Reference no: EM131303819

PRINCIPLES OF ACCOUNTING QUESTIONS -

Please provide correct and clear explanation.

Question 1 -

A company bought a machine on 1 January 2013 for S$15,500. The company use double decline balance method and the useful life was 4 years. On 31 March 2016, the machine was sold for S$5,900 cash. The financial year ends on 31 December.

Required:

a) Show the relevant entries for the disposal of machine.

b) Determine the gain or loss on disposal by showing the disposal account.

Question 2 -

The cash book of Carrier Ltd was a debit balance of $3,220 as 30 November 2016. But the bank statement on the same date showed $2,275 (Cr) balance.

The following discrepancies were detected:

a) Cheques paid to T.K Oh of $720 and Omar of $880 has not been presented to the bank for payment.

b) Credit transfer of $910 to Carrier Ltd was not recorded in the company books but on the bank statement.

c) Payments for insurance of $1,120 and to DB Trading of $800 were deducted in the bank statement but not in the cash book.

d) A cheque of $1440 that was deposited on end of the month was not credited into the bank statement.

e) The bank statement showed a bank charges of $95.

Required:

a) Determine the adjusted cash account;

b) Bank reconciliation statement as 30 November 2016.

Question 3 -

Prepare a comprehensive income and statement of financial position.

Capital	17,000
Fees revenue	12,300
Accounts payable	4,100
Salaries expense	2,900
Notes payable	1,200
Supplies expense	6,900
Accounts receivable	7,440
Bank Loan	5,500
Equipment	12,700
Depreciation expense	1000
Cash	9,160