 2020.At 30 September, you are also provided with the following information.1. Sales forecasts
The following events occurred during the month of September 2019 for the business of Eliza’s Webdesign Service.Required(a) Determine the effects of the business transactions on a balance sheet by
Eric Lu began a small business on 1 July 2018 by depositing $250 000 into a business bank account. On 30 June for the next 3 years, the assets and liabilities of the business were as follows.Required
Read the following article and answer the question below.Intangibles reporting This information is drawn from the World Intellectual Capital/Assets Initiative (WICI) Consultation Paper on intangibles
Read the following article and answer the questions.BHP Billiton hit with $US25m fine over corruption allegations BHP Billiton has been fined by US regulators over hospitality provided to government
The trial balance of Chelsea Elliott, marketing services provider, at 30 June 2019 was as follows(ignore GST).Required (a) Using the following information, prepare adjusting entries. Use the accounts
From the following clues relating to the topic matters covered above, complete the crossword in figure 1.2. Across 2 It can be an asset or a liability that still exists after 12 months. 5 An
From the following clues relating to examples used above for assets, liabilities, owner’s equity, revenue and expenses, complete the crossword in figure 1.3.Across 2 The business owes them for
From the following clues relating to topic matters covered for the different types of businesses, complete the crossword in figure 1.4.Across 5 The liability of a sole trader and the partners in a
From the following clues relating to topic matters covered in ‘Accounting assumptions: conventions and doctrines’, complete the crossword in figure 1.5.Across 1 This doctrine depends on the size
From the following clues involving topic matters covered that relate to accounting standards, concepts and the Framework, complete the crossword in figure 1.6.Across 2 Since January 2000 the AASB has
Using the jumbled words below, unscramble the six areas that relate to the requirements of accountants to be ethical and act in a professional manner. The jumbled word may or may not relate to two
Write down how you would explain to a relative or friend what accounting is and what it is about.
Define the following accounting terms and provide examples of each.a assets b liabilities c owner’s equity d revenue e expense
Can you find the following 17 basic accounting terms in the find-a-word puzzle? Each word is in a straight line but the line can be in any direction, including diagonal and reverse. Where the word
From the 22 scrambled examples of current assets, non-current assets, current liabilities, non-current liabilities, owner’s equity, revenue and expenses you are required to unscramble the letters
For each of the following business transactions or events, indicate the name of the convention or doctrine that applies. Business transaction or event 1 Annual accounts were prepared. 2 The business
There are six accounting conventions and four accounting doctrines but three of the conventions have acceptable alternative names. Unscramble the 13 words to name the conventions and doctrines.a
What is the purpose or objective of accounting standards? How does AASB 101 contribute to that purpose?
What is the Framework and how is it involved with the financial reports?
What are the names of the following AASB standards?a AASB 101 b AASB 102 c AASB 107 d AASB 112 e AASB 116 f AASB 118 g AASB 119 h AASB 137 i AASB 138
Complete the following statements and locate the missing word(s) in the find-a-word puzzle. The answers are in straight lines but can be in any direction, including diagonal and reverse.a This Act
The Accounting Professional and Ethical Standards Board states that there are five areas in which accountants must display a certain standard of professional conduct or ethics. What are they? Explain
Define and give examples to explain the significance of the following conventions and doctrines used in accounting:a accounting entity convention b accounting period convention c going concern
What is a business transaction?

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