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The treasurer of the Plumpton leisure centre has produced the following receipts and payment for year ended 31 December 2019
Receipts
Balance at bank 1 January 2019 $3900
Subscription received profits from dances $45060
Profits from exhibitions $890
Profits on dances $4116
Refreshment takings $16290
Sale of equipment $340
Tottal $70596
Payments
Refreshment supplies bought $4320
Wages of attendant and cleaner $31400
Rent of building $8700
New equipment bought $18200
Travelling expenses of teams $1500
Balance at bank 31st December 2019 $6076
Tottal $70596
Notes
1. Refreshment stock were valued 31st December 2018 : $680, 31st December 2019 $920
There was nothing owing for refreshments stock as at these dates.
2. On January 2019, the club's equipment was valued at $32400. Includedin this figure valuede at 420
Was the equipment sold during the year for $340
3. The amount to be charged for depreciation of equipment for the year is $5200. This is in addition to the loss on equipment sold during the year
4. Subscriptions owing by members at 31st December 2019 is $860
Required
Draw up refreshment trading account and charge $4680 of wages to this account and the remainder to the income and expenditure account
Calculate the accumulated fund as at 1st January 2019
Draw the income and expenditure account and a balance sheet as at 31 December 2019
Problem 4-1- Transactions and Related Adjusting Entries Pete's Parasailing takes tourists on parasailing rides over South Beach in Miami, Florida. Parasailing tickets sell for $100 per customer. The company adjusts its accounts at the end of each year. Below are selected transactions from the year 20x5. Purchased a used boat for $56.000 cash. Estimated useful life of the boat is 5 years. Estimated salvage value $0. Jan. 1 Purchased office supplies from Best Buy Supplies Company for $800 cash. On December 31, $540 of these supplies has been used. Feb. 2 The company paid $18.000 for a one-year liability insurance policy with Florida Insurance Company. Apr. 1 A one year bank loan in the amount of $42,000 was obtained. Interest is to be computed at an annual rate of 8% and is payable when the loan becomes due on September 1. 20x6. Sept. 1 Received cash for 50 tickets sold for future rides through local hotels. On December 31, 40 of these tickets had been used by customers. Dec. 1 Dec. 31 Salaries earned by employees that have not yet been paid amount to $800. Unrecorded Income Tax Expense acerued on December 31 is $2.200. This amount will not be paid until January 15. 20x6. Dec. 31 Instructions For each of the above transactions record the appropriate journal entry and its related adjusting entry on December 31. 20x5. Be sure to include an explanation.
A firm uses two inputs in production: capital and labor. In the short run, the firm cannot adjust the amount of capital it is using, but it can adjust the size of its workforce. What happens to the firm’s average total cost curve, the average variable cost curve, and marginal cost curve when
a. the cost of renting capital increases?
b. the cost of hiring labor increases?
Diana leases out German sports cars. She started business on 1st Jan 2010 and has decided to depreciate the cars on a straight line bases at 25% per annum on cost at the year end. During the year 2010 to 2013 the following purchases took place.
2010 Acquired 20 Porsche 924 turbos at a cost of Rs. 18,600,000 each.
2011 Purchased 6 Porsches for a total cost of Rs. 108,600,000.
2012 Purchased a further 2 cars costing Rs. 19,800,000 each.
2013 Purchased 15 cars for Rs. 21,000,000 each.
Diana prepares account to 31st Dec each year.
Required:
Prepare a vehicle account and accumulated depreciation account and a depreciation account for the years 2010 to 2013.
How to record accrued expense?
Compute for the net income
The playdate kiddiegym is owned and managed by cris roxas.The balance of the Cris Roxas ,Capital is P765,430 and P857,340 on December 31, 20X1 and December 31,20X2, respectively.Net income for 20X2 is P115,465.Cr Compute is did not make additional contribution to the business in 20X2.Determine the balance of the Cris Roxas Drawings account on December 31,20X2
You are planning to invest $10,000 into the stock for one company. You research various investment options and identify two possibilities: Citigroup and Wells Fargo. You decide to invest in Citigroup. A year later, your Citigroup investment is worth $13,340. You look at Wells Fargo. Had you invested in Wells Fargo, your investment would now be worth $10,320. What is your economic profit?
What is the difference between Revenue and sales
Presented below are eight business transactions. Indicate the effect of each transaction on each element of the accounting equation.
(a)Purchased $296 of supplies on account.
(b)Performed $501 of services on account.
(c)Paid $345 of operating expenses.
(d)Paid $296 cash on account for the supplies purchased in item (a) above.
(e)Invested $1,080 cash in the business.
(f)Owner withdrew $386 cash.
(g)Hired an employee to start working the following month.
(h)Received $501 from a customer who had been billed previously in item (b) above.
(i)Purchased $489 of equipment in exchange for a note payable.
Q.1.1 Hybrid Dealers bought computer equipment for R54 000 on 1 July 2018. The equipment is depreciated at 20% according to the diminishing balance method.
Required:
Prepare the depreciation and closing transfer entries in the general journal of
Hybrid Dealers on 31 March 2019 and 31 March 2020. (15)
