Question 1 Asia Pacific Ltd started operating on 1 July 2017 with 12 employees. Three years later all of those employees were still with the company. On 1 July 2019 the company hired 15 more people but by 30 June 2020 only 10 of those employed at the beginning of that year were still employed by Asia Pacific Ltd. All employees are entitled to 13 weeks’ long-service leave after a conditional period of 10 years of employment with Asia Pacific Ltd. At 30 June 2020 Asia Pacific Ltd estimates the following: The aggregate annual salaries of all employees hired on 1 July 2017 is now $1,200,000. The aggregate annual salaries of all current employees hired on 1 July 2019 is now…Details
Cena Ltd purchased 75% of the capital of Lesnar Ltd for $250 000 on 1 July 2003. At this date the equity of Lesnar Ltd was: Share capital $ 100 000 General reserve 60 000 Retained earnings 40 000 At this date, Lesnar Ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the following assets: Carrying amount Fair value Inventory $ 70 000 $ 100 000 Plant (cost $170 000) 150 000 190 000 Land 50 000 100 000 The plant has a remaining useful life of 10 years. As a result of an impairment test, all goodwill was written off in…Details
Question 1 Hi Tech Products manufactures three (3) types of CD players: Cheap, Econo and Deluxe. Hi Tech uses an activity-based product costing system. The company has identified five (5) activities. Each activity, its cost and related activity driver are identified below: Activity Activity Cost Activity Driver Material handling $225 000 Number of parts Material insertion $2 475 000 Number of parts Automated machinery $840 000 Machine hours Finishing $170 000 Labour hours Packaging $170 000 Orders shipped Total manufacturing cost $3 880 000 The following information pertains to…Details
“Quick Kip” is a pet store specialising in cat beds. The store is owned and operated by Kat Knapp. The following adjusted trial balance has been prepared at year end but is not in the correct order. Quick Kip – TRIAL BALANCE AS AT 30 JUNE 2020 Debit ($) Credit ($) Cash 16,000 Advertising Expense 1,200 Depreciation Expense – Equipment 4,200 Freight Outwards 3,750 Allowance for Doubtful Debts 3,100 Insurance Expense 3,600 Inventory (1 July 2019) 43,000 General Expense 2,800 Loan Payable 32,000 Rent Expense 6,600 Equipment 16,000 Sales Returns 400 Accumulated Depreciation – Equipment 5,400 Prepaid Rent 1,500 Delivery Van 24,000 Purchases Returns 5,200 Accumulated Depreciation – Delivery Van 4,800 Accounts Payable 22,250 Sales Staff Wages Expense 19,000 Freight Inwards…Details
Accrual Accounting “Great Explorations” is a shop which sells hiking gear, including backpacks, hiking shoes and tents. It is owned and run by Nellie Bly. The following trial balance has been prepared at year end: GREAT EXPLORATIONS TRIAL BALANCE AS AT 30 JUNE 2020 Debit ($) Credit ($) Cash on Hand 12,500 Accounts Receivable 16,000 Inventory (30 June 2020) 32,500 Prepaid Shop Rent 24,000 Shop Shelving 120,000 Accum. Depreciation Shop Shelving 40,000 Bank Overdraft 6,000 Accounts Payable 9,300 N. Bly, Capital (1 July 2019) 141,700 N. Bly, Drawings 12,500 Sales 256,800 Sales Returns & Allowances 1,200 Discount Received 1,800 Cost of Sales 128,000 Sales Staff Salaries Expense 42,000 Advertising Expense 1,800 Discount Allowed 240 Freight Outwards 360 Interest Expense 1,400 Council…Details
Given: The Dowell Company produces and sells brooms. Their present sales volume is 500Kpa., and each broom sells for 0.5$.
