question 2 3 4 5 and 6

1. On January year 3. Whic Company bought a building for Bes00,000. The building han estimate life of 25 years with residual Whites the straight line method to depreciate its building On December 31, yeard the recoverablement of the building B 2000 and on December 31year the recoverable amount of the building is Br 45000 Required: > Calculate the ment to be recorded as inpirent low and show the necessary journal citries December lycar b) Record the lo reveal there is any ) December 31 year 6 2. The cash ledger account of Red Company owsa dcbit balance of Ble 10.592.46 Dec. 31 years. The bank statement indicates balance depenkolle 12.2002 on Dec. 31 Roccipes or Dec 31 in the mount of the 1.1446 were left in the bank's night depository Dec 31 hat were not included in the bank statement. The December bank statement included die moof He 13.50 for service charges for December. Acredit memo included with a hank statement indicated to receivable in the amount of 200 cft with the hank for collection. The note had been collected and credited to the Real Company's account for 2.030 including interest revenue of Br 30 Comparison of the pail checks with the check tue indicated that check m. 21 for Be 463.90 on Dec 15 for acquisition of office quipment had been here comedy in the cash payment portalas 436.90 in addition, the following checks issued in Dec Year 5 had not been paid by the husk Check 11 Chuck 14 91.00 Check 116.50 Finally, an examination of the accounting indicated that the collected 10.000 for Real Company Dec 31 year 5 representing the maturity value of a government rury Ibral the bank dd ut credit Realscount stil January 2 years. The pwerment treasury will had been acquired by the bank for Real discount of Hr9652 and had been recorded at coutin short term investment ledger account by mal Company NSF checks of the customer XYZ Company charged by the hunk which has to be 50 Prepare bunkreion for the hof Desember 31 b) Prepare juntal entries required by the reci c) Priepure proof of calcidering the following information Bank Statement for December Indicated that the wel deposit of cash during December 3435143 Total checks paid including bank service charge of the 1350 med to Br 19.25966 on December 3 years Balance of Nov year Slank statement is 97.36: Deposit in transitas al Nov 30 years were 108.52 Outstanding checksca Nur 30 years were 68142 2. The following information is pewided for ABC Co C Retail SOCO 300.000 10,00 Betting in Purchase Parchen Sales Sales Markup 30.000 20000 IK.000 4. Beginning inventory and purchases and sales data for Commodity "X" for the month of July are as follow Inventory July 1 Sales 15 units IN 10 units Be 8 22 12 units Purchases 20 units 51 20 15 units 52 1) Compute the cost of ending inventory and cost of goods sold using FIFO and AVC under a) Periodic inventory system b) Perpetual inventory system 2) Pass the necessary journal entry to record purchase, sale and end of year adjusting 5. Sun Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work the accountant was assigned to total a batch of invoices with the use of andling machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. Sun Corporation gave the machine plus Br 320 to Mon Company (dealer) in exchange for a new machine. Assume the following information about the machines. Sun Corp Moon Co. Machine cost Br 1700 Accumulated depreciation 1400 900 Fair value so 1400 Required: a) Assuming the exchange has commercial substance, compute the cost of the new asset and pass the journal entry to record the exchange for both Companies b) Assuming the exchange lacks comercial substance.compute the cost of the new asset and pass the journal entry to record the exchange for both Companies 6. Assume that Glory Company applies revaluation at the end of December 31. year to Building purchased on June 1. year 7 for Bir 2,000,000. The Building has a useful life of 20 years and no residual value. Required: al Record adjusting entry for depreciation on December 31, year 7 using straight line method b) At the end of year 7. independent appraisers determine that the avct has a fair value of Birr 1.980,000.record the equipment at fair value c) At the end of year independent appraisers determine that the asset has a fair value of Bir 1.775.000 at the end of Year & record the equipment at fair value d) At the end of year 9. independent appraisers determine that the asset has a fair value of Bury 2.100.000 at the end of Year 9. record the equipment fair value. 