QUESTION 2                                                                                                    

A hospital consortium contracted with a private company to collect fees and maintain health facilities that adjoin their property. Users of the health facility can pay cash of R10 for a daily visit or they can purchase a pass. The pass has a magnetic strip that is swiped through the entrance device each time an individual enters the facility. This subtracts daily fee from the pass balance for each day used. The passes are issued for a fee of R365, which are good for 365 days. Refunds are not issued on the pass. Last year R18,650 was collected for daily visits, R438,000 of annual passes were issued, and R206,225 of pass usage was registered on the scanning equipment. How much should the company recognize as revenue for the year? Explain how the revenue recognition rule should be applied in this case.

John is the owner of medium-sized company that assembles personal computers in Ghana. He purchase most of the components for the company such as random access memory (RAM) on a competitive market. In order to maximise profit in the short run, he employed an economist to estimate the demand curve, which he was able to use to derive the marginal revenue (MR) from his product as: ??=70−16?. The economist also derived the marginal cost function (MC) as: ??=6?−51.

(i) Find the total revenue function and deduce the corresponding demand equation.

(ii) Find the total cost function if the fixed cost is 400.

(iii)Determine the number of laptops that maximizes the company’s profit.

(iv)How much should the firm charge for one computer?

(v)Find the total profit at the profit maximizing level of output.

One year ago your company purchased a machine for $110,000. You have learned that the new, much better machine is available for $150,000. In will be depreciated on a straight line basis and has no salvage value. You expect the machine to produce $60,000 per year in revenue and cost $20,000 per year to operate for the next ten years. The current machine is expected to produce $40,000 per year in revenue and also costs $20,000 per year to operate. The current machine’s depreciation expense is $10,000 per for the next 10 years, after which it will be discarded. It will have no salvage value. The market value of the current machine today is $50,000. Your company’s tax rate is 45% and the opportunity cost of capital is 10%. Should your company replace its year-old machine

1. One way of accessing financial information about a company is to look it up at the company's website. Access the most recent annual report of a company of your choice from the company's website and address the following points. a. Review the company's footnotes (notes accompanying the financial statements) to discover how it applies the revenue recognition principle and when it recognizes revenue. Report what you discover. b. Based on your observation of the financial statements, what amount should be credited to Income Summary to summarize its revenues earned? c. Based on your observation of the financial statements, what amount should be debited to Income Summary to summarize its expenses incurred? d. What is the balance of its Income Summary account before it's closed?

On 31 December 2018, the accounting records in Ahmed’s Company showed the following information:

                                                                                          (in Dirhams)

Prepare the Income Statement AND Balance Sheet for year ended December 31, 2018

Available data from Al- Hammy company for the month of march 2019 Joint cost $1850 Production Sales Product A 60 units 50 units for total revenue $1800 Product B 70 units 55 units for total revenue $1210 Depend on (S.V at split off point) gross margin percentage for product A would be:(5 Points)

%40

%50

%55

no answer

2.for above data the gross margin for product B would be:(5 Points)

$600

770

no answer

605

LATITUDES COMPANY

Adjusted Trial Balance

For the Month Ended June 30, 2020

Q. Prepare a post-closing trial balance.

Northern Pine Company had the following account balances on December 31, 2017: Accounts Balances Cash $3,000 Accounts Receivable $3,500 Prepaid Insurance $2,800 Equipment $16,000 Accumulated Depreciation $7,000 Accounts Payable $1,500 Deferred Revenue $800 Notes Payable $1,200 Common Stock $3,200 Retained Earnings $8,600 Dividends $1,700 Service Revenue $18,200 Salaries Expense $9,250 Rent Expense $4,250 How much is Northern Pine Company's net income for the year ended December 31, 2017

Northern Pine Company had the following account balances on December 31, 2017: Accounts Balances Cash $3,000 Accounts Receivable $3,500 Prepaid Insurance $2,800 Equipment $16,000 Accumulated Depreciation $7,000 Accounts Payable $1,500 Deferred Revenue $800 Notes Payable $1,200 Common Stock $3,200 Retained Earnings $8,600 Dividends $1,700 Service Revenue $18,200 Salaries Expense $9,250 Rent Expense $4,250 How much is Northern Pine Company's net income for the year ended December 31, 2017