2. Fauzana owns a business that makes and sells pets clay. During the financial year ended 31 July 2020, she incurred the following items of expenditure. State whether each of the below is Capital Expenditure or Revenue Expenditure. Clay for making the pets toys. b. Wages of sales staff Purchase of potters wheel for use in the C. business d. Installation costs for the potters wheel Wages of staff operating the potters wheel f. е. Redecoration of store room g. Payment of extra wages to own staff for fitting the alarm and cctv h. Payment of architect fees for designing the proposed new shop i. Purchase of new telephone system for the business
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- 2. Fauzana owns a business that makes and sells pets clay. During the financial year ended 31 July 2020, she incurred the following items of expenditure. State whether each of the below is Capital Expenditure or Revenue Expenditure. a. Clay for making the pets toys. b. Wages of sales staff Purchase of potters wheel for use in the business C. d. Installation costs for the potters wheel e. Wages of staff operating the potters wheel Redecoration of store room Payment of extra wages to own staff for f. g. fitting the alarm and cctv Payment of architect fees for designing the proposed new shop Purchase of new telephone system for the business2. Fauzana owns a business that makes and sells pets clay. During the financial year ended 31 July 2020, she incurred the following items of expenditure. State whether each of the below is Capital Expenditure or Revenue Expenditure.a. Clay for making the pets toys.b. Wages of sales staffc. Purchase of potters wheel for use in the businessd. Installation costs for the potters wheele. Wages of staff operating the potters wheelf. Redecoration of store roomg. Payment of extra wages to own staff for fitting the alarm and cctvh. Payment of architect fees for designing the proposed new shopi. Purchase of new telephone system for the businessShimin operates her ovwn beauty parlor. She reports the following: Items of Income Gross receipts-customers Income from sale of old parlor tools and equlpment P900.000 Salaries of beauticians Items of costs/expenses/deductions P350.000 45.000 Rent- parlor space 100,000 Income from sale of 30,000 Rent - admin space customers' cut hair Income from sale of beauty products displayed in the parlor Royalty income on her parlor franchise in CebU 30.000 Depreciation - parlor tools 120,000 and equioment Depreciation - office 10.000 400.000 computer 2.000 How much shall be reported as gross income from business/profession? О а. Р550,000 О Б. Р590,000 O c. P670,000 O d. P990,000
- An industrial partner contributes his O A. Labor and skill only O B. Personal assets O C. money and intellectual property D. All of the choices The following account balances and other information were taken from the accounting records of TITAN Corporation for the year ended Dec. 31, 2021: Finished Goods, ending P 15,000; Work-in-Process, ending P 75,000; Raw Materials Inventory, ending 25,000; Net Purchases 120,000; Work-in-Process, beginning 25,000; Conversion Costs 180,000; Finished Goods, beginning 30,000; Prime Costs 245,000; Raw Materials Inventory, beginning 50,000; How much is total manufacturing cost of TITAN Corporation on Dec. 31, 2019 ? Your answer1. Maggio Company manufactures kitchen equipment used in hospitals. They distribute their products directly to the customer and, for the year ending 2019, they reported these revenues and expenses. Sales Revenue $985,000 Cost of Goods Sold $489,000 Operating Expenses $245,000 Use this information to construct an income statement for the year 2019. Operating Income Cash Retained Earnings Gross Profit Cost of Goods Sold Service Revenue Cost of Services Operating Expenses Sales Revenue PLEASE NOTE: You must enter the account names exactly as written above and all whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). Maggio Company Income Statement for Year Ended 2019d. Jasmine Perfume Bhd involves in manufacturing perfume-based products. On 25 June 2019, Jasmine Perfume Bhd had sold 30 boxes of its perfume-based products to NJ Sdn Bhd on credit. Required: 1) Explain whether the transaction occur on 25 June 2019 is an income to Jasmine Perfume Bhd.
