On 1 Oct 2018, Andrew Brown opened Nundle Services, a small business offering maintenance services in New South Wales. During the month of October, the business incurred the following transactions: 2 Oct, Andrew invested $50,000 cash in the business, which is organised as a sole trader. 3 Oct, got a 5 year loan for $30,000 from the ANZ bank, interest is 5% pa. 4 Oct, purchased and paid for equipment worth $51,000. Monthly depreciation will be $850. 5 Oct, purchased supplies for $6,500 on credit. 8 Oct, paid Oct office rent of $7,200. 10 Oct, Brown withdrew $2,000 for personal purposes. 17 Oct, paid an invoice of $4,500 for advertising 25 Oct, paid one year of insurance for $5,600   Additional…

Question 1 ABC Company Ltd uses the periodic inventory system. At 1 April 2016 the company had 170* units as opening stock valued at $22 each. During the year ended 31 March 2017 the Company sold 2,765* units for $105,070. ABC Company made the following purchases during the year: 30 May 2016 500* units for $23 each 31 August 2016 400* units for $21 each 30 November 2016 1,000* units for $24 each 28 February 2017 1,000* units for $23 each   At 31 March 2017 ABC Company Ltd had 305* units as closing stock. Required: Calculate the closing inventory, cost of sales and gross profit using the: FIFO method. Weighted Average method.   Question 2 ABC Company Ltd has just…

Question 1 a.Jayne Saxby is considering buying a new house for $500,000 and needs to borrow money from a bank. Currently, ANZ bank offers a 30-year loan. She can choose to pay weekly at an interest rate of 4.55% pa, or fortnightly at 4.75% pa. (i) Which payment option should Jayne choose? (ii) If Jayne wants to pay $1,000 a week, how long will it take her to pay off the loan? b.Jennifer Jean is 30 years old and has just had a baby son. She and her husband want to open a "Bump" savings account with Westpac for their baby and save up to $200,000 by the time he is 18 years old. Westpac’s savings rate is currently at 2.5%…

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                       …

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:                         …

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…

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…

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…

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…