Ifa1 Accounting

FTMS International College Intermediate Financial Accounting 1: ACC122
Revision

Question 1:
The bank columns in the Cash Book for July 2009 and the bank statement for that month for Sunrise are:
Cash Book 2009 $ 2009 $ Jul 1 Balance b/d 110 Jul 4 Moore 70 Jul 5 Peggs 80 Jul 21 Nower 100 Jul 14 Hughes 120 Jul 24 Davies 160 Jul 25 Palmer 190 Jul 28 Balance c/d 320 Jul 26 Thompson 60 650 650 Bank Statement Dr. Cr. Balance 2009 $ $ $ Jul 1 Balance b/d 110 Jul 8 Moore 70 40 Jul 9 Peggs 80 120 Jul 11 Bank charges 40 80 Jul 18 Standing Order: Chase 70 10 Jul 19 Hughes 120 130 Jul 24 Nower 100 30 Jul 25 Renton 90 120 Jul 29 Dividends 20 140 Required:
a) Write up the Cash book up to date and state the new balance as at 31 July 2009
b) Draw up a bank reconciliation statement as at 31 July 2009

Question 2:
Bought
Sold
January
20 @ $20 each
April
15 @ $45 each
March
25 @ $30 each
November
20 @ $55each
September
30 @ $40 each

Calculate the closing stock value using the following methods:
a) First in first out (FIFO)
b) Last in first out (LIFO)
c) Average cost method (AVCO)
d) Calculate the gross profits under the 3 methods separately Question 3:
Jackson Company maintains its non-current assets at cost. The following information has been extracted from the book of Jackson as at 31 December 2011. Plant 1 Purchased on 1 January 2009 at $2,000
Plant 2 Purchased on 1 October 2009 at $6,000
Plant 3 Purchased on 31 July 2010 at $8,000 The company operates a straight line methods of depreciation at a rate of 20%. A full year of depreciation is charged in the year of purchase and no depreciation is charged in the year of disposal On 1 July 2011, Plant 1 was sold for $800 cash

Required:
a) Plant Account
b) Allowance for Depreciation Accounts
c) Disposal of Plant Accounts
d) Show the Income Statement (extract) and