Accounting Answers

Notes:

1.           The fund owned 12,000 shares in Moyalematt, which were initially purchased for Shs.14, 000. These have been disposed of during the year. The only entries made in the books were in a debtor account and investment account since the shares are yet to be paid for.

2.           The trustees felt the need to reflect the following market prices in the financial statements:

        Loan stock in KVM – Market price index – 84.00

         Shares in Flamingo Airways    -Sh.9.75 per share.

Required:

i)       Statement of change in net assets for the year to 31 October 2001.          (10 marks)

ii)     Statement of net assets as at 31 October 2001.                                             (10 marks)

    (Total: 20marks)

a)     Three year bonds are issued at face value of Sh100, 000 on Jan. 1, 2007, and a stated interest rate of 8%. Calculate the issue price of the bonds assuming a market interest rate of 6 %.( 5 marks)

Where would an REA diagram for the HR/payroll cycle store information about total hours an employee worked in order to calculate payroll?

A. None of these are correct

B. In the employee time table

C. In the time worked table

Where would an REA diagram for the HR/payroll cycle store information that can be used to bill a client for the time employees spent working on a task for that particular client?

A. None of these are correct

B. In the time used table

C. In the employee time table

D. In the time worked table

Which table would a manager query in order to assess how much time an employee spent performing various functions?

A. Evaluate performance

B. None of these are correct

C. Time worked

D. Time used

In an REA diagram of the HR/Payroll cycle, which of the following is a resource entity?

A. Skills

B. Applicants

C. None of these are correct

D. Training

Which of the following are used to store information that represents a company’s intellectual property? (Check all that apply.)

A. Work in process

B. Job operations list

C. Machine operations list

D. Bill of materials

Which of the following are used to store information that represents a company’s intellectual property? (Check all that apply.)

A. Work in process

B. Job operations list

C. Machine operations list

D. Bill of materials

Where would an REA diagram for the production cycle store information about the actual quantity of raw material 33222 that was used to make product 444?

A. In the work in process table

B. In the bill of materials table

C. In the machine operations table

D. In the issue raw materials table

Where would an REA diagram for the production cycle store information for the standard time to make a product? (Check all that apply.)

A. In the machine operations list table

B. In the work in process table

C. In the bill of materials table

D. In the job operations list table

Where would an REA diagram for the production cycle depict the list of ingredients for making a product?

A. In the bill of materials table

B. In the raw materials table

C. In the work in process table

D. In the finished goods table

Tim (under 25) earns a fortnightly wage of R3 050. He pays 7.5% of it to a pension fund and 2% to a union.

Assume that there are 26 fortnights in a year. 

If Tim earned the same wage for a full tax year, what would his taxable annual earnings be?

Eugene earns a monthly salary of R10 000. He gets a travel allowance of R2000. The employer pays Eugene's medical aid of R500. R400 per month is deducted from his salary for a pension fund. In February he earned commission of R5000. (Eugene is the only member on the medical aid fund. His company contributes R500 while he makes no contribution towards the fund).

Calculate Eugene's Maximum monthly allowable pension fund deduction.