Accounting Answers

Which ethical philosophy can be regarded as the opposite of altruism?

good day

here is my question:Formulate your own transactions and show how the entry for these transactions will differ when it is entered in the books of a Trading business and a Manufacturing business. You must make use of T-accounts to illustrate the difference between the entries. Formulate your transactions to include the following type of activities that will take place during the financial year. Formulate ONE transaction for a Trading business and ONE transaction for a Manufacturing business from the different type of transactions that will take place during the financial year, listed below:

a. Cash Purchases.

b. Operating activities in the daily dealings of a Trading and Manufacturing business. 

The accounting business where you are employed frequently publishes newssheets for its clients, containing articles on topical issues in the fields of accounting and taxation. The editor’s plan for the next issue of the newssheet is to include an article discussing the qualitative characteristic of useful financial information, as set out in the conceptual framework, and explaining their meaning. You are required to: She has approached you and has asked you to draft the article for her. Draft the article for the editor, discussing the qualitative characteristics of useful financial information, as set out in the conceptual framework, and explaining their meaning

1.     Napco is the dominant price leader in a particular industry. The current market demand is QM=20-2P, the combined supply of the other firm is Qs=2P and the cost function of Napco is TC=20+0.25Q²_Napco.

Calculate the following:

A)    The marginal revenue equation of Napco;

B)    Price set by Napco;

C)    The Output of Napco;

D)    The combined output of the other firm;

E)    The total market output.

On January 1, Year 1 Trinity Inc. leased equipment. The lease requires Trinity to make five annual payments of $13,000 beginning December 31, Year 1. Insurance was paid up front for the year at a cost of $800. There is a guaranteed residual value of $6000 and the asset is expected to be worth only $1000 at the end of the lease term, December 31, Year 5. The lease qualifies as a finance lease. The interest rate used is 9%. Present value factors for the 9% rate are as follows:

• For an annuity due with 5 payments 4.240
• For an ordinary annuity with 5 payments 3.890
• Present value of $1 for 5 periods 0.650 Assuming a seven-year life and a five-year lease term. How much is the amortization expense of the “right of use” asset on December 31, Year 1?
• 10,764
• 53,820 / 5 = 10,764
• Debit Amortization Expense $10,764
• Credit Right of Use Asset $10,764

For this question, how come we don't subtract 5000 from the $53,820 and then divide by 5.

The ledger of ITC Company contained the following account balances at December 31, 2019, the end of company's fiscal year.

Accounts Balances($)

Cash 12080

Accounts Receivable22300

Inventory 36500

Supplies 1080

Prepaid Rent 9490

Machinery 23400

Accumulated Depreciation-Machinery 9970

Equipment 62200

Accumulated Depreciation-Equipment 7560

Land 70000

Accounts Payable 9730

15% Debenture 31000

Common Stock ($ 2.5 par value) 40000

Additional Paid in Capital-Common Stock 42100

Retained Earnings 59300

Sales 547800

Sales Returns and Allowances 8000

Sales Discount 3400

Salaries Expense 75900

Cost of Goods Sold 385800

Loss from employee strike 4560

Wages Expense 7700

Rent Expense 12450

Interest Expense 3400

Advertising Expense 10000

Rent Revenue 3400

Other Administrative Expense 2600

From the above information, prepare the followings:

(a) Multistep income statement for the year ending December 31, 2019;

(b) Stockholder_s Equity Statement as at December 31, 2019; and

(c) Classified Balance Sheet as at December 31, 2019.

The ledger of ITC Company contained the following account balances at December 31, 2019, the end of company's fiscal year.

Accounts Balances ($)

Cash 12080

Accounts Receivable 22300

Inventory 36500

Supplies 1080

Prepaid Rent 9490

Machinery 23400

Accumulated Depreciation-Machinery 9970

Equipment 62200

Accumulated Depreciation-Equipment 7560

Land 70000

Accounts Payable 9730

15% Debenture 31000

Common Stock ($ 2.5 par value) 40000

Additional Paid in Capital-Common Stock 42100

Retained Earnings 59300

Sales 547800

Sales Returns and Allowances 8000

Sales Discount 3400

Salaries Expense 75900

Cost of Goods Sold 385800

Loss from employee strike 4560

Wages Expense 7700

Rent Expense 12450

Interest Expense 3400

Advertising Expense 10000

Rent Revenue 3400

Other Administrative Expense 2600

a. the liabilities of Holland company are 120,000$ and its stockholders' equity is 232,000. what is the amount of Holland company's total assets?b.the total assets of Holland company are 190,000$ and its stockholders' equity is 86,000$. What is the amount of its total liabilities?c.the total assets of Holland company are 600,00$ and its liabilities are equal to one-half of its total assets. What is the amount of Holland company's stockholders' equity?

The capital structure of ABC Pvt. Ltd is as follows:

Equity share capital (eachshareofRs.10) = Rs.16, 00,000

Debentures with a coupon rate of 10% = Rs. 10, 00,000

Reserves and surplus = Rs.15, 00,000

Revenue from the business activities for the company is Rs. 2.00 crores. Its variable cost is 10% of the revenue, fixed operating cost is Rs. 60 lakhs and the company pays income tax at a rate of 25%. (10Marks)

a. Calculate financial leverage, operating leverage and combined leverage for the company.

b. Determine the likely level of EBIT for EPS of (i) Rs.45, (ii) Rs.60, and(iii) Rs. 75.