Accounting Questions and Answers January 16, 2020

What are barriers to entry? Give examples. How do the barriers to entry affect the ability to earn long run economic profit?

A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,335.00 to install, $5,124.00 to operate per year for 7 years at which time it will be sold for $6,901.00. The second, RayCool 8, costs $41,767.00 to install, $2,164.00 to operate per year for 5 years at

A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firm's production process more efficient which in turn increases incremental cash flows. The GSU-3300 produces incremental cash flows of $24,048.00 per year for 8 years and costs $102,464.00. The UGA-3000 produces incremental cash flows of $27,915.00 per year for 9

What is the value today of a money machine that will pay $2,876.00 per year for 24.00 years? Assume the first payment is made one year from today and the interest rate is 9.00%.

Assume the real rate of interest is 3.00% and the inflation rate is 5.00%. What is the value today of receiving 10,632.00 in 15.00 years?

Suppose you need to have $50,418.00 in an account 18.00 years from today and that the account pays 9.00%. How much do you have to deposit into the account 5.00 years from today?

Suppose you deposit $1,002.00 into an account 7.00 years from today. Exactly 16.00 years from today the account is worth $1,470.00. What was the account's interest rate?

Assume monetary benefits of and information system of $40,000 the first year and increasing benefits of $10,000 a year for the next five years (year 1 = $50,000, year 2 = $60,000, year 3 = $70,000, year 4 = $80,000, year 5, = $90,000). One-time development costs were $80,000 and recurring costs were $45,000 over the duration of the system's life.

After one year on the job, Lima was called into her supervisor's office. Lima was nervous and thought back over the last few weeks to see if she had made any mistakes at work. She couldn't think of anything she had done wrong. Lima was relieved when Mrs. Peterson asked her if she would like to take a higher-paying position in one of two

Pushdown Accounting (see related P3.14) Assume that Genuine Parts uses pushdown accounting at the date of acquisition. Required : a. Prepare the pushdown accounting entry Genuine Parts makes at the date of acquisition. b. Prepare a working paper to consolidate the balance sheets of International Auto and Genuine Parts at the date of acquisition.

Let x be the GDP of a country, and let y be a measure of its level of pollution. If the function u(x, y) purports to measure the total wellbeing of the society, what signs do you expect u(x, y) and u, (x, y) to have Can you guess what economists usually assume about the sign of uwy(x, y)

Premium Moss Co. issued $42,000,000 of five-year, 11% bonds, with interest payable semiannually, at a market (effective) interest rate of 9%. Determine the present value of the bonds payable.

The Camellion Corporation used the weighted average inventory costing method. At the beginning of 2022, Camellion decided to change to the FIFO method. Camellion has paid dividends of $37 million each year beginning in 2015. Retained earnings on January 1, 2020, were $550 million and inventory was $400 million. Required: 1. Prepare the journal

Income components for 2022 and prior years are as follows 2021 (in million) 2022 2020 Previous years Cost of goods sold (Weighted Average) Cost of goods sold (FIFO) 320 300 400 1.500 330 295 270 Difference 30 1,200 200 70 25 810 740 Revenues S800 S3275 Operating expenses 225 215 190 900

Steele Corporation has the following information for January, February, and March: January February March Units produced 10,000 10,000 10,000 Units sold 7,000 8,500 10,500 Production costs per unit (based on 10,000 units) are as follows: Direct materials $12 Direct labor 8 Variable factory overhead 6 Fixed factory overhead 4 Variable selling and

Answer following questions from the mini case attach 1. Why did the court not permit Banque de depots to seize the cargo Bozel shipped? 2. What are the policy reasons for not allowing a creditor, such as Banque do Depots, to seize cargo that is being shipped to a buyer under a bill of landing? 3. What are the expectations of a good faith purchaser

Banque de Depots v. Ferroligas 569 So. 2d 40 (1990) Court of Appeals of Louisiana BACKGROUND AND FACTS possession, (Louisiana law) permits the (carrier) to surrender the goods to the duly negotiated holder. The Banque de Depots, a Swiss bank, brought an action against Bozel, a Brazilian exporter, seeking a money judgment because Bozel had

What is aging of accounts receivable, and how is it used to account for uncollectible accounts?

