Accounting 1 Assignment Online Assignment Solutions

Are you seeking for Accounting 1 Assignment Online Assignment Solutions? You can hire accounting experts from Casestudyhelp.com can be one of the best options to get assistance. We provide 100% plagiarism-free management homework help. If you come to us, we will give top-class assignment writing service. Our professionals will provide you with quality assignments.

QUESTION ONE 

 Peter and Pan are partners in Captain Hook Stationers. The following list of accounts show balances as at 31 December 2022, except for those accounts that have been stated differently.

Description of general ledger accounts:	Amount – R
Office furniture and equipment at cost	525 000
Accumulated depreciation on office furniture and equipment	65 000
Inventory	84 560
Bank	579 895
Accounts receivables control	65 875
Allowance for credit losses	2 675
7,5% Long-term loan from Ruby Finance House	432 500
Accounts payable control	45 633
Capital: Peter – (Balance as at 1 January 2022)	120 000
Capital: Pan	150 000
Current account: Peter – (Debit balance as at 1 January 2022)	4 500
Current account: Pan – (Credit balance as at 1 January 2022)	12 000
Drawings: General – Peter	35 000
Drawings: Salaries – Peter	96 000
Drawings: General – Pan	65 000
Profit for the year	628 022

Year end adjustments:

1. On 1 January 2022 Peter deposited sufficient money to increase his capital to R150 000. The increase was correctly debited but incorrectly credited to the Accounts payable control
2. Pan was paid a salary of R4 500 per month for the current financial year. All Pan’s monthly salary payments were incorrectly recorded to the debit of the Accounts Receivables control Peter’s salary payments of R8 000 per month were recorded correctly.
3. Depreciation at the rate of 10% per year on the straight line method on office furniture and equipment needs to be recorded.

Relevant information from the Partnership Agreement:

Interest must be calculated and recorded at the following rates at the end of each financial period. Interest is processed through the Partner’s current account. Interest needs to be taken into account as follows; (Show all workings. Round of all calculations to the nearest Rand):

1. Interest on the Partners’ capital accounts must be calculated at 15% per year;

2. Interest on Current accounts must be provided at 5% per year on the opening balances.

3. Interest of 5% is charged on the closing balances of the Drawings; General accounts.

4. In terms of the partnership agreement Peter is entitled to a salary of R8 000 per month and Pan is entitled to a salary of R4 500 per month to be appropriated from profits.

5. The partners share profits and losses in the ratio of capitals contributed at the end of business on the first day of the financial year.

Required: 

Prepare the following for Captain Hook Stationers for the financial year ended 31 December 2022.

• Current Account : Peter – balanced at 31 December 2022

• Statement of changes in equity for the year ended 31 December 2022. Use a format suitable to this type of business that clearly shows the appropriation in terms of the clauses extracted from the partnership agreement as listed above.

 

Calculate Ltd was incorporated on 31 January 2020 with an authorised share capital as follows:

950 000 ordinary shares (Class A)

440 000 10% preference shares (Class B)

The following information in respect of shares is provided for the period ended 31 May 2020:

 

Date – 2020	Details
1 February	A motion was passed by the incorporators to take up the following: 200 000 Ordinary shares at R1 each; and40 000 10% Preference shares at R10 each.
10 February	Incorporators paid in all monies due for the shares taken on 1 February 2020.
1 March	An underwriter’s agreement was concluded to offer the following;  350 000 Ordinary shares at R1 each; and 45 000 10% Preference shares at R10 each.   Underwriter’s commission was agreed at 7%. The underwriter’s account must be settled on 15 May 2020
30 April	Applications for shares on the final date for applications were received as follows;  285 000 Ordinary shares at R1 each; and 38 000 10% Preference shares at R10 each
15 May	Allotment of shares to all applicants and to the underwriter was completed.
15 May	The underwriter’s account was settled as required by the underwriter’s agreement.
31 May	Share issue costs of R17 500 were paid.

 

 Required:

Record the above transactions in the general journal of Calculate Ltd for the period ended 31 May 2020. Record dates and include a brief narration for each journal entry. Show all workings.

Motivated Ltd is a retailer selling inspirational books. The following information was provided for the year ended 28 February 2022:

 

Statement of financial position of Motivated Ltd as at 28 February 2022

Non-current assets:	2022 – R	2021 – R
	53 000	27 000
Equipment	53 000	27 000
Current assets:	25 300	16 100
Inventory	4 000	3 800
Bank	21 300	12 300
Total Assets	78 300	43 100
Equity and Liabilities
Equity:	55 500	29 000
Share capital: class A	33 000	25 000
Retained earnings	22 500	4 000
Total liabilities	22 800	14 100
Non-current liabilities:	15 500	4 000
Long-term loans	15 500	4 000
Current liabilities:	7 300	10 100
SARS (income tax)	3 000	2 100
Income received in advance	2 200	1 600
Trade payables	2 100	6 400
Total equity and liabilities	78 300	43 100

 

Statement of comprehensive income for the year ended 28 February 2022

	R
Sales income	122 000
Cost of sales expense	(43 000)
Gross profit	79 000
Net operating costs	(44 000)
Operating profit	35 000
Interest expense	(4 200)
Profit before tax	30 800
Taxation expense	(12 300)
Profit for year	18 500

 

Additional information: 

1. Dividends were not declared during the year ended 28 February
2. Equipment with a book value of R20 000 was sold during the
3. The company raised loans of R14 000 during the year ended 28 February
4. The operating costs included in the statement of comprehensive income for the year ended 28 February 2022 included the following items:

Bank Charges	2 000
Wages expense	24 000
Rent expense	10 000
Depreciation expense	4 000
Profit on disposal of equipment	3 000

5. 20 000 Class A shares were issued for 50c each during the year and share issue costs of R2 000 were paid in this transaction

Required: 

Prepare the Statement of Cash Flows for Motivated Ltd for the year ended 28 February 2022, Motivated Ltd uses the indirect method to prepare its Statement of cash flows. Show all workings.