Homework Help for Accounting

Lan and Mai are students at Accounting and Auditing Faculty. After completing Accounting Unit, they are now able to prepare financial statement and discussing about the figures on financial report. Mai said, "all the figures on financial statement are definitely reliable because accountants have to adhere with strict code of ethics, integrity standards, and set of accounting rules and standard such as IFRS when preparing the report". Do you agree or disagree with Mai's statement? Provide explanation and real-life examples (cases) to justify your opinion.

Lan and Mai are students at Accounting and Auditing Faculty. After completing Accounting Unit, they are now able to prepare financial statement and discussing about the figures on financial report. Mai said, "all the figures on financial statement are definitely reliable because accountants have to adhere with strict code of ethics, integrity standards, and set of accounting rules and standard such as IFRS when preparing the report". Do you agree or disagree with Mai's statement? Provide explanation and real-life examples (cases) to justify your opinion.

HP Company is suffering declining sales of its medical products. The president, Toshio Nakao, instructs his controller, Satoshi Kasai, to lengthen asset lives to reduce depreciation expense. A processing line of medical equipment, purchased for $4 million in January 2020, was originally estimated to have a useful life of 5 years and a salvage value of $200,000. Depreciation has been recorded for 2 years on that basis. Nakao wants the estimated life changed to 10 years total and the straight-line method continued. Kasai is hesitant to make the change, believing it is unethical to increase net income in this manner. Nakao says, “The life is only an estimate, and I've heard that our competition uses a 12year life on their medical equipment.”

Instructions
(a) Who are the stakeholders in this situation?
(b) Is the proposed change in asset life unethical? Give your explanation.
(c) What is the effect of Nakao's proposed change on income before taxes in the year of change?

Ratio analysis is a useful management tool that improves the understanding of financial results and trends over time and provide key indicators of organizational performance. Managers use ratio analysis to pinpoint strengths and weaknesses from which strategies and initiatives can be formed. Keeping in view the above-mentioned benefits of ratio analysis you are required to select the recent annual reports of any manufacturing company listed at Pakistan Stock Exchange (PSX) from the given link and perform the ratio analysis and highlight the strengths and weaknesses of that organization to managers.

Me llamo Perfect 

An investor, who just turned 51, wishes to places Kes 63,356.90 in a fund at the beginning of each year for 11 years. Assume the fund earns a rate of return of 7%, compounded annually. On his 62nd birthday, the investor plans to retire from his job, and live on his savings by withdrawing equal monthly payments from his fund. The investor will make withdrawals forever, every month  [with payments will go to his kids when he dies, and his kids’ kids after that, and so on]. Assume after he is 62, the fund is transferred to more conservative investments with a guaranteed annual rate of 4.08% compounded monthly. Please calculate the amount of the withdrawal this investor can make starting at age 62.   

how many days in a years

Trial Balance as at 31 May 2021

Dr.

Cr. 

$

$

Purchases

      145,870

Returns in

          2,350

Returns out

          2,175

Sales

      374,860

Accounts payables

        72,960

Accounts receivables

        84,720

Bank

        54,780

Capital

      110,005

Carriage in

          6,540

Discounts allowed

          2,580

Discounts received

          3,210

Drawings

        45,210

Rent

        39,540

Insurance

        10,270

Furniture and fittings

      165,800

Motor Vehicles

      254,600

Allowance for depreciation - Furniture and fittings

        74,520

Allowance for depreciation - Motor Vehicles

      125,900

Provision for doubtful debts

             940

Opening Inventory

        35,480

Loan

      110,400

Telephone

        14,870

Water rates

        12,360  

      874,970

      874,970

The following items should be taken into consideration:

i)

Closing Inventory at 31 May 2021 was $41,050

ii)

An amount of $1,950 was prepaid for insurance. This has not yet been accounted for.

iii)

A water expense accrual of $850 has not yet been accounted for.      

iv)

Depreciation for the year should be applied at the following rates:

Furniture and fittings

15%

Reducing Balance

Motor Vehicles

20%

Straight Line

a) Prepare the Income Statement for the year ended 31 May 2021

b) Prepare the Balance Sheet as at 31 May 2021

what is debter

Sue, of Sue’s Sandwiches, sells sandwiches and soda from a sidewalk cart in a popular park near her house. She sets up her cart in the summers to earn money for college tuition. Last month she sold $1,240 worth of products (sandwiches and sodas) to 100 customers. She spent $210 on the sandwich ingredients and buying the sodas wholesale. Her unit is one sandwich ($4) plus one soda ($1). Define the unit of sale and calculate the economics of one unit for Sue’s Sandwiches.

there are two reowned costing system i. e., job order costing or process costing system used by manufacturing or service organization. highlight the suitability, advantages and disadvantages of each costing system in context of organizations working in pakistan

Plastic Co Pte Ltd (‘Plastico’) is a Fiji company. The company has issued and paid up capital of $250,000 held in equal parts by two brothers. The company’s business involves making plastic products for the local market.

The brothers are planning to emigrate to New Zealand and wish to sell the company. An agreement in principle is reached for X to buy the company for $1 million. This is a cash sale.

Presume that you are wealthy and a longtime friend of X.

X comes to see you. She explains that she has in hand $800,000 (from her own savings and bank financing) and is short $200,000 to close the deal. X wants you to loan her $200,000. X has two specific proposals as follows.

Proposal One

Plastico is an old company. When founded it established its factory on the outskirts of Suva. Since that time Suva has grown and spread with the consequence that the land on which the factory stands is today much more valuable than when the factory was built. X has had the land valued at $300,000.

X has found alternative factory premises on the outskirts of modern Suva that would be suitable for the company. These premises are for sale for $100,000.

X proposes that you lend her $200,000 for four months only. X will acquire Plastico. The company’s new directors, X and her husband, will have Plastico sell its current factory and relocate to the premises already identified. The relocation will provide net cash of $200,000. Plastico will then pay a dividend of $200,000. X will use the distribution to repay your loan.

Proposal Two

X proposes that you lend her $200,000. This will be a longer term loan of say 6 years to be paid down incrementally over the life of the loan. Plastico will retain its present factory premises. As security for the loan, Plastico’s new directors, X and her husband, will have Plastico grant you a first mortgage over the current factory premises. Given the valuation placed on the premises the loan will be almost risk free.

Further details of both proposals provide an attractive return for you on the financing.

Required:

Consider each proposal separately and in turn.

Does the proposal offend any of the capital maintenance rules?

[Note ‘agreement in principle’ refers to a situation where two parties have agreed on all the terms of a deal (i.e. contract) but have not yet formally committed to the deal. In this story the parties (X and the two brothers) will only sign the contact document detailing the agreement when X has lined up the required cash of $1 million.]

There are two renowned costing system i.e., job order costing system or process costing system used by manufacturing or service organization. You are required to highlight the suitability, advantages and disadvantages of each costing system in context of organizations working in Pakistan.

Accounting