Accounting Answers

Classify the following pairs of goods and services

as substitutes in production complements in

production, or neither.

a. Lumber and sawdust b. Condominiums and bungalows c. Cheeseburger and fries d. Cars and gasoline e. Cappuccino and latte

Mahesh wants to start his business and for that he decides that he will take loan for Rupees 7 Lakhs from the Bank of Baroda. He also decides to use his saving worth 3 lakhs in the bank account to start the business. Discuss how these two transactions will be recorded in the books of accounts by passing the relevant journal entries? How these transactions will be reflected in the Books of accounts (that' is in the financial statements)? Lastly,  conclude  your  answer  by  stating  the  applicability  of  which  accounting assumption/s you did the above mentioned accounting treatment/ recognition and presentation in the books of accounts. 

Classify the following pairs of goods and services 

as substitutes in production, complements in 

production, or neither. 

a. Lumber and sawdust 

b. Condominiums and bungalows 

c. Cheeseburger and fries 

d. Cars and gasoline 

e. Cappuccino and latte

A. Create a classified Statement of Financial Position in Report Form. (Please refer to the note below)

1. The following balances are lifted from the general ledger of Alpha Company as of July 31, 2021.

Accounts Payable -- 44,000.00

Accounts Receivable --150,000.00

Allowance for Doubtful Accounts -- 32,000.00

Alpha, Capital -- 670,000.00

Cash -- 455,000.00

Delivery Equipment -- 300,000.00

Furniture -- 31,000.00

Light and Water Expense -- 64,000.00

Loans Payable -- 130,000.00

Merchandise Inventory -- 110,000.00

Notes Payable -- 150,000.00

Prepaid Insurance -- 15,000.00

Rent Expense -- 128,000.00

Salaries Expenses -- 169,000.00

Salaries Payable -- 25,000.00

Service Revenue -- 330,000.00

Vat Payable -- 10,000.00

Note: Accounts Receivable is due on

December 31, 2021.

Accounts and Notes Payable are due on

January 31, 2022 and December 31,

2022 respectively. Bank loan is due in

18 months.

Describe service cost analysis and how to undertake this type of cost analysis.

Determine if the following accounts are Current Assets(CA), Non-Current Assets(NCA), Current Liabilities(CL), or Non-Current Liabilities(NCL). Write your answer on the space provided.

______1. Franchise

______2. Loans Payable

______3. Accounts Payable

______4. Note Receivable (due in 18 mos.)

______5. Cash

______6. Prepaid Expense

______7. Accounts Receivable

______8. Land

______9. Merchandise Inventory

______10. Unearned Income

______11. Copyright

______12. Office Equipment

______13. Machinery

______14. Prepaid Insurance

______15. Building

______16. Patent

______17. Accrued Salaries Expense

______18. Service Vehicle

______19. Wages Payable

______20. Notes Payable (due in 24 mos.)

1. Is Unearned Income an Asset, Liability, Equity, Revenue or Expense?

2. Is Service Income an Asset, Liability, Equity, Revenue or Expense?

3. Is Copyright an Asset, Liability, Equity, Revenue or Expense?

4. Is Prepaid Expense an Asset, Liability, Equity, Revenue or Expense?

5. Is Accrued Expense an Asset, Liability, Equity, Revenue or Expense?

6. Is Salaries Expense an Asset, Liability, Equity, Revenue or Expense?

7. Is Sales an Asset, Liability, Equity, Revenue or Expense?

8. Is Merchandise Inventory an Asset, Liability, Equity, Revenue or Expense?

9. Is Notes Payable an Asset, Liability, Equity, Revenue or Expense?

10. Is Owner, Withdrawal an Asset, Liability, Equity, Revenue or Expense?

abebe furniture is a furniture mfg firm that uses job order costing.the company's inventory balance on Jan 1,the beginning of its fiscal year as follows

raw material br40000

work in process 30000

finished goods 60000

a.raw materials were purchased on account for br 800000

b.raw materials were transferred in to production br 764000

(Br 720000DM and 40000 I.M)

c.the following cost were incurred for employee services DL br 150000

indirect labor 220000

d. factory utility cost were incurred in the factory br 86000

e.MOH was applied to production 960000

f.goods costing br 1800000 were completed and transferred to warehouse

g.goods were sold on account to customers during the year at selling price of br 3000000.the goods cost br 1748000 to manufacture according to there job cost sheets .

instructions:-prepare journal entry to record preceding transactionS