- Consider the revenues and costs in 2019 for Spruce Decor Inc., an Alberta-based furniture company entirely owned by Mr. Harold Buford. Furniture Sales $600,000 Catalogue Salos Labour Costs $13,500 $345,000 $162,000 Materials Costs Advertising Costs Debt-Service Costs $26,000 $34,900 a. What would accountants detormine Spruce Decor's profits to be in 2019? Spruce Decor's profits in 2019 equal $ 45600 b. Suppose Mr. Buford has $375,000 of capital invested in Spruce Decor. Also suppose that oqually risky enterprises ean an 18 percent rate of return on capital. What is the opportunity cost for Mr. Buford's capital? The opportunity cost for Mr. Buford's capital is $ 67500 c. What are the economic profits for Spruce Decor in 2019?Eng Tat is a manufacturer. His trial balance as at 31 December 2020 is as follows: Particulars Debit RM Credit RM Delivery van expenses 1,760 Lighting and heating: Factory Office 7,220 1,490 Manufacturing wages 72,100 General expenses: Factory Office 8,100 1,940 Sales representatives : Commission 11,688 Purchase of raw materials 57,210 Rent: Factory Office 6,100 2,700 Machinery (Cost : RM40,000) 28,600 Office equipment ( RM9,000) 8,200 Office salaries 17,740 Accounts receivables 34,200 Account payables 9,400 Bank 16,142 Sales 194,800 Van (cost RM6,800) 6,200 Inventory at 31 December 2020: Raw materials Finished goods 13,260 41,300 Drawings 24,200 Capital 155,950 TOTAL 360,150 360,150 Additional information: Inventory at 31 December 2020: Raw materials RM14,510 Finished…4. Eng Tat is a manufacturer. His trial balance as at 31 December 2020 is as follows: Credit RM Particulars Debit RM Delivery van expenses Lighting and heating: Factory Office Manufacturing wages General expenses: Factory Office Sales representatives : Commission Purchase of raw materials 1,760 7,220 1,490 72,100 8,100 1,940 11,688 57,210 Rent: Factory Office Machinery (Cost : RM40,000) Office equipment ( RM9,000) Office salaries Accounts receivables Account payables Bank 6,100 2,700 28,600 8,200 17,740 34,200 9,400 16,142 Sales Van (cost RM6,800) Inventory at 31 December 2020: Raw materials Finished goods Drawings Capital 194,800 6,200 13,260 41,300 24,200 155,950 360,150 ТОTAL 360,150 Prepared by: Puan Siti Nor Junita Mohd Radzi Additional information: i. Inventory at 31 December 2020: a. Raw materials b. Finished goods ii. Depreciate machinery RM3,000; office equipment RM6,000; van RM1,200 iii. Manufacturing wages due but unpaid at 31 December 2020 RM550; office rent prepaid RM140…
- Jessica Grewal decided to open a food truck business, the Samosa Shack. She encountered the following transactions in managing her equipment over the first 2 years of her business. April 1, 2021 October 1, 2021 December 31, 2021 April 1, 2022 December 31, 2022 March 31, 2023 Purchased food truck for $84,000 and paid $8,400 to have a commercial oven installed. Other costs that she incurred are $8,400 for insurance on the truck for the first year, and $3,000 to have the truck painted with her Samosa Shack logo. Jessica estimates that the truck would last 5 years and have a $12,000 residual value. The oven is also expected to last 5 years and have a $600 residual value. The oven broke down and cost $1,800 to repair. Recorded the adjusting entry for depreciation and insurance. Replaced all of the tires with all-season tires for $1,800 and paid another year of insurance for $8,400. Recorded the adjusting entry for depreciation and insurance. Jessica was exhausted from the food truck…ANALYSIS. Indicate which accounting concept and principle is violated. Write the letter of your answer on the space provided for. d. Materiality e. Monetary Unit f. Cost g. Objectivity h., Time Period Concept i. , Matching а. Accrual Method b. Business entity C. Disclosure 26. A food company ordered a machine needed in the assembly line of its production department. Upon order, the machine was immediately listed as one of its assets vivo Y20i 2021.11.07 23:581. State whether each of the below is Capital Expenditure or Revenue Expenditure. Purchase of new delivery vehicle Payment of an invoice for advertising Costs of clearing the site ready for an extension to the factory building d. Signwriting on the outside of the new delivery vehicles Redecoration of the office а. C. е. Payment of delivery driver's wages g. Fuel for delivery vehicles Fitting of shelving in delivery vehicle