The following is the Trial Balance for Polaris Resources as at 31 December 2019: Particulars Debit Credit Accumulated depreciation-Equipment $123,120 5-year Bank Loan $90,000 Capital $180,000 Accounts Payable $48,960 Sales $1,031,400 Carriage Outwards $4,320 Cash in Bank $32,760 Accounts Receivable $140,760 Drawings $94,320 General expenses $76,680 Equipment at cost $410,400 Opening Stock $81,000 Purchases $334,440 Utilities $95,040 Rental $18,720 Repairs and maintenance $16,200 Salaries $160,560 Sales returns $8,280 $1,473,480 $1,473,480 Additional information not accounted for in the trial balance: The closing stock as at 31 December 2019 was valued at $71,070. As at 31 December 2019, salaries outstanding amounted to $3,830 and utilities is prepaid by $1,420. Bad debts of $4,100 is to be written off. Depreciation for Equipment…Details
Fantastic Sky Tours Pty Ltd is a small sightseeing tour company in Sydney that specialises in aerial tours of the New South Wales area. Until recently, the company had not had an accounting department. Routine bookkeeping tasks, such as billing, had been handled by a person who had little formal training in accounting. As the business began to grow, however, the owner recognised the need for more formal accounting procedures. Miranda Jenkins, a CPA, was recently hired as the new management accountant, and she has the authority to hire an assistant. During her first week on the job, Miranda was given the performance report on the next page. The report was prepared by Robert Smith, the company’s manager of Aircraft Operations,…Details
QUESTION 1 (Module 2) Variable and absorption costing Froggy Ltd produces ornamental garden ponds and commenced operations in 2019. For 2019, Froggy budgeted to produce and sell 20,000 units. The company writes off under- or over-allocated overheads to Cost of goods sold. Fixed costs were as expected. Actual data for 2019 are given as follows: Units produced 20,000 Units sold 17,500 Selling price $320 Variable costs: Production cost per unit produced Direct materials $30 Direct production labour 24 Production overhead 46 Marketing cost per unit sold 20 Fixed costs: Production costs $1 050 000 Marketing $1,300,000 Administrative costs $980,000 Required Prepare a 2018 income statement for Froggy Ltd using variable costing. Prepare a 2018…Details
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|
Prepare general journal entries for Rapid Transport Service. Ignore GST.
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 $580 used during the last week in June has not been paid…
Pam Jones owns a business named Sunny Renovation. Below is the account information of Sunny Renovation at 30 June 2019.
|Cash in Bank||$ 45,600||Accounts receivables||$235,200|
|Accounts payable||67,400||Unearned revenue||18,000|
|Service income||372,000||Salary expense||222,000|
|Pam Jones, Capital||?||Equipment||130,000|
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 for which the fee was $5000. Payment was received in the following month of July.
- Was the revenue earned in June or July? How is profit determined under the cash basis of accounting and the accrual basis of accounting?
- What journal entries should be recorded under the accrual accounting in June and July?
- 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. 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. 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .…
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 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. 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:…