Accounting Answers

When Y was born, a bank account was started in Y’s name with $20.05 The account has earned an average annual rate of return of 4%. Today, the account is valued at $500.00. How old is Y?

Why is accounting considered an information system?

On March 1, 2002, Tahir Muktar, a famous businessman in Addis, opened a business named “Universal Garage” which is organized as a sole proprietorship.

Cash....................................... Br, 8,300

Supplies .................................   2,000

Office Equipment...................  10,000

2 Borrowed Br 5,000 from Dashen Bank 

 3 Paid Br 1,800 for rent on a building leased for business purposes

3 Purchased welding and other repair machinery for Br 3,600 cash 

4 Paid Br 200 for a radio advertisement 

8 Sold for Br 200 cash an old office equipment with a recorded cost of Br 200 

 13 Paid weekly salary Br 1,200    

23 Received Br 5,000 additional cash investment from its owner 

24 Repaid Br 1,000 bank loan and paid Br 100 interest on bank loan 

31 Paid Br 500 for electricity and other utilities consumed during the month

31 Paid Tahir Br 1,800 for personal uses 

SCI Question 5

SOLVE FOR THE VALUE OF COMPREHENSIVE INCOME

OCI = 0

Operating Profit = 5,000,000

Income Tax Expense = 25% of Operating Profit

SCI Question 4

SOLVE FOR THE VALUE OF NET INCOME

Gross Sales = 9,000,000 pesos

COGS= 120% of Distribution Expenses  

Distribution Expense= 20% of OCI  

Administrative Expense = 5% of Gross Sales  

Income Tax Expense= 25% of Operating Profit

Other Comprehensive Income= 2,000,000 pesos

SCI Question 3

SOLVE FOR COST OF GOODS SOLD

Gross Profit = 60% of net sales

Sales Discount = 120,000

Gross Sales= 900% of Sales Discounts

SCI Question 2

SOLVE FOR THE COST OF GOODS SOLD

Freight-in = 60% of Purchase Discount

Purchase Discount = 30% of Gross Purchases

Gross Purchases = 3,000,000 pesos

SCI Question 1

SOLVE FOR THE NET INCOME

Gross Sales = 5,000,000 pesos

Sales Discounts = 230,000 pesos

Cost of Goods Sold= 3,120,000 pesos

Distribution Expenses= 500,000 pesos

Administrative Expenses= 120,000 pesos

Income Tax Expense= 25% of Operating Profit

Accounts Payable = 820,000 pesos

Unearned Revenue = 40% of Owner's Capital 

Accounts Receivable = 10% of total Liabilities

Owner's Withdrawal = 350,000 pesos

Owner's Capital = 400% of Owner's Withdrawal

Biological Assets = 540,000 pesos

Salaries Payable = 20% of Accounts Payable 

How much is the amount of Total Assets?