How is the accounts receivable turnover computed? What information does this ratio provide?

In the balance sheet of Praveen for 2013 and 2014, 4% debentures are Rs 5,00,000 and Rs 4,00,000, respectively. Profit on redemption of debentures in 2013 is nil while in 2014 is Rs 4,000. What is the amount of redemption for the purpose of funds flow statement? a) Rs 96,000 b) Rs 1,04,000 c) Rs 9,00,000 d) Rs 9,04,000

The balance of property at cost has been RS 20,000 and Rs 17,000 in 2013 and 2014 respectively. The profit on sale of property of Rs 2000 is credited to Capital Reserves Account. New property costing Rs 5000 bought in 2014. Determine sale of proceeds from land. a) Rs 3000 b) Rs 10,000 c) Rs 7000 d) Rs 15,000

The Balance sheet of Ram at end of 2013 and 2014 disclose investments in shares of Rs 2000 and Rs 3000, respectively. Rs 100 as pre-acquisition dividend has been credited to investments account. Determine purchase of investments. a) RS 5000 b) Rs 1000 c) Rs 1,100 d) None of the above

Galaxy company sold merchandise costing 1,700 for 2,600 cash. The merchandise was later returned by the customer for a refund. if the perpetual inventory method is used, what effect will the sales return have on the accounting equation?

A note payable for 13,000 that was payable in 180 days with an annual interest rate of 10 percent would require an interest payment of due date. (Assume that a year has 360 days for the purposes of this calculation.) on its

Net operating profit ratio determines ___________ while net profit ratio determines a) Overall efficiency of the business, working efficiency of the management b) Working efficiency of the management, overll efficiency of the business c) Overall efficiency of the external market, working efficiency of the internal management d) None of the above

prepare a multi-step income statement

The following information is related to Sheridan Company for 2025. Retained earnings balance, January 1, 2025 Sales revenue Cost of goods sold Interest revenue Selling and administrative expenses Writeoff of goodwill Income taxes for 2025 Gain on the sale of investments Loss due to flood damage Loss on the disposition of the wholesale division

The Oakdale Country Club has purchased new merchandise display racks for the Pro Shop at a cost of 5,000. The life of the racks is five years with a 500 salvage value. Required Compute the annual depreciation for each year and the total depreciation over the life of the racks for both the straightline method and the double declining balance

Prepare balance sheet. WINDSOR DESIGN Statement of Retained Earnings For the year ended December 31,2025 Beginning Retained Earnings $3,985 Add: Net income $32,646 Ending Retained Earnings Balance $36,631

Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated DepreciationEquipment Accounts Payable Interest Payable Notes Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Insurance Expense Interest Expense Depreciation Expense Supplies Expense Rent

Ashton (age 67) and Demi (age 67) are a married couple. Demi works for an entertainment company with a salary of $174,000. Ashton works for a law firm and makes $70,000 per year. The couple do not have specific itemized deductions for the year, and do not have any dependents. What is the couple's taxable income for the year? What is the couple's

On January 1, year 1, the Willow Bat Company adopted the dollarvalue LIFO retail method. The following data are available for year 1 Beginning inventory Cost 77,140 Net purchases Net markups Net markdowns Net sales Retail price index, Dec.31, year 1 111,760 Retail 133,000 259,000 6,000 (11,000) 235,639 1.04 Calculate the estimated ending inventory

Jason, a single taxpayer, works for Google. His salary is $106,000 per year. He has one dependent child His itemized deductions total $23,000. During the year, Jason had $10,000 withheld from his paycheck. What is Jason's taxable income?

