Cash Flow Management Made Simple for University Students
28. The Bear Motel opened for business on May 1, 2012.
The Bear Motel opened for business on May 1, 2012. Its trial balance before adjustment on May 31 is as follows
In addition to those accounts listed on the trial balance, the chart of accounts for Bear Motel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation— Buildings, No. 150 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.
Other data:
1. Prepaid insurance is a 1-year policy starting May 1, 2012.
2. A count of supplies shows $750 of unused supplies on May 31.
3. Annual depreciation is $3,000 on the buildings and $1,500 on equipment.
4. The mortgage interest rate is 12%. (The mortgage was taken out on May 1.)
5. Two-thirds of the unearned rent revenue has been earned.
6. Salaries of $750 are accrued and unpaid at May 31.
Instructions
(a) Journalize the adjusting entries on May 31.
(b) Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusting entries. (Use J1 as the posting reference.)
(c) Prepare an adjusted trial balance on May 31.
(d) Prepare an income statement and an owner’s equity statement for the month of May and a balance sheet at May31.
29. Herrold Consulting incorporated on February 1, 2011. The company engaged in the following...
Herrold Consulting incorporated on February 1, 2011. The company engaged in the following transactions during its first month of operations:
Feb. 1 Issued capital stock in exchange for $750,000 cash.
Feb. 5 Borrowed $50,000 from the bank by issuing a note payable.
Feb. 8 Purchased land, building, and office equipment for $600,000. The value of the land was $100,000, the value of the building was $450,000, and the value of the office equipment was $50,000. The company paid $300,000 cash and issued a note payable for the balance.
Feb. 11 Purchased office supplies for $600 on account. The supplies will last for several months.
Feb. 14 Paid the local newspaper $400 for a full-page advertisement. The ad will appear in print on February 18.
Feb. 20 Several of the inkjet printer cartridges that Herrold purchased on February 11 were defective. The cartridges were returned and the office supply store reduced Herrold’s outstanding balance by $100.
Feb. 22 Performed consulting services for $6,000 cash.
Feb. 24 Billed clients $9,000.
Feb. 25 Paid salaries of $5,000.
Feb. 28 Paid the entire outstanding balance owed for office supplies purchased on February 11.
A partial list of the account titles used by the company includes: Cash Notes Payable
Accounts Receivable Accounts Payable
Office Supplies Capital Stock
Land Client Service Revenue
Building Advertising Expense Office Equipment Salaries Expense
a. Prepare journal entries, including explanations, for the above transactions.
b. Post each entry to the appropriate ledger accounts (use the T account format as illustrated in Exhibit 3–8 on page 108).
c. Prepare a trial balance dated February 28, 2011. Assume accounts with zero balances are not included in the trial balance.
30. A cash budget, by quarters, is given below fa a retail company (000 omitted) the company requires...
A cash budget, by quarters, is given below fa a retail company (000 omitted) the company requires a minimum cash balance of at least $6,000 to start each quartet Fill in the missing amounts (Enter your answers in thousands of dollars. (Cash deficiencies and in payments should be indicated by a minus sign.)
31. A cost incurred in the past that is not relevant to any current decision is classified as a(n)
A cost incurred in the past that is not relevant to any current decision is classified as a(n):
A) period cost.
B) opportunity cost.
C) sunk cost.
D) differential cost.
32. Incomplete manufacturing cost data for Horizon Company for 2017 are presented as follows for four...
Incomplete manufacturing cost data for Horizon Company for 2017 are presented as follows for four different situations. Indicate the missing amount for each letter. Prepare a condensed cost of goods manufactured schedule for situation (1) for the year ended December 31, 2017.
33. (Assigned Accounts Receivable—Journal Entries) Salen Company finances some of its current
(Assigned Accounts Receivable—Journal Entries) Salen Company finances some of its current operations by assigning accounts receivable to a finance company. On July 1, 2014, it assigned, under guar- antee, specific accounts amounting to $150,000. The finance company advanced to Salen 80% of the accounts assigned (20% of the total to be withheld until the finance company has made its full recovery), less a finance charge of ½% of the total accounts assigned.
On July 31, Salen Company received a statement that the finance company had collected $80,000 of these accounts and had made an additional charge of ½% of the total accounts outstanding as of July 31. This charge is to be deducted at the time of the first remittance due Salen Company from the finance com- pany. On August 31, 2014, Salen Company received a second statement from the finance company, together with a check for the amount due. The statement indicated that the finance company had collected an additional $50,000 and had made a further charge of ½% of the balance outstanding as of August 31.
Instructions
Make all entries on the books of Salen Company that a r e involved in the transactions above.
34. M/s Suba Pharmaceuticals has imported a machine on 1st July, 2012 for ~ 1,60,000, paid customs duty.
M/s Suba Pharmaceuticals has imported a machine on 1st July, 2012 for ~ 1,60,000, paid customs duty and freight ~ 80,000 and incurred erection charges ~ 60,000. Another local machinery costing ~ 1,00,000 was purchased on January, 1,2013. On 1st July, 2014, a portion of the imported machinery (value one-third) got out of order and was sold for ~ 34,800. Another machinery was purchased to replace the same for ~ 50,000. Depreciation is to be calculated at 20% p.a. on the straight line method. Show the Machinery Account for 2012, 2013 and 2014. Assume calendar year is the accounting year.
35. Habib Ullah Sadiq is wholesale trader; following transactions are record in Accounting Equation?...
Habib Ullah Sadiq is wholesale trader; following transactions are record in Accounting Equation? i. Commence business with cash Rs. 200,000 and Land Rs. 50,000. ii. Bought merchandising for cash Rs. 80,000. iii. Cash sales of worth Rs. 25,000. iv. Bought goods on credit from Salman of worth Rs. 50,000. v. Sales on account to Ali Raza Rs. 12,000. vi. Purchase furniture of the value of Rs. 5,000 by cash. vii. Received cash form Ali Raza of Rs. 10,000. viii. Return defective furniture of worth Rs. 1,500. xi. Paid wages Rs. 1,000, Rent 2,000 and Electricity Bill Payable Rs. 1,500.
36. fixed cost
"fixed costs are really variable.the more you produce the less they become" comment the statement
37. Each jurisdiction outlines late filing penalties for the annual statement of payroll for workers’...
Each jurisdiction outlines late filing penalties for the annual statement of payroll for workers’ compensation.
Your organization operates in Saskatchewan. You filed your annual Employer Payroll Statement on March 30th of the current year (see Current Year calendar in the course material). The total assessable earnings for the previous year were $925,188.15. The assessment rate per $100 for your organization is $1.41.
During the first week of March, two of your employees were injured at work.
Calculate the late filing penalty for missing the filing deadline and explain any possible additional costs to the employer related to this oversight.
What process will you put in place for next year to avoid this issue?
Please use attachment to answer the question. 100-150 words
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Chapter Workers’ Compensation Remittances and Reconciliations 7 Learning Objectives: Upon completion of this chapter, you should be able to: 1. calculate assessments for workers’ compensation (WC) and for la Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST) 2. apply remittance schedules 3. reconcile remittances 4. reconcile estimated and actual annual assessable earnings Communication Objective: Upon completion of this chapter, you should be able to: 1. explain to Accounts Payable why workers’ compensation payments are not the same amount throughout the year 2. communicate the year-end schedule for all workers’ compensation remittance and reporting deadlines to internal stakeholders © The Canadian Payroll Association – Payroll Fundamentals 2 7-1 Vs 11.0Chapter 7 Workers’ Compensation Remittances and Reconciliations Chapter Contents Introduction ........................................................................................................................ 7-3 Workers’ Compensation Assessment Calculation ......................................................... 7-3 Calculating Assessable Earnings ................................................................................... 7-3 Calculating Total Assessable Earnings and Annual Assessment .................................. 7-8 Content Review ............................................................................................................ 7-12 Review Questions ........................................................................................................ 7-13 Workers’ Compensation Remittance
38. Prepare Manufacturing, Trading and Profit and Loss Account for the year ended 31st December, 2016...
Prepare Manufacturing, Trading and Profit and Loss Account for the year ended 31st December, 2016 and Balance
Sheet as at that date of Shri S. Singh, manufacturer, from the following Trial Balance and information:
1. Stock at 31st December, 2016 was : Raw materials Rs. 7,120; W.I.P. Rs. 3,480; Finished goods Rs. 19,300; Packing
materials ~ 250.
2. The following liabilities are to be provided for : Factory power Rs. 1,124; Rent and rates Rs. 772; Light and heat Rs.320; General expenses : Factory Rs. 50; Office Rs. 80.
3. Prepaid Insurance Rs. 340.
4. Increase bad debt provision by Rs. 1,000.
5. Provide depreciation at 10% p.a on Plant and Machinery and 5% p.a. on furniture.
6. 5/6th of Rent and rates, Light and heat, and Insurance are to be allotted to the factory and 1/6th to the office.
39. DEBT RATIO Last year K. Billingsworth & Co. had earnings per share of $4 and dividends per share
DEBT RATIO Last year K. Billingsworth & Co. had earnings per share of $4 and dividends per share of $2. Total retained earnings increased by $12 million during the year, while book value per share at year-end was $40. Billingsworth has no preferred stock, and no new common stock was issued during the year. If its year-end total debt was $120 million, what was the company’s year-end debt/assets ratio?