There is an exam that I will need some help with on the 11th of June. The window to answer the questions is 2 hours and it starts at 12:00pm. It is an online test.
/ My home / My units / ACCG1000_SHFYR_2020_ALL_U / Exam Period Assessments Session 2 2020 / Practice Exam Started on Sunday, 1 November 2020, 7:16 PM State Finished Completed on Sunday, 1 November 2020, 9:37 PM Time taken 2 hours 21 mins Overdue 1 min 24 secs https://ilearn.mq.edu.au/my/ https://ilearn.mq.edu.au/course/view.php?id=44230 https://ilearn.mq.edu.au/mod/quiz/view.php?id=6042329 / Question 1 Not answered Marked out of 20.00 Dylan Smith opened Dilly’s Car Services on 1 March 2019. During the first month of operations the following transactions occurred: March1 Dylan invested $60 000 cash in the business. 2 Paid $3000 cash for car wash building rent for the month of March. 3 Purchased car wash equipment for $35 000, paying $20 000 in cash and $15 000 on credit. 4 Paid $2200 for one-year car wash insurance policy. 10 Received bill from the advertising agency for advertising the opening of the car wash service, $500. 15 Performed car wash services on account for $9200. 20 Dylan withdrew $700 cash for his personal use. 31 Received $4000 from customers invoiced on 15 March. Required a) Prepare general journals to record the above transactions for the month ended 31 March. Narrations are required. b) Prepare the cash at bank account in the general ledger. c) What is the cash at bank ledger balance shown in the unadjusted trial balance as at 31 March 2019? a) Dylan Car Services General Journal General Journal Date Account Name & Narration Debit ($) Credit ($) March 1Cash at Bank 60000 Dylan - Capital 60000 (Dylan invested cash) 2Rent Expense 3000 Cash at Bank 3000 (Payment of building rent – March) 3Equipment 35000 Cash at Bank 20000 Accounts Payable 15000 (Purchased car wash equipment part on cash and part on credit) 4Prepaid Insurance 2200 Cash at Bank 2200 (Paid one-year insurance policy) 10Advertising expenses 500 Accounts payable 500 (Received invoice from the advertising agency for advertising) 15Accounts Receivable 9200 Service Revenue 9200 (Perform car services on account) 20Drawings 700 Cash at Bank 700 (Dylan withdrew cash) / 31Cash at Bank 4000 Account Receivable 4000 (Received cash from accounts receivable) b) Cash at Bank DateExplanation Amount ($) DateExplanation Amount ($) 1/3Dylan - Capital 60000 2/3Rent Expense 3000 31/3Accounts Receivable 4000 3/3Equipment 20000 4/3Prepaid Insurance 2200 20/3Drawings 700 31/3Balance c/d 38100 64000 64000 1/4Balance b/d 38100 c) Cash at Bank balance is $ 38100 Debit / Question 2 Not answered Marked out of 20.00 Richard Consultants commenced business on 1 June 2019. At 30 June 2019, the unadjusted trial balance shows the following balances for selected accounts: Prepaid insurance $14 400 Equipment 112 000 Bank loan 80 000 Service revenue received in advance 9 600 Service revenue 7 200 Other accounts include: Accounts receivable Accumulated depreciation—equipment Interest payable Insurance expense Depreciation expense Interest expense Analysis reveals the following additional data pertaining to these accounts: 1. Prepaid insurance is the cost of a 2-year insurance policy, effective 1 June. 2. Depreciation on the equipment is $2000 per month. 3. Richard Consultants took out the loan on 1 June for a period of 6 months at an annual interest rate of 6%. 4. Four customers paid for Richard Consultants’ 6-month service package of $2400 beginning in June. These customers were serviced in June. 5. Services performed for other customers but not invoiced at 30 June totalled $6000. Required Prepare the adjusting entries for the month of June. Narrations are required. General journal Date Account name (narration) Debit Credit June.30 Insurance expense 600 Prepaid insurance 600 (To record insurance expired: $14400 ÷ 24 = $600 per month) 30Depreciation expense 2 000 Accumulated depreciation—equipment 2 000 (To record monthly depreciation) 30Interest expense 400 Interest payable 400 (To accrue interest on loan: $80 000 × 6% × 1/12 = $400) 30Service revenue received in advance 1 600 Service revenue 1 600 (To record revenue: $2400 ÷ 6 = $400; $400 per month × 4 = $1600 or $9600 ÷ 6) 30Accounts receivable 6 000 Service revenue 6 000 (To accrue revenue not invoiced or collected) / Question 3 Not answered Marked out of 20.00 Romeo Dry Cleaners had the following accounts and account balances in the adjusted trial balance columns of its worksheet for the year ended 30 June 2019. Romeo, Capital $52 000 Rent Expense $21 600 Romeo, Drawings $15 000 Supplies Expense $18 000 Service Revenue $187 000 Depreciation Expense – Dry Cleaning Equipment $12 000 Interest Revenue $6250 Utilities Expense $7500 Interest Expense $2500 Salaries Expense $75 200 Required: a) Prepare the required closing entries for Romeo Dry Cleaners for the year ended 30 June 2019. Narration are required. b) Prepare Romeo’s Capital account using the T-account provided below and show the balance at 30 