Accounting Answers

Conversion cost formula and examples

Bank

Receipts from debtor 290,200 Balance b/d 104,500

Commission 87,300 Loan 98,000

Bank interest 16,000 Payments to supplier 111,600

Cash sales 317,600 Equipment 442,000

Fixtures 377,400 Utilities 11,200

Drawings 66,700

Wages 55,000

Cash purchases 72,100

Rent 19,600

Rate 22,500

Balance c/d 85,300

1,088,500 1,088,500

List of balance:

Details May 1 Apr 30

Stock 34,000 12,500

Loan 196,000 98,000

Land 811,000 811,000

Fixtures 740,000 314,000

Equipment 0 433,000

Creditor 44,700 68,500

Debtor 92,300 52,300

Rate prepaid 10,100 8,400

Commission prepaid 12,400 19,600

Wage owing 17,400 18,200

Additional notes:

1. Stock taken for personal use amount 16,200.

2. Amounts written-off as bad debts total 8,700.

3. Discount received from credit suppliers & discounts given to debtor amount to

14,800 & 11,100.

4. Return inward total 22,000.

5. A set-off of 3,600 was applied to the sale & purchase ledger.

6. The sale of fixtures was at net book value.

REQUIRED:

Derive the control account & trial balance.

5Q^2+8Q+20

Find the

Total fix cost

Fixed cost

Marginal cost

Variable cost

Is the firm with the above cost function in the short-run or long-run

A. Assume you are the authorized check signor of Melch Corporation, draw a check from the Company's account with LLB Bank for Southern Camarines Electric Power Corporation payable on November 22,2021 for 12,550.25 to pay the electric bill for October 28 - November 15, 2021.

A. Prepare Me-me Young Company's Common-size Statement of Financial Performance analysis for the year ended, 2020 given the following information:

-Cost of Goods Sold - 460,000.00

-Gross Profit - 640,000.00

-Net Income - 260,000.00

-Net Sales - 1,100,000.00

-Operating Expenses - 375,000.00

-Operating Income - 265,000.00

-Other Expenses - 5,000.00

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.