Accounting Answers

On June 1, Trade Kings Company borrows $250, 000 from ATLASMARA Bank on a 6-month, $250, 000, 10% note.

Instructions

(a) Prepare the entry on June 1.

(b) Prepare the adjusting entry on June 30.

(c) Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30.

(d) What was the total financing cost (interest expense)?

At 1 October 2015 a business had total outstanding debts of $8, 600. During the year to 30 September 2016 the following transaction took place.

(a) Credit sales amounted to $44, 000.

(b) Payments from various customers (accounts receivable) amounted to $49, 000.

(c) Two debts, for $180 and $420, were declared irrecoverable and the customers are no longer purchasing goods from the company. These are to be written off.

Required

Prepare the trade accounts receivable account and the irrecoverable debts account for the year.

What is the cardinality of the relationship between an event (such as a sale) and the store in which that event happened?

A. 1:1

B. 0:N

C. M:N

D. 1:N

Where would information (i.e., address, size, acquisition date, etc.) about a specific retail store in a chain (e.g., the store in Tempe, Arizona) be stored?

A. In a relationship entity

B. In a resource entity

C. In one or more agent entities

D. In one or more event entities

How can an REA diagram show that a team of employees is involved in performing an event—recognizing that the number of employees participating varies for different instances of the event (e.g., one row in the event table might be linked to 3 employees, another row linked to only 2 employees, and so on)?

A. By using foreign keys in the event entity

B. By linking the event to multiple different employee entities

C. By using primary keys in the event entity

D. By creating an M:N relationship between the employee and event entities

Two types of locations entities (Warehouses and Financial Institutions). What other location entities might be found in the REA diagrams for different types of companies? Why?

Explain why standard prices and costs are recorded in resource entities, but actual prices and costs are recorded in event entities.

Select and examine any two economic systems that you think affect businesses most in South Africa. 

Give five reason

Da Silva and Ehlers decided to admit Fischer as from 1 January as a partner under the following terms:

Ficsher will receive 1/5 of the profits and losses.

Da Silva and Ehlers will contribute in the ratio of 1:2 toward Fischers 1/5 profit share.

Fischer must pay N$1800000 for her 1/5 share in the partnership assets.

The assets of the partnership were re -valued on 1 January 2018 and the revaluation account revealed a surplus of N$60000.

Required:

Calculate the new profit sharing ratio after the admission of Fichser.

What is the law of demand