Accounting Answers

Nesto hypermarket sells three brands (A, B, and C) of laptop computers. The monthly sales of the three brands are: Brand A = 15 units; Brand B = 9 units and Brand C = 12 units. The unit price of brand A is R.O. 300; brand B is R.O. 280 and brand C is R.O. 200. The cost to the Stores is 280 R.O. for brand A; 260 R.O. for brand B, and 180 R.O for brand C. Let

Q = ; P =; and C =

Using the above matrices, calculate the following:

(a). Calculate total revenue 

(b). Calculate total cost 

(c). Calculate the monthly profit.

You have been appointed as an economic advisor to Wheels SA, an organisation that oversees the motor vehicle industry in South Africa. Over the past year, the following simultaneous changes have occurred in the South African motor vehicle market:

• A recently published survey indicates that consumers expect the price of motor vehicles to increase in the future;

• The cost of manufacturing motor vehicles has increased due to an increase in labour costs as well as the costs of other inputs.

Explain, with the use of a graph, the impact of the above changes on the equilibrium price and equilibrium quantity in the motor vehicle market

The company purchased furniture and fixtures to use in one of its stores for 440,000 in January of 20X5. The furniture and fixtures were being depreciated using the straight-line method over ten years with a residual value of 10,000. In December 20X9, Gameplay decided to close the location and entered into an exchange agreement with Allero Corporation. Allero agreed to give Gameplay vehicles with a fair value of 200,000 and cash of 50,000 in exchange for the furniture and fixtures from this store. The furniture and fixtures have an estimated fair value of 250,000 on the date of exchange. a. Make the depreciation entry for the furniture and fixtures that would be necessary in December 20X9, assuming that no entries have been made during the year. b. Determine the book value of the furniture and fixtures on the date of exchange. c. Record the journal entry Gameplay would make for this exchange. d. Where would Gameplay report the gain or loss you determined in part c. above?

Springfield Corporation purchases a new machine on March 3, 20X4 for $35,600 in cash. It pays an additional $3,400 to transport and set up the machine. Springfield’s accountant determines that the equipment has no residual value and that the useful life is five years. It is expected to generate 2,400,000 units during its life. Assume Springfield employs the half-year convention. 

a. Record the purchase of the machine.

b. Assume that Springfield uses the straight-line method of depreciation. Record depreciation expense for the first two years of the machine’s life. 

c. Assume that Springfield uses the double-declining balance method of depreciation. Record depreciation expense for the first two years of the machine’s life. 

d. Assume that Springfield uses the units-of-production method of depreciation. 

During Year 1, the machine produces 600,000 units. 

During Year 2, the machine produces 578,000 units. 

Record depreciation expense for the first two years of the machine’s life

The saving function of a random sample of ten families is given as where denote aggregate savings, denotes disposable income real interest rate. The sample data are given in the following table:-

20 25 25 30 35 40 43 42 50 55

100 110 115 120 140 145 145 140 150 160

2 2 3 2 3 4 3 4 5 5

Required:

a) Find the regression equation of the savings on disposable income and real interest rate

b) Estimate the savings when the disposable income is 180 and real interest rate is 6

c) Compute the coefficient of multiple determination and adjusted value

d) Test the significance of the individual regression coefficient at the 5% level of significance

e) Estimate the confidence limits of the individual regression coefficient at the 95% confidence level.

f) Test the overall significance of regression at 5% level.

assume that tom and jerry from a partnership with investment of 88000$ and120000$ separately. Determine the partnership in net income of 88000$ for the division of the partnership net income under the following conditions.

1. No agreement concerning division
2. Division is made in the ration of their original investment
3. Division is made according to the agreement that he rate of 8% allowed on original investment and the remainder divided in the ratio of 2:1

list the advantage and disadvantage of corporate form of organization

what are the common reason for partnership dissolution

explain the meaning of the term double taxation at it applies to corporate profit

SLR has set a target of 20% annual rate of return on investments. The fixed assets employed on one of their products, the X2, amount to £21,000,000. Working capital investment for the X2 is £4,000,000. Total operating costs to be incurred on the X2 for next year are forecast to be £8,000,000. SLR uses cost plus pricing.

What is the required percentage mark up on the costs for X2?