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…Details
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…Details
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…Details
All amounts are in $AUD. Blackmores is evaluating between two manufacturing facilities projects in Asia. In order to mitigate the risk and assess the fit for purpose of these manufacturing plants Blackmores asked “SGS Ltd.” to conduct a technical due diligence on each of the two facilities. “SGS Ltd.” is asking $1 Million as a fixed fee for its consulting services. Project A has an initial outlay of dollars $500 million and Project B has an initial outlay of $950 million. Project A will produce 350,000,000 tablets ready for sale starting at the end of year 1 until the end of year 5 and 450,000,000 tablets starting at the end of year 6 until the end of year 10. It will…Details
Atom Ltd’s opening inventory balance at 1 January 2020 was 58 units of LED screens valued at $ 17.80 each. The company’s storekeeper has prepared the following records: Date Received Units Purchase price Per Unit($) Date Issued Units Selling Price Per Unit ($) Jan Jan 3 62 17.40 4 68 61.50 8 54 17.25 10 48 59.00 26 52 16.65 28 56 57.20 The company incurred the following expenses during the month of January 2020: $ Salaries 2,240 Rental 3,100 Required: Prepare the stock record card to record the stock movement for the month of January 2020 using the First-in First-out Method (FIFO). State the quantity and value of the stock available on…Details
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?