The state of public transport in the city of Lusaka has been a sourcen of concern to
Question:
The state of public transport in the city of Lusaka has been a sourcen of concern to Government and the public for a long time. A Zambian n company has mooted the idea of coming up with a Public Private n Partnership (PPP) with the Lusaka City Council (LCC) with the aim of n modernising the transport system in the city by way of introducing n modern electric buses. You are a consultant who has been approached by n this company requesting you to prepare a information memorandum documentn to be used for the purposes of ‘selling’ the project to potential n financiers.
n nPrepare an information memorandum for the project to be presented to n the potential financiers. Among others it should contain the following:
n n1. The full business description of the project.
n n2. Any other sponsors apart from the client company and LCC that could be included to make the project a success.
n n3. An analysis of the key risks facing the project and the ways of mitigating the risks.
n n4. The proposed financing structure and justification for using that particular structure.
Hawkeye Corporation is a small private corporation that sells desktop printers to local businesses and schools. On May 1, 2021, the following were the account balances of Hawkeye Corporation: Cash Accounts Receivable Inventory (255 units) Van Furniture & Fixtures Total Debits Debits 24300 9000 51000 19200 5400 108900 During May 2021, the following transactions took place: May 1: Bought 102 desktop printers for $90 each on account. Allowance for Doubtful Accounts Accumulated Depreciation (Van) Accumulated Depreciation (Furniture & Fixtures) Accounts Payable Common Shares Retained Earnings Total Credits Credits 900 18000 1200 4800 6000 78000 108900 May 1: Bought a van, paying $4200 cash as a down payment and signed a 7 month $9000, 6% note payable for the balance. The company paid $270 to have its company logo painted on the side of the van. The residual value is $3000. The old van was sold for $6000; it cost $19200 and acculumated depreciation up to the date of disposal was $18000. May 10: Sold 72 printers to Gamora Inc. on account. May 12: Cros Technologies agreed to sign a 60-day note receivable to replace a $780 accounts receivable due that day. The interest rate on the note is 3.9%. May 20: Sold 4 printers to Black Widow Inc. using a VISA card to pay for the transaction. A 1.2% service fee is charged by VISA. May 22: Sold 60 printers to Thor Odinson Public School on account. May 24: Returned for credit 4 damaged printers from Gamora Inc., costing $144 each. May 28: Received payment in full from Gamora Inc. for the balance owing. May 28: Wrote off as uncollectable $1500 of accounts receivable. May 29: Paid accounts payable, $7500. May 30: Recovered an accounts receivable that was written off in April, $420. May 31: Paid operating expenses totalling $27300. May 31: Recorded depreciation on the van and the furniture & fixtures. The company uses straight-line depreciation for the van. The van is estimated to be used for 7 years. The furniture & fixtures are depreciated using the straight-line method over 4 years. There is no residual value on the furniture and fixtures. May 31: Recorded interest on the note payable. May 31: Recorded interest on the notes receivable. May 31: The company records the bad debt expense based on the aging of accounts receivables, which follows: Other Information: Number of Days Outstanding 0-30 days Accounts Receivable $16800 Estinated Percentage Uncollectable 1.2% 31-60 $5400 3% 61-90 Lave $2550 6% 90+ days $4800 12% 1) The selling price for each of the printers is $270. 2) Hawkeye Corporation uses the FIFO method under the perpetual inventory system to account for inventory. 3) In the past, Hawkeye Corporation has used the following accounts on their financial statements: Bad Debt Expense, Cost of Goods Sold, Credit Card Fee, Depreciation Expense, Gain on Sale, Interest Expense, Interest Payable, Interest Receivable, Interest Revenue, Loss on Sale, Notes Payable, Notes Receivable, Operating Expenses, Sales Returns, Sales Revenue. Not all accounts have been used each period. Required: 1) Prepare the journal entries for the transactions including any adjusting journal entries for the month of May 31, 2021. Place your answer under "Requirement 1" in the "Answer" tab. A reminder to round all final numbers to the nearest dollar. Do not round during calculations. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question. 2) Prepare an adjusted trial balance as at May 31, 2021. Place your answer under "Requirement 2* in the "Answer" tab. Place your account titles in column H, debits in column I and credits in column J. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question. 3) Prepare the multi-step Income Statement for the month of May 2021. Ignore income taxes. Place your answer under "Requirement 3* in the * Answer* tab. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question. 4) Prepare a classified Balance Sheet at at May 31, 2021. Place your answer under "Requirement 4* in the "Answer" tab. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question. 