All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
accounting principles

Questions and Answers of Accounting Principles

=+The draft acx:oimts for the year to 31st March, 1960 showed a net profit of £9,155 and on examination the following facts were revealed and decisions made:(a) Partners during the year had been
=+(b) A staff bonus of £1,200 was to be paid of which £130 was payable to X's son and was to be charged against X's share of the profit.(c) W, the manager, was to receive a bonus of 2 per cent of
=+(d) The sums credited and debited to partners for interest had been posted to an Interest Account, the balance on which had been written off to Profit & Loss Account in arriving at the profit
=+W was to bring in £4,000 as his share of the firm's fixed capital, the total of which was to remain at £18,000, and to purchase his share of Goodwill, valued at £27,000 for the business as a
=+revised shares of profits.You are required to prepare:1. The Profit and Loss Appropriation Account for the Year ended 31st March, 1960 (adjusted to the correct net profit before allocation to
=+8. IPC and Y are equal partners. On 1st July, 1962, they agree to admit Ζas partner. Ζ is to pay £2,000 as a premium—the money to be left in the business—and to contribute £5,000 as
=+It was agreed, after negotiation between the parties, that the following adjustments in book values were to be made:£(a) Freehold Property to be valued at 11,000(b) Plant and Machinery to be
=+(d) Stock revalued at 5,750 Reserve Account to be transferred to Revaluation Account.Prepare Revaluation Account and Balance Sheet of new firm as at 1st July, 1962.
=+9. •Up to 31st March, 1959, Henry, John and Kenneth had been trading in partnership and sharing profits in the respective proportions of 8, 7 and 5, and the firm's balance sheet drawn up as on
=+Henry having given notice that he wished to retire on the date mentioned, and it having been determined to admit Lambert as a new partner on the following day, the following terms were agreed:(a)
=+(b) Henry was to be credited with £3,000 for his share of Goodwill.He was to be paid £5,000 out of money to be brought in by Lambert, and agreed to leave the balance of the sum remaining due to
=+(c) Lambert was to bring in £7,000 in cash and to be entitled to one-fifth of the profits, the other partners, as between themselves, sharing the balance in the same proportion as before.
=+(d) Finally, adjustments were to be made between the partners' capital accounts to give effect to their agreement that Lambert should purchase one-fifth of the firm's Goodwill, which was to be
=+Write up the partners' capital accounts, showing the entries recording the foregoing, and draw up an initial balance sheet for the new firm.
=+10. Scott and King, who occupied adjacent shops, became partners as Shop property valued at Fittings and fixtures Stocks on hand Cash in bank Less: Accrued expenses Scott King£ £3,500 1,760 850
=+The partnership agreement provided that profits should be shared threefifths to Scott and two-fifths to King, after provision for salaries at the annual rate of £630 to Scott and £420 to King
=+Bank lodged 17,356 Cash in hand 31st Dec. 1962 109£38,523 £38,523 King died on 31st August, 1962, and the balance found due to him as at the date of his death based on the accounts for year
=+11. fA, Β and C are in partnership at Exton and Wyeton sharing profits in the ratio 4:4:2 . Their Balance Sheet at 31st December, 1962, was as follows:Exton Wyeton Total£ £ £Furniture and
=+Creditors Current Accounts Capital Accounts —Exton 755 Wyeton 398 AΒC AΒC 1,465 947 325 6,400 6,400 3,200 1,153 2,737 16,000£19,890 C retired from the partnership on 1st January, 1963, when it
=+(a) A should take over Exton assets with the exception of a motor car of a book value of £800 which C should have and that Β take over the Wyeton assets; A and Β are to assume the Exton and
=+(b) C to have £1,500 as his share of the Goodwill of the firm and to forgo any share of profit on the work-in-progress.Draw up statements to show amounts due to and by each partner in the final
=+12. *Hale, Neath and Redcar, who had been carrying on business in partnership, sharing profits and losses in the proportions of one-half, one-third and one-sixth respectively, decided to dissolve
=+In the realisation, the Debtors produced £2,492; the Furniture £149;the Stock £2,085; and the Goodwill £360. The expenses of the realisation amounted to £130. All the partners were solvent and
=+Prepare the Realisation Account, Cash Book and the Partners' Capital Accounts to show the final distribution.13. HX, Y and Ζ are in partnership and their agreement provides:
=+(a) Each partner is to receive a salary of £500 per annum.
=+(b) X, Y and Ζ are to share profits and losses in the proportions of one-half, three-tenths and one-fifth respectively.
