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What is the formula for the cost of goods sold?
-January 2.Purchased equipment costing K82,000 financed by a long term from Bizzbucks for the full amount.
-February 7.Provided delivery service to customers, K72,000 in accounts receivable and K16,000 in cash.
-February 18.Incurred repair costs of K3,000 on account from Mbewe Bikes.
-March 12.Collected K65,000 cash from customers on account.
-March 20.Borrowed K90,000 by signing another long-term loan from Bizzbucks.
-March 25.Paid K74,400 cash cash for the bike rentals during the quarter.
-March 25.Paid employees K38,000 cash for work done during the quarter.
-March 26.Paid (with cash) K49,000 fuel for delivery equipment used during the quarrer.
-March 28.Paid K2,000 cash on accounts payable.
-March 30.Ordered, but haven't yet received, K700 in supplies.
Required:
i. Open the appropriate ledger accounts and post the accompanying transactions.
ii. Close off the accounts and prepare the trial balance as at 31 March.
Answer the following:
I. The expenses usually referred by Casureco III and Primewater-
a. interest expense c. tax expense
b. miscellaneous expense d. utilities expense
II. The amount earned by performing or delivering services to customers either in cash or
an account.
a. gain on sale c. service revenue
b. interest income d. sales
Answer the following:
I. The heading of the SCI will indicate the period as:
a. A date only c. For the period ended and followed by a date
b. As of and followed by a date d. All of the above
II. The account used to indicate revenue derived from other activities of the business is:
a. Gains c. Profit
b. income d. Revenue
III. Which of the following is not associated with the Statement of Comprehensive
Income?
a. Foreign currency translation c. Actuarial gains and losses on a defined pension
adjustments plan
b. Revaluations of Property, d. None of the above
Plant and Equipment
IV. This occurs when revenue exceeds expenses.
a. Gross Income c. Net Loss
b. Net Income d. Total Loss
V. The difference between Comprehensive Income Statement and Income Statement:
a. account titles c. none
b. elements d. statement date
VI. This represents the cost to pay labor and employees of a service business:
a. advertising expense c. salaries and wages
b. labor fees d. transportation expense
A. Solve for the unknown using the SCI format. Show your solution and answer.
Case 1:
Net Income/(Net Loss) ?
Service Income P120,000
Salaries Expense 12,000
Light and Water Expense 7,500
Miscellaneous Expense 2,500
Other Comprehensive Income 2,000
Total Comprehensive Income 100,000
Case 2:
Service Income P250,000
Accrued Expense 10,000
Insurance Expense 12,000
Prepaid Expense 20,000
Rent expense 8,500
Internet Expense 3,000
Net Income ?
I. This refers to the report that provides information on the performance of the business organization.
a. Balance Sheet c. Statement of Comprehensive Income
b. Statement of Financial Condition d. Statement of Financial Position
II. The following accounts are reported in the SCI except -
a. Costs c. Liabilities
b. Income d. Revenue
A. Solve for the unknown using the SCI format. Show your solution and answer.
Case 1:
Expenses P20,000
Net Income/(Net Loss) 50,000
Service Income ?
Case 2:
Net Income/(Net Loss) P67,500
Service Revenue 80,000
Expenses 12,500
Other Comprehensive Income 10,500
Comprehensive Income ?
Case 3:
Comprehensive Income P40,000
Other Comprehensive Income 4,000
Service Income 130,000
Net Income/(Net Loss) 36,000
Expenses ?
A. Put an (*) before the number if it is part in the preparation of Statement of Comprehensive Income and (NA) if it is not part in the preparation of SCI.
----- 1. The company made an initial cash deposit amounting to P80,000.
----- 2. The owner bought shop's office chairs and tables for P20,000, paying P5,000 and
the balance on account.
----- 3. Miss Wow paid advance rent to P24,000.
----- 4. Supplies expense for the month is P12,500.
----- 5. The company's total revenue for the month of July amounted to P150,000.
----- 6. An employee of the shop was paid for P7,500.
----- 7. Her receivable amounted to P3,500 for services made to Customer A.
----- 8. The owner paid for internet subscription at P1,700.
----- 9. Light and water expense for the month amount to P8,000.
----- 10. Miss Wow made a loan to OOTD Bank amounting to P50,000 payable in 5
years.
B. Miss Wow, the service business owner, ask you to prepare her statement of comprehensive income for the month.
A. Answer the questions below.
- What is the importance of preparing your family's income statement?
- Explain the accrual concept of revenue and expense recognition.
Xorno Company is considering an investment of tk. 30,00,000 in new project. The new project is expected to last 20 years. It will have tk.2.5 lac salvage value at the end of its useful life. Company management’s required rate of return is 20%. The expected net income is tk. 50000. Net annual cash flow is tk. 65000 and at 13% interest rate, its present value is values tk. 2,10,74,400. Make the decision of capital budgeting in the following format:
Techniques
Calculation
Accept/reject
Reasons
Cash payback period
NPV
IRR
ARR
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