PRINCIPLES OF ACCOUNTING QUESTIONS -
Please provide correct and clear explanation.
Question 1 -
A company bought a machine on 1 January 2013 for S$15,500. The company use double decline balance method and the useful life was 4 years. On 31 March 2016, the machine was sold for S$5,900 cash. The financial year ends on 31 December.
Required:
a) Show the relevant entries for the disposal of machine.
b) Determine the gain or loss on disposal by showing the disposal account.
Question 2 -
The cash book of Carrier Ltd was a debit balance of $3,220 as 30 November 2016. But the bank statement on the same date showed $2,275 (Cr) balance.
The following discrepancies were detected:
a) Cheques paid to T.K Oh of $720 and Omar of $880 has not been presented to the bank for payment.
b) Credit transfer of $910 to Carrier Ltd was not recorded in the company books but on the bank statement.
c) Payments for insurance of $1,120 and to DB Trading of $800 were deducted in the bank statement but not in the cash book.
d) A cheque of $1440 that was deposited on end of the month was not credited into the bank statement.
e) The bank statement showed a bank charges of $95.
Required:
a) Determine the adjusted cash account;
b) Bank reconciliation statement as 30 November 2016.
Question 3 -
Prepare a comprehensive income and statement of financial position.
|
Capital
|
17,000
|
|
Fees revenue
|
12,300
|
|
Accounts payable
|
4,100
|
|
Salaries expense
|
2,900
|
|
Notes payable
|
1,200
|
|
Supplies expense
|
6,900
|
|
Accounts receivable
|
7,440
|
|
Bank Loan
|
5,500
|
|
Equipment
|
12,700
|
|
Depreciation expense
|
1000
|
|
Cash
|
9,160
|