The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers:

Record on page 10 of the journal

Record on page 11 of the journal

Required:

Chart of Accounts

Journal

Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Scroll down for page 11 of the journal.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

Define total revenue, marginal revenue, and average revenue. Discuss why the demand curve is represented by the marginal revenue curve for a perfectly competitive firm

Allah, Ballah and Callah formed a Chartered Accountancy Firm in 2002. Their partnership agreement provided for the following:

1. Profits and Losses are to be shared as follows: Allah takes half, Ballah takes one-third and Callah takes the remainder.
2. Interest is to be charged on the partners’ drawings and capital balances at 3.5%vand 5% per annum respectively.
3. Allah, the administrative partner, is to be paid a monthly salary of GH¢2,400
4. Drawings by the partners were effected as follows:

Allah         GH¢36,000 on April 1,2004

Ballah        GH¢48,000 on June 30,2004

Callah        GH¢43,200 on September 30, 2004

In order to increase his capital contribution, Ballah, on July1,2004 released one of his private cars with a value of GH¢50,000 for exclusive use of the firm. He accordingly transferred the ownership of the car to the firm on the same date. On September 30,2004 it was further agreed that Allah should withdraw GH¢10,000 from his capital, while Callah should increase his capital by GH¢8,000.

The net profit for the year under consideration was GH¢71,565.

The partners credit balances as at January1, 2004 were as follows:

                                          Capital Account          Current Account

Allah                                 GH¢180,000                 GH¢10,500  

Ballah                                GH¢90,000                   GH¢8,200    

Callah                                GH¢62,000                    GH¢7,900   

Required: Prepare for the year ended 31^st December,2004

1. Profit and Loss Appropriation Account.
2. The Capital and Current Accounts of the partners in a columnar form.

Required information

[The following information applies to the questions displayed below.]

Hogan Company uses the net method of accounting for sales discounts. Hogan offers trade discounts to various groups of buyers.

On August 1, 2021, Hogan factored some accounts receivable on a without recourse basis. Hogan incurred a finance charge.

Hogan also has some notes receivable bearing an appropriate rate of interest. The principal and total interest are due at maturity. The notes were received on October 1, 2021, and mature on September 30, 2022. Hogan’s operating cycle is less than one year.

Required:

1a. What is the rationale for the amount recorded as sales under the net method?




1b. Using the net method, describe any effect on Hogan’s sales revenues and net income when customers do not take the sales discounts.




2. Describe the effect trade discounts have on the amount recorded as sales revenue and accounts receivable.




3. Explain why Hogan should or shouldn't decrease accounts receivable to account for the receivables factored on August 1, 2021.




4. Explain the reasoning for the classification of the interest-bearing notes receivable as current or non-current in its December 31, 2021, balance sheet.

1. Which of these transactions requires a debit entry to Cash?

a. collected balance due from customers

b. paid balance due to suppliers

c. sold merchandise on account

d. purchased supplies for cash

2. What is the impact on the accounting equation when a payment of account payable is made?

a. both sides decrease

b. both sides increase

c. only the Asset side changes

d.neither side changes

3. That a business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally, is known as which of the following?

a. separate entity concept

b. monetary measurement concept

c. going concern assumption

d. time period assumption

4. Which set of accounts has the same type of normal balance?

a. Accounts payable, retained earnings

b. Cash, accounts payable

c. Prepaid rent, unearned service revenue

d. Dividends, common stock

5. The step-by-step process to record business activities and events to keep financial records up to date is ________.

a. accounting cycle

b. day-to-day cycle

c. general ledger

d. journal

Assume that you are a consultant for an international management strategy consulting firm. Your firm has been approached by Mr. Hans Wursching, CEO of TransSprech, A.G., a newly formed cellular phone service and phone provider based in Stuttgart, Germany. TransSprech has a satellite GSM network with complete coverage in Europe and the United States, as well as throughout most countries in the world. The company has established some semblance of a marketing and management strategy, and you have been asked to review the current strategy and help the company go to the next level by growing its sales. You recently conducted the initial information-gathering meeting with Mr. Wursching, and received the following information: ? TransSprech maintains corporate offices in numerous cities around the world. However, its customer service outlets and retail sales are conducted through the company website, as well as through licensed electronic retailers. It does not maintain its own customer service or retail locations. ? Its target markets are both companies and individuals wanting cellular phone service with worldwide coverage and who are willing to pay a premium to get it. It already has about three thousand customers worldwide and is hoping to grow to ten thousand by year end. ? Corporate customers are more valuable customers because they are buying in larger volumes. Establishing a customer base is very important as this company attempts to establish itself. ? No sales force has been established. So far, the company has received many customers in response to its advertising. ? It offers individual customers four different cost plans with respect to the cellular service as well as five different phone options. However, corporate customers can negotiate variations within the established options. ? The phones themselves are similar to those used by TransSprech competitors but the satellite network providing the coverage is far more advanced. ? The company has retained a Berlin-based advertising and public relations agency to develop a worldwide advertising campaign. Print and TV advertisements have recently saturated the European market and will soon be shown in the US market. The company is currently running several promotions to get its product and name known; however, its long-term goal is to offer a premium, non-discounted product that is desired because of its value and quality, not low price. ? Because the company and its product are in the early stages of development, there have been technical problems, and the company has had to provide a great deal of service to its customers. ? Mr. Wursching understands that it costs more to acquire new customers than to retain existing ones, so he would like to establish a customer relationship management plan at some point to improve customer loyalty and retention. He has a well-trained customer service operator staff in place.

Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or Access. Zisa deducts a 3% service charge for sales on its credit card. Access deducts a 2% service charge for sales on its card. Mayfair completes the following transactions in June.

Required:
Prepare journal entries to record the preceding transactions and events. (The company uses the perpetual inventory system.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Create a new table named CUSTOMER_STATUS.The table will hold the Customer_Status_Id and the Customer_Status_Description with possible values:

Inactive, Active, Very_Active

These values will be used to characterize the customers so that:

                  Inactive Customers => Have 0 orders

                  Active Customers => Have between 1 and 3 orders

Very Active Customers => Have 4 or more orders

Swift Inc Company, all information about 2019, prepare a balance sheet for Swift Inc. as of December 31, 2019.

• Retained earnings at December 31, 2018is $234,000
• Sales (all credit sales) are $2.5 million
• Days to sell inventory is 20
• Cash on hand is 1% of sales
• All sales are paid 30 days after purchase
• Noncurrent assets are $1 million
• Long-term debt to equity ratio is 1
• All liabilities, other than long-term debt, are short-term liabilities
• 20,000 shares outstanding issued at $10 in 2004
• No dividends are paid
• Gross margin is 40%
• Net profit margin is 8%
• Assume there are 360 days in the year

In 1993, Skysong Company completed the construction of a building at a cost of $2,120,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $64,000 at the end of that time. Early in 2004, an addition to the building was constructed at a cost of $530,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $21,200. In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate.

Compute the annual depreciation to be charged, beginning with 2022. (Round answer to 0 decimal places, e.g. 45,892.)