You are an accountant of Rapid Transport Service

You are an accountant of Rapid Transport Service. The following information is available about the entity’s business transactions in June 2019.

 

June 1 Owner invested $50,000 in the business
5 Purchased equipment for $6,000, paid $2,000 in cash and agreed to pay the rest in 30 days
7 Paid office rent for the next six months $10,000
12 Sent an invoice to a client for the service provided 2,500
14 Received an advance payment of $8,000 from a client for the service will be provided in next 3 months

 

Required:

Prepare general journal entries for Rapid Transport Service. Ignore GST.

The unadjusted trial balance of Copper’s Hire Cars

The unadjusted trial balance of Copper’s Hire Cars is shown below (ignore GST).   Copper’s Hire Cars Unadjusted Trial Balance As at 30 June 2019 Account Debit Credit Cash at bank           8,140 Accounts receivable         12,860 Office supplies              640 Prepaid insurance           2,700 Hire cars         93,600 Accumulated depreciation – hire cars          39,400 Accounts payable          10,800 Unearned hire fees            2,260 H. S. Capital          68,340 H. S Drawings         20,600 Hire fees revenue          98,700 Insurance expense           8,180 Wages expense         50,620 Advertising expense           3,880 Maintenance expense           7,600 Fuel and oil expense         10,680       219,500        219,500   Petrol of $580 used during the last week in June has not been paid…

Pam Jones owns a business named Sunny Renovation

Pam Jones owns a business named Sunny Renovation. Below is the account information of Sunny Renovation at 30 June 2019.

Cash in Bank $ 45,600 Accounts receivables $235,200
Supplies 52,800 Prepaid Insurance 16,000
Accounts payable 67,400 Unearned revenue 18,000
Service income 372,000 Salary expense 222,000
Pam Jones, Capital ? Equipment 130,000

 

Required:

Using the accounting equation, prepare the balance sheet for Sunny Renovation at 30 June 2019 (please use the narrative/vertical format).

During June, Thuy Buoi’s business performed services for a specific customers

Question

During June, Thuy Buoi’s business performed services for a specific customers for which the fee was $5000. Payment was received in the following month of July.

 

Required:

  1. Was the revenue earned in June or July? How is profit determined under the cash basis of accounting and the accrual basis of accounting?
  2. What journal entries should be recorded under the accrual accounting in June and July?
  3. What journal entries should be recorded under cash accounting in June and July?

 

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Moravia Company processes and packages cream cheese

Moravia Company processes and packages cream cheese. The following data have been compiled for the month of April. Conversion activity occurs uniformly throughout the production process. Work in process, April 1—10,000 units: Direct material: 100% complete, cost of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 22,000 Conversion: 20% complete, cost of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .…

Cassie Ltd (Cassie) acquired all issued share capital

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Northeastern costs approximately $50,000 per year for

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Sami Design Ltd manufactures Sami musical instruments for use by high school students

Sami Design Ltd manufactures Sami musical instruments for use by high school students. The company uses a job costing system in which manufacturing overhead is applied on the basis of direct labour hours. The company’s budget for the current year included the following predictions: Budgeted total manufacturing overhead $556,020 Budgeted total direct labour hours 27800 During March, the firm began two production jobs: job number T81, consisting of 40 trombones job number C40, consisting of 95 cornets. The events of March are described as follows: 1000 square metres of rolled Sami sheet metal were purchased on credit for $5000 400kilograms of Sami tubing were purchased on credit for $3300 The following requisitions were filed on 5 March: — requisition number 112:…

Tripton Ltd operates a package holiday company in Cardiff

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Question Salad Ltd acquired all the net assets of an existing business, Lettuce Ltd on 1 July 2020. The statements of financial position of the two companies immediately prior to the acquisition were as follows:       Salad Ltd Lettuce Ltd Cash   $4,200 $2,000 Accounts receivable   30,000 16,500 Freehold land   265,000 100,000 Building (net)   35,000 28,000 Cultivation equipment (net)   69,000 46,000 Irrigation equipment   18,000 21,000 Delivery trucks   46,000 36,000 Motor vehicles   30,000 32,000     497,200 281,500 Accounts payable   29,000 24,500 Loan – Bank of NSW   155,000 79,000 Loan – Bernard Bros   35,000 34,000 Loan – Golds Corp.   72,000 52,500 Share capital               110,000 shares 110,000 –                …

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