5) Assume Hawkeye Corporation overstated its ending inventory by $900. How does this affect cost of goods sold, gross profit, and net income in the year it was discovered? If the error is undetected, what is the impact on cost of goods sold, gross profit, and net income for the following year. Place your answer under "Requirement 5* in the "Answer" tab using the drop down menus. Enter any type responses in the designated spots. 6) Assume that Hawkeye Corporation used the LCNRV to report inventory on the balance sheet. The NRV of $270 is less than the FIFO cost. Prepare the journal entry. Place your answer under "Requirement 6* in the *Answer* tab. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question. Hawkeye Corporation is a small private corporation that sells desktop printers to local businesses and schools. On May 1, 2021, the following were the account balances of Hawkeye Corporation: Cash Accounts Receivable Inventory (255 units) Van Furniture & Fixtures Total Debits Debits 24300 9000 51000 19200 5400 108900 During May 2021, the following transactions took place: May 1: Bought 102 desktop printers for $90 each on account. Allowance for Doubtful Accounts Accumulated Depreciation (Van) Accumulated Depreciation (Furniture & Fixtures) Accounts Payable Common Shares Retained Earnings Total Credits Credits 900 18000 1200 4800 6000 78000 108900 May 1: Bought a van, paying $4200 cash as a down payment and signed a 7 month $9000, 6% note payable for the balance. The company paid $270 to have its company logo painted on the side of the van. The residual value is $3000. The old van was sold for $6000; it cost $19200 and acculumated depreciation up to the date of disposal was $18000. May 10: Sold 72 printers to Gamora Inc. on account. May 12: Cros Technologies agreed to sign a 60-day note receivable to replace a $780 accounts receivable due that day. The interest rate on the note is 3.9%. May 20: Sold 4 printers to Black Widow Inc. using a VISA card to pay for the transaction. A 1.2% service fee is charged by VISA. May 22: Sold 60 printers to Thor Odinson Public School on account. May 24: Returned for credit 4 damaged printers from Gamora Inc., costing $144 each. May 28: Received payment in full from Gamora Inc. for the balance owing. May 28: Wrote off as uncollectable $1500 of accounts receivable. May 29: Paid accounts payable, $7500. May 30: Recovered an accounts receivable that was written off in April, $420. May 31: Paid operating expenses totalling $27300. May 31: Recorded depreciation on the van and the furniture & fixtures. The company uses straight-line depreciation for the van. The van is estimated to be used for 7 years. The furniture & fixtures are depreciated using the straight-line method over 4 years. There is no residual value on the furniture and fixtures. May 31: Recorded interest on the note payable. May 31: Recorded interest on the notes receivable. May 31: The company records the bad debt expense based on the aging of accounts receivables, which follows: Other Information: Number of Days Outstanding 0-30 days Accounts Receivable $16800 Estinated Percentage Uncollectable 1.2% 31-60 $5400 3% 61-90 Lave $2550 6% 90+ days $4800 12% 1) The selling price for each of the printers is $270. 2) Hawkeye Corporation uses the FIFO method under the perpetual inventory system to account for inventory. 3) In the past, Hawkeye Corporation has used the following accounts on their financial statements: Bad Debt Expense, Cost of Goods Sold, Credit Card Fee, Depreciation Expense, Gain on Sale, Interest Expense, Interest Payable, Interest Receivable, Interest Revenue, Loss on Sale, Notes Payable, Notes Receivable, Operating Expenses, Sales Returns, Sales Revenue. Not all accounts have been used each period. Required: 1) Prepare the journal entries for the transactions including any adjusting journal entries for the month of May 31, 2021. Place your answer under "Requirement 1" in the "Answer" tab. A reminder to round all final numbers to the nearest dollar. Do not round during calculations. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question. 2) Prepare an adjusted trial balance as at May 31, 2021. Place your answer under "Requirement 2* in the "Answer" tab. Place your account titles in column H, debits in column I and credits in column J. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question. 3) Prepare the multi-step Income Statement for the month of May 2021. Ignore income taxes. Place your answer under "Requirement 3* in the * Answer* tab. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question. 4) Prepare a classified Balance Sheet at at May 31, 2021. Place your answer under "Requirement 4* in the "Answer" tab. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question. 5) Assume Hawkeye Corporation overstated its ending inventory by $900. How does this affect cost of goods sold, gross profit, and net income in the year it was discovered? If the error is undetected, what is the impact on cost of goods sold, gross profit, and net income for the following year. Place your answer under "Requirement 5* in the "Answer" tab using the drop down menus. Enter any type responses in the designated spots. 6) Assume that Hawkeye Corporation used the LCNRV to report inventory on the balance sheet. The NRV of $270 is less than the FIFO cost. Prepare the journal entry. Place your answer under "Requirement 6* in the *Answer* tab. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question.
