Accounting Answers

What is the cost of goods sold?
A. The difference between the wholesale and resale prices
B. The wholesale purchase price
C. The selling price
D. The price of any discounts provided

The Enter Sales Receipts window does NOT affect Accounts Receivable.

True or False

II.
Bob has asked you to bring your bank’s current list of assets and liabilities to the study session to use in setting up both a micro and a macro hedge. A summary of your bank’s position is as follows:
• Total assets: $150 million
• Duration gap: 2.20 years
• Primary holdings of concern: $7 million in 6% Canada bonds selling at par that will mature in 5 years
• $12 million in stocks with an average beta of 0.90
Historical relationships between Canada bond futures contracts and Canada bonds indicate that the change in the value of the hedged asset relative to the futures contract would be about 1.3 and that interest rates on the hedged asset change on average for a given change in the interest rate on the futures contract by about 0.90. A 1% increase in interest rates results in a decline in value for Canada bonds of 8% of par.
1. If you expect interest rates to rise, what type of hedge should you set up, long or short? 2. How many futures contracts are needed to set up a complete hedge?

At 31 December 2005 the capital structure of Dompo, a limited liability company, was as follows:
1,000,000 ordinary shares of GHS 1 each Share premium account
Revaluation reserve
Retained earnings
GHS 1,000,000
200,000 100,000 50,000
The authorized share capital of the company was GHS 1,000,000.
The directors of the company are considering the following proposals. None of them is a qualified accountant:
a. Making a bonus issue of one ordinary share for every two held, in order to raise GHS500,000 for the company.
b. Paying a dividend of 10p per share
c. Increasing the revaluation reserve to GHS 300,000 by revaluing goodwill from GHS
800,000 to GHS 1,000,000.
d. Combining all reserves into a single figure.
Comment on the validity of these proposals.

How do you feel about QuickBooks makes keeping up with your payables and making purchases? Compare to how you learned about payables in Principles of Financial Accounting. Do you think QuickBooks makes the process easier or harder? How do you like the aspect of making reports to show you different aspects of your payables?

How you feel QuickBooks makes keeping up with your payables and making purchases.
Compare to how you learned about payables in Principles of Financial Accounting. Do you think QuickBooks makes the process easier or harder? How do you like the aspect of making reports to show you different aspects of your payables?

The cash book of J.Jones showed a balance at the bank of RS. 570 in hand on 31 January 2001. At the same date , the bank statement balance of J.Jones’ account was RS. 446 overdrawn. The difference was accounted for as follows:

i) Cheques for RS. 1 555 sent to creditors on 30 January were not paid by the bank until 8 February.
ii) Cheques amounting to RS. 2 520 paid into the bank on 31 January were not credited by the bank until 1 February.
iii) A standing order for a charitable subscription of RS. 60 had been paid by the bank on 21 January but no entry had been made in the cash book.
iv) A cheque paid by J.Jones for rent on 15 January for RS. 345 had been entered in his cash book as RS. 354.

Prepare a Bank Reconciliation Statement
If you are serving this firm as an accounts officer, why do you think preparing bank reconciliation statement is so important for reconciling firm’s and bank’s record.

The following material matters are under discussion:
a. After the balance sheet date one of the company ’s factories was seriously damaged by fire. Insurance will only cover part of the loss suffered. The company’s going concern status is not affected.
b. One of the company’s buildings was revalued during the year. The directors are uncertain as to how the revaluation surplus should be included in the financial statements.
c. The draft financial statements for the entity for the year ended 30 June 2015 have been prepared. A final review of the draft reveals an overvaluation of the closing inventory of GHS 200,000 at 30 June 2014. Further investigation shows that there was an overvaluation at 30 June 2013 of GHS 120,000
Explain how each of these matters should be dealt with, stating in each case the relevant accounting standard.

A Joel took goods from inventory for his own use, cost $220.
Can you help me about record the transactions using double entries
I don't know Debit is Drawings and credit is Purchase or debit is Drawings and credit is Inventory?
Thanks all

Which statement about unused accounts created in the generic Starter Chart of Accounts is true?
A.You can either rename or delete these accounts.
B. You can delete these accounts.
C. You can rename these accounts.