Accounting Answers

The following balances are lifted from the general ledger of Alpha Company as of July 31, 2021.

Accounts Payable -- 44,000.00

Accounts Receivable --150,000.00

Allowance for Doubtful Accounts -- 32,000.00

Alpha, Capital -- 670,000.00

Cash -- 455,000.00

Delivery Equipment -- 300,000.00

Furniture -- 31,000.00

Light and Water Expense -- 64,000.00

Loans Payable -- 130,000.00

Merchandise Inventory -- 110,000.00

Notes Payable -- 150,000.00

Prepaid Insurance -- 15,000.00

Rent Expense -- 128,000.00

Salaries Expenses -- 169,000.00

Salaries Payable -- 25,000.00

Service Revenue -- 330,000.00

Vat Payable -- 10,000.00

Note: Accounts Receivable is due on

December 31,2021.

Accounts and Notes Payable are due on

January 31,2022 and December 31,

2022 respectively. Bank loan is due in

18 months.

Requirement: Prepare a classified Statement of Financial Position in Report Form.

Describe service cost analysis and how to undertake this type of cost analysis.

Determine if the following accounts are Current Assets(CA), Non-Current Assets(NCA), Current Liabilities(CL), or Non-Current Liabilities(NCL). Write your answer on the space provided.

______1. Franchise

______2. Loans Payable

______3. Accounts Payable

______4. Note Receivable (due in 18 mos.)

______5. Cash

______6. Prepaid Expense

______7. Accounts Receivable

______8. Land

______9. Merchandise Inventory

______10. Unearned Income

______11. Copyright

______12. Office Equipment

______13. Machinery

______14. Prepaid Insurance

______15. Building

______16. Patent

______17. Accrued Salaries Expense

______18. Service Vehicle

______19. Wages Payable

______20. Notes Payable (due in 24 mos.)

1. Is Unearned Income an Asset, Liability, Equity, Revenue or Expense?

2. Is Service Income an Asset, Liability, Equity, Revenue or Expense?

3. Is Copyright an Asset, Liability, Equity, Revenue or Expense?

4. Is Prepaid Expense an Asset, Liability, Equity, Revenue or Expense?

5. Is Accrued Expense an Asset, Liability, Equity, Revenue or Expense?

6. Is Salaries Expense an Asset, Liability, Equity, Revenue or Expense?

7. Is Sales an Asset, Liability, Equity, Revenue or Expense?

8. Is Merchandise Inventory an Asset, Liability, Equity, Revenue or Expense?

9. Is Notes Payable an Asset, Liability, Equity, Revenue or Expense?

10. Is Owner, Withdrawal an Asset, Liability, Equity, Revenue or Expense?

1. Collected fees $10 000 in August which includes $1 500 fees earned in July. 2. Earned $2 000 fees in August to be received in September. 3. Beginning supplies on hand in was $500 and further purchase of supplies in August amounted to $1,000. All supplies were bought on credit and supplies worth $600 still remains unused at the end. 4. Paid suppliers $800 cash in August which includes $200 for supplies bought in July. 5. Paid wages amounting to $2 000 which includes $300 earned in July. Another payment of $500 earned in August will be paid in September. 6. Bought office equipment worth $2 400 and paid $1 200 cash. The remaining balance will be paid in September. Equipment is estimated to have a useful life of 2 years after which it will become obsolete. REQUIRED: (i) Prepare an income statement for the month of August using the accrual basis. (5 marks) (ii) Prepare an income statement for the month of August using the modified cash basis. (5 marks

1. Collected fees $10 000 in August which includes $1 500 fees earned in July. 2. Earned $2 000 fees in August to be received in September. 3. Beginning supplies on hand in was $500 and further purchase of supplies in August amounted to $1,000. All supplies were bought on credit and supplies worth $600 still remains unused at the end. 4. Paid suppliers $800 cash in August which includes $200 for supplies bought in July. 5. Paid wages amounting to $2 000 which includes $300 earned in July. Another payment of $500 earned in August will be paid in September. 6. Bought office equipment worth $2 400 and paid $1 200 cash. The remaining balance will be paid in September. Equipment is estimated to have a useful life of 2 years after which it will become obsolete. REQUIRED: (i) Prepare an income statement for the month of August using the accrual basis.

Robinson Co. Ltd. completed the following merchandising transactions in the month of May.. At the beginning of May, the ledger of Robinson showed Cash balance of $6,000.

a) Journalize the following transactions of May (Assume that the company follows Perpetual Inventor System), by

- - - selecting the accounts to be debited and stating the debit amounts,

- - - selecting the accounts to be credited and stating the credit amounts.

(b) Post the transactions in the following ledger accounts i) Cash ii) Merchandise Inventory iii) Cost of Goods Sold

3. May 5 Purchased merchandise for cash $1,500.

4. May 7 Received credit from Logun Ltd. for merchandise returned $300.

5.May 10 Paid Logun Ltd. for purchase in May 1.

6.May 12 Received payment in cash from customers billed on sales of $2,100 on May 2.

11. May 27 Paid Costa Distributors for the purchase in May 17.

13. May 31 Sold merchandise on account $900, terms n/30.The cost of the merchandise sold was $560

abebe furniture is a furniture mfg firm that uses job order costing.the company's inventory balance on Jan 1,the beginning of its fiscal year as follows

raw material br40000

work in process 30000

finished goods 60000

a.raw materials were purchased on account for br 800000

b.raw materials were transferred in to production br 764000

(Br 720000DM and 40000 I.M)

c.the following cost were incurred for employee services DL br 150000

indirect labor 220000

d. factory utility cost were incurred in the factory br 86000

e.MOH was applied to production 960000

f.goods costing br 1800000 were completed and transferred to warehouse

g.goods were sold on account to customers during the year at selling price of br 3000000.the goods cost br 1748000 to manufacture according to there job cost sheets .

instructions:-prepare journal entry to record preceding transactionS

Collected fees $10 000 in August which includes $1 500 fees earned in July. 2. Earned $2 000 fees in August to be received in September. 3. Beginning supplies on hand in was $500 and further purchase of supplies in August amounted to $1,000. All supplies were bought on credit and supplies worth $600 still remains unused at the end. 4. Paid suppliers $800 cash in August which includes $200 for supplies bought in July. 5. Paid wages amounting to $2 000 which includes $300 earned in July. Another payment of $500 earned in August will be paid in September. 6. Bought office equipment worth $2 400 and paid $1 200 cash. The remaining balance will be paid in September. Equipment is estimated to have a useful life of 2 years after which it will become obsolete. REQUIRED: (i) Prepare an income statement for the month of August using the accrual basis.(ii) Prepare an income statement for the month of August using the modified cash basis.