Accounting Answers

A business uses a perpetual system in the first in first out method. The business has the following transactions; Colon inventory on July 1, 2019 consist of 10 units at $12 per unit. Purchase 20 units for $15 per unit on account on July 2, 2019. Sell 15 units for $20 per unit to a customer on account on July 10, 2019. Prepare the entry the business should make to record the sale on July 10, 2019.

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 that must be discloses as property, plant and equipment in the statement of financial position of Mageza Transport as at 31 December 2019?
1. R2 576 000
2. R2 413 722
3. R2 344 000
4. R2 370 200

A company calculates the prices of jobs by adding overheads to the prime cost and then adding 30% to the total costs as a profit mark–up. Job number Y was sold for £1,690 and incurred overheads of £694.

What was the prime cost of the job?

working capital is the surplus of what?

ABC ltd has a machine bought at Kshs 15milliom. The total depreciation provided to date is
Kshs 3.4 million. The firm decides to trade in the machine with a new one costing Kshs 20
million. The supplier of the new machine has agreed with the firm that the old machine is worth
Kshs 2.3 million. The difference will be paid by cheque. Prepare journals and ledgers for this.

(a) Assume that declaration and payment of cash dividends are separate journal entries. Record the journal entry for declaration of total dividends for the year. (No date required)

(b) Assume that on Jan 1, 2019, Samsung issues 10 million new ordinary shares to an investor in exchange for land, which appraisers stated the fair market value as KRW 9 billion. Record the journal entry in KRW millions.



Refer to: Samsung 2018 FS images.samsung.com/is/content/samsung/p5/global/ir/docs/2018_con_quarter04_all.pdf

A travel agency has offered to charter a flight from Perth to Sydney return for $50,000. Fracas Airlines would normally charge $100,000 for a Perth to Sydney return flight.

Expenses per flight are as follows;
VC per flight = $20,000
FC allocated to each flight = $35,000
(FC = $350,000, Fracas Airlines operates 10 flights).

Fracas Airlines has two aircraft which are presently not being used.
Should the offer be accepted?

Based on the Samsung 2018 Financial Statements

1) What is the inventory costing method used by Samsung? Is the method appropriate given what you know about Samsung's business or industry?

2) Explain the importance of the lower of cost and NRV as applied to Samsung's inventories, given what you know about its industry. Apply this to the incident in 2016 relating to its Galaxy Note 7.

Refer to: images.samsung.com/is/content/samsung/p5/global/ir/docs/2018_con_quarter04_all.pdf

It was discovered that $14000 of the balance in the consulting revenue account was for services to be performed in November. How do i enter this on the general journal.

What will be the general ledger entries be for the outstanding debt of Miss T Luna which must be written off as irrecoverable