Week+11 - FINANCIAL ACCOUNTING (ACC1006S) SUGGESTED...

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FINANCIAL ACCOUNTING (ACC1006S) SUGGESTED SOLUTIONS TUTORIALS HANDED IN ON 19 OCTOBER 2009 TUTORIAL 25 (solution): Adj B 004 1. Salaries and wages expense 2003 1 July Prepaid salaries and wages expense 6 000 2004 30June Profit and loss 29 300 ½ 2004 30June Bank 22 000 Accrued salaries and wages expense (250 x 130/100 x 4) 1 300 ½ 29 300 29 300 2. 2.1 7 300 – 2 920 = 4 380 2.2 104 000 – 36 000 + 48 000 = 116 000 OR 104 000 + 12 000  2.3 (55 000 x 2/12 x8% ) + (70 000 x 10/12 x8% ) = 5 400 3. Statement of financial position of Africa Alive as at 30 June 2004 3.1 Current liabilities ½ Accrued advertising expense ½ 12 000 3.2 Current assets ½ Accrued interest income ½ 467 (5 400 - 4 933) 4. Loan (L) 1 July 2003 Bank 50 000 1 July 2003 Balance b/d 300 000 1 Jan 2004 Bank 50 000 30 June 2004 Balance c/d ½ 200 000 300 000 300 000 1 July 2004 Balance b/d 200 000 450 000/9 = 50 000 per payment ½ Interest expense 1 July 2003 Bank [W1] 8 250 1 July 2003 Accrued interest expense [W1] 8 250 1 Oct 2003 Bank [W2] 6 875 30 June 2004 Profit and loss [W6] 24 750 1 Jan 2004 Bank [W3] 6 875 1 April 2004 Bank [W4] 5 500 30 June 2004 Accrued interest expense [w5] 5 500 for dates 33 000 33 000 W1. 1 July 2003 300 000 x 11% x 3/12 = 8 250 W2. 1 Oct 2003 250 000 x 11% x 3/12 = 6 875 W3. 1 Jan 2004 250 000 x 11% x 3/12 = 6 875 W4. 1 April 2004 200 000 x 11% x 3/12 = 5 500 W5. 30 June 2004 200 000 x 11% x 3/12 = 5 500  Page 1 of 6
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W6. 250 000 x 11% x 6/12] + [200 000 x 11% x 6/12] Accrued Interest expense 2003 1 July Interest expense 8 250 2003 1 July Balance b/d ½ 8 250 2004 30 June Balance c/d ½ 5 500 2004 30 June Interest expense 5 500 13 750 13 750 2004 July 1 Balance b/d 5 500 5. 165 000 x 20% = 33 000 ½ 160 000 x 9/12 x 20% = 24 000 DR Depreciation expense ½ 57 000 CR Accumulated depreciation on vehicle (-A) 57 000 6. 6.1 Cost = 325 000 (165 000 + 160 000) Acc Depr = 123 000  (24 000 + (33 000x3)) Carrying value= 202 000 6.2 Depreciation is the systematic allocation of the depreciable amount of the asset over its estimated useful life 7. DR Bad debts expense
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This note was uploaded on 02/28/2012 for the course ACC !006S taught by Professor Jaquiqueue during the Spring '11 term at University of Cape Town.

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Week+11 - FINANCIAL ACCOUNTING (ACC1006S) SUGGESTED...

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