2. The cash ledger account or Real Company shows a debit balance of Br 10.592.66 on Dec. 31 year 5. The bank statement indicates a balance on deposit of He 12.269 02 on Dec. 31. Receipts of Dec 31 in the amount of Br 1.144.60 were left in the bank's night depository on Dec 31 but were not included in the bank statement. The December bank statement included acht met of Hr 13.50 for service charges for December. A credit momo included with a hank statement uticated nutes receivable in the amount of Br 2000 let with the bank for collection. The note had been collected and credited to the Heal Company's account for Br 2,030 including interest revenge of Br 30. Comparison of the pail checks with the check stutis indicated that check mo #21 for Bt 463.90 on Dec 15 for squisition of office equipment hint been entered Erroneously in the cash payment Journal # 434.im addition, the following checks kasued in Dec Year 5 but not been paid by the bank Check #811 Hr 42196 Check 814 93.00 Check 22 250.00 Check X22 11651) Finally, an examination of the accounting records indicated that the bank had collected Bt 10.000 for Real Company on Dec.31 year 5 representing the maturity value of a government treasury bill, but the bank did not credit Real's account until January 2 years. The overment treasury will had been acquired by the bank for Real at discount of Br 9.652 and had been reputed at cost in short-term investment ledger account by real Company NSF checks of the customer XYZ. Company charged by the hunk which went to Be 50 #) Prepare bunkronciliation for the whol December 31 b) Prepare jumal entries required by the reconciliation c) Prepate proof of calcinadering the following adalitional information Bank Statement for December Indicated that the total deposit of cash during December were Br24.38142 Total check paid including bank service curge of the 13.50 atuanted to Br 19.25966 on December 3 years Balance as of Nov 30. year 5 bank statement i Br 6947.26. Deposit in transitas ar Nov 30 years were 1055.52 He: Outstanding checks on Nov 30 years were 68142 3. The following information is perwided for AHCC Cast 200.000 BOCKO 10.00 Retail SOX.000 XOXO Beginning inventory Purchase Purchase discount Sales Sales retum Markup Markup cancellation Markdown Markdown cancellation 850,000 30,000 18,000 3,000 8,000 2.XX 4. Beginning inventory and purchases and sales data for Commodity "X" for the month of " July are as follows: Inventory July 1 35 units & Br 50 Sales July 7 15 units & Br 55 18 10 units Go Br 58 27 12 units ar 62 Purchases July 3 20 units 51 20 15 units 52 1) Compute the cost of ending inventory and cost of goods sold using FIFO, and AVC under a) Periodic inventory system b) Perpetual inventory system 2) Pass the necessary journal entry to record purchase, valeate end of year adjusting entry, 5. Sun Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work the accountant was assigned to total a batch of invoices with the use of an aduling machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. Sun Corporation gave the machine plus Br 320 to Moon Company (dealer) in exchange for a new machine. Assume the following information about the machines, Sun Corp. Moon Co. Machine cost Br 2600 Br 1700 Accumulated depreciation 1400 900 Fair value 850 1400 Required: a) Assuming the exchange has commercial substance, compute the cost of the new asset and pass the journal entry to record the exchange for both Companies 3 b) Assuming the exchange lacks commercial substance.compute the cost of the new asset 6. Assume that Glory Company applies revaluation at the end of December 31. year to Building purchased on June 1 year 7 for Bir 2,000,000. The Building has a useful life of 20 years and no residual value. Required: a) Record adjusting entry for depreciation on December 31. year 7 using straight line method b) At the end of year 7. independent appraisers determine that the asset has a fair value of Birr 1.980,000.record the equipment at fair value c) At the end of year 8, independent appraisers determine that the asset hus a fair value of Birr 1.775.000 at the end of Year 8. record the equipment at fair value. d) At the end of year 9. independent appraisers determine that the asset has a fair value of Birr 2.100,000 at the end of Year 9 record the equipment and fair value. 