Accounting Answers

this exam.

SHORT EXERCISE #1 (15 POINTS):

Tom’s Surf Company, whose fiscal year ends December 31, completed the following transactions involving notes payable:

2018

Nov 30 Purchased inventory display equipment by issuing a 60 day 10 percent note for $35,000. Dec 31 Made the end-of-year adjusting entry to accrue interest expense

2019

Jan 29 Paid off the balance of the note

Prepare the journal entries for the above transactions. Round your answers for interest calculations to the nearest cent. Assume there are 365 days in the year.

What does it mean if both entries for a merchandiser's sale transaction (the sale, and the removal of the sold item from inventory) are recorded for the same dollar amount?

Which one of the following is not a recommended qualitative characteristic that the accounting policies and financial statements of companies should have?

Select one:

a. Comparability

b. Relevance

c. Reliability

d. Probability

On 1 August 2010 the following balances appeared in the accoubtung records of trevor traders..general ledger :bank=74 000. Motor vehicles expenses =14 300. Debtors ledger: M Phosa =3 900. Creditors Ledger : grant supplies =23 000..please help start my ledger

On 1-1-2010 a machinery was purchased for 8000 rs it was should on 30-6-2013 for 6000rs. Depreciation is charged at 10% on original cost. Books are closed on 31st december every year prepare machinery account and depreciation account for the above perioud

New Millennium Trading in its first month of operations has appointed you as the Accounts Clerk. You

are required to enter the following transactions in the books of New Millennium using the double entry

system and close / balance all the accounts as at the period ended May 31, 2017.

You are also required to prepare a Trial Balance as at May 31, 2017.

May 1 Started business with $15,000 capital in cash

May 2 Paid $14,000 of the cash into the business bank account

May 3 Bought goods on credit from J. Paul for $592

May 4 Bought a motor van for $3,000 paying by cheque

May 5 Bought goods, paying by cheque $2,100

May 9 Sold goods to E. Samuel for $323 and received a cheque

May 11 Paid for stationery $45 cash

May 14 Cash sales $490

May 18 Goods returned by us to J. Paul, $72

May 19 Bought goods on credit from J. Paul, $67

May 21 Paid for advertising, $60, by cheque

May 30 Paid wages by cheque $540 and motor vehicle fuel $110 by cash.

Case studies Availability and Consequences of Credit Purchases Mr.Krishna is willing to buy a Motor Lorry of R 1000000 from the Mayur Motor Company by paying cash of Rs 2,00,000. He want to pay the balance through instalments of Rs 1.60.000 rachat an interest of 5% on 31 December every year for 5 years Krishna wants to know about the different financial services provided by the Mayur Motor Company. As u Finance Manager of Mayur Motor Company, you are required to suggest Mr.


Krishna Regarding the types of Credit Purchase be can uvail from your concern


What will be the total interest borne by Mr. Krishna for the credit purchase made by him?


What consequences will the purchaser face


li the non-payment of installment Advise

Trial balance include

Capital

Motor vehicles

Bank overdraft

Sales

Sales returns

Discount received

Discount allowed

Fixed deposit

Interest on fixed deposit

Repairs

Loan

Interest on loan

Purchases

Railage on purchases

Insurance

Drawings

Debtor

Creditor

Using any amout...please show what is debited and credited

On 30 September 2019, office desk purchased on 30 April 2017 at a cost price of R5 200 was sold for R4 800 cash. A replacement equipment was purchased at a cost of R43 000 on 1 November 2019. The total depreciation (correctly calculated) for the year on office equipment amounted to R15 200. 2. Land and buildings were acquired on 1 April 2019. 3. On 28 February 2019, the business purchased a new tipper truck at a cost of R101 000. 4. It is the accounting policy of Tera Trader to provide depreciation as follows: Vehicles: According to the straight-line method, at 20% per annum, Office equipment: According to the diminishing-balance method, at 18% per annum, Buildings: According to the straight-line method, at 2% per annum. QUESTION 1 Which one of the following alternatives represents the correct amount of accumulated depreciation on office equipment which was sold on 30 September 2019? 1. R507 2. R1 448 3. R874 4. R1 955

Yissachar and Zevulun decided to form a partnership. Yissachar, a former sole proprietorship had the following accounts: Cash $50,000;

Accounts Receivable $80,000; Allowance for Doubtful Accounts $3,000; Equipment $60,000; Accumulated depreciation – Equipment

$20,000. The partnership agreed that the Allowance for Doubtful Accounts should be valued at $4,000, and the equipment had a fair

market value of $45,000. Zevulun, invested $75,000 cash and a truck that cost him $9,000 when he bought it ten years ago but has a fair

market value of $5,000. Prepare the journal entries necessary to record the formation of the partnership.