Mr. and Mrs. Volcano file a joint return for tax purposes. Their total income for the year is $104,730. They have deductions for agi = $4,443. Their itemized deductions totaled $26,070 The total withholdings for the year amounted to $15,000 Required: What is their tax due or tax refund?

On April 1, 2020, CPA Co. leased equipment to another entity. The lease is appropriately recorded as a sales and type lease and is for an 8-year period with an implicit interest rate of 10%? The first of eight equal payments of P700,000 was made on April 1, 2020? The cost of the equipment to CPA Co, is P3,700,000. The equipment has an estimated

Metlock Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022, the company reported the following operating results while operating at 90 of plant capacity Sales Cost of goods sold Selling and administrative expenses Net income Amount 3,870,000 2,709,000 301,860 859.140 Per Unit 50.00 35.00 3.90

A company provided the following information Administrative salaries Raw material purchases Sales revenue Direct labor Other administrative expenses Manufacturing overhead applied Actual manufacturing overhead Inventory data Raw material Work in process Finished goods 200,000 240,000 3,000,000 700,000 170,000 1,640,000 1,670,000 January 1 80,000

Biden Company provided the following data for the months of November and December Nov 30 P2,032,000 1,890,000 Dec 31 P 3,160,000 2,900,000 1,080,000 Cash in bank account balance Bank statement balance Bank debits Bank credits Book debits Book credits Outstanding checks Deposit in transit Check erroneously charged by the bank against the entitys

Bunson Supply Inc. had a physical inventory count at 12-31-2020 of $200,000 The following items were NOT INCLUDED in this inventory count. Based on the information provided, calculate the proper ending inventory amount. 1 Merchandise is held by Bunson on consignment. Consignor is Sleuth Corp. 1,000 2 Merchandise was shipped by Bunson, fob

XYZ Inc purchased supplies from Staples for $3,500 on credit term 2/15, n/30 on June 3, 2022. XYZ paid on June 15, 2022 to avail the discount. Record the transactions for June 3rd and June 15th.

The White Corporation sells only one product. The following is budgeted information for that product: Annual production and sales capacity (units) 100,000 Budgeted selling price $160 per unit Variable cost of goods sold $64 per unit Fixed manufacturing costs $2,000,000 Variable selling and administrative costs $26 per unit Fixed selling and

Dakota Company purchased several assets from a competitor, paying a lump-sum of $1,000,000 (one million dollars). The assets included: i. Land - valued at $420,000 ii. Building - valued at $400,000 iii. Equipment valued at 580,000 Record the journal entry on March 17, 2020.

On December 31, 2023 Martinez Corp. is preparing its yearend cash flow statement. The following activities occurred during the last 12 months Sold equipment for 13500 that originally cost 26000 Purchased land and a building for 1664000 Issued 2683000 in bonds Repaid 81400 on the mortgage payable Sold 59500 in common shares Declared 10600 in

In relation to a business of your choice illustrate and discuss with the aid of a diagram, porters value chain model, include in your answer the primary and secondary activities of the value chain model.

A direct labor worker at Vorwald Corporation is paid RM14 per hour for regular time and time and a half for all work in excess of 40 hours per week. The companys fringe benefits cost RM6 for each hour of employee time (both regular and overtime). Last week this employee worked 43 hours but was idle for 4 hours due to material shortages. The

Aero Ltd. has 20,000 shares outstanding and the total PUC of all these shares is $1,600,000. Karen Flint owns 15,000 of the outstanding Aero shares. They were acquired by her at a total cost to Karen of $40 per share. During the current year, Karen's shares were redeemed by the corporation for proceeds of $90/share. Aero Ltd. is a CCPC and all

Find the total manufacturing cost. Find the total costs of work in process and find the costs of goods manufactured

Weatherspoon Inc. recorded the following manufacturing costs for FY 2023 ending June 30, 2023. 17,500.00 Raw Materials, July 1, 2022 S 600.00 Raw Materials, June 30, 8,000.00 2023 20,000.00 Raw Materials Purchases 36,000.00 Expected production output 11,500.00 Expected sales output 8,000.00 n Direct Labor Work in process, July 1, 2022 Work