1. On January year 3. Whic Company bought a building for Bes00,000. The building han estimate life of 25 years with residual Whites the straight line method to depreciate its building On December 31, yeard the recoverablement of the building B 2000 and on December 31year the recoverable amount of the building is Br 45000 Required: > Calculate the ment to be recorded as inpirent low and show the necessary journal citries December lycar b) Record the lo reveal there is any ) December 31 year 6 2. The cash ledger account of Red Company owsa dcbit balance of Ble 10.592.46 Dec. 31 years. The bank statement indicates balance depenkolle 12.2002 on Dec. 31 Roccipes or Dec 31 in the mount of the 1.1446 were left in the bank's night depository Dec 31 hat were not included in the bank statement. The December bank statement included die moof He 13.50 for service charges for December. Acredit memo included with a hank statement indicated to receivable in the amount of 200 cft with the hank for collection. The note had been collected and credited to the Real Company's account for 2.030 including interest revenue of Br 30 Comparison of the pail checks with the check tue indicated that check m. 21 for Be 463.90 on Dec 15 for acquisition of office quipment had been here comedy in the cash payment portalas 436.90 in addition, the following checks issued in Dec Year 5 had not been paid by the husk Check 11 Chuck 14 91.00 Check 116.50 Finally, an examination of the accounting indicated that the collected 10.000 for Real Company Dec 31 year 5 representing the maturity value of a government rury Ibral the bank dd ut credit Realscount stil January 2 years. The pwerment treasury will had been acquired by the bank for Real discount of Hr9652 and had been recorded at coutin short term investment ledger account by mal Company NSF checks of the customer XYZ Company charged by the hunk which has to be 50 Prepare bunkreion for the hof Desember 31 b) Prepare juntal entries required by the reci c) Priepure proof of calcidering the following information Bank Statement for December Indicated that the wel deposit of cash during December 3435143 Total checks paid including bank service charge of the 1350 med to Br 19.25966 on December 3 years Balance of Nov year Slank statement is 97.36: Deposit in transitas al Nov 30 years were 108.52 Outstanding checksca Nur 30 years were 68142 2. The following information is pewided for ABC Co C Retail SOCO 300.000 10,00 Betting in Purchase Parchen Sales Sales Markup 30.000 20000 IK.000 4. Beginning inventory and purchases and sales data for Commodity "X" for the month of July are as follow Inventory July 1 Sales 15 units IN 10 units Be 8 22 12 units Purchases 20 units 51 20 15 units 52 1) Compute the cost of ending inventory and cost of goods sold using FIFO and AVC under a) Periodic inventory system b) Perpetual inventory system 2) Pass the necessary journal entry to record purchase, sale and end of year adjusting 5. Sun Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work the accountant was assigned to total a batch of invoices with the use of andling machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. Sun Corporation gave the machine plus Br 320 to Mon Company (dealer) in exchange for a new machine. Assume the following information about the machines. Sun Corp Moon Co. Machine cost Br 1700 Accumulated depreciation 1400 900 Fair value so 1400 Required: a) Assuming the exchange has commercial substance, compute the cost of the new asset and pass the journal entry to record the exchange for both Companies b) Assuming the exchange lacks comercial substance.compute the cost of the new asset and pass the journal entry to record the exchange for both Companies 6. Assume that Glory Company applies revaluation at the end of December 31. year to Building purchased on June 1. year 7 for Bir 2,000,000. The Building has a useful life of 20 years and no residual value. Required: al Record adjusting entry for depreciation on December 31, year 7 using straight line method b) At the end of year 7. independent appraisers determine that the avct has a fair value of Birr 1.980,000.record the equipment at fair value c) At the end of year independent appraisers determine that the asset has a fair value of Bir 1.775.000 at the end of Year & record the equipment at fair value d) At the end of year 9. independent appraisers determine that the asset has a fair value of Bury 2.100.000 at the end of Year 9. record the equipment fair value. 