Solved Assignments

Cost Accounting – Mullins Corporation uses the FIFO method in its process costing system

Use the following to answer questions 1-7 (provide step by step solution): Mullins Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory:   Units in beginning work in process inventory                                           700 Materials costs                                                                                   $11,500 Conversion costs                                                                                $22,200 Percentage complete with respect to materials                                       75% Percentage complete with respect to conversion                       …

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FIN201 – Corporate Finance

Question 1: a) A company expects a series of 24 monthly receipts of $3,600 each. The first payment will be received 1 month from today. Determine the present value of this series assuming an interest rate of 12% per year compounded semiannually. b) A company is considering starting a new product line. The new product line requires the installation of new machines and equipment. For this purpose, company wants to borrow money by issuing bonds of $10,000 for 12-year period. The interest on these bonds is to be paid at a rate of 10% per year. Compute the amount of interest to be paid to bondholders over 12-year period:                         …

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East Meets West Ltd. operates two stores, one in Victoria

Question 1: East Meets West Ltd. operates two stores, one in Victoria and another in Halifax. The following income statements were prepared for the most recent year:   Victoria Halifax Net sales $3,780,000 $960,000 Variable costs:     Cost of goods sold 1,512,000 528,000 Sales commission 189,000 48,000 Utilities 17,200 15,300 Contribution margin $2,061,800 $368,700 Fixed costs:     Annual building lease 84,000 39,000 Salaries 380,000 180,000 Allocated corporate overhead 750,000 250,000 Amortization of store equipment & leasehold improvements 60,000 30,000 Operating income (loss) $787,800 $(130,300)   The store equipment and leasehold improvements have no market value. The building leases can be cancelled without penalty. Required: Calculate the dollar value of sales required for each store to break-even assuming that all…

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Bowral Holiday Hobbies Ltd plans to sell toy cars

Part A: Bowral Holiday Hobbies Ltd plans to sell toy cars over the internet and by mail order. Bowral Holiday Hobbies Ltd buys the toy cars for $24 and sells them for $32. If payment by cheque accompanies the mail orders (estimated to be 50 per cent of sales), Bowral Holiday Hobbies Ltd gives a 10 per cent discount. If customers include a credit card number for internet or mail order sales (20 per cent of sales), customers receive a 5 per cent discount. The remaining collections are estimated to be: • One month following 12% • Two months following 8% • Three months following 6% • Uncollectable 4% Bowral Holiday Hobbies Ltd has forecasted the following sales volumes: • June…

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Project Accounting 230 Fall Online – For this project, assume that you started a corporation called Vanities Eyebrow

230 Course Project For this project, assume that you started a corporation called Vanities Eyebrow Sculping Salon and Supply House in December 1, 2018. Your year-end is December 31st. During the month of December, the corporation set up a retail location where it provided eyebrow sculpting services and beauty supplies to its customers. You are the President and Treasurer of the Corporation and you are responsible for recording all the business transactions for the month and completing the entire accounting cycle for the year-ending December 31, 2018 (through the post-closing trial balance).   Part 1: Record the following external transactions for Vanities Eyebrow Sculping Salon and Supply for the month of December in the General Journal using the perpetual inventory system…

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Smart Solutions (Pty) Ltd is an IT solution company working in Sydney CBD

Smart Solutions (Pty) Ltd is an IT solution company working in Sydney CBD. The company is offering end to end IT solutions to both corporate and non-corporate sector.   The company started its operations on 1st July 2015. The company has just hired you as a Junior Accountant. The manager has provided you a list of account balances as on 30 June 2016.   Account name   Amount Sales $120,729 Electricity $1,100 Accounts Receivable $350 Land $247,000 Wages $49,000 Advertising $625 Accumulated Depreciation-Building $750 Accumulated depreciation- Moor vehicle $24,190 Building $450,000 Cash at Bank $12,375 GST Paid $395 GST Payable $3,096 Accounts Payable $1,580 Long Term Loan $145,800 Motor Vehicle $96,750 Telephone $1,250 Depreciation (Building) $750 Depreciation (Motor Vehicle) $24,190 Motor…

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ACC203 – A newly established brewing company in Sydney

