Accounting Answers

Harambee Ltd makes three main products, using broadly the same production methods and equipment for all the three products. A conventional product costing system is used at present although activity-based costing (ABC) system is being considered. Details of the three products for a typical period are:

If the unit variable cost for each computer is $350 and the manufacturer has fixed costs totaling $2 million, how many computers must this manufacturer sell to break even? How many must it sell to realize a profit of $50 million?

Envision that you have served as business manager of Media World for over 2 years. You have noticed that for the last 12 months the business has regularly had cash assets of $20,000 or more at the end of each month. You have found a 6-month certificate of deposit that pays 6% compounded monthly. To obtain this rate of interest, you must invest a minimum of $2,000. You have also found a high interest savings account that pays 3% compounded daily. Based on the cash position of the business at this time, assume that you decide to invest $4,000.

2. Assume that you decide to invest the $4,000 in the high-interest savings account.

a. What future value would you expect to receive at the end of 6 months? (14 points)

b. How much interest would the investment earn for the period? (14 points)

c. What would be the effective rate of the investment? (14 points)

assume that December 31 forecast shows the estimated uncollectible accounts to be $27,860 and that the allowance for doubtful accounts for the company had a debit balance of $1,575 on December 31.

Journalize the adjusting entry for uncollectible accounts as of December 31 for the next year.

Why is salaryof each partner included in the partnership agreement if it depend on the profit earned in the business?

Entered into an agreement with a contractor for $65,000. The contractor will provide services at a future date. How should this be recorded as a journal entry?

At the beginning of the year 2016,the balance on the Toni's capital account was R35869 during the year Toni made drawings of R17800 and the net profit for the year was R18700. assuming these were the only transactions Toni entered into 2016,what is the balance on his capital account at the end of the 2016?

Sangro ltd(Pty) incurred interest expense of R35000 during the 2016 accounting period.at the end of its 2016 accounting period accrued expenses,relating to interest expense,increased by R7000.the cash payment for the interest during the 2016 accounting was?

A sole trader incurred a loss of £10,000 during his most recent accounting period, yet

had more money in his bank account at the end of the period than he had at the

beginning of it. Which of the following, on its own, could explain this?

a. The introduction of £15,000 new capital during the period.

b. The purchase of Non-current assets during the period.

c. His customers taking longer than normal to pay the amounts they owe to him.

d. An increase in the amount of his Inventory over the course of the period.

28.1 The financial year of T. Guiness ended on 31 December 2006. Show the ledger accounts
for the following items including the balance transferred to the necessary part of the
financial statements, also the balances carried down to 2007.
(a) Motor expenses: Paid in 2006 $819; Owing at 31 December 2006 $94
(b) Stationery: Paid during 2006 $370; Owing as at 31 December 2005 $110; Owing as at 31
December 2006 $245.

28.2 W. Hope’s year ended on 30 th June 2008. Write up the ledger accounts, showing the
transfers to the financial statements and the balances carried down to the next year for
the following:
(a) Stationery: Paid for the year to 30 th June 2008 $240; Inventory of stationery at 30 June
2007 $60; at 30 June 2008 $95
(b) General expenses: Paid for the year to 30 June 2008 $470; Owing at 30 June 2007 $32;
Owing at 30 June 2008 $60
(c ) Motor expenses: Paid in the year to 30 June 2008 $1410; Owing as at 30 June 2007 $92;
Owing as at 30 June 2008 $67.