Project one

Xyz Company
Payroll register
For month April 2013

s/n Name of Basic Over Gross Income pension Total Net sign
employees salary times earnings tax deduction pay
1 Tirusew 735
2 Nigatu 2379
3 Getasaw
4 yemariam
5 nistuh 155.40

Additional information
1. Tirusew and nigatu have paid the same income tax for the month.
2. Getasaw pension contribution is 150% of tirusew pension contribution
3. The total (employer and employees) pension contribution of Nitsuh is equal to that of
yemariam pension contribution
4. Pension contribution is 7%by employee and 11% by employer
Required
a. Finalize the incomplete payroll register given above
b. If salary is paid in may (next month). Journalize
c. Payroll tax or company pension contribution
Project 2
Unit of competency covered
The account in the ledger of bbc company with the unadjusted balance on December31, 2010.
The end of the fiscal year is as follows.

Fees receivable
Prepaid insurance 3725
supplies 675
Prepaid advertizing 1000
Salaries payable
Unearned rent
Income summary
Fees earned 62250
Salaries expense 41700
Advertising expense 10340
Supplies expense
Insurance expense
Rent income 9100
Data needed for yearend adjustment are as follows
1. Unbilled fees on June 30 br.7750
2. Insurance expired during the year, br.2100
3. Supplis inventory on 30.br.190
4. Of the pre payment of birr1000 advertizing in Ethiopian herald news paper 75%has
been used.
5. Salary accrued is br.1140
6. Rent collected in advance that will not be earned is br.700
Required
Tak1: prepare the necessary adjusting entries
Task2: prepare profit and loss statement and balance sheet.
Project 3:- Bank Reconciliation
Printer corporation employs the voucher system in controlling expenditures and disbursement the
data required to reconcile the bank statement as of April 30 has been abstracted from various
documents and records and is produced as follows.
Cash in bank account
Balance as April 1 …………………………………………………7817.40
Cash receipt journal
Total of cash in bank debit column for month of April…………..7829.58
Duplicate deposit ticket
Date Amount Date Amount Date Amount
April 1 848.63 april10 971.71 April 22 897.34
3 914.04 15 957.85 24 942.71
8 840.50 17 946.74 29 510.06
Check no. Amount check no Amount check no Amount
740 287.50 747 void 754 249.75
741 555.15 748 490.90 755 172.75
742 501.90 749 640.13 756 113.95
743 671.30 750 376.77 757 907.95
744 506.88 751 299.37 758 359.60
745 117.25 752 537.01 759 601.50
746 298.66 753 380.95 760 486.39

Total amount of check issued in April……………………………………………8555.66

April bank statement
Balance as of April 1……………………………………………..7947.20
Deposit and other credits ………………………………………10652.77
Check and other deposits ……………………………………… (8232.21)
Balance as of April 30…………………………………………..10367.76
Date and amount of each deposit in April
Date Amount Date Amount Date Amount
April 1 690.25 April 9 840.50 April 18 946.74
2 848.63 11 971.71 23 897.34
3 914.04 16 975.85 25 942.71
Checks Accompanying April bank statement
Check no. Amount check no Amount check no Amount
731 162.15 744 506.88 751 299.37
738 251.40 745 117.25 752 537. 01
739 60.55 746 298.66 753 380.95
740 287.50 748 490.90 754 249.75
741 555.15 749 640.13 756 113.95
742 501.90 750 376.77 757 907.95
743 671.30 760 486.39
Bank memorandum accompanying bank statement
Date Description Amount
April 4 Bank credit memo for note collected
Principal ………………………………….2500
Interest ………………………………….125
24 Bank debit memo for check returned
Because of insufficient funds ……….. 311.80
30 Bank debit memo for service charge ………..24.50

