2 A Accounts Practice Questions 19 March 2020 of 104 PM Accounts Practice Questions Budget Ltd. Completed the following transactions: 01 October 1, 2017: Provided consulting services to Secrom Corporation on account, $10,000, terms 30 days. November 1, 2017. Accepted a one-year, 8% note from Secrom Corporation to settle its account. December 31, 2017: Accrued interest on the note from Budget Corporation (round to the nearest dollar). December 31, 2017 Budget received all the interest from Sealrom Corporation Budget accept a new one-year, 12% note from Seafront to replace the previous note. 1. Record entries for the above transactions. 2. Do you think that leverage can have an impact on financial ratios? Which category of rotos will be most d eeps on borrowing? What do you advise to the company B AG 02 Vincent Limited pold $100,000 to purchase equipment of the beginning oment will be considered fully more when the blonde 2 Vincent Limited pod 100.000 to purchase equipment at the beginning of 2020. Vincent Limited estimated the useful life of the equipment to be 5 years or 200,000 units. The m in the counced Depreciation account reaches $100,000. The equipment produced 50.000 units in 2020 Determine the estimated resid e of the moment b. What is the more cost of the moment c. Colline depreciation expense for 2010 under och of the following methods: ed and other method Luni-o-production double-decling-balance d. you were new accountant in compony and you were asked to determine how How does your method orect the income onerent? to depreciate new machine they st bought how would you determine the best method what is the difference between your m MacBook Air 0 Aa 04 Down Inc. operates a large quarry in Central BC. Selected data 19 March 2020 of 1:07 PM 04 Down Inc. operates a large quarty in Central BC. Selected data from Down Inc. for the year ended December 31, 2018 gre presented below: (20 marks) Totel assets $1,600,000 Average total assets 1,500,000 Net earrings 123,200 Net sales 1,200,000 Average common shareholders' equity 1,000,000 Net cash provided by operating activities 280,000 4.1 Calculate the profit margin and return on equity for Down's for the year ended December 31, 2018 4.2 Comment on the ratios you prepared in part 1 by comparing your ratios to the folowing averages in the industry: Profit Margine 5% Return on Equity 7% Draw Design Layout References Mailings Review View Ade bri (Bo... 14 MANA AD EVE E TabxX APAE a Abedie Abcd 1. c A Nem 1. Budget Ltd. Completed the following transactions: October 1, 2017: Provided consulting services to Sealrom Corporation on account, $10,000, terms 30 days. November 1, 2017: Accepted a one-year, 6% note from Sealrom Corporation to settle its account. December 31, 2017: Accrued interest on the note from Budget Corporation (round to the nearest dollar). December 31, 2017: Budget received all the interest from Sealrom Corporation. Budget accept a new one-year, 12% note from Sealrom to replace the previous note, Required 1. Record entries for the above transactions. 2. Do you think that leverage can have an impact on financial ratios? Which category of ratios will be most impacted if Sealrom Ltd. keeps on borrowing? What do you advise to the company