Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Income Statement - Cost Accunting:
A starting entrepreneur has come up with a plan to start a Gaming Outlet in Haarlem. He would like to buy a building which will cost € 700.000. He will take out a mortgage in the amount of €630.000. The mortgage is to be paid off in 20 years, interest on the mortgage is 6%. Repayment of the loan and payments on interest are to be paid in the first month of the year, starting in January 2012. Depreciation of building is 2% per year. Office equipment is to be bought for €160.000. The office equipment is to be delivered in December 2010 and to be paid in January 2011. Depreciation on office equipment is to be done in 8 years, residual value is zero. The entrepreneur will use a delivery van (worth €30.000) for his business and will bring €140.000from his private account into his business. The delivery van will depreciate to zero in 5 years.
The bank will extend a credit line with a maximum of €80.000. The credit line can be used to balance the balance sheet. Should the company have a surplus then this will mean that the company will have a positive bank balance. The interest to be paid over this account is to be paid per half year. Over the first half of the year the interest is €200 (to be paid in July 2011) and over the second halfof the year the interest is €300 (to be paid in January 2012). Per January1 2011 the company will have €1.000 in its cash register, this is equal to the amount which the company will have in its cash register at the end of every quarter.
The predicted turnover for 2011 and 2012 is €1.200.000. In both years the turnover is equally divided over the months. The entrepreneur expects that 20% of his turnover will be made by serving businesses. These business clients get a buyer's credit of one month. Regular costumers (non-business clients) pay cash. The profit margin is 40% of the turnover.
Exploitation costs are €20.000 per month and are to be paid in the same month. For purchases the company is extended a supplier's credit of one month. Before the opening of the Outlet, games are bought and stored. Total costs of the purchase of these games are €60.000. Starting in January, and then every following month, games are bought in the order of the expected purchase of goods in the following month.
how to calculate total costing in weighted average method
Accounts Payable or sundry creditors are generally unsecured debts owed through the firm. These are also considered to as payables on open accounts. They may not be evidenced throu
Generally Accepted Accounting Principles (GAAP) -Rules, conventions and procedures essential to define accepted accounting practice at a specific time. The highest level of such pr
Farmer Dorr figures that her fixed costs are $2,000, and the relevant portion of her total cost curve is: Thousands of
Decision Making Nature of Decision-making Decision-making may fall into any type of the following categories as: 1. Short run operational decisions 2. Short run t
Accounting Treatment of Spoilage Costs 1) Normal Spoilage Costs: These costs are assigned to the good output utilizing two approaches as: (i) Omission Approach: Under th
Determine Profit by Using Absorption Costing Assuming the fixed overhead absorption rate was Ksh.3 per litre, then what would be the profit utilizing absorption costing? a)
Most corporations pay quarterly dividends on their common stock rather than annual dividends. Barring any unusual circumstances during the year, the board raises, lowers, or mainta
Value one stock using the dividend discount model of stock valuation with two periods of constant growth (not the simple one period growth model). See chapter 18 of the textbook
Cost Accounting advantage and features
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd