The balances in the accounts of Maybe Ltd at 30 June 2019 and 30 June 2020 are:

Other information:

Share capital is increased by the bonus issue of 24 000 shares for $1.00 each out of retained earnings. Plant is acquired during the period at a cost of $36 000, while plant with a carrying amount of $nil (cost of $24 000, accumulated depreciation of $24 000) is scrapped.

Required:

a)      Reconstruct the allowance for doubtful debts and accounts receivable.

b)      Reconstruct inventory and accounts payable

c)      Reconstruct accrued salaries

d)      Reconstruct property, plant and equipment and accumulated depreciation

e) Present a statement of cash flow for Maybe Ltd for the year ended 30 june 2020

PLEASE DO NOT COPY OTHERS ANSWERS

Proud Corporation acquired 80 percent of Spirited Company’s voting stock on January 1, 20X3, at underlying book value. The fair value of the noncontrolling interest was equal to 20 percent of the book value of Spirited at that date. Assume that the accumulated depreciation on depreciable assets was $44,000 on the acquisition date. Proud uses the equity method in accounting for its ownership of Spirited. On December 31, 20X4, the trial balances of the two companies are as follows: Proud Corporation Spirited Company Item Debit Credit Debit Credit Current Assets $ 248,000 $ 158,000 Depreciable Assets 500,000 308,000 Investment in Spirited Company 133,760 Depreciation Expense 21,000 11,000 Other Expenses 142,000 82,000 Dividends Declared 50,000 27,800 Accumulated Depreciation $ 195,000 $ 66,000 Current Liabilities 66,000 46,000 Long-Term Debt 113,960 186,800 Common Stock 182,000 87,000 Retained Earnings 266,000 57,000 Sales 231,000 144,000 Income from Spirited Company 40,800 $ 1,094,760 $ 1,094,760 $ 586,800 $ 586,800 Required: a. Prepare all consolidation entries required on December 31, 20X4, to prepare consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

True or False?

1. Merchandise inventory consists of products that a company acquires to resell to customers.

2. A service company earns net income by buying and selling merchandise.

3. Gross profit is the same as gross margin.

4. Cost of goods sold is also called cost of sales.

5. A wholesaler is an intermediary that buys products from a manufacturers or other wholesalers and sells them to consumers.

6. Goods in transit are automatically included in a company's inventory account.

7. If damaged & obsolete goods cannot be sold they are not included in inventory.

8. Goods on consignment are goods shipped by their owner, called the consignee, to a party called the consignor.

9. If obsolete or damaged goods can be sold, they will be included in inventory for realizable value.

10. If the seller is responsible for paying freight charges, then ownerships is passed when goods arrive at their destination.

11. A properly designed internal control system is a key part of accounting information systems design, analysis and performances.

12. The use of internal controls provides guaranteed protection against losses due to operating activities.

13. Internal control policies and procedures are the same for all companies

14. Maintaining adequate business records is an important internal control principle.

15. Proper internal control means that the responsibility for a task is clearly established and assigned to one person.

16. Accounts receivables occur from credit sales to customers

17. Credit sales are recorded by crediting an account receivable for the specific customer who is making the purchase

18. As long as a company accurately records total credit sales information, it is not necessary to have separate accounts for specific customers

19. If a customer owes interest on accounts receivable, the interest revenue account is debited and account receivable is credited

20. If a credit card sale is made, the seller can either debit cash or debit accounts receivable when the sale occurs.

Fork Company is a rapidly growing start-up business. The bookkeeper, who was hired ten months ago, left Hong Kong after the company's manager discovered that a large sum of money had disappeared over the past two months. An audit discovered that the bookkeeper had written and signed several checks made payable to his girlfriend and then recorded the checks as salaries expense. The girlfriend, who cashed the checks had never worked for the company, left Hong Kong with the bookkeeper. As a result, the company incurred an uninsured loss of $110,000.

Discuss which principles of internal control appear to have been ignored for the For Company.

Namaste, Inc. makes a line of bathroom accessories. A decline in sales has left the organization with 10,000 machine hours of idle capacity at their disposal each year. This idle capacity could be used by the company to manufacture, rather than buy, one of the pieces used in its production process. Namaste needs 5,000 units of this component each year. This component is currently being purchased from an outside supplier at $7.50 per unit. Variable production cost for the component is $4.10 per unit, and additional supervisory costs are $18,000 per year. Already existing fixed costs that would be allocated to this part come to a total of $300,000 per year.