ACC203 Question 1 A newly established brewing company in Sydney, Cool Brew Ltd, produces its main product, Cool Bay Draught, in 300 millilitre bottles. There are two production departments: Mixing and Bottling. The manufacturing costs for each department during March 2013 were tabulated below. Mixing Bottling Direct materials $ 113 000 $ 17 000 Direct labour 15 000 6 000 Manufacturing overhead 32 000 9 000   In March 2013, Cool Brew Ltd produced 48 000 litres of Cool Bay Draught that was bottled into 160 000 bottles. There were no beginning and ending work-in-process inventories. Required: Calculate the cost per bottle for Cool Bay Draught; Prepare the journal entries to record the production costs for March 2013, assuming that the…

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ACC101 – Fundamentals of Accounting I – The following transactions for ABC Constructions occurred

Question 1 Practical Questions                                                                       The following transactions for ABC Constructions occurred during April and May 2014: April 1   Owner contributes capital of $40 000, by an additional injection of cash. April 3   Cash is received from a customer, F. Turnip, $14 000. April 5   Supplies are requisitioned for use in the office, $500. April 9   Installation services are provided on credit for $13 500 to Banana Ltd. April 12   A $7 000 loan is taken out with AMP Loans Ltd. Interest is payable at 10% p.a. April 18   A bill for electricity consumed is received, $400. April 24   Office fixtures are purchased from Dots Ltd for $6 000. $2 000 is paid immediately by cheque, the remainder is due…

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You are the Finance Manager for Andy & Co

Q1. You are the Finance Manager for Andy & Co and have received the approval to borrow $200,000 with interest rate settled @5% p.a. The loan is for a period of 5 years. And to be repaid monthly. Calculate the repayment amount and total interest amount for the loan.   Q2. Andy & Co has also got a car loan of $25,000 for 3 years with interest rate settled @8% p.a. to be compounded quarterly. Calculate the accrued amount for the loan.   Q3 As on 31st May, 2016, Andy & Co’s loan account shows a balance of $5,100. The company made the minimum monthly payment of $100 for the month of June on 1st June. Calculate the interest amount accrued…

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BAFN306 – 2C ENTREPRENEURIAL FINANCE: NEW VENTURE FINANCING

Question 1. Valuing Early Stage a. Estimate Mindy Ltd’s terminal value based on the following information: Current year’s net income = $20,000; next year’s expected cash flow = $26,000; Constant future growth rate = 7%; Venture investors’ required rate of return = 20%.   b. In a wildly successful first year at Sachin Inc. that started and ended with no required cash, the firm has: Operating income of $989,000, net income of $637,000; Change in current assets of $900,000, change in current liabilities of $659,000; Net capital expenditures were $690,000, and depreciation was $460,000. The firm has never financed itself with debt. What is its equity valuation cash flow?   c. Estimate Darien Ltd’s equity valuation cash flow based on the…

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BAP32 – Corporate Accounting – Consolidation worksheet, previously held investment in subsidiary

Case 1: Consolidation worksheet, previously held investment in subsidiary   On 1 August 2018, Erik Ltd acquired 10% of the shares in Finn Ltd for $8000. Erik Ltd used the fair value method to measure this investment with movements in fair value being recognised in profit or loss. At 1 July 2017, the fair value of this investment was $15 400. The original investment in Finn Ltd was due to the fact that Finn Ltd was undertaking research into particular microbiological elements that could influence the profitability of Erik Ltd. With the continuing success of this research, Erik Ltd decided to acquire the remaining shares (cum div.) in Finn Ltd. On 1 July 2017, Erik Ltd made an offer to buy…

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ACC1103 BUSINESS ACCOUNTING

Question: #1 Why depreciation on fixed assets should be brought into account? Discuss in detail the several methods of providing for depreciation. You own a bakery and you’ve just bought a big Elba oven for the baking at a cost of RM30,200. It estimated disposal value or scrap value is RM200. Elba gives warranty of 3 years but it can be used for five years in the business. At the same time Users’ manual indicates that the oven can be used for 12,000 baking hours. Since you’ve just started the business, your estimate for using the oven will be Year Baking hours 1 1400 2 1800 3 2400 4 2800 5 2600 Prepare depreciation schedules based on the information given above…

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