7. Gamma Corporation purchased a vehicle on August 9, 2015 for 87,000. The estimated salvage value (residual value) was 9,000 and its life was estimated to be either 5 years or 210,800 kilometers. Gamma uses the nearest whole month process and records depreciation only at yearend (December 31). Required 1. calculate the amount of depreciation for

Westin Co. has handled all of its human resource (HR) activities in-house for its entire existence. Its HR professionals have done a fantastic job of finding good talent in operations, IT, inventory, and sales. Lately, though, with the job market being strong in all these functional areas, the HR staff has been struggling to find and keep good

Create a strong inductive argument from the authority on an issue or question of your choice. Your argument should include citations from at least 2 credible authorities who may or may not take different positions on the issue. Based on your research State your current position on the issue. Has your position on the issue changed? If so, why? If

Draft a briefing note to the chairperson Caroline, which a) Discusses the advantages and disadvantages of the different approaches to budgeting that could be used by TT b) c) (10 marks) Identifies and explains the problems that can be caused by organisational slack (budgetary slack). (5 marks) Identifies and briefly discusses some of the main

The Commodores Company began operations on December 1, 2020. The company uses normal costing as part of a joborder cost system. During December, the company purchased 7,000 of direct material, and then used 1,500 of these direct materials to start Job 100. The company also charged total conversion costs of 3,500 to Job 100 during December. As of

Good Gloves Sdn Bhd is a glove manufacturing company. In a review of its provisions for the year ended 31 March 2020, Good Gloves's assistant accountant has suggested the following accounting treatments: (i) Making a provision for a constructive obligation of RM400,000; this being the sales value of goods expected to be returned by retail

The Gross margin analysis presents the sales compared to the cost of sales in table and graph formats and can be used to perform a substantive analytical procedure to provide evidence over the occurrence and valuation of revenue as well as related costs of goods sold. Required Analyze the gross margin for the dining sales revenue stream (note that

Barbara sold land she purchase 3 months earlier for use in her business. her cost and adjusted basis in the land prior to the sale were 80,000. she also incurred 10,000 in expenses related to the sale. The buyer paid 80,000 cash and assumed barbaras 20,000 mortgage on the property What is the amount of barbaras gain, and where on form 4797 will

What alternatives are available to the auditor in terms of an overall response to the risk of material misstatement at the financial statement level? The risk of management override of controls is present in every audit. Describe the procedures the auditor is required to perform in response to this significant fraud risk? Although auditors are

A company has the following information in its balance sheet: Current Assets: $100,000 Fixed Assets: $200,000 Current Liabilities: $50,000 Long-term Liabilities: $150,000 Calculate the company's working capital and its debt-to-equity ratio. Similarly the company has the following information in its income statement: Gross Profit: $500,000

After reading the article "Interim CEOs Are Prone to Inflating Earnings", answer the following questions: Should investors be concerned about the appointment of an interim CEO? Why? What is the likely result if an interim CEO inflates income? Why?

A company has the following information in its balance sheet: Cash: $10,000 Accounts Receivable: $20,000 Inventory: $30,000 Accounts Payable: $15,000 Calculate the company's current ratio and quick ratio. Now, A company has the following information in its income statement: Sales: $500,000 Cost of Goods Sold: $300,000 Operating Expenses: $150,000

The following are compensation for personal services paid or incurred by Faye Corporation for the year ended December 31, 20A1: 1) Faye paid Mr. El Nido salaries of P6,000,000 during the year. He is a major stockholder of Faye and he is also its president. Presidents of corporations with similar business, similar size and volume of business as

Machinery which had cost $7290 was sold for $3400. The disposal account showed a profit on disposal of $594. How much was the depreciation up to the date of disposal and on which side of the disposal account was it recorded?