How much would the company's overall annual NOI increase/decrease as a result of making the component, rather than purchasing it?

The following events apply to Equipment Services Inc. in its first year of operation:

1. Acquired $60,000 cash from the issue of common stock.
2. Received an $8,200 cash advance for services to be provided in the future.
3. Purchased $2,000 of supplies on account.
4. Earned $36,000 of service revenue on account.
5. Incurred $16,100 of operating expenses on account.
6. Collected $28,500 cash from accounts receivable.
7. Made a $15,100 payment on accounts payable.
8. Paid a $2,000 cash dividend to stockholders.
9. Recognized $1,600 of supplies expense.
10. Recorded $3,100 of accrued salaries expense.
11. Recognized $3,100 of revenue for services provided to the customer in Event 2.

Required
a. Record the events in T-accounts and determine the ending account balances.
b. Test the equality of the debit and credit balances of the T-accounts by preparing a trial balance.

• Required A
• Required B

Record the events in T-accounts and determine the ending account balances.

I have filled in some but need help with the remaining. Thanks.

Question 1

The following balances have been extracted from the accounts of Peya, a sole trader, for the period ended 31 March 2020.
N$
Sales 427,726
Carriage inwards 476
Wages and salaries 64,210
Carriage outwards 829
Purchases 302,419
Rent and rates 12,466
Heat and light 4,757
Stock at 1 April 2019 15,310
Drawings 21,600
Equipment at cost 102,000
Motor vehicles at cost 43,270
Provision for depreciation
– equipment 22,250
– motor vehicles 8,920
Debtors 50,633
Creditors 41,792
Bank 3,295 cr
Sundry expenses 8,426
Cash 477
Capital 122,890
The following information as at 31 March 2020 is also available:
(1) N$350 is owing for heat and light
(2) N$620 has been prepaid for rent and rates
(3) Depreciation is to be provided for the year as follows:
equipment at 10% on cost and motor vehicles at 20% on cost
(4) Stock at 31 March2020 isN$16,480
Required:
(a) Prepare the trial balance for Peya (before any adjustments) as at 31 March 2020.
(b) Prepare the trading and profit and loss accounts for Peya for the year ending 31 March 2020.
(c) Prepare the balance sheet for Peya as at 31 March 2020.
(Total 31 marks)
Due Date:

Find the interest rate for each deposit and compound amount. $8000 accumulating to $12,384.48, compounded quarterly for 8 years.

a. 5%

b. 5.75%

c. 5.5%

d. 6%

Richard, Barry and Andrew decided to enter into a partnership agreement as from 1^st July 2018, some of the provisions of which were as follows.

1.       Richard to contribute $24000 cash, inventory the fair value of which was $51000, plant and machinery $94320, accounts receivable totalling $15240

2.       Barry to contribute $45000 cash and act as manager for the business at an annual salary of $38400 to be allocated to him at the end of each year.

3.       Andrew to contribute $19800 cash, land $144000, premises $288000, furniture and fittings $48600, and motor vehicles $37800. A mortgage of $216000 secured over the premises was outstanding and the partnership agreed to assume the mortgage.

4.       Profits or losses of the firm to be divided between or borne by Richard, barry and Andrew in the proportion of 2:1:3 respectively.

5.       Interest to be allowed at 8% p.a. on the capital contribution by the partners. Interest at 10% p.a. to be charged on partners’ drawings.

6.       During the year ended 30 June 2019, the income of the partnership totaled $144960, and the expenses (excluding interest on capital and drawings and Barry’s salary) amounted to $51600.

7.       Richard withdrew $14400 on 1 October 2018 and $9600 on 1 January 2019; Barrie withdrew $4800 only on 1 April 2019; Andrew withdrew $12000 on 30 June 2019.

Required

A) Prepare general journal entries necessary to open the records of the partnership.

B) Prepare the balance sheet of the partnership immediately after formation.

C) Prepare a Profit Distribution account for the year ended 30 June 2019.

