You want to buy a property valued at $1,200,000 and have arranged with the PB Bank for a 30 year mortgage equal to 90% of the sale price. The agreement calls for monthly repayments and the bank will charge 6% pa interest compounded monthly. If your first monthly payment is due one month after the loan is received, calculate the amount for your regular monthly payments. (Show answer correct to the nearer cent) After 5years (that is after the 60th payment) you want to refinance your mortgage with RH Bank. Assuming no exit fees, calculate the payout amount that is, the amount you have to pay PB bank to payout your mortgage. (Show answer correct to the nearer cent) The RH…

CIMB Bank pays its clients 5% interest per annum, compounded on a semi-annual basis. To remain competitive, the bank's major competitor, May Bank is willing to match the interest rate offered by CIMB Bank, but interest will be compounded on a quarterly basis. What nominal rate of interest must May Bank offer to its clients? (Show answer correct to four decimal points)

You have just borrowed $10,000. You are required to repay equal amounts at the end of each of 7 years, with the first payment starting in four years' time. Your interest rate is 8% per annum. How much will be the amount of each payment? (Show answer correct to the nearer cent)

Given the information below, perform the following required tasks for Carolina Coffee, Inc.: Prepare a monthly master budget for Carolina Coffee, Inc. for the year ended December 31, 2021, including the following schedules: Sales Budget & Schedule of Cash Receipts, Production Budget, Direct Materials Budget & Schedule of Cash Disbursements, Direct Labor Budget, Manufacturing Overhead Budget, Ending Finished Goods Inventory Budget, Selling and Administrative Expense Budget, and Cash Budget. Prepare a budgeted income statement and a budgeted statement of retained earnings for the year ended December 31, 2021, using absorption costing. Prepare a budgeted balance sheet as of December 31, 2021. Prepare a budgeted income statement for the year ended December 31, 2021, using variable costing. Master Budget:   Carolina Coffee, Inc.…

Financial information for Thomas Ltd and its 100% owned subsidiary, Gordon Ltd, for the period ended 30 June 2025 is provided below.   Thomas Ltd ($) Gordon Ltd ($) Sales revenue 52500 49560 Dividend revenue 2080 0 Gain on sale of PPE 2060 4120 Other income 2040 4080 Total income 58680 57760 Cost of Sales 43260 37080 Other expenses 6240 2080 Total expenses 49500 39160 Profit before income tax 9180 18600 Income tax expense 2835 4095 Profit for the period 6345 14505 Retained earnings (1 July 2024) 12840 6420 19185 20925 Interim dividend paid 5200 2080 Retained earnings (30 June 2025) 13985 18845   Thomas Ltd acquired its shares in Gordon Ltd at 1 July 2024 for $40800 on a cum div.…

Bellroy Company makes protective cases for iPhone 11 Pro Max. The company has three product lines - Polycarbonate (PC) cases, Silicone (S) cases and Thermoplastic Polyurethane (TPU) case. The following table presents the sales and cost data of the business.     PC case   S case   TPU Case Selling Price per unit 50 65   90   Variable Cost Per unit 45 61   87   Company’s total fixed cost 35,100           After analysing the market trend, the management accountant of Bellroy Company expects that the company will be able to sell 17,500 cases in next month consisting, 2,500 units of PC case, 10,000 units of S case and 5,000 units of TPU case.  …

Cannondale Bicycle Company manufactures various lines of bicycles. Because of the high volume of each type of product, the company employs a process cost system to determine unit costs. Bicycle parts are manufactured in the Moulding Department and transferred to the Assembly Department where they are assembled. After assembly, the bicycles are sent to the Packing Department. Cost and production figures for the Assembly Department are presented below for the month of June:   Production Data (in unit)   Beginning WIP Inventory (70% complete as to material; 40% complete as to conversion) 70,000 Started in June 460,000 Completed and transferred out 450,000 Ending WIP Inventory (75% complete as to material; 25% complete as to conversion) 80,000     Cost Data (in…

Computer Horizons Ltd. manufactures computers. The company has two corporate support departments (legal and personnel) in supporting each other and two manufacturing departments, the Laptop department and the Workstation department.   The overhead costs of support departments are allocated to the manufacturing departments. Legal hours are used to allocate the cost of legal department, and personnel hours are used to allocate the cost of personnel department. The budgeted overhead costs and cost allocation bases are given below:   Support Departments Manufacturing Departments Legal Personnel Laptop Workstation Overhead Costs before any inter department cost allocations $9,055 $4,000 $240,000 $200,000 Support Work provided by Legal Department Legal hours 2 3 37 20 Support work provided by Personnel Department Personnel hours 40 30 200…

Money Ltd acquired equipment on 1 July 2021 at $105,000. The equipment is depreciated using straight-line method and subsequently measured using the revaluation model. Money Ltd expects the equipment to have 7 years useful life and a zero residual value. The information below is available regarding the equipment in the following periods.   Date Fair Value Cost to Sell Value in Use 30 June 2023            $ 85,000 $ 2,000 $90,000 30 June 2025            $ 45,000 $ 3,000 $40,000   Required  Assuming indications of impairment exist on the dates above, please prepare the general journal entries (as per template below) to account for the equipment on the following dates: 30 June 2023 30 June 2025 General Journal Date Accounts Debit…