X Limited started the year with an ordinary share capital of $300 000. An ordinary share dividend of $5000 was paid during the year. Later a further $20 000 of ordinary shares were issued. The profit for the year was $9000. By how much had equity increased at the end of the year?

A traders purchases on credit for April amounted to $4000. These purchases were subject to a trade discount of 10% and also a cash discount of 5% for accounts paid within 30 days. How much was entered in the purchases journal?

Short-term, unsecured promissory notes issued by large firms are known as Agency securities. Bankers? acceptances. Commercial paper. Repurchase agreements.

The bank statement of a business showed a bank overdraft of $1550 on 1 October 2017.At that date there were uncredited deposits of $480 and unpresented cheque of $480. What was the cash book balance on 1 October 2017?

The following forms of short-term borrowing are available to a firm: ?Floating lien ?Factoring ?Revolving credit ?Chattel mortgages ?Bankers? acceptances ?Lines of credit ?Commercial paper The forms of short-term borrowing that are unsecured credit are Floating lien, revolving credit, chattel mortgage, and commercial paper. Factoring, chattel

Amit depreciates his buildings at the rate of 2% per annum using the straight line method. He bought land for $300000. It cost $110000 to build a warehouse on it. After five years he sold the warehouse for $399000. What was the profit or loss on disposal?

Meena and Khan are in partnership, sharing profits and losses equally. Interest on capital account balances is to be allowed at 5%.The capital account balances at the start of the year were: Meena $20000; Khan $20000. The profit for the year was $27000. How much was credited to Meenas current account at the end of the year?

Shahid is a trader. He maintains a full set of accounting records including a three-column cash book. On 1 August 2017 Shahid had the following balances in his cash book. $ Cash 50 Bank overdraft 7150 Shahids transactions for August 2017 included the following. August 9 A cheque received in July for $372 from EN Supplies was dishonoured by the

Asset misappropriation and financial statement fraud are perhaps the most common types of accounting fraud. For this Discussion, use the Internet to locate a case study related to one of these two fraud types? Consider how the fraud occurred, who was at fault, who should have prevented it, and who is ultimately responsible. Contemplate how

Internal Control Xiley Company encountered the following situations: a. The person who opens the mail for Xiley, Bill Stevens, stole a check from a customer and cashed it. To cover up the theft, he debited Sales Returns and Allowances and credited Accounts Receivable in the general ledger. He also posted the amount to the customer's account in the

a. Molly started out on April 1 by depositing $5,000 in a commercial checking account in exchange for common stock. b. The company served customers and received $4,215 in cash. c. The company borrowed $1,200 from the bank for the business by signing a promissory note. D. The company paid $1,125 of operating expenses. to. The company bought a new

Refer to the highest and best-use analysis in the table below. Use (a) Year 1 NOI (b) ( r g ) (c) R (ac = d) Implied Property Value ( PV ) (e) Construction Cost of Building (d) (e) Implied Land Value(Residual) Office $ 528,000 0.130.03 0.10 $ 5,280,000 $ 4,000,000 1,280,000 Retail $ 628,000 0.120.04 0.08 7,850,000 $ 6,750,000 1,100,000 Apartment

Yasmin opened a garment factory on 1 May 2016. She provided the following information. $ On 1 May 2016 Cost of factory machinery 33000, Cost of office furniture and equipment 7500, Cost of tools 2000, For the year ended 30 April 2017, Revenue 112640, Purchases of raw materials 31100, Purchases of finished goods 15700 Wages and salaries Factory

Wasim is a trader. His financial year ends on 31 March. The totals of his trial balance on 31 March 2017 did not agree. The difference was a shortage on the debit side of $595. This was entered in a suspense account. The following errors were later discovered. 1 The total of a page of the purchases account, $3742, had been carried forward as

Wasim is a trader. His financial year ends on 31 March. The totals of his trial balance on 31 March 2017 did not agree. The difference was a shortage on the debit side of $395. This was entered in a suspense account. The following errors were later discovered. 1 The total of a page of the purchases account, $4842, had been carried forward as

