Accounting Answers

The following transactions of JDE Corp took place during the financial period ending 31 March 2022: 1. The owner of the business, Mr J Dough, took inventory for his personal use, R1 000. 2. The business received dividends in cash from their investments, R6 800. 3. JDE Corp returned inventory that was damaged to the supplier, R700. 4. The business paid cash for electricity for the month of March, R500. 5. Sold goods on credit to several customers, R15 800. 6. Bought goods on credit worth R25 000. 7. A R3 500 loan was received from the bank, payable after five years, at 7% interest per annum. 8. Company applied for an overdraft of R10 500 and it was approved at the end of March 2022.

The quantity of Item X that is sold to customer Y on September 11th should be an attribute in which table?

A. Sale

B. Customer

C. Sales–inventory

D. Inventory

The list price of inventory item 3399776 should be an attribute in which table?

A. Sales

B. Inventory

C. Supplier

D. Sales–inventory

If a company sometimes only sold parts, sometimes only performed services, and sometimes did both, the minimum cardinalities associated with the inventory table would be

A. zero.

B. one.

C. many.

D. None of these are correct

For a company that rents out construction equipment to building contractors, the rent equipment event is linked to? Check all that apply.

A. at most one return event.

B. at most one receive cash event.

C. at least one receive cash event.

D. at least one return event.

A large urban HMO purchases a vacant office building to house expanded administrative functions for $500,000. The accountant, working with their real estate agent, has estimated the value of the land at $125,000, with the remaining cost of $375,000 value for the building. Prior to using the building, renovations costing $100,000 are completed. The renovated building has an estimated useful life of 27.5 years, with no residual value. What is the annual charge for depreciation?

Brown Consulting Services organized as a corporation on January 18 and engaged in the following transactions during

its first two weeks of operation:

Jan. 18 Issued capital stock in exchange for $30,000 cash.

Jan. 22 Borrowed $20,000 from its bank by issuing a note payable.

Jan. 23 Paid $100 for a radio advertisement aired on January 24.

Jan. 25 Provided $1,000 of services to clients for cash.

Jan. 26 Provided $2,000 of services to clients on account.

Jan. 31 Collected $800 cash from clients for the services provided on January 26.

a. Record each of these transactions.

b. Determine the balance in the Cash account on January 31. Be certain to state whether the balance is debit or credit

Analyse the following transactions for Surprise Ltd. using the concept of Accounting Equation comprising of Assets, Liabilities and Equity 1.Commenced business with cash of ₹ 5,00,000.

2. Purchased equipment for cash ₹ 2,00,000. 3. Purchased furniture worth ₹50,000 on credit from IndiMart. 4. Purchased raw materials for ₹25,000 against cash from XYZ Suppliers. 5. Deposited cash of ₹ 1,25,000 in the current account. 6. Sold goods for ₹75,000 and received a cheque against the same.

Demand contracts from 500 to 400 when price rises from $40 to $42

1. You are about to buy a business that is worth $200,000, but you do not have enough money to purchase the business entirely. You have a total of $90,000 in savings and you are looking at different financing options. Provide information for the following:  

• Explain the advantages of equity financing and debt financing
• Explain the disadvantages of equity financing and debt financing
• Provide an example of equity financing 
• Provide an example of debt financing 
• Explain which type of long-term liability financing you would choose to buy the business?

Pick a company and write a paper that provides the following information: 

• The name and ticker symbol of the company you have chosen. 
• The URL to the company’s Form 10-K to allow accurate verification of your answers.
• A description of two items from the company’s statement of cash flows: 
• Present one familiar item that you expected to be reported on the statement, based on what you’ve learned about cash flows. 
• Explain why you expected the familiar item that was reported on the statement of cash flows.
• One unfamiliar item that you did not expect to be on the statement of cash flows, based on what you’ve learned about cash flows. 
• Explain why you did not expect the unfamiliar item that was reported on the statement of cash flows. 
• Explain what you learned from the unfamiliar item on the statement of cash flows.
  
• Would you invest in the company based on the information from the statement of cash flow? 
• Provide detailed information to support your answer.

Chapter 13 discusses various types of bonds. For this discussion, choose two types of bonds you would invest in.

• Provide the strengths and weaknesses of each of the bonds that you have chosen.
• Explain why you have chosen the two bonds.

i) Compute the return on investment (5mks)

ii) Compute residual income assuming that the company requires a 10% interest on total assets of each subsidiary (5mks)

iii) Assume that there is an asset available to subsidiary A which costs Ksh. 100,000 which has an annual profit of Ksh. 20,000. Advice the manager of A on whether to undertake the project and comment on whether this decision is in line with the overall objective of the organization (5mks)