Minor Assignment

Name xxxx
Registration Number xxxx
Course Title Financial Accounting
Session Spring 2020
Submitted To Sir Mohammad Imran
Submission Date

Answer To Q1:
a) Inventory Subsidiary Ledger (Average Cost Method)
Item: - CT-300 Primary Supplier:- ________________________
Description:- Cellular Telephone Secondary Supplier________________________
Location_____________________ Inventory Level: Min._________ Max._________

Average Cost Method

Available for sale Cost of goods sold Ending Inventory

Total Total Total

Date Units Unit cost Cost Units Unit cost Cost Units Unit Cost Cost

May-01 20 50 1,000

May-05 10 50 500 10 50 500

May-06 20 60 1,200 30 56.67 1,700

May-21 15 56.67 850 15 56.67 850

Total 25 1,350 15 850

 Answer To Q2:
Purchase Price of Equipment = $5,000,000

Residual Value = $250,000

Useful life = 5 Years

a) Depreciation Schedule:
Straight-Line Method
Year Calculation Depreciation Expenses
2019 (5000,000-250,000) X 1/5 $ 950,000
2020 (5000,000-250,000) X 1/5 $ 950,000
2021 (5000,000-250,000) X 1/5 $ 950,000
2022 (5000,000-250,000) X 1/5 $ 950,000

b) Depreciation Schedule:
MACRS (5-Year Property)
Year Calculation Depreciation
Expenses
2019 5,000,000 X 20.00% $ 1000,000
2020 5,000,000 X 32.00% $ 1,600,000
2021 5,000,000 X 19.20% $ 960,000
2022 5,000,000 X 11.52% $ 576,000

Answer To Q3:
Determining cost of the generator; $
List price 5000,000
Sales Tax @ 12% 600,000
Shipping Cost 100,000
Installation Cost 150,000
Testing 50,000
Total Cost to Generator 5,900,000
 Date Description Debit Credit
Oct 13 Generator 5,900,000  
  Cash   5,900,000

Answer To Q4:
Alpha Corporation
Journal Entries
Date Particulars Debit Credit
1- Cash $550,000
Feb
Note Payable $550,000
To Record Issue of note for the borrowed amount.
31- Interest Expense $41,250
Jul (550,000*15%*6/12
)
Notes Payable $550,000
To Cash $591,250
To Record Repayment of notes at maturity
Tota $1,141,25 $1,141,25
l 0 0

Answer To Q5:
1. As the profits are shared equally between all partners, they must report income
as follows:

Watson = 2,500,000 / 4 = $6, 25,000

Taylor = 2,500,000 / 4 = $6, 25,000
Hayden = 2,500,000 / 4 = $6, 25,000
Dravid = 2,500,000 / 4 = $6, 25,000
2. Statement of Equity for year ended Dec 31, 2019

Particulars Watson Taylor Hayden Dravid

Capital 5,50,000 6,00,000 500,000 650,000

Less: Drawings 150,000 150,000 1,00,000 2,00,000

Add: Profits 6,25,000 6,25,000 6,25,000 6,25,000

Equity at the end of year 10,25,000 10,75,000 10,25,000 10,50,000