Accounting Answers

A. Bugzy Company had cash sales of 300,000.00 and credit sales of 200,000.00. Its cost of sales is One Hundred Twenty Thousand Pesos. Accounts Receivable beginning and end balances are 45,000.00 and 20,000.00 respectively. Merchandise Inventory is valued at 100,000.00 on January 1 and 115,000.00 on Devember 31. Answer the questions that follow:

1. What is the company's gross profit margin? How did you compute for such?

2. How many days can you collect the receivables of the company in 2020? How were you able to solve for it?

1. A bank check was prepared by Lucas San Jose in the amount of Seventy Seven Thousand Pesos only to be paid by PBL Bank to Lena Sanchez. This however can only be encashed upon deposit to the latter's account from November 28, 2021. Identify the kind of check written above and the different parties involved therein.

1. You are to open a bank account. What will the financial institution require you to present to be honored as an account holder? What options will be made available to you upon opening a savings account?

5.Which of the following items must be deducted from the bank statement balance in preparing a bank reconciliation which ends with adjusted cash balance?

A. Deposit in transit

B. Outstanding check

C. reduction of loan charged to the account of the depositor

D. certified check

6.Provide 1-2 sentence/s to explain your answer in item number 5.

7.In preparing a monthly bank reconciliation, which of the following items would be added to the balance per bank statement to arrive at the correct cash balance?

A. Outstanding checks

B. Bank service charge

C. Deposit in transit

D. A customer’s note collected by the bank on behalf of the depositor

8.Provide 1-2 sentence/s to explain your answer in item number 7.

9.When preparing a bank reconciliation, bank credits are

A. Added to the bank statement balance

B. Deducted from the bank statement balance

C. Added to the balance per book

D. Deducted from the balance per book

10.Provide 1-2 sentence/s to explain your answer in item number 9.

Directions: Answer the questions which follow.

1.A bank reconciliation is

A. a formal statement that lists all of the bank account balances of an entity.

B. a merger of two banks that previously were competitors.

C. a statement sent by the bank to depositor on a monthly basis.

D. a schedule that accounts for the differences between an entity’s cash balance as shown on its bank statement and the cash balance shown in its general ledger.

2.Provide 1-2 sentence/s to explain your answer in item number 1.

3.Which of the following items must be added to the cash balance per ledger in preparing a bank reconciliation which ends with adjusted cash balance?

A. note receivable collected by the bank in favor of depositor and credited to the account of the depositor

B. NSF customer check

C. service charge

D. erroneous bank debit

4.Provide 1-2 sentence/s to explain your answer in item number 3.

Directions: Prepare a bank reconciliation using the Adjusted Balance Method for the following given transaction.

Rancor Company provided the following information for the month of December:

      Balance per bank statement          ₱ 4,000,000

      Balance per cash book                  2,700,000

      Outstanding checks                     600,000

      Deposit in transit                        475,000

      Service charge                           10,000

      Proceeds of bank loan                    940,000

      Defective check (Debit memo)        50,000

      Credit memo                            435,000

Example of Adjusted Balance Method:

Adjusted Balance Method

In this method, both the records of the depositor and the bank should be brought to the corrected balance. Both balances are not correct; hence, the accounts must be adjusted to the correct balance. The pro-forma bank reconciliation statement appears as follows:

Unadjusted book balance xxxx

Add: Items credited by the bank but not recorded by the books xxxx

Total xxxx

Less: Items deducted by the bank but not recorded by the book (xxxx)

Adjusted book balance xxxx

Examples of price charges per minute by AT&T for long-distance telephone calls within the United States at different times of the day and week are as follows:

  Washington Phil. D.C. Washington, D.C.

D.C. to Phil. to St. louis to L. A.

Peak (8am - 5pm

Monday - Friday) $0.21 $0.22 $0.24

Evenings 5pm - 11pm

Monday - Friday $0.13 $0.13 $0.14

Nights & weekends $0.11 $0.11 $0.12

 a. Are there differences in incremental or outlay costs per minute for AT&T for telephone calls made during peak hours compared to telephone calls made at other times of the day?

b. Why do you think AT&T charges different prices per minute for telephone calls made during peak hours compared to telephone calls made at other times of the day?

2. At the cose of the year a company has mventory ot S 150,000 and cost of goods solkd tor

$ 975,000. If the company's turnover ratio SS, detemine the opening balance of the mventory

Choose any 1 Listed Company of your Choice

Download the latest available Annual Report of that Company.

Address the below from the downloaded Annual Report

(1) About the Company

(2) Management

(3) Shareholding Pattern

(4) Business Overview & Risks

(5) Financial Analysis

 - Revenues

 - Profits

 - Networth

 - Debt / Borrowings + Debt : Equity Ratio

 - Working Capital Cycle

 - Cash Ratio

 - MV : BV

 - EPS

 - PE Ratio

 - Sector PE

(6) Cash Flow Analysis (Operating+Investing+Financing)

The demand for tickets to an ethioian camparada film is given by D(p)=200,000-10,000p,where p is price of tickets. If the price of tickets is 12,calculate price elasticity of demand for tickets and draw demand curve