June 2019. a) Date Account Name Debit ($) Credit ($) 30/6 Service Revenue 187000 Interest Revenue 6250 P & L Summary 193250 (Closing off revenue to P/L summary) 30/6 P & L Summary 136800 Interest Expense 2500 Rent Expense 21600 Supplies Expense 18000 Depreciation Expense – Dry Cleaning Equipment 12000 Utilities Expense 7500 Salaries Expense 75200 (Closing off expenses to P/L summary) 30/6 P & L Summary 56450 Romeo, Capital 56450 (Closing off P/L summary to capital a/c) 30/6 Romeo, Capital 15000 Romeo, Drawings 15000 (Closing off drawings to capital a/c) b) Romeo, Capital Date Explanation Amount ($) DateExplanation Amount ($) 30/6 Romeo, Drawings 15000 1/6Capital Opening 52000 / 30/6 Balance c/d 93450 30/6P & L Summary 56450 108450 108450 1/7Balance b/d 93450 / Question 4 Not answered Marked out of 20.00 The trial balance of Racer Internet as at 30 June 2019 follows. Debit ($) Credit ($) Cash at Bank 4300 Accounts Receivable 15100 Prepaid Rent 2000 Supplies 200 Equipment 20600 Accumulated Depreciation 4300 Accounts Payable 6400 Salary Payable 600 Unearned Service Revenue 500 Loan Payable 10000 Racer, Capital 13000 Racer, Drawings 4100 Service Revenue 16600 Salary Expense 3000 Rent Expense 300 Depreciation Expense 400 Supplies Expense 800 Interest Expense 600 51400 51400 Required: a) Prepare the Income Statement for the year ended 30 June 2019. b) Prepare the Statement of Changes in Equity for the year ended 30 June 2019. c) Calculate the Profit Margin and Return on Assets ratios. d) Calculate the Current ratio. e) Calculate the Debt-to-total assets ratio. Racer Internet Income Statement For the Year Ended 30 June 2019 Income Service Revenue 16600 Expenses Salary Expense 3000 Rent Expense 300 Depreciation Expense 400 Supplies Expense 800 Interest Expense 600 5100 Profit for the period 11500 Racer Internet Statement of Changes in Equity For the Year Ended 30 June 2019 / Racer, Capital 1 July 2018 13000 Add: Profit for the period 11500 24500 Less: Racer Drawings (4100) Racer, Capital 30 June 2019 20400 Profit margin = Profit/Net Sales = 11500/16600 = 69.28% Return on Assets = Profit/Average Total Assets = 11500/37900 = 30.34% Current ratio = Current Assets/Current Liabilities = 21600/7500 = 2.88 : 1 Debt to total assets ratio = Total Liabilities/Total Assets = 17500/37900 = 46.17% / Question 5 Not answered Marked out of 20.00 (a) (i) Indicate whether each of the following costs of a timber doors manufacturer would be classified as direct materials, direct labour, manufacturing overhead or period cost: 1 Timber cost $10000 2 Wages for craftsmen $5800 3 Depreciation of equipment used to make timber doors $15000 4 Salary of the factory manager in charge of pre-hung timber doors $8000 5 Cost of shipping pre-hung timber doors $10000 6 Rates and taxes on factory building $5200 7 Sales commission related to pre-hung timber doors $4000 (ii) Calculate the total manufacturing cost (iii) Calculate the conversion cost (b) Louise Ltd makes personalised water bottles that sell for $20 each. For the coming year, management expects fixed costs to total $220 000 and variable costs to be $9.00 per unit. Required (i) Calculate the contribution margin ratio. (ii) Calculate break-even sales in dollars. (iii) Calculate the margin of safety percentage assuming actual sales are $500 000. (iv) Calculate the sales required to earn profit of $165 000. Contribution margin per unit = SP – VC = $20 – $9 = $11 a) Contribution margin ratio = CM per unit/SP = $11/$20 = 55% b) Break-even sales (in dollars) = FC/CM ratio = $220000/55% Margin of safety = = $400000 Actual Sales – BE sales =$500000 - $400000 =$100000 c) Margin of safety ratio =Margin of safety/Actual Sales =$100000/$500000 =20% d) Required sales =(FC + Target Profit)/CM ratio =($220000 + $165000)/55% =$700000 / / Question 1 Not yet saved Marked out of 20.00 Dylan Smith opened Dilly’s Car Services on 1 March 2019. During the first month of operations the following transactions occurred: March1 Dylan invested $60 000 cash in the business. 2 Paid $3000 cash for car wash building rent for the month of March. 3 Purchased car wash equipment for $35 000, paying $20 000 in cash and $15 000 on credit. 4 Paid $2200 for one-year car wash insurance policy. 10 Received bill from the advertising agency for advertising the opening of the car wash service, $500. 15 Performed car wash services on account for $9200. 20 Dylan withdrew $700 cash for his personal use. 31 Received $4000 from customers invoiced on 15 March. Required a) Prepare general journals to record the above transactions for the month ended 31 March. Narrations are required. b) Prepare the cash at bank account in the general ledger. c) What is the cash at bank ledger balance shown in the unadjusted trial balance as at 31 March 2019? (a) Dylan Car Services General Journal / Question 5 Not yet saved Marked out of 20.00 (a) (i) Indicate whether each of the following costs of a timber doors manufacturer would be classified as direct materials, direct labour, manufacturing overhead