Can you do my Accounting homework?
Page 1 of 2 STELLA MARIS POLYTECHNIC UNIVERSITY PRINCIPLES OF ACCOUNTING II (ACCT 102) ASSIGNMENT # 1 ATTEMPT ALL QUESTIONS ALL QUESTIONS MUST BE ANSWERED IN A COPY BOOK. 1. The following trial balance was extracted from the books of Collins; a sole trader, as at 31 December 2016: Debit US$ Credit US$ Inventories, 1 January 2016 481,000 Bank 151,680 Cash in hand 14,080 Payables 336,200 Receivables 195,280 Commissions Received 70,000 Insurance Expense 7,680 Bad Debts Expense 1,040 Returns Inwards 2,240 Returns Outwards 15,680 Sales 2,939,920 Furniture 44,160 Telephone Expense 1,360 Rent Expense 4,040 Salaries Expense 113,480 Electricity Expense 3,640 Purchases 2,739,400 Postages Expense 5,520 Advertising Expense 5,080 Capital 644,960 Motor Vans 37,080 Premises 200,000 4,006,760 4,006,760 Additional Information: (i) The Inventories as at 31 December 2016 was US$431,480 (ii) Write off depreciation as follows: Premises at 5% Motor van US$8,000 Furniture at 10% (iii) Prepaid rate is US$600 accrued telephone is L$880 (iv) Make provision of US$12,000 for irrecoverable and doubtful debts. Requirement: You are required to prepare a) Statement of profit or loss for the year ended 31 December 2016 b) Statement of financial position as at 31 December 2016. Page 2 of 2 2. The table below shows the data relating to three employees of Westwoods Ltd for the month ending 31 December 2016 Name Standard hours expected Actual hours worked Rate per hour($) Satta 250 210 40 Massa 210 230 35 Deddeh 190 170 30 Included in the conditions of service of Westwood Ltd for the above named members of staff are the following: a) Rent allowance of 10% of the basic salary b) Transportation allowance equal to 20% of the basic salary c) Social security contributions is 5% and d) Personal income tax is at a rate of 15%. You are required to: i. Prepare Payroll work sheet, showing the basic pay, deductions, and net salary of each staff under the Halsey Premium incentive plan of remuneration. ii. Prepare journal entries to record the associated accrued payroll cost and the subsequent payment. 3. Kamara Incorporated purchased one plant and machinery on 1 January 2014 for US$ 200,000. It has an estimated useful life of five years with a salvage value of US$40,000 You are required to: i. Calculate the depreciation charge and accumulated depreciation for each year from 1 January 2014 to 31 December 2016 using the straight-line method. ii. Calculate the depreciation charge and accumulated depreciation for each year from 1 January 2014 to 31 December 2016 using the reducing balance line method. 4. Answer the below questions a) State TWO characteristics of non-current assets. b) Give FOUR examples of non-current assets c) List THREE components of the cost of a non-current asset d) State two methods for depreciating non-current assets 5. Clearly distinguish between the following terms a) Payslip and payroll b) Gross pay and Net pay c) Bonus and Overtime