Assignment: 2 Marks: 5 Assignment type: Individual (handwritten) Submission deadline: 14 December, 2021 . Your assignment will be checked carefully. If it is found to be plagiarized and matched with other assignment, it will be strictly dealt with. Answer all the questions. Instructions for the assignment: You should solve the assignment on your script, take an image of the answers, convert it into pdf and upload the pdf file. You must prepare a front page mentioning your name, ID, Course Code, Section, faculty particulars etc. Your front page should appear as the first page. You may use 'camscanner' apps to take an image. File size: Maximum 10 MB. Question: 1 Mr. Asif started business from 1st September 2015. His investment in the business was Tk.20,000. The following transactions were completed during September: September-3; Merchandise purchased on account from Saad Tk.1,200, terms 2/15, N/30. September-5; Paid freight Tk.80 on purchase of September 3. September-8; Credit received from Saad Tk. 100 for merchandise returned. September-9; Merchandise sold on account Tk.800. Terms 1/10, N/30. The cost of the sold merchandise was Tk.650. September-15; Merchandise purchased Tk. 3,500, terms 2/10, N/30. September-16; Amount paid to Saad, less discount. September-19; Credit received from supplier Tk.200 for merchandise returned which was purchased on September 15. September-21; Merchandise sold in account Tk.1400. Terms N/30. The cost of the sold merchandise was Tk. 1180. September-22; Amount paid for purchase on account of September 15. September-25; Amount received from buyer of September 9, Tk.800. Required: a) Journalizes the transactions of September using Perpetual Inventory System. b) If the managers of company XYZ needs to have up to date records of Inventory for better production management, should the management prefer the periodic inventory system or the perpetual inventory system? Page 1 Question: 2 GDE Company has the following inventory, purchases, and sales data for the month of March. Inventory: March 1 200 units @ Tk.4.00 Tk.800 Purchases: March 10 March 20 March 30 500 units @ Tk.4.50 400 units @ Tk.4.75 300 units @ Tk.5.00 2,250 1,900 1,500 Sales: March 15 March 25 500 units 400 units The physical inventory count on March 31 shows 500 units on hand. Instructions: Under a periodic inventory system, determine the cost of inventory on hand at March 31 and the cost of goods sold for March under (a) FIFO, (b) LIFO, and (c) Average-cost. Question: 3 Prepare Bank reconciliation report and journalize the necessary adjustments as of March 31st, 2021 for Company "A"; its bank statement for March shows the following data: $15,650 Balance March 1 Debit memorandum: NSF check Balance March 31 $17,580 Credit memorandum: Collection of note receivable $605 $275 The cash balance per books at March 31st is $16,319. Other relevant data are given below: 1. The NSF check was from a customer, 2. The note collected by the bank was a $600, 3 month, 12% note. The bank charged a $13 collection fee. No interest has been accrued. 3. Outstanding checks at March 31st total $2460. 4. Deposits in transit at March 31st total $1802. 5. A check for $552, dated March 10, cleared the bank on March 25, was recorded by the company for a payment on account, for $525. 6. Bank has by mistake credited $300 in Company's account which belongs to another company Page 12 Question: 4 The December 31, 2020 balance of Mohammad Com had Accounts Receivable of $400,000 and a credit balance in Allowance for Doubtful Accounts of $32,000. During 2021, the following transactions occurred: (a) sales on account $1,500,000; (b) sales return and allowances $50,000 (C) collection from customers $1,250,000; (d) accounts written off $36,000; (e) previously written off accounts of $6,000 were collected. Instructions: (1) Journalize the 2021 transaction (2) If the company uses percentage --of-sales basis to estimate bad debt expense and anticipates 3% of net sales to be uncollectable, what is the adjusting entry at December 31, 2021. Question: 5 On June 1, 2021, Tesla company purchased a machine for use in its production process. Information concerning the machine is summarized as follows. Tesla's reporting period is from January 1 to December 31. Cost $210,000 Salvage Value $20,000 Useful Life in Years 5 Required a) Prepare depreciation schedule under the declining balance method. The company uses the double declining rate. b) Straight-line method i. Calculate the amount of accumulated depreciation at December 31, 2022. ii. Suppose the machine was sold for $150,000 on January 01, 2023. Prepare the journal entry for the sale of the machine. iii. In 2023, the company determined that the total estimated life should be 8 years with a salvage value of $10,000. Calculate the depreciation expense for 2023. Page 3