Exam 3

Project one cost accounting and planning

Addise chamber of commerce is planning easter trade exhibitions there are two venues
A. Addise abeba exhibition center which has a fixed rental cost BR 2,000.00 plus acharge of br 80.00
per person for its own catering of meals and drinks.
B. Millinium hall which has affixed rental cost of br 6,000.00 the chamber of commerce nac hire
caterer for meals and waiters to serve drinks and meals at br 60.00 per person
 The chamber of commerce bidget br 3,50 in cost for administration and marketing.the
band will cost a fixed cost of br2,500 tickets will be sold br 120.00
Reqired
1. Compute the break even point for each location in terms of ticket sold
2. Compute the operating income on the event if a)15 attend b)300 attend and comment on the
result
3. At what level of tickets sold will the two venuse have the same operating income
Project two
The cash in bank account of FANO company at august1,of the current year indicated a balance of
BR 18,443.90 during august the total cash deposited was Br 30,650.75 and checkes written totaled
Br 31,770.25 the bank statement balance is 26,465.50 and canceled check and accompanying
memorandum revealed the following reconciling items.
A. Checkes outstanding totaled Br 8,003.84
B. A deposite of Br 2,148.21 representing receipts of august 31,had been made too late to
appear on bank statement
C. The bank had collected FANO company Br 3,65 on note left for collection.the face of the
note was br 3,500
D. A check for br 470 returned with the statement had been in correctly charged by the bank
as br 740
E. A check for Br 84.20 returned with the statement had been recorded by FANO company as
Br 8.42 the check was for the payment of an obligation FANO company on account
F. Bank service charge for august amounted br 18.75

Required
1. Prepare bank reconciliation as of august 31
2. Journalize the necessary entries
Project three Process financial transaction and extract intrim report

Three years ago olana established MBO private limited company at june 30,2010 end of current year it has
the following trial balance

MBO plc

Trial balance

Jun 30,2010

Cash ------------------------------------------------3,425.00

Fees recivable--------------------------------------7,000.00

Supplies---------------------------------------------1,270.00

Pre-paid insurance--------------------------------620.00

Office equipmanert-------------------------------51,650.00

Accumulate depreciation------------------------------------------------------------------9,700.00

Accounts payable---------------------------------------------------------------------------925.00

Un-earned fees------------------------------------------------------------------------------1,250.00

MBO capital----------------------------------------------------------------------------------29,000.00

MBO drawing---------------------------------------5,200.00

Fees earned----------------------------------------------------------------------------------59,125.00

Wage expense---------------------------------------22,415.00

Rent expense----------------------------------------4,200.00

Utility expense--------------------------------------2,715.00

Miscellaneous expense----------------------------1,505.00

100,000.00 100,000.00

Additional information

1. Supplies on hand on june 30,BR 380

2. Insurance premium expired during the year BR 315
3. Deperciation expense BR 4,850
4. Wage accrued but not paid until june 30,BR 440
5. Accrued fees earned but not recorded at june 30,BR 1,000
6. Un-earned fees on june 30,BR 750

Required

1. Journalize the adjustment

2. Prepare income statement,owner equity, and balance sheet
3. Journalize closing entries
4. Prepare the post closing trial balance

Project four manage customer account

In the first year of operation glorious company had a total installment sales for Br 300,00 with a related
cost of BR 180,000 of merchandise sold the collections of the instalment account recivable are spread over
three years as follows

1st year BR 140,000

2nd year BR 100,000

3rd year BR 60,000

Required

1. What is the gross profit recognition for each year of installment on point of sales method?
2. What will be the gross profit to be recognition for each year of installment based on installment
method?

Project five maintain inventory system

For the month of march ABC company has record of the following inventory information

Inventory:

March 1 inventory 200 units@br9

March 10 purchase 200units@br10

March 21 purchase 400units@br11

March 30 purchase 100units@br12

Additional information

At end the physical count shows 300units are on hand the company uses periodic inventory system and
FIFO costing method

Required

1. What will be the cost of goods sold and inventory on hand

2. Assuming sales price of br 15 for merchandise inventory calculate gross profit for the month
3. The company has incurred general expense of br 2,500 including br 900 entertainment expense
during the fiscal year.calculate business profit tax using 30% tax rate
Project six process payroll

Given:the following information was taken from the payroll sheet of sene 30,2006 E.C

NO NAME OF BASIC OVERTIME OVERTIME ALLOWANCE

EMPLOYEE SALARY HOURS DAYS REPRESENTATION FULL IN LITREE
1. Habtamu alemu 5,500 - - 750 200
2. Damtew belay 3,500 6 weekend 350 150
3. Bontu tolera 850 10 10pm-6am - -
4. Messi tadess 2,800 6 Public holi 150 100
5. Selam desalegn 1,500 6 Public holi 500 50

Additional information

a. Employees working hour 8 per day and there are 160 working hour per month
b. Bontu is is casual employee
c. Habtamu and messi contrinute 10% of salary for credit association while selam 5%. Fuel allowance
up to 1000 br exempted from tax and price of fuel is br 20/lit and payment is affected on payday
d. Pension 7% and 11% respectively

Required

1. Develop and maintain payroll record for each employee earnings

2. Pass necessary journal entry
3. Reconcile:review and report various data required