K Limited provided the following information. 1 Its issued ordinary share capital consists of 180 000 ordinary shares of $0.30 each. 2 On 1 October 2016: $ General reserve 3000 Retained earnings 5700 3 The profit for the year ended 30 September 2017 was $8000. $2000 of this was transferred to the general reserve. An interim dividend of $5500 was

A company has just borrowed $2 million from a bank. The stated rate of interest is 10%. If the loan is discounted and is repayable in 1 year, the effective rate on the loan is approximately 8.89% 9.09% 10.00% 11.11%

Under the diminishing balance method, the amount of depreciation is calculated on (a) The written-down value of the asset. (b) The market value of the asset. (c) The original cost of the asset. (d) The expected realizable value of the asset.

A machinery was purchased on 1-1-2006. It was delivered on 1-4-2006. The installation was completed on 1-7-2006. The trial run was completed on 30-9-2006 and was put to use from 1-12-2006. The effective period for calculation of depreciation for the year 2006 is (a) 10 months (b) 9 months (c) 1 month (d) 3 months

In the books of D. Ltd. the machinery account shows a debit balance of Rs.60, 000 as on April 1 st , 2003. The machinery was sold on September 30, 2004 for Rs.30, 000. The company charges depreciation @ 20% p.a. (FY April to March) on diminishing balance method. What will be the Profit or Loss on sale of machinery? (a) Rs.13, 200 Profit. (b)

A Plant of Rs.3, 000 was sold for Rs.4, 200. Depreciation provision to date was Rs.400 and commission paid to selling agent was Rs.350 and labour charges paid for removing the plant was Rs.100 Profit on sale of plant will be: (a) Rs.1,200 (b) Rs.1,000 (c) Rs.1,150 (d) None of these

A purchased a mine for Rs.5, 00,000. Minerals in the mine were expected to be 10, 00,000 tones. In the first year, 1, 00,000 tones of minerals were used. What is the depreciation for the first year? (a) Rs.40,000 (b) Rs.50,000 (c) Rs.60,000 (d) None of these

The cost of the asset purchased on 1 st April, 2008 was Rs.24, 000. the depreciation was provided at 10% on Straight Line Method. The asset was sold on 31 st Jan, 2009 for Rs.18, 000. Which of the following statements is/are true? (a) Depreciation provided for the year was Rs.2,400 (b) Loss on the sale of asset was Rs.4,000 (c) No depreciation

Randy, Inc., can issue 3-month commercial paper with a face value of $1,500,000 for $1,450,000. Transaction costs will be $1,500. The effective annualized percentage cost of the financing, based on a 360-day year, will be 3.45% 3.56% 14.22% 13.79%

Corbin, Inc., can issue 3-month commercial paper with a face value of $1,000,000 for $980,000. Transaction costs will be $1,200. The effective annualized percentage cost of the financing, based on a 360-day year, will be 8.16% 8.66% 8.00% 2.00%

With respect to the use of commercial paper by an industrial firm, which one of the following statements is most likely to be true? The commercial paper is issued through a bank. The commercial paper has a maturity of 60-270 days. The commercial paper is secured by the issuer?s assets. The commercial paper issuer is a small company.

Amanda maintains a petty cash book using the imprest system. The imprest amount of $200 is restored on the first day of each month. On 1 January 2020 Amara had a balance of $65 in her petty cash. All payments of less than $300 are made from petty cash. On 1 January 2020, Amara owed $86 to Razvan, a credit supplier. Amara provided the following

GHB Limited maintains a full set of accounting records and prepares monthly control accounts. The following information was provided for November 2019. $ Purchases ledger control account balance at 1 November ? Totals for November: Purchases journal 24200 Purchases returns journal 1260 Cash purchases 4390 Commission receivable 3110 Cash discount

