QUESTION 1: General Journal, General Ledger, Trial Balance (42 marks} Part A (25 marks) Aaron Cheney is the sole proprietor of "Tasty Morsels", a business providing high quality catering services for weddings, special events, corporate functions and private dinners.   Required: Below is a list of transactions that took place during the month of August 2018. Record each of the following transactions (where required), using the blank General Journal provided on the following pages. Journals must be correctly formatted and include a narration (explanation) for each entry.   August 1            Tasty Morsel paid the August electricity bill of $375 in cash. August 3            Tasty Morsel purchased 15 white fine china dinner settings at a cost of $225 each. The purchase was…

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CVP Analysis Guide to marks: 20 marks – 4 for a, 4 for b, 4 for c, 8 for d Show all calculations to support your answers. A manufacturer can make two products, A and B. The following data are available Product A B Total Sales price per unit $12 $15   Variable cost per unit $8 $10   Total fixed costs/month     $5000           (a)Calculate the unit contribution margin for each product. (b)This month the manufacturer will specialise in making only Product B. How many does he need to sell to break even? (c)If they specialise in making only A what is the breakeven sales volume for the month in sales dollars? (d)He now decides…

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Question 2   On 1 July 2019, Paldivia Ltd acquired all the issued shares of Soletta Ltd for a cash consideration of $1 000 000. At that date, the financial statements of Soletta Ltd showed the following information.     $ Share capital 650 000 General reserve 20 000 Retained earnings 250 000   All the assets and liabilities of Soletta Ltd were recorded at amounts equal to their fair values at the acquisition date, except some equipment recorded at $50 000 below its fair value with a related accumulated depreciation of $80 000. Also, Palvidia Ltd identified at acquisition date a contingent liability related to a lawsuit where Soletta Ltd was sued by a former supplier and attached a fair…

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Current Tax and Deferred Tax Computation Food-Pro Ltd is a special food processing company. For the financial year ended 30 June 2018, FoodPro Ltd made a profit before tax of $607,500.   The following items of income and expenses are included in the calculation of its profit for the year:   Rent revenue $60,000 Loss on disposal of plant $16,001 Depreciation expenses - plant $96,000 Entertainment expense $29,880 Amortization of Research & Development costs $72,000 Doubtful debts expense $33,600 Warranty  expenses $129,600 Insurance expense $57,600 Annual leave expense $87,990   An extract of the company’s balance sheet for the financial year ended 30 June 2018 together with comparative figures for 2017 is given as follows:         Assets  2018…

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QUESTION: Pristine Limited (PL) manufactures and sells fireproof safes and document containers of various shapes and sizes for home use, including safes made to Australian/New Zealand Industry standard AS/NZS 3809. The division now makes 50 different products but these fit into the two main product groups of 35 metal safes and 15 more recently developed plastic safes. Table 1 shows last quarter’s income statement by product group. Table 1—Quarter 1 income statement by product group Metal safes Plastic safes Total $ $ $ $ $ $ Sales revenues 296900 246800 543700 Direct materials 21500 20680 42180 Process and support costs 231770 170280 402050 Total costs 253270 190960 444230 Net income 43630 55840 99470 Profit margin 14.7% 22.6% 18.3% The managing director,…

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2108AFE Financial Accounting Practice Set Assessment - Trimester 2, 2018     Practice Set Assignment and Quiz Students are required to complete the practice set assessment item in their own time and submit the completed files by the due date and time. Students will then complete a 10-question quiz based on information in the practice set. Due Date Practice Set File – 27 August 2018 by 9am. Online Quiz – Available from 27 August at 9am until 31 August 5pm. Where to submit your assessable work The Practice Set File is to be uploaded via the submission point under the Assessment tab in L@G. The Online Quiz will be available under the Assessment tab in L@G. Weighting 20% of your final…

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Implementation and analysis of departmental rates Robillard Products manufactures its products in two separate departments: Machining and Assembly. Total manufacturing overhead costs for the year are budgeted at $1,070,000. Of this amount, the Machining Department incurs $630,000 (primarily for machine operation and depreciation) while the Assembly Department incurs $440,000. The company estimates that it will incur 10,000 machine hours (all in the Machining Department) and 17,000 direct labor hours (3,000 in the Machining Department and 14,000 in the Assembly Department) during the year. Robillard Products currently uses a plantwide overhead rate based on direct labor hours to allocate overhead. However, the company is considering refining its overhead allocation system by using departmental overhead rates. The Machining Department would allocate its overhead…

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Voisine Products manufactures its products in two separate departments: Machining and Assembly. Total manufacturing overhead costs for the year are budgeted at $1,040,000. Of this amount, the Machining Department incurs $600,000 (primarily for machine operation and depreciation) while the Assembly Department incurs $440,000. The company estimates it will incur 4,000 machines hours (all in the Machining Department) and 14,500 direct labor hours (2,500 in the Machining Department and 12,000 in the Assembly Department) during the year. Voisine currently uses a plantwide overhead rate based on direct labor hours to allocate overhead. However, the company is considering refining its overhead allocation system by using departmental overhead rates. The Machining Department would allocate its overhead using machine hours (MH), but the Assembly Department…

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James is evaluating the expected performance of two common stocks, stock A and stock B. he has gathered the following information: The risk-free rate is 5% The expected return on the market portfolio is 11.5% The beta of stock A is 1.5 The beta of stock B is 0.8   Based on his own analysis, James’ forecast of the returns on the two stocks are 13.25% for stock A and 11.25% for stock B. Calculate the required rate of return for stock A and B. Briefly explain whether each stock is undervalued, overvalued, or fairly valued.

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