8/20/2019 Financial Accounting final paper.docx

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  Indus International Institute of

Management & Sciences

Financial Accounting MBA 1 Sem (weekend

program) Time: !r

Final Term "#ams

 

Su$%ectie

  no1Integrated Waste Management purchased new equipment on Jan 4, 2011, at a cost of $240,000.

The equipment had an estimated usefu ife of ! "ears with an estimated residua #aue of $ 24000.

  mar%s

Instructions

Compute the annual depreciation expanse throughout the 8 year life of this equipment under threedepreciation methods listed below. Company policy is to round depreciation for fractional periods to nearestmonth. As the equipment was acquired in early January, one full year’s depreciation will be taken each year.

 

&traight ine method

 

&um'of'the'"ears'digits method

• (ou)e decining )aance method.

*no2 +nter the foowing transactions into Materia edger -ard of a )a%er" under I/, I/, and#erage Method' mar%s

June !pening balance of flour "# kg costing $ %%

  " &urchased #% kg of flour for $ "%

  ' Consumed (% kg flour 

  ) &urchased 8% kg flour for $ '(%

  8 % kg flour returned to supplier purchased on *une )

% +# kg of flour consumed in bakery

' &urchased )% kg flour for $ ''(

  8 Consumed (# kg of flour

repare Materia edger -ard

*no3 the foowing Trai aance was e5tracted from 6o)a Manufacturing on 31 (ec 2014

!pening stock $ +#( Adertisement $+,"+% Commission $ ,#"%

&urchases $%,-++ nsurance $ )"# /esere for 0ad debts $ '%%

1iscount on sale$ "(% 2anufacturing wages $,'#% Capital $,'8%

&lant and machinery $#,'(% 3otal $ +',--% 3otal $ +',--%

4undry debtors ,#%% 2ortgage 5oan $,%%%

Cash in hand$ ',+# 4undry Creditors $+,'%%

8/20/2019 Financial Accounting final paper.docx

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4alaries $'%% 4ales $"#,'(%

/ent $,'8% 1iscount on purchase $'%

 d7ustments

. /ent paid in adance $ '8%". Accrued commission $"%'. !utstanding salaries $ '%%+. 1epreciation of plant 6% per year #. 7nding stock was alued $ #,%%%

repare Income &tatement and aance &heet for 2014. 12 mar%s

*no4 each ropert" Management was started on 8o# 1 )" 9osa 6arcia to pro#ide managementser#ices for the owners of apartment and )uidings. The organi:ationa period e5tended throughout8o# and incuded the transaction isted )eow. 10 mar%s

8o# 1 arcia opened a bank account in the name of business with deposit $ "#,%%% cash.

8o#4  &urchased 5and and !ffice 0uilding for price $ ,+%,%%% of which $ )#,%%% for land and $(#,%%% forbuilding and $"%,%%% cash down payment made and remaining note payable issued for balance of thepurchase price

8o# ; &urchased office equipment on credit from 9arard !ffice 7quipment $#,8#%

8o#  A typewriter :cost $+-%; which was part of