PLEASE DO NOT COPY OTHERS ANSWERS

The following transactions occurred in April at Steve’s Cabinets, a custom cabinet firm:

1. Purchased $25,500 of materials on account.

2. Issued $1,750 of supplies from the materials inventory.

3. Purchased $13,100 of materials on account.

4. Paid for the materials purchased in transaction (1) using cash.

5. Issued $15,500 in direct materials to the production department.

6. Incurred direct labor costs of $29,500, which were credited to Wages Payable.

7. Paid $23,100 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.

8. Applied overhead on the basis of 130 percent of $29,500 direct labor costs.

9. Recognized depreciation on manufacturing property, plant, and equipment of $11,900.

The following balances appeared in the accounts of Steve’s Cabinets for April:

b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.

Material Inventory

Work-in-process

Manufacturing Overhead Control

Applied overhead

Accounts payable

Cash

Wages payable

Accumulated Depreciation- Property, Plant, and Equipment

Finished Goods Inventory

Cost of goods sold

Discuss effective techniques for reducing stage fright in business communication.

shannon company segments its income statement into its North and South Divisions. The company's overall sales, contribution margin ration, and net operating income are $1,020,000, 38%, and $20,400 respectively. The North Division's contribution margin and contribution margin ratio are $142,800 and 42% respectively. The south Division's segment margin is $163,200. The company has $244,800 of common fixed expenses that cannot be traced to either divisions. Prepare an income statement for Shannon Company that uses the contribution format and is segmented by division. In addition, for the company as whole and for each segment show each item on the segmented income statements as percent of sales.

oy decides to buy a personal residence and goes to the bank for a $150,000 loan. The bank tells him that he can borrow the funds at 4% if his father will guarantee the debt. Roy's father, Hal, owns a $150,000 CD currently yielding 3.5%. The Federal rate is 3%. Hal agrees to either of the following:

• Roy borrows from the bank with Hal's guarantee to the bank.
• Cash in the CD (with no penalty), and lend Roy the funds at 2% interest.

Hal is in the 32% marginal tax bracket. Roy, whose only source of income is his salary, is in the 12% marginal tax bracket. The interest Roy pays on the mortgage will be deductible by him.

Considering only the tax consequences, answer the following. If required, round the interim calculation for the tax on interest income to the nearest dollar. Final answers should be rounded to the nearest dollar, if required.

a. The loan guarantee:
Hal's interest income from the CDs would be $ before taxes and $ after taxes.

Roy's interest expense from the bank loan would be $ before taxes and $ after taxes.

This arrangement would produce an overall negative  cash flow after taxes to the family of $.

b. The loan from Hal to Roy:
Hal's tax on the imputed interest income from the loan to Roy would be $.

Roy's tax benefit from the imputed interest expense from Hal's loan would be $.

This arrangement would produce an overall negative  cash flow after taxes to the family of $.

c. Which option will maximize the family's after-tax wealth?
The loan from Hal to Roy

Adonis Corporation issued 10-year, 7% bonds with a par value of $130,000. Interest is paid semiannually. The market rate on the issue date was 6%. Adonis received $139,674 in cash proceeds. Which of the following statements is true?

• Adonis must pay $139,674 at maturity plus 20 interest payments of $4,550 each.

• Adonis must pay $130,000 at maturity plus 20 interest payments of $4,550 each.

• Adonis must pay $130,000 at maturity plus 20 interest payments of $3,900 each.

• Adonis must pay $139,674 at maturity and no interest payments.

• Adonis must pay $130,000 at maturity and no interest payments.

Swifty Corporation has 2,000 shares of 10%, $130 par value preferred stock outstanding at December 31, 2020. At December 31, 2020, the company declared a $140,000 cash dividend. Determine the dividend paid to preferred stockholders and common stockholders under each of the following scenarios.

1. The preferred stock is noncumulative, and the company has not missed any dividends in previous years.

The dividend paid to preferred stockholders $

The dividend paid to common stockholders $

2. The preferred stock is noncumulative, and the company did not pay a dividend in each of the two previous years.

The dividend paid to preferred stockholders $

The dividend paid to common stockholders $

3. The preferred stock is cumulative, and the company did not pay a dividend in each of the two previous years.

The dividend paid to preferred stockholders $

The dividend paid to common stockholders $