=+The partners agreed to dissolve the partnership on 30th June, 1959.As attempts to sell the business as a going concern had failed, the realisation of the assets was likely to be spread over some
=+The balances in the books at 30th June, 1959, before making the necessary transfers to partners' capital accounts for the year ended on that date, were as follows:Dr. Cr.£ £Capital Accounts: X
=+Assurance Policies for £1,000 on the life of each partner had been entered into, and the premiums had been charged to Profit & Loss Account annually. The surrender values of the policies at 30th
=+It was agreed that X and Y should each take over the policies on their own lives, and that the policy on the life of Ζ should be surrendered.Discounts of £100 were received on the payment of
=+(a) Prepare the accounts showing the entries closing the books of the partnership.
=+(b) Prepare a statement showing the periodical distributions of cash, together with your computations of amounts distributed to partners.14. tJames, John and Williams are equal partners and
=+The assets other than cash realised £8,000 and the costs of realisation were £230.Write up the necessary accounts to show the final result of the dissolution and the division of the cash between
=+15. fRead, White and Blue are in partnership. The following is their Balance sheet as at 31st December, 1961, on which date they dissolve partnership. They share profits in the ratio 5:3:2
=+Prepare a statement showing how the distribution should be made and write up the Cash Account and Partners' Capital accoimts.
=+1. t Audrey Limited invited applications for 200,000 of its £1 Ordinary Shares on the following terms:Payable on application on 31st January 10/- per share Payable on allotment on 28th
=+(c) to allot the balance of the available shares pro rata among the other applicants;
=+(d) to utilise excess application money in part payment of allotment money.One applicant to whom shares had been allotted in full did not pay the amount due on call and his 200 shares were
=+2. On 1st January, 1960, Cabinet Construction Ltd. offered 100,000 £1 Ordinary Shares to the public at a price of 25/-. The amount per share was payable:On application 5/-On allotment 7/6
=+The closing date for applications was on 25th January and, by that date, applications had been received for 120,000 Shares.On 31st January, the directors allotted the shares.Applicants for 5,000
=+The shares were forfeited on 20th April and re-issued as fully paid on 15th May for a price of 20/- per share.Record these transactions in the books of the company.
=+3. •The Rotar Company Limited was formed to purchase the business of Roberts and Taring, who share profits, two-thirds and one-third respectively, and whose Balance Sheet was as follows:Balance
=+The Company takes over the assets at book values with the exception of freehold property, which is taken over at £10,000. The cash and investments are retained by the firm, and the investments are
=+The purchase consideration for the net assets taken over is fixed at£22,500 payable as follows: 22,000 fully paid ordmary shares of £1 each and the balance in cash. Roberts and Taring agree to
=+Show the Ledger Accounts closing the firm's books, and the Journal entries opening the Company's books.
=+4. fEnterprise Ltd. agreed to purchase as at 30th June, 1959, the business of Day and Night whose Balance Sheet at that date was summarised as follows:£ £Goodwill 10,000 Land and Buildings 65,000
=+The purchase consideration was agreed at £150,000 and the company took over all the assets and the liability to the creditors, but the bank overdraft was discharged by Day and Night. In arriving
=+To provide funds for the purchase of the business and further working capital Enteφrise Ltd. decided to issue 200,000 new Ordinary Shares of £1 each, at 22/6 per share. Of these new shares Day
=+Enterprise Ltd. offered tlie remaining 150,000 new Ordinary Shares to the public on 1st July, 1959, payment thereof being due as follows:5/- on application, 7/6 on allotment on 15th July (including
=+You are required to show the journal entries (includmg cash items) to record, in the books of Enterprise Ltd., the purchase of the business and the issue of the new Ordinary Shares.
=+5. tNether and Wallop were equal partners and their Balance Sheet at 31st December, 1961, was as follows:Creditors Current Accounts Nether Wallop Capital Accounts Nether WaUop 6,500 4,500 28,000
=+On 1st January, 1962, they formed a company with an authorised capital of £200,000, half in 6 per cent. Cumulative Preference Shares and half in Ordinary Shares of £1 each, to take over the
=+(a) the purchase consideration should be £150,000, payable by allotment at par of 50,000 Preference Shares and 80,000 Ordinary Shares, and the balance in cash;the assets to be revalued as
=+the vendors should retain the balance at bank and discharge creditors;the Company should collect debts on behalf of the vendors.
=+Shares were allotted to the vendors on 1st January, 1962, and the balance of the purchase consideration was paid to them on 1st March, 1962.The Company completed the collection of debts, with the
=+Close the books of the partnership and also draft the Balance Sheet of the Company as at 1st January, 1962.
