ACCOUNTING Lecture Notes - Dairy Product, Product Market, Fringe Benefits Tax

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9 Nov 2022

School

Madurai Kamaraj University

Department

Accounting

Course

ACCOUNTING

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Document Summary

Commerce & industry minister on 7th april, 2006 announced trade initiatives in form of annual supplement (as) to put country"s exports on a route of quantum growth and to create large number of jobs. Annual supplement focuses on employment generation in the rural and semi-urban areas with thrust on traditional sectors: for promoting export of rural and agro products, the vishesh krishi upaj. Merchandise exports: merchandise exports cross 100 billion dollars in 2005-06. Merchandise exports jumped by 60% from 63 billion dollars to 101 bn dollars within two years. It focuses on neutralizing duties and levies and to provide additional stimulus to export of products having large employment potential and for greater penetration in strategic markets. Product focus: it proposes additional duty credit facility @ 2. 5% of fob value of export turnover of notified products such as value added fish and leather products, stationery, fireworks, sports goods, handloom products bearing handloom marks and handicraft items.

Related Questions

The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow.

Jan. 2 Issued Ck. No. 6981 for monthly rent, $775.

2 J. Hammond, the owner, invested an additional $3,500 in the business.

4 Bought merchandise on account from Valencia and Company, invoice no. A691, $2,930; terms 2/10, n/30; dated January 2.

4 Received check from Vega Appliance for $980 in payment of $1,000 invoice less discount.

4 Sold merchandise on account to L. Paul, invoice no. 6483, $850.

6 Received check from Petty, Inc., $637, in payment of $650 invoice less discount.

7 Issued Ck. No. 6982, $588, to Fischer and Son, in payment of invoice no. C1272 for $600 less discount.

Jan. 7 Bought supplies on account from Doyle Office Supply, invoice no. 1906B, $108; terms net 30 days.

7 Sold merchandise on account to Ellison and Clay, invoice no. 6484, $787.

9 Issued credit memo no. 43 to L. Paul, $54, for merchandise returned.

11 Cash sales for January 1 through January 10, $4,863.20.

11 Issued Ck. No. 6983, $2,871.40, to Valencia and Company, in payment of $2,930 invoice less discount.

14 Sold merchandise on account to Vega Appliance, invoice no. 6485, $2,050.

18 Bought merchandise on account from Costa Products, invoice no. 7281D, $4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, $147 (total $5,001).

21 Issued Ck. No. 6984, $194, to M. Miller for miscellaneous expenses not recorded previously.

21 Cash sales for January 11 through January 20, $4,591.

23 Issued Ck. No. 6985 to Forbes Freight, $96, for freight charges on merchandise purchased on January 4.

23 Received credit memo no. 163, $376, from Costa Products for merchandise returned.

29 Sold merchandise on account to Bruce Supply, invoice no. 6486, $1,835.

31 Cash sales for January 21 through January 31, $4,428. 31 Issued Ck. No. 6986, $53, to M. Miller for miscellaneous expenses not recorded previously.

31 Recorded payroll entry from the payroll register: total salaries, $6,200; employeesâ federal income tax withheld, $872; FICA taxes withheld, $350.30.

31 Recorded the payroll taxes: FICA taxes, $474.30; state unemployment tax, $334.80; federal unemployment tax, $49.60.

31 Issued Ck. No. 6987, $4,977.70, for salaries for the month.

31 J. Hammond, the owner, withdrew $1,000 for personal use, Ck. No. 6988.

111 Cash 311 J. Hammond, Capital

113 Accounts Receivable 312 J. Hammond, Drawing

114 Merchandise Inventories

115 Supplies 412 Sales Returns and Allowances

116 Prepaid Insurance 413 Sales Discounts

121 Equipment 511 Purchases

212 Accounts Payable 512 Purchases Returns and Allowances

215 Salaries Payable 513 Purchases Discounts

216 Employeesâ Federal Income Tax Payable 514 Freight In

217 FICA Taxes Payable 621 Salary Expense

218 State Unemployment Tax Payable 622 Payroll Tax Expense

219 Federal Unemployment Tax Payable 631 Miscellaneous Expense

Required

1. Post daily all entries involving customer accounts to the accounts receivable ledger.

2. Post daily all entries involving creditor accounts to the accounts payable ledger.

3. Post daily the general journal entries to the general ledger. Write the ownerâs name in the Capital and Drawing accounts.

4. Prepare a trial balance.

5. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?

maroonhedgehog121

41. The Customer Defaults window allows youto:
Set a default Credit Limit
Set default StandardTerms
Set a default general ledgeraccount for sales income
All the above

Question 42. 42. The employer payroll taxexpense that is paid to fund compensation for injured workersis:

Social Security and Medicaretax expense
Federal Unemployment Tax(FUTA. expense
State Unemployment Tax (SUTA.expense
Worker's Compensationexpense

Question 43. 43. Which of the following is anadvantage to using job costing?

