QUESTION 2 Ignore Vat Antique Porcelains is a porcelain doll making company. Antique Porcelains has caught...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
QUESTION 2 Ignore Vat Antique Porcelains is a porcelain doll making company. Antique Porcelains has caught the attention of many larger porcelain doll manufacturers who have offered the owner a generous amount of money to acquire the business, all of which he declined in favour of developing her passion for porcelain doll. The following information relates to Antique Porcelain's inventory for the year ended 30 June 2018: Date 01/07/17 15/09/17 14/02/18 26/04/18 Description Opening Balance Purchase (1) Purchase (2) Purchase Date 10/10/17 15/01/18 20/05/18 Units (32 marks; 58 minutes) 16 500 850 1000 500 650 500 1350 Price per unit The following information relates to the sales made by Antique Porcelain during the year: Description Units Cash sale Credit sale Cash sale R650 ??? ??? R900 with 588 24? 380 Additional Information: 1. This purchase was from a supplier in Pretoria. The total purchase amounted to R500 000. Excluded from this price was the transport and insurance cost Antique Porcelain incurred, which amounted to R15 000 and R5 000 respectively. 2. This purchase was from a Chinese supplier. The total purchase amounted to R350 000. Import and custom duties for the purchase amounted to R25 000. Transport cost incurred on the purchase amounted to R20 000. It has always been Antique Porcelain's policy to apply a mark-up on cost of 25% to their products. Furthermore, Antique Porcelain has consistently applied the perpetual inventory system for recording the movement of inventory with the Weighted Average inventory costing method. = 570,18 cost unit Additional information: 2856 1625 a A year-end inventory count was performed and revealed that 346 units of dolls were on hand at 31 June 2018. You are required to: Required 1: Perpetual every Prepare journal entries for the purchases in additional information 1 and/ or 2. transactions Page 4 of Required 2: Prepare journal entries for the sales that occurred during the year. Required 3: Record the journal entries for closing journals QUESTION 3 Ignore Vat Text Smart Bulb (TSB) is a new waste management company situated in Bishop Lavis, in the Cape Flats of Cape Town, incorporated by Gregory Williams. Currently, TSB manages waste for small, medium and large Supermarkets around Cape Town and the Eastern Cape. The following transactions occurred during March 2023: March 1st Gregory invested his long time savings into the business, he contributed R70 000 and a Bakkie to transport the waste to a value of R80 000 with a useful life of five years. Rented Office space at Philippi Village, which is the Headquarters of TSB. Four months rent was paid, R20 000. The assets of TSB were insured by a prominent insurer, ABC Insurance, and paid R3200 for March. March 8th Purchased waste management supplies on credit, R3700. March 12th Gregory had several meetings with supermarkets in the Philippi, Bishop Lavis and Delft areas. Gregory managed to sign a contract to do waste management for the Goal Supermarket in Delft. TSB did waste management for the March month and earned a cash income of R40 000. TSB collects recyclables from the Waste Management site and sells them to Wykco Recycling in Parow Industrial. TSB earned R17 000 from the recyclables they sold and will only receive the money at the end of April. March 18th (22 marks; 36 minutes) March 31st Purchased fuel cash for the vehicle, R1200. Distributed cash worth R1500 to Luntu. Purchased additional waste management supplies on credit, R2500. Paid salaries of employees for March, R8000. Paid the March Telephone bill, R800. Prepaid insurance for the next two months, R7400. Waste Management supplies used for March equal R4000. Page 5 of 6 You are required to: Record the above transactions in the General Journal in the accounting records of TSB for the (22 marks) month of March 2023. 7 QUESTION 2 Ignore Vat Antique Porcelains is a porcelain doll making company. Antique Porcelains has caught the attention of many larger porcelain doll manufacturers who have offered the owner a generous amount of money to acquire the business, all of which he declined in favour of developing her passion for porcelain doll. The following information relates to Antique Porcelain's inventory for the year ended 30 June 2018: Date 01/07/17 15/09/17 14/02/18 26/04/18 Description Opening Balance Purchase (1) Purchase (2) Purchase Date 10/10/17 15/01/18 20/05/18 Units (32 marks; 58 minutes) 16 500 850 1000 500 650 500 1350 Price per unit The following information relates to the sales made by Antique Porcelain during the year: Description Units Cash sale Credit sale Cash sale R650 ??? ??? R900 with 588 24? 380 Additional Information: 1. This purchase was from a supplier in Pretoria. The total purchase amounted to R500 000. Excluded from this price was the transport and insurance cost Antique Porcelain incurred, which amounted to R15 000 and R5 000 respectively. 2. This purchase was from a Chinese supplier. The total purchase amounted to R350 000. Import and custom duties for the purchase amounted to R25 000. Transport cost incurred on the purchase amounted to R20 000. It has always been Antique Porcelain's policy to apply a mark-up on cost of 25% to their products. Furthermore, Antique Porcelain has consistently applied the perpetual inventory system for recording the movement of inventory with the Weighted Average inventory costing method. = 570,18 cost unit Additional information: 2856 1625 a A year-end inventory count was performed and revealed that 346 units of dolls were on hand at 31 June 2018. You are required to: Required 1: Perpetual every Prepare journal entries for the purchases in additional information 1 and/ or 2. transactions Page 4 of Required 2: Prepare journal entries for the sales that occurred during the year. Required 3: Record the journal entries for closing journals QUESTION 3 Ignore Vat Text Smart Bulb (TSB) is a new waste management company situated in Bishop Lavis, in the Cape Flats of Cape Town, incorporated by Gregory Williams. Currently, TSB manages waste for small, medium and large Supermarkets around Cape Town and the Eastern Cape. The following transactions occurred during March 2023: March 1st Gregory invested