 Bank reconciliation for preceding moth

 Printing Corporation
Bank reconciliation
March 31, 19
Balance per bank statement …………………………………………………..7947.20
Add;- deposit in transit ……………………………………………………......690.25
Total; - 8637.45
Deduct outstanding checks
No 731………………………………………………………………………….162.15
736…………………………………………………………………………..345.95
738……………………………………………………………………...........251.40
739………………………………………………………………………........60.55
Total: - (820.05)
Adjusted balance…………………………………………………………….7817.40
Balance per depositor records ……………………………………………..7832.50
Deduct service charges……………………………………………………… (15.10)
Adjusted balance……………………………………………………………7817.40
Required:
1. Prepare bank reconciliation as of April 30
2. Record the necessary entries
Project 4
Prepare operational budget
Kaliti steel factory manufactures two products A and B
Desired inventory product A
Product B
Desired inventory ending for each month 20,000 1000
Estimated beginning inventory for each month 21,000 9000
Sells price per unit 50 70
Estimated sales unit
January February March Total
Area 1: A 6500 6900 6600 20,000
B 1950 1500 1500 4950
Area 2: A 2500 3000 4500 10,000
B 500 600 1500 2600
For the production of A and B, kaliti steel factory uses the following Raw materials
Material unit cost A B
Sand 0.50 20k.g 15kg per unit
Steel 1 10k.g 15k.g per unit
Chemical 5 10 litter 15 litter
Required
1. Prepare sales for the current quarter
2. Prepare production budget for current quarter
3. Prepare Raw Material Purchase budget for current quarter
Project five
During the month of January the following transaction will occur to produce three products
1. Material purchased on account
Sand…………500
Steel…………790
Chemical……4500
2. Direct Materials issued and factory labor cost
Materials Direct labor cost
Job#1 227.50 160
Job#2 780 210
Job#3 3900 175
3. Factory overhead is 60% of direct labor cost.
4. Finished goods sold for 7,200
Required
A. Record journal entries
B. calculate each job cost
C. calculate gross profit
Project six
The following were selected from among the transaction completed by DAT, a VAT Registered
Merchandising firm, During January of the current year.
1. Received cash from sales of furniture Br.250,000
2. Paid Entertainment Expenses br.5000
3. Purchase Raw material for Br,49,000 for cash
4. Paid utility Expenses Br.20,000
5. Sales of furniture on account Br. 80,000
6. Paid salary Expense Br.28,000
7. Paid supplies Expense Br 20,000
8. Doubtful Account expense, Br 8000
Required
1. Record the necessary journal Entries Related to the transactions
2. Determine amount of vat payable/ receivable from/ To ERCA.
3. Prepare income statement for the month of January for tax purpose and calculate profit
tax liability (Business profit tax is 30% )
 Project 7
Fairfax Manufacturing has the following information in relation to commodity D2 for July.
Inventory
July 1………………………………..15units@30
July 4 sales…………………………..5units@35
July10 purchase …………………….10units@32
July 14 sales………………………….12units@39
July 22 sales…………………………..3units@40
July 30 purchase………………………10units@33
Required
1. If the company used perpetual inventory system and fifo costing method A determine
cost of goods sold.
b. Determine ending inventory on hand at end of year
c. Determine Amount of Gross profit
2. Determine amount of gross profit
a. If the company uses periodic inventory system and lifo costing method
b. Determine ending inventory on hand at end of Year
c. Determine amount of gross profit.
Project two
Task1. Adjusting entries
1) Fees receivable………..7750
Fees earned..................................7750
2) Insurance expense …….2100
Prepaid insurance………………………….2100
3) Supplies used=675-190=485
Supplies expense….485
Supply………………………………485
4) Prepaid adv’t=1000
 Expired=1000x75%=750
Advertisings expense……750
Prepaid advertising………………………….750
5) Salary expense….1140
Salary payable………………………..1140
6) Cash………….700
Unearned rent …………..700
BB Company
Income statement
2010

Revenue
Fees earned (62250+7750) 70,000
Less:- expense
Salary expense……………42,840
Advertising expense………11,090
Supply expense……………..485
Insurance expense…………..2,100
Total expense (56,515)
Income from operation 13485
+other income 9100
Net income 22,585
Total Debit Total credit
Prepaid insurance………….3725 fees Earned……62250
Supplies……………………675 Rent income.9100
Prepaid advertising ………..1000 total credit…71,350
Salary expense……………..41700
Advertising expense……….10340 Ending capitals........ (13910)
Total debit…………………57,440 is equal to debit and credit =57,440
Difference= 71,350-57440= (13910) ending capital
Beg capital= (13910)
Ending capital =begging capital +net income-Drawing
(13910)+22585-0
=8675 BB Company
Income statement
2010
Balance sheet

Asset liability

Cash……………………..700 Salary payable…………..1140

Fees receivable………….7750 Unearned rent………….700

Prepaid insurance………..1625 Total liability……………1840

Supplies…………………190 equity

Prepaid advertising……..250 Owners equity…………….8675

Total asset………………10515 Total liability and capital…..10515

Correction cash = 13910

Cash………………………13910
Prepaid insurance………….3725 Fees Earned……62250
Supplies……………………675 Rent income.9100
Prepaid advertising ………..1000 total credit…71,350
Salary expense……………..41700
Advertising expense……….10340
Total debit…………………71,350
Begging capital= 0
Ending capital=0+22585-0=22585