Expert Answer:
Accounting Principles Volume 2
ISBN: 978-1119502555
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Students also viewed these accounting questions
-
You are a consultant who is now doing research on the performance of various online grocery delivery services in Malaysia. Tesco Online, HappyFresh, GrabMart, Lalamove and Signature Market are among...
-
You are a consultant who works for the Diligent Consulting Group. In this Case, you are engaged on a consulting basis by Loving Organic Foods. In order to get a better idea of what might have...
-
You are a consultant who helps new entrepreneurs set up their accounting systems. You are frequently asked the following questions about inventory: What are internal controls? Why do I need to...
-
Big bang Pty (Ltd) is a company which is involved in sale of manufacturing goods. The company had the following income and expenses for the year of assessment: R15 000 for the collection of debts...
-
Ford Motor Credit Company is a subsidiary of Ford Motor Company, with its own offices, officers, and directors. Ford Credit buys contracts and leases of automobiles entered into by dealers and...
-
On June 1, 2015, Firefly Ltd. purchased $120,000 of 10-year, 6% Barron Company bonds at 93. The interest is received semiannually on June 1 and December 1. The company uses the effective interest...
-
On the American Arbitration Association website, referenced in Exhibit 19.1, can you also find information about mediations? Is there a form that provides for mediation by the AAA? What are the...
-
Dillard Co. has sales revenue of $100,000, cost of goods sold of $70,000, and operating expenses of $18,000. What is its gross profit?
-
Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $ 3 6 comma 0 0 0 at the end of each of the next 3 years. The opportunity requires...
-
We have a digital medium with a data rate of 10 Mbps. How many 64-kbps voice channels can be carried by this medium if we use DSSS with the Barker sequence?
-
be careful answering: The next-generation banking system a number of transactions are to be scheduled to run concurrently: Debit (D) transactions to make payments from customer accounts to a credit...
-
Research the current state of Internet privacy law. Are laws consistent at the national and local levels? If not, what does this mean for firms operating in areas impacted by these laws?
-
The legislation governing the Federal Reserve Board The 1977 Federal Reserve Act, as amended in 1978, 1988, and 2000 governs the behavior of the Federal Reserve. a. In your opinion, does this excerpt...
-
Use a computer-based logic minimization program to design the instruction decoder for a RISC from Table 10-3. Create an HDL model of your design and verify its correctness in simulation. Table 10-3...
-
Using Figure 2-46 as a framework, write a structural Verilog description of the circuit in Figure 2-43. Replace X, Y, and Z with input [2:0] X. Compile and simulate your Verilog model for all eight...
-
Consider the system of Fig. P7.2-5, and let the digital controller be a variable gain K such that D(z) = K. Hence m(kT) = Ke(kT). (a) Write the closed-loop system characteristic equation as a...
-
5. Consider the initial value problem dy dt 6y=-9e2t with y(0) = A. (a) Find the analytic solution. (b) For what values of A does the above solution tend to 0, 0, or - as t ? (c) Use Matlab to...
-
What are some of the various ways to implement an awareness program?
-
Using the data presented in BE16.9, assume that the investment in Ecotowns common shares is sold on January 15, 2022, for $690,000. Prepare the journal entry to record the sale of the investment....
-
Presented here are an incomplete income statement and balance sheet for Vieux Corporation. Additional information: 1. The gross profit margin is 40%. 2. The profit margin is 15%. 3. The receivables...
-
The shareholders equity accounts of Tmao Inc. at December 31, 2020, are as follows: Preferred shares, $3 noncumulative, unlimited number authorized, 4,000 issued ....................................
-
True or False. The Euler-Bernoulli beam theory is more accurate than the Timoshenko theory.
-
Find the free-vibration solution of a cord fixed at both ends when its initial conditions are given by \[w(x, 0)=0, \quad \frac{\partial w}{\partial t}(x, 0)=\frac{2 a x}{l} \quad \text { for } \quad...
-
What is the main difference in the nature of the frequency equations of a discrete system and a continuous system?
Study smarter with the SolutionInn App