It allows you to track incomeand expenses for each project.
You can exercise greatercontrol over costs and revenues by tracking customer invoices andpayments
You can maintain statistics onvarious jobs
All of the above

Question 44. 44. In Peachtree, the MaintainWindows allow you to perform tasks associated with:

Excel
Backing Up
File Management
Lists

Question 45. 45. When you import or exportfiles, which of the following will you use to format the data?

Records
Tapes
Disks
Templates

Question 46. 46. Which of these windowsinclude selections for write letters?

Maintain and Reports &Forms
File and Edit
Tasks and Select a Report orForm
Services and Analysis

Question 47. 47. The Accumulated Depreciationaccount type in PTCA falls under the traditional accountingcategory of:

Asset
Contra-asset
Liability
Expense

Question 48. 48. Peachtree's letter templatesuse(s):

Microsoft Excel
Microsoft Word
Microsoft Access
Microsoft PowerPoint

Question 49. 49. Which of the following showsall entries and changes related to the companyâs data, includingactions by specific users?

Find transactions
Report groups
Audit trail
Internal control

Question 50. 50. Peachtree's backup featureworks with what other Peachtree feature:

Import/Export
Save as
Formatting
Restore

greendeer894

Question 1. 1. (TCOs A and B) Writing a Management BoardMemo

Your Role
You are the manager of the Sales Department of The MedicalCorporation (TMC), a department that employs 25 salesrepresentatives. As the result of reduced revenues and increasedexpenses, TMC's Management Board has voted to implement a"right-size action" that could result in personnel reductions inyour department in the next two years. As the manager of the SalesDepartment, you are responsible for announcing the proposedright-size action to your employees.

Background
The Medical Corporation (TMC) is a worldwide marketer of medicalsupplies and services. Established in 1980, the company enjoyeddynamic growth during its first two decades as part of theflourishing pharmaceutical industry. TMC's revenues surpassed $1billion in just five years; its stock rose an average of 12 percenta year during its first decade, and per share earnings consistentlyexceeded industry averages.
However, despite revenue increases of over 10 percent each year forthe past twenty years, TMC's growth appears to be slowing down,partly because the pharmaceutical industry as a whole industry isnow being scrutinized for its excessive prices and decliningservice. Last year, for example, TMC revenue in the United Stateswas $5 billion, an increase of only 2.0 percent over the prioryear; non-U.S. operations generated $2 billion in revenues, a threepercent decrease over the prior year. Gross profit margins, drivenby extreme pricing pressures, have declined for the past threeyears.

In response to this declining performance, TMC's Management Boardrecently voted to "right-size" its worldwide business operations.The Management Board announced three areas of emphasis in thecompany's right-size action:

â¢increase responsiveness to customers through technology
â¢segment markets to pursue the best opportunities
â¢improve internal efficiency through a workforce "right-size"action
Right-size actions will include layoffs and reductions in thecompany's worldwide workforce, elimination of office space, andincreased use of technology and information systems to generate andmanage business. These actions are not only intended to bring TMC'scost and expense structure back in line with current industrylevels; they also will strengthen TMC's position as a global leaderin the pharmaceutical industry.

Expanded Online Presence
One of the ways TMC will increase responsiveness to its customersis to expand its online sales and marketing strategies. Theemphasis on an online presence will play a key role in widening thecustomer base and increasing sales without a significant increasein expense. The new online presence and strategies are expected todouble the number of online customers within 24 months of theplan's implementation.

When TMC made this decision, the company recognized that if the newonline strategies were successful, they would no longer need thesame sales force. Predictions are that if the new strategy issuccessful, the Sales Department could be reduced from 25 to about20 employees. Reductions in the Sales Department would not begin,however, until the Management Board is satisfied that the onlinesales expansion is successful, probably in the next 12 to 18months.

In the meantime, the manager of the Sales Department has been askedto identify five employees who could be terminated as a result ofthe right-size action. Terminated employees will receive a packagethat will include a $25,000 one-time cash settlement, medical anddental benefits for five years, and employment assistance fromDrake's Placement Service for six months. They will also be givenat least six months' notice of their termination.

YOUR ASSIGNMENT
Management Board Memo: Write a memo to the Management Board inwhich you describe how you, as the Sales Department Manager, willdetermine which sales representatives could be terminated as aresult of the company's right-size action, if this becomesnecessary, and how you will communicate the right-size plan, andits possible impact on the Sales Department, to the sales staff ina way that will minimize the morale problems that gossip about theplan could cause. You can communicate that you hope you will nothave to terminate anyone, but you should also communicate that youhave a clear, well-thought-out, and implementable plan ifdismissals are required. (Points : 60)

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ACCOUNTING Lecture Notes - Dairy Product, Product Market, Fringe Benefits Tax

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