=+6. *Conway and Bangor Ltd. has an authorised capital of £30,000 divided into 20,000 ordmary shares of £1 each and 10,000 6 per cent preference shares of £1 each.The following were the balances
=+Provision for Bad Debts 498 Bad Debts 502 Salaries 4,766 Balance at Bank 4,939 Preference Dividend paid to 31.3.62 570 Sales 97,012 Rates 366 Discounts received 1,989 5 per cent Debentures 10,000
=+The following matters are to be taken into account:(a) The stock on hand at 31st March, 1962, was valued at £9,898.(b) Salaries accrued at 31st March, 1962 amounted to £260.(c) Insurance paid in
=+7. A. Juby Ltd. is a company with an authorised capital of £20,000 divided into:10,000 6 % Preference Shares of £1 each.20,000 Ordinary Shares of 10/- each.All the shares have been issued and are
=+The Net Trading Profit for the Year to 30th June, 1961, is £6,000 and the Balance on Profit & Loss Account brought forward from the previous year is £1,200. It is proposed to pay the following
=+Prepare the Appropriation Account and the Balance Sheet as at 30th June, 1961.
Mario Company is considering discontinuing a product.The costs of the product consist of $20,000 fixed costs and SI 5,000 variable costs. The variable operating expenses related to the product total
Victor Company is considering disposing of equipment that was originally purchased for $200,000 and has$150,000 of accumulated depreciation to date. The same equipment would cost 5310,000 to replace.
For which cost concept used in applying the cost-plus approach to product pricing are fixed manufacturing costs, fixed selling and administrative expenses, and desired profit allowed for in
Mendosa Company produces three products. All the products use a furnace operation, which is a produc- tion bottleneck. The following information is available:From a profitability perspective, which
Explain the meaning of (a) differential revenue, (b) differential cost, and (c) differential income. LO4
It was recently reported that Exabyte, a fast growing (100-fold in four years) Colorado marketer of tape drives, has decided to purchase key components of its product from others. For example, Sony
In the long run. the normal selling price must be set high enough to cover what factors? LO4
What are the two primary methods of setting prices? LO4
What are three cost concepts commonly used in applying the cost-plus approach to product pricing? LO4
In using the product cost concept of applying the cost-plus approach to product pricing, what factors are included in the markup? LO4
The variable cost concept used in applying the cost-plus approach to product pricing includes what costs in the cost amount to which the markup is added? LO4
In determining the markup percentage for the product cost concept of applying the cost-plus approach, what is included in -the denominator? LO4
Why might the use of ideal standards in applying the cost-plus approach to product pricing lead to setting product prices that are too low? LO4
What method of determining product cost may be appropriate in settings where the manufacturing process is complex? LO4
How does the target cost concept differ from cost-plus approaches? LO4
What is a production bottleneck? LO4
What is the appropriate measure of a product's value when a firm is operating under production bottlenecks? LO4
Methods of evaluating capital investment proposals that ignore present value include: LO6 A. average rate of return B. cash payback C. both A and B D. neither A nor B
Management is considering a $100,000 investment in a project with a 5-year life and no residual value. If the total income from the project is expected to be$60,000 and recognition is given to the
The expected period of time that will elapse between the date of a capital investment and the complete recovery of t he amount of cash invested is called: LO6 A. the average rate of return period B.
A project that will cost $120,000 is estimated to generate cash, flows of $25,000 per year for eight years.What is the net present value of the project, assuming an 11% required rate of return? (Use
A project is estimated to generate cash flows of $40,000 per year for 10 years. The cost of the project is$226,009. What is the internal rate of return for this project? LO6 A. 8% C. 12%B. 10% 1). 14%
Which two methods of capital investment analysis ignore present value? LO6
Which two methods of capital investment analysis can be described as present value methods:' LO6
How is the average rate of return computed for capital investment analysis, assum- ing that the effect of straight-line depreciation on the amount of the investment is considered? LO6
What are the principal objections to the use of the average rate of return method in evaluating capital investment proposals? LO6
Discuss the principal limitations of the cash payback method for evaluating capital investment proposals. LO6
How is the present value index for a proposal determined? LO6
What are the major disadvantages of the use of the net present value method of analyzing capital investment proposals? LO6
What are the major disadvantages of the use of the internal rate of return method of analyzing capital investment proposals? LO6
What provision of the Internal Revenue Code is especially important to consider in analyzing capital investment proposals? LO6
What method can be used to place two capital investment proposals with unequal useful lives on a comparable basis? LO6
What are the major advantages of leasing a fixed asset rather than purchasing it? LO6
Give an example of a qualitative factor that should be considered in a capital invest- ment analysis related to acquiring automated factory equipment. LO6
Monsanto, a large chemical and fibers company, invested $37 million in state-of- the-art systems to improve process control, laboratory automation, and local area network (LAN) communications. The
A tight budget may create: LO3 A. budgetary slack B. discouragement C. a flexible budget D. a "spend it or lose it" mentality
The first step of the budget process is: LO3 A. plan C. control B. direct D. feedback
Static budgets are often used by: LO3 A. production departments B. administrative departments C. responsibility centers D. capital projects

Showing 300 - 400 of 1520

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved