Solved Assignments

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?

 

Kiwi Air is a privately-owned regional airline operating throughout New Zealand

Kiwi Air is a privately-owned regional airline operating throughout New Zealand. Their business primarily involves transport of airfreight cargo and private charter flights for large groups. On 1 April 2019, Kiwi Air a new aircraft from AirTeroa Aircraft Manufacturers Limited in a non- cancellable lease arrangement. The fair value of the aircraft on inception of the lease was $2,428,400. The term of the lease is 20 years, at which time the aircraft will be returned to AirTeroa. Kiwi Air’s depreciation policy applies the straight-line method for all non-current assets. Upon inception of the lease (1 April 2019), Kiwi Air made an initial payment of $300,000. Its annual lease payments are $250,000, to be paid each year of the lease term on 31…

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

200109 Corporate Accounting Systems Cassie Ltd (Cassie) acquired all issued share capital of Cotter Ltd (Cotter) on 1 July 2019 for a cash payment of $1,100,000. The share capital and retained earnings of Cotter at the date of acquisition were: Share capital            $600,000 Retained earnings     $250,000 At the date of acquisition all assets and liabilities of Cotter were carried at fair values with the exception of the following assets: Carrying amount Fair value Plant (cost $110 000)                  $90,000     $100,000 Land                                          $110,000     $160,000   The plant had a further 10-year useful life as at the date of acquisition. The land was intended to hold for further use. There were no intra-group transactions between Cassie and Cotter…

Northeastern costs approximately $50,000 per year for

Northeastern costs approximately $50,000 per year for a four-year program, whether completed in four years or five. Assume that a student’s parents realized 15 years ago, that college was going to cost $50,000 per year for four years, and wondered how much they would have to save each year to have the money to pay for the student’s education. The assumption is that payments are made into the college fund each year, and payments are withdrawn from the fund at the end of the relevant years. The key information for this scenario is as follows: a.The number of years of contributions is 18. b.The college payments will be made at the end of years 15, 16, 17, and 18, that is…

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

Tripton Ltd operates a package holiday company in Cardiff. The company has a reliable budgeting process from which the following information has been obtained: May June July Sales of holidays (units) 500 800 1000 Costs: £ £ £ Staff Salaries 196,000 196,000 196,000 Food 7,500 12,000 15,000 Administration costs 40,000 40,000 40,000 Repairs and maintenance 40,000 64,000 80,000 Depreciation on office equipment 20,000 20,000 20,000 Hotel costs 75,000 102,000 120,000 Office rent 28,000 28,000 28,000 Agents’ commission 27,000 42,000 52,000 (a)  Using the high-low method, calculate the linear cost equation in the form Y = a+bx for each semi-variable cost included in the budget above. (10 marks) (b)  Using the linear cost equations, where appropriate, prepare the total budget for the…

Salad Ltd acquired all the net assets of an existing business

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 –                …

Green Energy Company and Build-Smart Construction

Question 1: Green Energy Company has recently completed a $220,000, two-year study on its latest project, ‘Roof-top Solar”. It estimated that 28,000 units of its new Roof-top Solar units could be sold annually over the next 10 years at a price of $6,580 each. Subcontractors would install the unit at a cost of $4,700 per installation. Fixed costs of $11 million per annum will be incurred. The initial outlay includes $52 million to build production facilities and $4.2 million in land. The $52 million facility will be depreciated using the prime cost method over the project’s life (fully depreciated at the end of the project). At the conclusion of the project the facilities (including the land) will be sold for an…