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Interim test 2 Accounting FEB11018(X) 7 October 2014 - Preliminary answers(Subject to typing errors, changes may still occur)VERSION 1VERSION 2QuestionQuestionAnswerCalculations/RemarksFA/FIS19AJournal entry:Supplies Expense300Supplies300210APrice per unit:June 1: 390/150 = 2.60June 10: 585/200 = 2.925June 15 = 630/200 = 3.15June 28 = 510/150 = 3.40When the FIFO method is used, COGS is the lowest which leads to the highest gross profit.311C412BThe closing balance contains the Net Realizable Value of ledger account Accounts Receivable = 1,000,000 - 200,000 = 800,000513CSee p.381. This method takes existing balance of Allowance for Doubtful Accounts into account.Journal entry:Bad Debt Expense12,900Allowance for Doubtful Accounts12,900614BSee p.380.Bad debts expense & the allowance are based on credit sales only.715CDepreciation expense 2014 & 2015 = (180,000 – 36,000) / 10 = 14,400 per yearBookvalue 1/1/2016 = 180,000 – 2x14,400 = 151,200Depreciation expense 2016 = (151,200 – 5,000) / 4 = 36,550816CBookvalue year end = 360,000 – 144,000 = 216,000Loss on disposal = 216,000 – 120,000 = 96,000917AJournal entry:Amortisation cost125,000Patents125,0001018B
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Term
Fall
Professor
AndréTukker
Tags
Expense, WASNEEPLUS