Q-3: 8 On June 3, A Ltd. sold to B. Ltd. goods of $10,000 with terms of 2/10, n/60, f.o.b. destination. An invoice totaling $100, terms n/30, was received by the appropriate party on June 8 from the Dhaka Transport Service for the freight cost. On June 5, B returned goods of $500 as they were not sent as per the specification. A issued a credit memo in this regard. The freight cost on the returned merchandise was $20, paid by the seller on June 7. On June 10, A received a check for the balance due from B. On June 13, A Ltd. sold to Y. Ltd. goods of $15,000 with terms of 2/10, n/30, f.o.b. shipping point. An invoice totaling $200, terms n/30, was received by the appropriate party on June 18 from the Taki Transport Service for the freight cost. On June 25, A received a check for the balance due from Y. Instructions: Prepare journal entries in the books of A Ltd. under net method. Q-4: 14 On January 1, 2018, T Limited signed contract to construct a bridge at a price of Tk. 25,00,000. At the end of the construction, because of a minor construction defect, the client has decided to deduct Tk. 25,000 according to a clause of the contract. The following information pertains to the construction period. Costs incurred during the year Estimated costs yet to be incurred Customer billings during the year Collection of billing during the year 2018 Tk. 6,00,000 14,00,000 5,00,000 4,00,000 2019 Tk. 9,60,000 3,90,000 10,00,000 9,00,000 2020 Tk. 11,40,000 0 9,75,000 11,50,000 Instructions: Prepare necessary journal entries for 2018 - 2020 and partial balance sheet (only for 2018). Q-5: 15 Glaus Company agrees to lease machinery from Jensen Corporation on January 1, 2014 under a non-cancellable contract. The following information relates to the lease agreement.: The term of the lease is 4 years with bargain purchase option, and the machinery has an estimated economic life of 5 years. The equal rental payment has been set as $26,720 to be paid at the beginning of each year. The cost and fair value of the computer was $90,000 & $100,000 respectively and the amount of the guaranteed residual value is $10,000. Glaus Company has an incremental borrowing rate of 12% but has no knowledge that Jensen Corporation used a rate 10% in setting annual rentals. Collection of the rentals is reasonably predictable and there are no important uncertainties regarding future un-reimbursable costs to be incurred by the lessor. At the end of the lease term the computer was purchased by the lessee at a price of Tk. 15,000. PVIFAD (10%,4) - 3.48685; PVIF (10%,4) - 0.68301; PVIFAD (12%,4) - 3.40183; PVIF (12%,4) - 0.63552 Instructions: Record the necessary journal entries in the books of Jensen Corporation