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3 years ago

The following trial balance was extracted from the books of Kalekeno, a sole trader, at 31st Dec2018:

Business

1 answer:

vesna_86 [32]3 years ago

7 0

Answer:

Stock DEC 31st 2017 23,680

Carriage outward 2,000

Carriage inwards 3,100

Returns 2050 3,220

Purchases and sales 118,740 186,000

Salaries and wages 38,620

Rent 3040

Insurance 780

Motor expenses 6,640

Office expenses 2160

Lighting and heating expenses 1,660

General expenses 3140

Premises 50,000

Motor vehicles 18,000

Fixtures and fittings 3,500

Debtors and creditors 38,960 17,310

Cash at bank 4820

Drawings 12,000

Capital 126,360

332,890 332,890

Additional information

i) Closing stock was valued at ksh 29,460 as at 30th June 2018

ii) Mr kalekeno took part of the stock amounting to ksh 3000 for personal use

iii) Salaries and wages amounting to ksh 8,000 were pre-paid and ksh 360 of motor expenses accrued

iv) Bad debts written off amounted to 860

v) Depreciation is to be provided for as follows:

 Premises at 20%

 Fixtures and fittings at 15%

 Motor vehicles at 25%

All of a above asset were depreciated at cost

a) The income statement for the year ended 30 th June 2018 ( 5marks)

b) The statement of financial position (5 Marks)

Explanation:

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yKpoI14uk [10]

Answer:

Wisk Away Cleaning Services Inc.

a) Purchases Journal

Date Description Debit Credit

May 3 Cleaning Supplies 14 $200

Accounts Payable (Brite N’ Shine Products Inc.) 2`1 $200

To record the purchase of cleaning supplies on account.

May 18 Cleaning Supplies 14 $240

Accounts Payable (Bio Safe Supplies Inc.) 21 $240

To record the purchase of cleaning supplies on account.

May 20 Electrical Service Expense 53 $110

Accounts Payable (Bowman Electrical Service) 21 $110

To record the purchase of electrical repair service on account.

b) Cash Payments Journal

Date Description Debit Credit

May 1 Accounts Payable (Safe Supplies Inc.) 21 $345

Cash Account 11 $345

To record the issue of Check No. 57 in payment.

May 15 Accounts Payable (Bowman Electrical Service) 21 $145

Cash 11 $145

To record the issue of Check No. 59 in payment.

May 26 Accounts Payable (Brite N' Shine Products Inc.) 21 $200

Cash 11 $200

To record the issue of Check No. 60 in payment.

May 31 Salaries Expense 51 $5,600

Cash 11 $5,600

To record the issue of Check No. 61 in payment of salaries.

Explanation:

Journals are prepared to record transactions. There are many types of journal. They are classified according to the type of transactions. There are purchases journal, sales journal, general journal, cash journal, etc.

6 0

3 years ago

____ departmentalization is notorious for confusion and conflict between project managers in different areas of the organization

exis [7]

The answer is : A. Matrix
Matrix function departmentalization is notorious for confusion and conflict between project managers in different areas of the organization. This confusion and conflict tend to arise because this departmentalization tried to mix the functional and task force division at the same time

3 0

3 years ago

The total fixed overhead variance is:a. the difference between actual and budgeted fixed overhead costs. b. the difference betwe

kondaur [170]

Answer:

a. the difference between actual and budgeted fixed overhead costs.

Explanation:

As we know that

The variance is shows the difference between the actual amount and the budgeted amount or estimate amount

So, the total fixed overhead variance is the difference between the actual fixed overhead costs and the budgeted fixed overhead costs i.e to be fixed in nature

Hence, the first option is correct

3 0

3 years ago

1. Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and financing the rest at 8% interest

Ierofanga [76]

Answer:

1. Down payment = $15,000

2. The existing mortgage (loan) was for $135,000

3. The current monthly payment on the existing mortgage is $990.58

4. The total interest over the life of the existing loan = $221,609.58

6. The amount of the original loan paid off is $22,319.

7. Total amount paid to the loan company over the last 10 years is $258,928.58 ($243,928.58 + $15,000)

8. Total interest paid over the last 10 years is $221,609.58

9. The equity in the home is $67,319 ($180,000 - $112,681)

10. The new monthly payments will be $675.58

11. Saving each month because of the lower monthly payment is $315 ($990.58 - $675.58)

12. Total Interest = $352,137.21 ($221,609.58 + $130,527.63)

13. It does not make sense to refinance because what is saved per month cannot compare with the additional interest expense to be incurred for prolonging the payments.

Explanation:

a) Data and Calculations:

1. Cost of a home = $150,000

10% down payment = $15,000

Existing Mortgage = $135,000 ($150,000 - $15,000)

Home Price 150000

Down Payment 10 %

Loan Term 30 years

Interest Rate 8%

House Price $150,000.00

Loan Amount $135,000.00

Down Payment $15,000.00

Total of 360 (30 years * 12)

Mortgage Payments $356,609.58

Total Interest $221,609.58

Ten years after, the loan balance has been reduced by $22,319 ($135,000 - $112,682)

Refinancing calculations:

Home Price 112681

Down Payment 0 %

Loan Term 30 years

Interest Rate 6

Monthly Pay: $675.58 Monthly

Total Mortgage Payment $243,208.63

Total Out-of-Pocket $243,208.63

Total of 360 Mortgage Payments $243,208.63

Total Interest $130,527.63

4 0

3 years ago

Identify each of the following transactions as:

ale4655 [162]

Answer:

Explanation:

Basically there are three types of activities under the indirect method is shown below:

1. Operating activities: It includes those transactions which affect the working capital, and it records gain or loss on sale of the assets. Increase in current assets and decrease in current liabilities would be subtracted and the decrease in current assets and increase in current liabilities would be added

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.

So, the item categorization under each activities are shown below:

a. Cash sale of land - Investing activity (I) (+)

b. Issuance of long-term note payable in exchange for cash - Financing activity (F) (+)

c. Depreciation of equipment - Operating activity (O) (+)

d. Purchase of treasury stock - Financing activity (F) (-)

e. Issuance of common stock for cash - Financing activity (F) (+)

f. Increase in accounts payable - Operating activity (O) (+)

g. Net income - Operating activity (O) (+)

h. Payment of cash dividend - Financing activity (F) (-)

i. Decrease in accrued liabilities - Operating activity (O) (-)

j. Loss on sale of land - Operating activity (O) (+)

k. Acquisition of building by issuance of notes payable - Non-cash investing and financing activity (NIF) as no cash transactions involves

l. Payment of long-term debt - Financing activity (F) (-)

m. Acquisition of building by issuance of common stock - Non-cash investing and financing activity (NIF) as no cash transactions involves

n. Decrease in accounts receivable - Operating activity (O) (+)

o. Decrease in inventory - Operating activity (O) (+)

p. Increase in prepaid expenses - Operating activity (O) (-)

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3 years ago