You are considering investing in Australian shares and decide to investigate the shares of two Australian companies: Woodside Petroleum Ltd (WPL.AX) and Commonwealth Bank of Australia (CBA.AX).

Below are the opening prices, closing prices and dividends paid for WPL Ltd and CBA for the financial year 2018-2019.

Construct the minimum variance portfolio (MVP) comprising of only WPL and CBA and calculate the risk (standard deviation) and return of this minimum variance portfolio. (Hint: To calculate return of MVP you need annual holding period returns of the shares.)

. installment sales for 2018 is $600,000 and cost of goods sold $300,000 while the installment sales in 2019 is $1,000,000 and cost of goods sold $800,000, cash collection from 2018 sales was $400,000 in 2018 and $200,000 in 2019, cash collection from 2019 sales was $500,000 in 2019 and $500,000 in 2020, using cost recovery method compute gross profit realized in 2018?

a.
$100,000.

b.
$200,000.

c.
$300,000.

d.
$150,000.

On January 1, 2018, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $470,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. If the market interest rate is 9%, the bonds will issue at $431,721. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018.

Jim is a Mechanical Engineer. He earns $116000/year after allowable deductions.

a. What will he owe the IRS in 2018?  

Jim is offered a new position that will double his taxable income for 2018.

b. If he accepts the new position how much more will he owe the IRS in 2018?

Jim's boss Ron will have $601000/year taxable income in 2018.

c. What will he owe the IRS?

We have purchased 20 items of inventory at $2,500 each on 26 July 2019 from Suppliers on account. Ignore GST

Suppliers is your only creditor. Assume a perpetual inventory system, as per the Practice Set.

All numerical answers should consist of digits from 0 to 9 (no symbols, spaces or commas).

Dates should be entered as dd/mm/yy (eg 01/06/19).

Each box must have an answer - If it would normally be blank enter 0.

Select whether the following are impacted by this transaction.

Inventory AnswerYesNo

Subsidiary Ledgers AnswerYesNo

Which special journal will this transaction be recorded in? AnswerSalesPurchasesCash ReceiptsCash PaymentsGeneral

What is the most likely date that this transaction will be posted to:

The General Ledger: Answer

The Subsidiary Ledger: Answer

Enter the transaction into the journal provided, update inventory and post to the subsidiary and general ledger.

Purchases Journal (P1)

Inventory Record

Accounts Payable Subsidiary Ledger

General Ledger

Assume you pay the full amount owing to Suppliers on 02/08/19.

Complete the journal recording this payment:

Answer Journal (CP1)

Joyce is a single, cash-method taxpayer. On April 11, 2017, Joyce paid $120 in state income taxes with her 2016 state income tax return. During 2017, Joyce had $1,600 in state income taxes withheld. On April 13, 2018, Joyce paid $200 with her 2017 state tax return. During 2018, she had $2,100 in state income taxes withheld from her paycheck. Upon filing her 2018 tax return on April 15, 2019, she received a refund of $450 for excess state income taxes withheld. Joyce had total AGI in 2018 and 2019 of $51,000 and $53,500, respectively. In 2018, Joyce also paid $10,500 in qualified residence interest.

a. What is the amount of state income taxes Joyce may include as an itemized deduction for 2017?

b. What is Joyce’s allowed itemized deduction for state income taxes for 2018?

c. What is Joyce’s taxable income for 2018?

Sun Packaging Services began operations in January 2018.  The company received a prepayment of $16,000 from a customer to provide packaging services at the beginning of 2019.  Sun Packaging also purchased packaging machinery for $60,000 on January 1. Sun Packaging plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2018, 30% in 2019, and 20% in 2020. Pretax accounting income for 2018 was $500,000, which includes interest revenue of $32,000 from municipal bonds. The enacted tax rate is 30%.

Round up to the nearest whole dollar. Do not use dollar signs but DO use commas. For example, two-hundred and fifty thousand dollars (250000) should be entered as 250,000

Income tax expense for 2018 is?

The balance in the deferred tax asset account at December 31, 2018 is?

The balance in the deferred tax liability account at December 31, 2018 is?

Sun's packaging net income for 2018 is .

The following events occur for The Underwood Corporation during 2018 and 2019, its first two years of operations. June 12, 2018 Provide services to customers on account for $38,000. September 17, 2018 Receive $22,500 from customers on account. December 31, 2018 Estimate that 45% of accounts receivable at the end of the year will not be received. March 4, 2019 Provide services to customers on account for $53,000. May 20, 2019 Receive $10,000 from customers for services provided in 2018. July 2, 2019 Write off the remaining amounts owed from services provided in 2018. October 19, 2019 Receive $42,500 from customers for services provided in 2019. December 31, 2019 Estimate that 45% of accounts receivable at the end of the year will not be received.

Required:

1. Record transactions for each date.

2. Post transactions to the following accounts: Cash, Accounts Receivable, and Allowance for Uncollectible Accounts.

3. Calculate the net realizable value of accounts receivable at the end of 2018 and 2019

Question

The following data pertain to the operations of a manufacturing company for the year 2018

Item Amount (sh)

Sales revenues 1,000,000

Direct materials inventory, Jan 1, 2018 15,000

Direct labour 300,000

Depreciation, plant   60,000

Depreciation, equipment 40,000

Cutting tools used 10,000

Indirect labour 5,000

Factory lighting and power 10,000

Factory supervisor’s salary 50,000

Indirect materials 10,000

Finished goods inventory, Jan 1, 2018 30,000

Work in progress inventory, December 31, 2018 20,000

Office Supplies 10,000

Finished goods inventory, December 31, 2018 40,000

Direct materials inventory, December 31, 2018 25,000

Sales representatives salaries 250,000

Work in progress inventory, Jan 1, 2018 30,000

Purchases of direct materials 110,000

Factory supplies 5,000

Depreciation, administration office 50,000

Required; (a) Prepare a statement of the cost of goods manufactured

(b) Prepare an income statement for the company

Kim and Kim (K&K) Company’s balance sheet at December 31, 2017, reported the following

Accounts receivable............................................................... $2,000,000

Allowance for uncollectible accounts.....................................$20,000 DR

Requirements:

1. What was the net realizable value of these receivables at December 31, 2017?

2. Journalize, without explanations, 2018 entries for Kim and Kim Company:

a. Total credit sales for 2018 were $1,200,000; 2% of sales were estimated to be uncollectible.

b. K&K Company received cash payments on account during 2018 of $780,000.

c. Accounts receivable identified to be uncollectible totaled $38,000.

d. December 31, 2018, the aging of receivables indicates that $43,000 of the receivables is uncollectible (target balance).

3. Post the transactions to the Accounts receivable and the Allowance for uncollectible accounts T-accounts. Calculate and report K&K’s receivables and related allowance on the December 31, 2018 balance sheet.

4. What is the net realizable value of receivables at December 31, 2018?

5. How much is the uncollectible account expense for 2018?