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Suppose you have a budgeted cost of a project at PKR 100,000,000. The project is to be completed in 12 months. After a month, you have completed 5 percent of the project at a total expense of 1,000,000. The planned completion should have been 10 percent.Using the project status calculate PV, EV, AC, BAC, CV, SPI and CPI.
Debit Accounts Receivable
Credit Allowance for Uncollectible Accounts
- What does this journal entry mean?
Debit Cash
Credit Uncollectible Accounts Recovered (Revenue)
- What does this journal entry mean?
Is Allowance for Doubtful Accounts the same as Allowance for Uncollectible Accounts? If not, what is the difference?
Debit Expense
Credit Prepaid Expense
What does this mean?
Debit Prepaid Expense
Credit Cash
What does this mean?
Debit Expense
Credit Accrued Liability
What does this mean?
Debit Rent Expense
Credit Prepaid Rent
What does this mean?
Debit Insurance Expense
Credit Prepaid Insurance
What does this mean?
Debit Bad Debt Expense
Credit Allowance for Doubtful Accounts
What does this mean?
What actions can South African companies take to minimize the risk of doing business in foreign markets? As an international business manager suggest the strategies that may be used to reduce risk faced when doing business in other countries.
The following information is available for Barton Corporation on September 30 for the year just ended.
- A review of the $2,500 unadjusted balance in the supplies account shows a balance on hand at the end of the year of $2,350.
- The estimated yearly depreciation on the furniture is $500.
- $4,350 of the advertising paid for in advance has been published by the newspaper.
- Barton Corporation purchased a building in a previous year for $44,500 and plans to sell this building for $14,500 at the end of its ten-year useful life.
- Property taxes of $5,500 have accrued but are unrecorded.
- A review of the $24,500 unadjusted balance in the prepaid rent account shows a remaining balance of $23,500 at the end of the year.
- Unpaid and unrecorded advertising bills at year-end totalled $9,000.
- The estimated yearly depreciation on the equipment is $600.
- Wages of $47,500 have been earned by Barton Corporation's employees but have not yet been paid.
- $500 of the rent paid to Barton Corporation in advance has been earned.
Prepare the required adjusting entries at September 30, 2014.
Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan).
General Instruction: Attempt all of the following questions
1. Explain why economics deals with efficient utilization of scarce resources.
2. Define scarcity, tradeoffs and opportunity cost. Give three examples of important tradeoffs that you face in your life
3. Imagine a society that produces military goods and consumer goods, which we will call “guns” and “butter.”
a. Draw a production possibilities frontier for guns and butter. Explain why it most likely has a bowed out shape.
b. Show a point that is impossible for the economy to achieve. Show a point that is feasible but inefficient.
4. Assume a hypothetical consumer consumes good X and good Y. The price of good X is 1 and price of good Y is 3 and the consumer budget is birr 10 for the two goods. Where: QX is quantity of good X, QY is quantity of good Y and TUX and TUY is total utility from consuming good X and good Y respectively.
Q TUX MUx MUx/Px TUY MUy MUy/Py
0 0 0
1 10 24
2 19 45
3 27 63
4 34 78
5 40 87
6 44 90
Based on the given information, answer the following questions.
A. Compute the marginal utility of the two goods
B. At what amounts of consumption does diminishing marginal utility starts to occur for the two goods?
C. Determine the quantities of the two goods that the consumer should buy in order to maximize his total utility.
6. Explain the law of variable proportion.
7. Explain the reason why, in the short run, the fixed cost is said to be unavoidable cost
8. As a firm procures more out puts the average variable cost become closer to the average total cost of production, explain this concept
9. Suppose that a competitive firm’s total cost of producing output q is given by
TC= 3+3Q+q2. Assume that the market price for the firm’s product is $9.
a. What level of output will the firm produce?
b. Will the firm be earning positive, negative or zero profit?
10. A farmer grows a bushel of wheat and sells it to a miller for $1.00. The miller turns the wheat into flour and then sells the flour to a baker for $3.00. The baker uses the flour to make bread and sells the bread to an engineer for $6.00. The engineer eats the bread. What is the value added by each person? What is GDP?
11. Consider an economy that produces and consumes bread and automobiles. In the following table are data for two different years.
Year Year
2000 2010
Automobiles 100 $50,000 120 $60,000
Bread 500,000 $10 400,000 $20
Using the year 2000 as the base year, compute the following statistics for each year:
a) nominal GDP,
b) real GDP,
c) GDP deflator
d) CPI.
Dunn Company reported P900,000 income before provisions for income tax during the current year.
To compute the provision for income tax, the following data are provided:
Rent received in advance-------------------------------------------------------150,000
Interest income on time deposit (permanent difference) ---------------200,000
Depreciation deducted for income tax purposes in excess of depreciation for financial statement purposes ---------------------------------------------------------------------------100,000
Estimated tax payment in the current year --------------------------------125,000
Income tax rate-------------------------------------------------------------------------30%
What amount of income tax payable should be reported at year-end?
a. 125,000
b. 100,000
c. 210,000
d. 225,000
The following selected transactions and events of Orane Ltd. Were completed during the accounting year just ended, 31 December 20X5. Interest rates reflect market rates unless indicated.
a. On 1 June, the company borrowed $54,000 in cash from the bank on a demand basis. The interest rate was 5% to be paid on the anniversary date of the loan.
b. Merchandise was purchased on account; a $20,000, one year 6% interest-bearing note, dated 1 April 20X5, was given to the supplier. Interest is paid when the amount is due on 1 April 20X6.
c. Merchandise was purchased on account; a two year, $18,000, 2% note dated 1 February 20X5 was given to the supplier. Interest is due annually on 1 February. The going interest rate for this term and risk was 8%. Use the gross method to record the note payable.
d. A supplier delivered goods on account costing US$22,000. The exchange rate was US$1 = Cnd$0.96 at that time.
e. Orane has been sued by a customer for $450,000. The legal team confidently believes that there is an 85% chance that Orane will successfully defend itself.
f. New legislative requirements came into force at the beginning of this year regarding environmental remediation. Orane believes it will have to pay $90,000 in nine years time when the company vacates leased premises. The going interest rate for this term and risk was 8%.
g. Payroll records showed that the following amounts are unpaid: Gross wages $130,000; Income tax $33,000; EI $6,100; CPP $5,500; Union Dues $3,500.
h. The employer portion of EI and CPP are recorded.
i. Remittances were income tax, $31,350; EI $10,250; CPP $9,720; union dues $1,450.
j. Cash dividends declared but not yet paid were $23,500.
k. Accrue appropriate interest at 31 December, and adjust the foreign-denominated payable to the year end rate, US$1=Cnd$0.94.
Requirements:-
Give the entry or entries for each of the above transactions and events, if needed. (if not needed, explain why)
Prepare a list (title and amount) of the liabilities of Orane Ltd. at 31 December 20X5
List of all international accounting standards that are currently in use
What is the difference between these two journal entries? What does these journal entries entail?
Debit COGS
Credit Inventory
or.
Debit Inventory
Credit COGS
