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danerjnbaptiste
Nov 7, 2009, 03:57 AM
P. Yearwood operates a clothing wholesale business. The trial balance for the business is given below: Yearwood’s
Unadjusted Trial Balance
as on December 31, 20X8
Name of Account Dr ($) Cr ($)
Capital 104,000
Drawings 12,000
Land 100,000
Buildings 70,000
Prov. For Depreciation – Buildings @ 01/01/X8 33,600
Motor Vehicles 40,000
Prov. For Depreciation – Motor Vehicles @ 01/01/X8 10,840
Accounts Payable 15,500
Accounts Receivable 20,300
Inventory @ 01/01/X8 9,700
Bank 21,300
Cash 560
Purchases 58,200
Sales 116,400
Purchases Return 8,730
Sales Return 10,180
Short-term Loans 15,000
Long-term Loans 90,000
Rental Income 65,000
Discounts Received 2,200
Discounts Allowed 3,400
Bad Debts Recovered 7,000
Prov. For Bad Debts 1,190
Utilities 17,900
Insurance 49,600
Carriage Inwards 2,200
Carriage Outwards 1,800
Wages 88,520
Miscellaneous Expenses 6,400 ________
$490,760 $490,760

Additional information at December 31, 20X8:
i. Inventory at December 31, 20X8 was $8,400.

ii. Rental income received in advance amounted to $9,000.

iii. Wages in arrears at December 31, 20X8 were $11, 480.

iv. The insurance paid represents fixed monthly premiums for the period January 1, 20X8 to April 30, 20X9.

v. Bad debts of $2,500 are to be written off.

vi. The provision for bad debts is maintained to reflect 5% of accounts receivable at the financial year end of the business.

vii. Buildings are to be depreciated using the straight-line method at a rate of 8% per annum.

viii. The reducing balance method is used to depreciate motor vehicles at a rate of 10% per annum.

ix. Thirty Thousand dollars ($30,000) of long-term loans must be repaid by March 31, 20X9.

Required:
1. Journalise the adjusting entries to be made in the books of Yearwood for the above
adjustments. (10 marks)
2. Prepare the adjusted trial balance for Yearwood at December 31, 20X8 (10 marks)







Here is what ive done so far...not able to make the trial balance to balance

General Journal
DATE Details DEBIT CREDIT
31. December 2008 Rent Income $9,000
Prepaid Rent $9,000

$11,480
Wage Expense
Accrued Wage Expense $11,480


Prepaid Insurance $12400
Insurance Expense $12400


Bad Debts Expense $2500
Accounts receivable $2,500


Bad Debts Provisions $175
Profit & Loss Account $175


Depreciation Expense $5,600
Provisions for Depreciation $5,600


Depreciation Expense $2,916
Provision for Depreciation $2,916

________ ________
$44071_ _$44071_

haider78605
Nov 7, 2009, 06:20 AM
I attach your answer herewith

danerjnbaptiste
Nov 7, 2009, 04:13 PM
Accounting assignment

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P. Yearwood operates a clothing wholesale business. The trial balance for the business is given below: Yearwood’s
Unadjusted Trial Balance
as on December 31, 20X8
Name of Account Dr ($) Cr ($)
Capital 104,000
Drawings 12,000
Land 100,000
Buildings 70,000
Prov. For Depreciation – Buildings @ 01/01/X8 33,600
Motor Vehicles 40,000
Prov. For Depreciation – Motor Vehicles @ 01/01/X8 10,840
Accounts Payable 15,500
Accounts Receivable 20,300
Inventory @ 01/01/X8 9,700
Bank 21,300
Cash 560
Purchases 58,200
Sales 116,400
Purchases Return 8,730
Sales Return 10,180
Short-term Loans 15,000
Long-term Loans 90,000
Rental Income 65,000
Discounts Received 2,200
Discounts Allowed 3,400
Bad Debts Recovered 7,000
Prov. For Bad Debts 1,190
Utilities 17,900
Insurance 49,600
Carriage Inwards 2,200
Carriage Outwards 1,800
Wages 88,520
Miscellaneous Expenses 6,400 ________
$490,760 $490,760

Additional information at December 31, 20X8:
i. Inventory at December 31, 20X8 was $8,400.

ii. Rental income received in advance amounted to $9,000.

iii. Wages in arrears at December 31, 20X8 were $11, 480.

iv. The insurance paid represents fixed monthly premiums for the period January 1, 20X8 to April 30, 20X9.

v. Bad debts of $2,500 are to be written off.

vi. The provision for bad debts is maintained to reflect 5% of accounts receivable at the financial year end of the business.

vii. Buildings are to be depreciated using the straight-line method at a rate of 8% per annum.

viii. The reducing balance method is used to depreciate motor vehicles at a rate of 10% per annum.

ix. Thirty Thousand dollars ($30,000) of long-term loans must be repaid by March 31, 20X9.

Required:
1. Journalise the adjusting entries to be made in the books of Yearwood for the above
adjustments. (10 marks)
2. Prepare the adjusted trial balance for Yearwood at December 31, 20X8 (10 marks)
3. Journalise the closing entries to be made in the books of Yearwood. (10 marks)
4. Prepare a post-closing trial balance for Yearwood at December 31, 20X8. (10 marks)




nEED PART C OF THIS ASSIGNMENT CHECKKED FOR ME IVE ALREADY GOTTEN A RESPONS FOR PART 1& 2 ILL POST IT AS WELL


Close all revenues to income summary
Revenue
Carriage inwards 2200
Rental Income 56000
Discount Received 2200
Unearned Rent Income 9000
Prepaid Isurance 12400
Total 81800
Revenues DR CR
Service Revenue 81800
Income Summary 81800

DR CR
Income Summary 81800
Expenses
Carriage out 1800
Wages 100000
Dis. Allowed 3400
Provision for Bad Debts 890
Acc. Provisions for Depreciation 52956
Insurance 3700
Utilities 17900
Wages 100000
Accured Wages 11480
Miscell. Expenses 6400
Bad debts 4800
Depreciation Expense 8516
Total 311842 Net Loss - $ 230042


THIS IS FOR PART 3


HERE IS PART 1 & 2 WELL THE RESPONSE I GOT

mbrown37
Nov 8, 2009, 06:15 AM
Deer Valley Lodge, a ski resort in the Wasatch Mountains of Utah, has plans to eventually add five new chairlifts. Suppose that one lift costs $2 million, and preparing the slope and installing the lift costs another $1.3 million. The lift will allow 300 additional skiers on the slopes, but there are only 40 days a year when the extra capacity will be needed. (Assume that Deer park will sell all 300 lift tickets on those 40 days.) Running the new lift will cost $500 a day for the entire 200 days the lodge is open. Assume that the lift tickets at Deer Valley cost $55 a day. The new lift has an economic life of 20 years.

Assume that the before-tax required rate of return for Deer Valley is 14%. Compute the before-tax NPV of the new lift and advise the managers of Deer Valley about whether adding the lift will be a profitable investment. Show calculations to support your answer.
Assume that the after-tax required rate of return for Deer Valley is 8%, the income tax rate is 40%, and the MACRS recovery period is 10 years. Compute the after-tax NPV of the new lift and advise the managers of Deer Valley about whether adding the lift will be a profitable investment. Show calculations to support your answer.
What subjective factors would affect the investment decision?

haider78605
Nov 8, 2009, 01:48 PM
Here is your answer for closing entries and post closing trial balance