Asset liability

Cash……………………..14610 Salary payable…………..1140

Fees receivable………….7750 Unearned rent………….700

Prepaid insurance………..1625 Total liability……………1840

Supplies…………………190 equity

Prepaid advertising……..250 Owners equity…………….22585

Total asset………………24425 Total liability and capital…..24425

 Project 3 Solution
Task 1
Step 1; - We have company balance.
 Company balance April 30
 April 1…………….. 7817.40
 +cash received ……..7829.58
15646.98
 - cash paid (checks) (8555.66)
 Cash balance ……..7091.32

Prepare bank reconciliation

April 30 2020

Company balance ……7091.32 Bank balance…….10367.76

Add Add
Error………18 Deposit in transit……510.06
Ns/r ………2500
Interest ….125
Total……………… 9734.32 Total…………… 10877.82
Less less
Service charge …….. 24.50 Outstanding checks
Non sufficient fund…311.80 Check no 755……172.75
Total……………………(336.3) Check no758……359.60
Check no 749……601.50
Check no 736…….345.95
Total……… (1479.80)
Adjusted balance……..9398.30 Adjusted balance. 9398.30
Task 2 journal entry (company balance) 4) non sufficient fund
1) Error= 957.85-975.85=18 AS/R……………….311.80
Cash…….18 Cash……………………311.80
AS/R/ sales……..18 5) miscellaneous expense….2450
2) Notes Receivable cash…………............2450
Cash………2500
Notes receivable…………2500
3) Interest
 Cash ………………125
Interest income………………125

Project 4
Solution
Task1.
Product A Kaliti steel factory
Sales Budget

Description January February March

Area 1 Area2 Total Area 1
Area2 Total Area 1 Area 2 Total
Sales unit 6500 2500 9000 69003000 9900 6600 4500 11100
*unit selling price *Br.50 *Br.50 *Br.50
Total Revenue Br.450,000 Br.495,000 Br.555,000
 Quarter sales= Br.450,000+ Br.495,000+ Br.555,000=1,500,000

Product B

Description January February March

Area 1 Area2 Total Area 1 Area2 Total Area 1 Area 2 Total
Sales unit 1950 500 2450 1500 600 2100 1500 1500 3000
*unit selling price *Br.70 *Br.70 *Br.70
Total Revenue Br.171500 Br.147000 Br.210,000
 Quarter sales= Br.171500+ Br.147000+ Br.210, 000=528500
Task2.
Kaliti steel factory
Production A Production Budget

Description January February march

Sales unit 9000unit 9900unit 11100
+ending finished goods 20,000unit 20,000 20,000
Total units required 29000unit 29900unit 31,100
 -beginning finished goods (21,000) (21,000) (21,000)units
inv
Scheduled production 8000 unit 8900units 10100units
 Quarter sales= Br.8000units+8900units+10,100units
=27,000units

Production B

Kaliti steel factory

Production A Production Budget

Description January February march

Sales unit 2450unit 2100unit 3000
+ending finished goods 10,000unit 10,000 10,000
Total units required 12450unit 12100unit 13,000
-beginning finished goods (9,000) (9,000) (9,000)units
inventory
Scheduled production 3450 unit 3100units 4000units
 Quarter sales= Br.3450units+3100units+4000units

=10,550units

Task 3

Kaliti steel factory

 Sand Material purchase budget

Description January February March

A B Total A B Total A B Total
Scheduled 8000u 3450u 8900u 3100u 10100 4000u
production
*material per unit 20kg 15kg 20kg 15kg 20kg 15k.g
Material to be 160,000 51750 21750k.g 178000 46500 224500kg 202,000 60,000 262,000
purchased
*unit cost Br.0.50 Br.0.50 Br.0.50
Total cost of Br.105,875 Br.112,250 Br.131,000
purchase
 Quarter budget= Br 105,875 +112,250+131000= Br .349,125

Kaliti steel factory

Material purchase budget

  Steel

Description January February March

A B Total A B Total A B Total
Scheduled 8000u 3450u 8900u 3100u 10100 4000u
production
*material per unit 10kg 15kg 10kg 15kg 20kg 15k.g
Material to be 80,000 51750 131750k.g 89000 46500 135500kg 101,000 60,000 161,000k.g
purchased
*unit cost Br.1 Br.1 Br.1
Total cost of Br.131750 Br.135500 Br.161000
purchase
 Quarter budget= Br 131,750+Br135, 500+Br161, 000

Project five

Task 1 journal Entries

1) Material Purchase
Material inventory
Sand………………..500
Steel……………..790
Chemical……………4500

AS/P……………………5790
2) Direct Material Issued to product
Work in process
Job#1……………….227.50
Job#2………………780
Job#3……………….3900
Material inventory…….4907.50
3) Direct labor charged to production
Work in process
Job#1……………….160
Job#2………………210
Job#3……………….175
Wage payable…………….545
4) FOH charged to production
Work in process
Job#1(160x60%)…96
Job#2(210x60%)…126
Job#3(175x60%)…105
FOH…………………..327
5) Finished Goods inventory
Finished goods inventory ……5779.50
Work in process……………………………..5779.50
Calculate cost of goods Manufactured
Direct Material used
Job#1…………..277.50
Job#2…………..780
Job#3…………3900 4907.50
+Direct labor cost
Job#1…………..160 +
Job#2…………..210
Job#3…………175 545
+FOH………………………327
Total manufacturing cost…5779.50
+Begging WIP……………….0
-Ending work in process…… (0)
Cost of Goods Manufactured...5779.50
6) Sell of Finished goods
Cash……..7200
Sales…………………7200
Cost of Goods sold…..5779.50
Finished Goods inventory…………….5779.50
7) Calculate COGS
Begging finished goods inventory………0
+cost of goods Manufactured…………5779.50
Goods Available for sales…………….5779.50
-Ending finished Goods………………. (0)
Cost of goods sold …………………….5779.50
Take 2
Jobs Direct Material +Direct labor + FOH =Total cost
Job#1 227.50 160 96 = 483.50
Job#2 780 210 126 =1116
Job#3 3900 175 105 =4180
Task 3
 Gross profit=sales Revenue – cost of goods sold
= 7200-5779.50
=1420.50

Project 6
Task 1 journal Entries
1) Output vat=250,000x15/115=32,608.70
Cash ……..250,000
Sales………………….217, 391.30
Vat payable…………….32, 608.70
2) Entertainment expense……..5000
Cash…………………………….5000
3) Input vat= 49000x15/115=6391.30
Purchase/ R.M inventory………………….42608.70
Vat Receivable……………………………6391.30
Cash…………………………………………………………49,000
4) Utility expense……………..20,000
Cash…………………………………….20,000
5) Output vat=80,000x15/115=10434.78
Account receivable ……………80,000
Sales…………………………………..69565.22
Vat payable…………………………., 10434.78
6) Salary Expense………………28000
Cash………………………………28,000
7) Supplies Expense……………20,000
Cash………………………………….20, 000
8) Uncollectible expense……….8000
Allowance for Doubtful………………..8000
Task 2
Output vat= 32608.70+10,434.78=43043.48
Input vat= 6391.30
Vat payable= output vat-input vat
= 43043.48-6391.30
= 36652.18
Task 3
Dat.Company
Income statement
January 12

Revenue
Sales(217391.30+69565.22) 286,956.52
Less: expense
Entertainment expense………5000
Utility expense………………20,000
Salary expense……………….28,000
Supplies expense…………….20,000
Uncollectable expense…….. 8000
Total expense (81,000)
Accounting profits 205,956.52
Add back(Ent and uncoll exp 13000
Total profit 218956.52
Less: profit tax (65686.96)
Net income 153,269.56
Profit tax liability = 218956.52x30%=65686.96
 Project seven
Task 1 :-perpetual FIFO

Date Item Purchase(cost) Sales(cost) Inventory (cost)

July 1 inventory 15unitx30br=450
July 4 Sales 5unitx br 30=150 10unitx30br=300
July 10 Purchase 10unitx32br=320 10unitxbr30=300
10unitxbr32=320
July 14 Sales 10unitxbr.30=300 8unitxbr32=256
2unitxbr32=64
July 22 Sales 3unitxbr.32=96 5unitxbr=160
July 30 purchase 10unitxbr.33=330 10unitxbr33=330
A) Cost of goods sold B) cost of inventory c) 1. calculate sales Revenue
5unitxbr30=150 5unitxbr32=160 5unitxbr35=175
10unitxbr30=300 10unitxbr 33=330 12unitxbr39=468
2unitxbr32=64 15unit 490 3unitxbr40=120
3unitxbr32=96 sales Revenue=br.763
20unit 610 birr
C) 2. Calculate Gross profit
Gross profit = 763-610=Br.153
Task 2 periodic LIFO
July 1 inventory…. ………15unitxbr30
July 10 purchase………… 10unitxbr32
July 30 purchase………… 10unitxbr33
Goods available for sale…… 35units
-Units sold (5u+12u+3u)….. (20units)
Ending inventory units……… 15 units
A) Cost of goods sold.(20units)
10units xbr33=330
10unitsxbr32=320
 20 unit br.650
B) Cost of inventory (15units)
15unitsxbr.30=450birr
C) Gross profit= br.763-650=br.113