Accounting Answers

Indicate whether there are weaknesses in the organization’s internal control system. If there’s any, discuss the weaknesses identified and suggest ways to address these.

1. The proprietor’s brother serves as an accountant and a cashier at the same time.

2. Operating expenses are paid primarily through checks, except for small amount payments.

3. Cash receipts are not deposited to banks until the next morning because the cashier is too busy.

4. Each and every payment must be approved according to the company’s line of authority.

 A machine with a cost of 200000$ will soon need to be replaced a similar machine that will cost 300000$,

A. What amount should the machine presently owned be reported on the balance sheet?

B. What amount should management use in planning for the cash required replacing machine?

if dividend is agreed to be made the allowance of interest at the rate of 8% and original investments, salary allowance of 30000$ and 24000$ respectively, and the remainder divided equally; determine the partnership in net income

As at 1.6.2012 a customer owed R18,400 for goods sold ten days earlier. Sales made on 7th June was invoiced at R60,000 (excl of VAT), with an offer of 5% cash discount if paid for within a week. R22,325 was received on 11th June. The amount receivable from the customer would be:

R59,050

R49,075

R57,875

R65,075

Debit Construction Expense

Credit Construction in Progress

• What does this journal entry mean?

Thank you

What is Accrued service revenue? How is it different from service revenue?

The Government of Pakistan is emphasizing on the consumption of indigenous and environmentally clean energy generation resources. Alternative Energy Development Board (AEDB) is established by the government, responsible for the growth of renewable energy sector; the advancement of alternative and renewable technologies is among one of the top priorities of the government. Several initiatives have been taken to create favorable environment for the sustainable growth of Alternative Renewable Energy (ARE) Sector in Pakistan in order to control and make potential use of indigenous renewable energy resources. Suppose the quantity demanded and quantity supplied functions for renewable energy resources are as given below: Qd = 20,000 - 3P Qs = 15,000 + 2P Where ‘P’ is the price in rupees of a renewable energy resources, ‘Qd’ is quantity demanded for renewable energy resources, and ‘Qs’ is quantity supplied for renewable energy resources.

The demand equation for a good is given by the equation: 

Q = 700 – 2P + 0.02Y 

(Where P is the price and Y is the income). 

Determine the following:

(a). Price elasticity of demand when P = $25 and Y = $500. 

(b). Income elasticity of demand when P = $25 and Y = $500.

(c). Interpret the results obtained in (a) & (b) above.

From the transactions below, what's the total in the Purchases Journal?

20X8 

June 1 Purchase goods from M. Nome on credit $16,000; P Royal $300; J Fry $180. 

June 3 Purchased stationery on credit $600

June 10 Goods returned by us to J Fry $20

June 15 Purchase equipment credit to N. Wonder $640. 

June 28 Purchase goods paying by cheque $80

Explain the meaning of cost of capital and its relevance in a net present value (NPV) analysis.