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Part I Ronsdale Company is in the business of producing banners. Its financial year ends on 31 December and it normally adjusts depreciation annually. On

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Part I Ronsdale Company is in the business of producing banners. Its financial year ends on 31 December and it normally adjusts depreciation annually. On 5 May, 2019 it purchased a printing machine at $75,000 with an estimated useful life of 3 years and a residual value of \$3,000. It is expected that the machine can print a maximum of 150,000 pieces of banners of a standard size. Required: (a) Use the three depreciation methods below and compute depreciation expense of the machine for the years 2019 and 2020 . Show workings. (i) Straight-line method (round to the nearest whole month). (ii) 150% declining balance method (half-year convention). (iii) Unit-of-output method (produced 45,000 pieces in 2019: 60,000 pieces in 2020). (18 marks) (b) What is depreciation expense for the machine in the year 2022 if Ronsdale used method a (ii) to calculate depreciation expense? (2 marks) (c) On 30 April, 2022, Ronsdale sold the above machine for $2,000 cash. Assume the Company used depeeciation method (a) (i). prepare joumal entries to (i) update depreciation expense in 2022 before disposal of the machine. (2 marks) (ii) record disposal of the machine. (4 marks) Part II On 1" lanuary 2022, Ronsdale purchased another new machine and payment is settled by signing a note payable. Below are the expenditures in acquiring the machine. (a) How much is the acquisition cost of this machine? (4 marks) (b) Prepare journal entries to recoed purchase of the machine. (2 marks) Qucstion 2 (37 marks) Part I (19 marks) The bank statement from Universal Bank showed balance of Cassa Company (Cassa) as at 31 August 2021 was $54,321. But end of August cash account balance in the gencral ledger of Cassa was $49,476. There were no deposit-in-transit and eatstanding checks carried over from the previous months. When comparing the book with the bank statement, Cassa found: (1) Bosco directly credited $42,800 to Cassa's bank account to pay Casa for a note payable plus interest. The principal amount he borrowed was $40,000. (2) On the bank statement there was a cheupe no. 1234, marked as NSF check for $1,155 that Cassa received to settle an accounts receivable. (3) The bank statement showed deposit of Cassa during the month was 61,000 , but the bank statement showed deposit received in August was 20,600 . (4) There was a cheque cleared by the bank to pay foe $1,500 supplies thas Cassa bought. It was recorded as $2,500 in the book by mistake. (5) In the bank statement there is a bank service charge of $100. (6) The bank has erroncously credited to Cassa's account $1,400 for a deposit that actually belonged to Cossco. (7) An examination on the bank statement revealed that check no. 231$450. check no 236 $550, check no 241$300 issued by Cassa in Augast were not included in the list of checks cleared by the bank. Sonya Company (Sonya) adjusts its accounts annually with financial year ends on 31 December. Below are Sonya's accounts receivable by age group as at 31 December 2021 and extract of account balances from its unadjusted trial balance. (a) Compute the amount of estimated uncollectible accounts based on the above accounts receivable by age groups if Sonya adopts the statement of financial position approach. (2 marks) (b) Based on your answer from (a) prepare adjusting entries to provide for the uncollectible accounts if it adopts the statement of financial position approach. (4 marks) (c) Prepare adjusting entries to provide for the Company's uncollectible accounts if it adopts the income statement approach and estimates that 1.5% of net credit sales is uncollectible. (4 marks) (d) On 5 January 2022 Sonya learned a customer has bankruptcy. Use the Allowance Method to write-off this uncollectible accounts of \$ 200 . Record this by journals (4 marks) (e) On 10 January 2022 Sonya received $400 which was an accounts receivable that had already been written off and recorded in 2021. Record this by journals. (4 marks) Question 3 (31 marks) Alpines Company (Alpines) purchases and sells hiking boots. It adopts a perpetual inventory system and conducts inventory count once yearly on 31 December. The following accounts balances were extracted from its trial balance dated 30 November 2021: The following transactions happened in December 2021. Required: (a) Prepare journal entries for Alpines on the above transactions. (24 marks) (b) Calculate the following figures for the year ended 31 December 2021: (i) Sales 5 (1 mark) (ii) Sales Returns \& Allowance $ (2 mark) (iii) Cost of goods sold 5 (2 mark) (iv) Gross profit $ (2 marks)

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