2. The cash ledger account or Real Company shows a debit balance of Br 10.592.66 on Dec. 31 year 5. The bank statement indicates a balance on deposit of He 12.269 02 on Dec. 31. Receipts of Dec 31 in the amount of Br 1.144.60 were left in the bank's night depository on Dec 31 but were not included in the bank statement. The December bank statement included acht met of Hr 13.50 for service charges for December. A credit momo included with a hank statement uticated nutes receivable in the amount of Br 2000 let with the bank for collection. The note had been collected and credited to the Heal Company's account for Br 2,030 including interest revenge of Br 30. Comparison of the pail checks with the check stutis indicated that check mo #21 for Bt 463.90 on Dec 15 for squisition of office equipment hint been entered Erroneously in the cash payment Journal # 434.im addition, the following checks kasued in Dec Year 5 but not been paid by the bank Check #811 Hr 42196 Check 814 93.00 Check 22 250.00 Check X22 11651) Finally, an examination of the accounting records indicated that the bank had collected Bt 10.000 for Real Company on Dec.31 year 5 representing the maturity value of a government treasury bill, but the bank did not credit Real's account until January 2 years. The overment treasury will had been acquired by the bank for Real at discount of Br 9.652 and had been reputed at cost in short-term investment ledger account by real Company NSF checks of the customer XYZ. Company charged by the hunk which went to Be 50 #) Prepare bunkronciliation for the whol December 31 b) Prepare jumal entries required by the reconciliation c) Prepate proof of calcinadering the following adalitional information Bank Statement for December Indicated that the total deposit of cash during December were Br24.38142 Total check paid including bank service curge of the 13.50 atuanted to Br 19.25966 on December 3 years Balance as of Nov 30. year 5 bank statement i Br 6947.26. Deposit in transitas ar Nov 30 years were 1055.52 He: Outstanding checks on Nov 30 years were 68142 3. The following information is perwided for AHCC Cast 200.000 BOCKO 10.00 Retail SOX.000 XOXO Beginning inventory Purchase Purchase discount Sales Sales retum Markup Markup cancellation Markdown Markdown cancellation 850,000 30,000 18,000 3,000 8,000 2.XX 4. Beginning inventory and purchases and sales data for Commodity "X" for the month of " July are as follows: Inventory July 1 35 units & Br 50 Sales July 7 15 units & Br 55 18 10 units Go Br 58 27 12 units ar 62 Purchases July 3 20 units 51 20 15 units 52 1) Compute the cost of ending inventory and cost of goods sold using FIFO, and AVC under a) Periodic inventory system b) Perpetual inventory system 2) Pass the necessary journal entry to record purchase, valeate end of year adjusting entry, 5. Sun Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work the accountant was assigned to total a batch of invoices with the use of an aduling machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. Sun Corporation gave the machine plus Br 320 to Moon Company (dealer) in exchange for a new machine. Assume the following information about the machines, Sun Corp. Moon Co. Machine cost Br 2600 Br 1700 Accumulated depreciation 1400 900 Fair value 850 1400 Required: a) Assuming the exchange has commercial substance, compute the cost of the new asset and pass the journal entry to record the exchange for both Companies 3 b) Assuming the exchange lacks commercial substance.compute the cost of the new asset 6. Assume that Glory Company applies revaluation at the end of December 31. year to Building purchased on June 1 year 7 for Bir 2,000,000. The Building has a useful life of 20 years and no residual value. Required: a) Record adjusting entry for depreciation on December 31. year 7 using straight line method b) At the end of year 7. independent appraisers determine that the asset has a fair value of Birr 1.980,000.record the equipment at fair value c) At the end of year 8, independent appraisers determine that the asset hus a fair value of Birr 1.775.000 at the end of Year 8. record the equipment at fair value. d) At the end of year 9. independent appraisers determine that the asset has a fair value of Birr 2.100,000 at the end of Year 9 record the equipment and fair value