Accounting Answers

Debit Insurance Expense

Credit Prepaid Insurance

• What does this journal entry mean? Insurance Expense increase because its an expense and Prepaid Insurance is an asset and that decreases. So, you purchase insurance expense and prepaid insurance is acting like cash because you are paying for it. Is this statement correct?

Debit Prepaid Rent

Credit Cash

• What does this journal entry mean? You make an advance payment which is the Prepaid Rent (asset) and you pay cash which decreases this account. Is this statement correct? Please correct my statement.

Control Accounts and Incomplete Records

Bank

Balance b/d 40,000 Payments to suppliers 492,020

Cash sales 170,000 Cash purchases 32,500

Receipts from debtors 458,560 Rent 57,500

Motor vehicle 300,000 Fixtures 220,000

Bank interest 2,500 Rates 8,500

Commission 73,000 Wages 66,000

Balance c/d 53,960 General office expenses 11,500

Loan 78,000

Drawings 132,000

Total 1,098,020 1,098,020

List of balances:

Details Jan 1 Dec 31

Creditors 83,200 91,030

Debtors 94,500 82,400

Stock 75,500 95,600

Loan 194,000 116,000

Building 340,000 340,000

Motor vehicle 720,000 400,000

Fixtures 0 210,000

Rates prepaid 4,600 7,600

Commission owing 21,500 25,000

Wages owing 14,500 22,000

Additional notes:

Stock taken for personal use $9,500

Bad debt written off $8,500

Discounts allowed $3,400

motor vehicle sale was at net book value

REQUIRED:

the trial balance, statement of profit or loss, and

statement of financial position for New day Traders for the period( include all workings for the statement of affairs and control accounts please)

3.a. Define elasticity of supply and find the price from the given statement:

If Es of a good is 2 and a firm supplies 200 units at price of Rs 8 per unit, then at what price will the firm supply 250 units. (5 Marks)

b. Calculate the elasticity of supply if a 15 %increase in the price of soya bean oil increases its supply from 300 to 345 units 

B. Ware and Company performs all of its own accounting up to the trial balance stage. The CU Now and Then Inc., a firm of chartered accountants from the big city, prepares the adjusting entries and the financial statements. You are an auditor with CU Now and Then Inc., and have just completed the financial statements for B. Ware. You have just driven 800 kilometers to deliver these statements for an important business meeting that day and to begin some other audit work. When you open your files, you find that your working papers have been tampered with. The balance sheet, the worksheet, and the list of adjusting entries for B. Ware are missing. Only the income statement is present. The important meeting is only two hours away.

Stock Valuation JAN 2014

During the month of February the following transactions occurred to produce 3 products.

1. Material purchase on account 

Sand 500.00

Steel 790.00

Chemical 4500.00

2. Direct material issued and direct labor cost 

  Direct material issued direct labor cost

Job – 1. 227.50. 160.00

Job – 2. 780.00. 210.00

Job – 3. 3900.00. 175.00

3. Factor over head is 60% of direct labor cost 

4. Finished goods sold Birr 7200.00

Required 

1. Record journal entries?

2. Calculate cost of each job ?

3. Calculate gross profit ?

Other Financing Sources/uses = GRSPP Funds

Other Financing Sources/uses = Proprietary Funds

Is this statement correct? Can you please correct it for me if it needs to be?

There has been a greater emphasis being placed on E-Governance in India which refers to the usage of e-commerce and e-business technologies by governments & their departments to conduct their own business. Choose your own city/town municipality & write down the salient features of any Government to Citizen (G2C) initiative conducted in your area recently. Also highlight the key benefits of this G2C initiative in your area to the common man. How has it changed the life of a common citizen? Support the benefits section with some statistics or Quantitative data (For example: Number of citizen complaints fell down by 65%). (In case you are living in a rural area, please choose the nearest city of your region, in case you are living abroad, you are free to choose your local foreign city to explain)

Solar and Wheein enter into an agreement and formed ANGEL LINE partnership in which Solar is to have a 65% interest in capital and profit. Solar invested the following:

Land        P 600,000          ?

Building      4,000,000        fair value of which is 65% of its cost

Equipment    1,500,000        fair value of which is 70% of its cost

There is a P650,000 mortgage on the building with the partners agree to assume. Wheein contributes cash of P2,100,000 and the partners agreed that this should be his capital credit.

Question: How much should be the total agreed equity?

The city of Leh is the joint capital & the largest town of the union territory of Ladakh in India. Leh is at an altitude of 3,524 metres (11,562 ft), and is connected via National Highway 1 to Srinagar in the southwest and to Manali in the south via the Leh-Manali Highway. You have been invited as an external IT consultant by Government of India with a mandate to convert Leh into a “Smart City”