Required: If their fixed expenses are 80K$pa. And unit variable cost is 0.3$, calculate the following:
a) The total profit for the year, and the break-even point amount.
b) The new profit if both the fixed costs, and the sales volume increase by 10%,
c) Starting with the values in the given paragraph, what would the new break-even point quantity be, if there was a 10% increase in the selling price, and a 20K$ increase in fixed expenses.
Which of the following is an example of good internal control over cash? Select one:
a. The accounts receivable clerk is responsible for the preparation of weekly bank reconciliations.
b. The accounts payable clerk is responsible for paying all accounts outstanding and can approve payment of accounts of less than $5,000.
c. The wages clerk is responsible for the preparation of wages and salaries payments. The wages are electronically transferred to employee’s bank accounts and are approved by the accountant.
d. The accountant is responsible for approving the purchase of all goods and services, and signs all cheques when payment is due.
Income Statement and Balance Sheet Laura Golarsa’s Asset and Liabilities as at June 30 are outlined in the post-closing trial balance below. Debit Credit Cash at Bank $2,700.00 Inventory (at cost) $4,000.00 Accounts Receivable $3,100.00 Plant & Equipment $6,600.00 Accumulated Depreciation: Plant & Equipment $2,640.00 Motor Vehicles $18,000.00 Accumulated Depreciation: Motor Vehicles $4,500.00 Land & Buildings $225,000.00 Accrued Expenses Payable $530.00 Bank Loan $51,730.00 Capital: Laura Golarsa $200,000.00 $259,400.00 $259,400.00 Laura Golarsa estimates that her sales for the next three months will be as follows: July August September $30500 $35800 $40850 Selling price is firmly established a cost plus 75% Markup, with 80% of sales on credit.…
Nina ltd purchased 90% of the issued shares of carl ltd for $2543000 on July 2018 when the equity ltd was as follows: Share capital 1017200 General reserve 762900 Asset revaluation surplus 381150 At this date, carl ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the following: Account Cost Carrying amount Fair value Further life (years) Inventories $76300 $83900 Land $191000 $210000 Machinery $295000 $236000 $283000 5 Carl ltd identified a t acquisition date a contingent liability related to a lawsuit where carl ltd was sued by a former supplier $31000 Carl ltd had unrecorded and internally generated patent with the FairValue of: $76000 Carl ltd had unrecorded and…
Question 1 Jardine Ltd is developing factory overhead rates for the coming year. Budgeted overhead costs for the five factory departments are as follows: Cost ($) Cost Driver Milling 79,500 Machine hours Finishing 84,600 Direct labour hours Maintenance 40,500 Repair hours Factory storeroom 52,800 Requisitions Factory office 37,800 No. of employees Total $295,200 Estimated operating statistics for the coming year are: Departments Repair hours No. of Requisitions No. of employees Machine hours Direct labour Hours Production: Milling 5,000 420 10 7,500 12,750 Finishing 2,500 240 8 4,000 11,250 Support: Maintenance 400 80 2 Factory…
Part A – Racca Limited Racca Limited is a new business that started trading on 1 January 2019. You have recently been appointed as an account manager within the accounting department and have been presented with the following summary of transactions that have occurred during the first year of trading: The owners introduced £180,000 of equity, which was paid into a bank account opened in the name of the business. Premises were rented from 1 January 2019 at an annual rate of £90,000. During the year, rent of £112,500 was paid to the owner of the premises. Rates (a tax on business premises) were paid during the year as follows: For the period 1 January 2019 to 31 March 2019…
Wayne Industry has been investigating the expansion of the company into new areas of development. In order to fund these new investments, the company needs an increase in equity. On 1 April 2022 the company decided to make a public issue to raise $1 800 000 for new capital development. The company issued a prospectus inviting applications for 600 000 $3 shares, payable in full on application. There was an additional incentive offered by Wayne Industry to investors, as those shareholders who acquired more than 30 000 shares were allowed to acquire options at 50 cents each. These options allowed the investors to acquire shares in Wayne Industry at $3.20 each, the acquisition having to occur before 30 November 2022. Wayne Industry had received applications…