Equipment costing $40000 was purchased on 1 January 2019. It has a useful working life of 5 years and a residual value of $2000. Depreciation using the straight-line method was included in the income statement for the year ended 31 December 2019. It was then found that the reducing balance method at 30% per annum should have been used. What was

__ method of depreciation takes into account the element of interest on capital outlay and seeks to write off the value of the asset as well as the interest lost over the life of the asset: (a) Sum of years digits . (b) Annuity (c) Sinking Fund (d) Straight line ANSWER-(b)

Cash Book of Syarikat Kemboja Sdn. Bhd. shows a debit balance of RM1,560,000 on 31 December 2019. This balance differs from the bank statement balance received on the same date. After checking, it was found that the difference is due to the following things: Several checks amounting to RM652,000 have been recorded in the Cash Book but have not yet

With the intent of lowering the cost of health care, New York University Langone Medical Center has recently taken a first step toward sevenday service by keeping certain functions (including radiology consultations) going all weekend. Doctors, like most people, do not like to work on the weekends. Thus, they adamantly oppose the hospitals intent

Briefly explain why Russell thinks philosophy has value even though philosophers, he says, cannot point to technological advancements brought about by their work or to any definitive answers to many of the big questions they pursue. What is one analogy he uses to illustrate what life is like for someone who does not care at all about philosophy?

The prime lending rate of commercial banks is an announced rate and is often understated from the viewpoint of even the most credit-worthy firms. Which one of the following requirements always results in a higher effective interest rate? A floating rate for the loan period. A covenant that restricts the issuance of any new unsecured bonds during

The prime lending rate of commercial banks is an announced rate and is often understated from the viewpoint of even the most credit-worthy firms. Which one of the following requirements always results in a higher effective interest rate? A floating rate for the loan period. A covenant that restricts the issuance of any new unsecured bonds during

Record the transactions that took place in January, including all month-end adjustments that are required to recognise income and expenses in the cells provided. For your convenience, a spreadsheet has been attached. You could work on the expanded spreadsheet and type your answers into Inspera. Use negative signs but not a thousand separators

Mikael employs a book?keeper to maintain her accounting records. The book?keeper was taken ill and was unable to complete the accounting records for August 2022. The entries the book?keeper made in the cash book for August 2022 are shown on the opposite page. The following transactions took place on 31 August 2022. 1 Received a cheque from Jason

A manufacturing firm wants to obtain a short-term loan and has approached several lending institutions. All of the potential lenders are offering the same nominal interest rate but the terms of the loans vary. Which of the following combinations of loan terms will be most attractive for the borrowing firm? Simple interest, no compensating balance.

A company obtained a short-term bank loan of $250,000 at an annual interest rate of 6%. As a condition of the loan, the company is required to maintain a compensating balance of $50,000 in its checking account. The checking account earns interest at an annual rate of 2%. Ordinarily, the company maintains a balance of $25,000 in its account for

Melanie is a small business owner. Her financial year ends on 31st December. She uses a single column cash book and a petty cash book. The imprest amount for her petty cash book is $500. All payments under $100 are made from the petty cash book. Melanie had the following transactions in December 2022: Paid $200 to a supplier, Smith, by cheque

Auto Delivery Company has a fleet of several delivery trucks. In the past, Auto Delivery had followed the policy of purchasing all equipment. In the current year, they decided to lease the trucks? The method of accounting for the trucks is therefore changed to lease capitalization. This change in policy is fully disclosed in footnotes? Write

Calculate Break Even Point. Break down of cost per unit at an activity level of 10,000 units of A Ltd is as follows: Amount Raw Material 10 Direct Expenses 8 Chargeable Expenses 2 Variable Overheads 4 Fixed Overheads 6 Total Cost per unit 30 Selling Price 32 Profit per unit 2

A firm that often factors its accounts receivable has an agreement with its finance company that requires the firm to maintain a 6% reserve and charges 1% commission on the amount of receivables. The net proceeds would be further reduced by an annual interest charge of 10% on the monies advanced. Assuming a 360-day year, what amount of cash