his long time savings into the business, he contributed R70 000 and a Bakkie to transport the waste to a value of R80 000 with a useful life of five years. Rented Office space at Philippi Village, which is the Headquarters of TSB. Four months rent was paid, R20 000. The assets of TSB were insured by a prominent insurer, ABC Insurance, and paid R3200 for March. March 8th Purchased waste management supplies on credit, R3700. March 12th Gregory had several meetings with supermarkets in the Philippi, Bishop Lavis and Delft areas. Gregory managed to sign a contract to do waste management for the Goal Supermarket in Delft. TSB did waste management for the March month and earned a cash income of R40 000. TSB collects recyclables from the Waste Management site and sells them to Wykco Recycling in Parow Industrial. TSB earned R17 000 from the recyclables they sold and will only receive the money at the end of April. March 18th (22 marks; 36 minutes) March 31st Purchased fuel cash for the vehicle, R1200. Distributed cash worth R1500 to Luntu. Purchased additional waste management supplies on credit, R2500. Paid salaries of employees for March, R8000. Paid the March Telephone bill, R800. Prepaid insurance for the next two months, R7400. Waste Management supplies used for March equal R4000. Page 5 of 6 You are required to: Record the above transactions in the General Journal in the accounting records of TSB for the (22 marks) month of March 2023. 7
Expert Answer:
Answer rating: 100% (QA)
To prepare the journal entries for the purchases mentioned in additional information 1 and 2 we need ... View the full answer
Related Book For
Project Management The Managerial Process
ISBN: 9781260570434
8th Edition
Authors: Eric W Larson, Clifford F. Gray
Posted Date:
Students also viewed these accounting questions
-
DeWitt Industries has adopted the following production budget for the first 4 months of 2020. Month Units Month Units January 10,350 March 5,470 February 8,230 April 4,210 Each unit requires 4 pounds...
-
1. What is Michaels assessable income for the year ended 30 June 2019? 2. What fringe benefits tax (FBT) must Michael pay for the year ended 31 March 2019? Assume that Michael cannot claim GST input...
-
In preparing the financial statements for the year ended 30 June 2018 the accountant of Windsor Ltd, a tobacco manufacturer and wholesaler, has come to you with the following information and request...
-
A lightweight, rigid beam 10.0 m long is supported by a cable attached to a spring of force constant k = 8.25 kN/m as shown in Figure P12.38. When no load is hung on the beam (Fg = 0), the length L...
-
The probability density of a point x with respect to a multivariate normal distribution having a mean μ and covariance matrix Σ is given by the equation Using the sample...
-
The Durbin-Watson test is for detecting lag 1 autocorrelation in the residuals. Which values of DW signal positive autocorrelation? If you observe such a DW value but ignore it, what might go wrong...
-
Continuation of El 1 -28: compute overhead variances (Learning Objective 5) Fresh-Cut actually processed 180,000 cases of frozen organic vegetables during the year and incurred $840,000 of...
-
Comparing return on investment and residual income Wells Corporation operates three investment centers. The following financial statements apply to the investment center named Huber Division....
-
Bravo Corporation recently issued 270-day commercial paper with a face value of $2,000,000 and a simple interest rate of 11 percent. The company paid a transaction fee equal to 0.4 percent of the...
-
The second picture is the needed data from P2 that P3 says is needed P3. Consider a possible shortage of ingredients in the following week. What would the optimized production process look like if...
-
Your factory has been offered a contract to produce a part for a new printer. The contract would last for three years, and your cash flows from the contract would be $4.82 million per year. Your...
-
The following budget estimates have been prepared by Clifton Company: Cash Receipts Cash Payments May $120,000 $150,000 June $110,300 $150,000 The company likes to maintain a minimum cash balance of...
-
Diego Company manufactures one product that is sold for $75 per unit in two geographic regions the East and West regions. The following information pertains to the company's first year of operations...
-
Pinnacle Plus declared and paid a cash dividend of $ 6 , 6 0 0 in the current year. Its comparative financial statements, prepared at December 3 1 , reported the following summarized information:...
-
Diego Company manufactures one product that is sold for $75 per unit in two geographic regionsthe East and West regions. The following information pertains to the company's first year of operations...
-
Explain the difference between depreciation and the facilities capital cost of money. Specify the key advantages of having facilities capital cost of money as an allowable cost. Compare and contrast...
-
Analysis of Stockholders' Equity The Stockholders' Equity section of the December 31, 2017, balance sheet of Eldon Company appeared as follows: Preferred stock, $30 par value, 5,000 shares...
-
Determine two different Hamilton circuits in each of the following graphs. A B F G
-
Safety is a major concern when working on projects abroad. Select a country that you would consider dangerous to work in and look up the travel advisory provided for that country by the U.S. State...
-
Which of the eight characteristics associated with positive synergy were evident in the case of the Redeem team?
-
1 . How did Helmstetters vision conflict with USGA rules? 2 . How could this mistake have been avoided?
-
Develop brief answers to each of the following questions: 1. How does a lender assess the risk that a borrower may defaultthat is, not pay interest and principal when due? 2. If a company with a high...
-
What should Cliff do? IHD was an international hospital company with hospitals in three different Central and South American countries. Cliff, IHDs chief operating officer, had worked for the...
-
Develop brief answers to each of the following questions: 1. What determines whether bonds are issued at a discount, premium, or face value? 2. Why does the market price of a bond vary over time? 3....
Study smarter with the SolutionInn App