Cost Accounting Assignment

1. The cost of equipment purchased by Roybox on September 01, 2016 is 80,000 taka. It is
estimated that the machine will have a 5000 taka salvage value at the end of its service life.
Its service life is estimated at 8 years.

Required: Calculate depreciation

a) Calculate depreciation in Double decline balance method for 2016.
b) Calculate depreciation in Double decline balance method for 2017.
c) Calculate depreciation in Sum of the year digit method for 2016.
d) Calculate depreciation in Sum of the year digit method for 2017.
e) Calculate depreciation in Sum of the year digit method for 2018.

2. Differentiate between cash discount and trade discount.

3. On June 3, Bolton Company sold to Arquette Company merchandise having a sale price of
$2,000 with terms of 2/10, n/60, f.o.b. shipping point. On June 12, the company received a
check for the balance due from Arquette Company. Prepare the journal entries on Bolton
Company books to record the sale assuming Bolton records sales using the gross method
and Net method.
4. Sandel Company reports the following financial information before adjustments

Instructions: Prepare the journal entry to record bad debt expense assuming Sandel
Company estimates bad debts at (a) 1% of net sales and (b) 5% of accounts receivable.

5. Briefly explain interest capitalization step by step.

6. Briefly explain conceptual framework of accounting.

7. Differentiate among depreciation, depletion and amortization.

8. Describe some of the challenges facing financial reporting.
9. Identify the major financial statements and other means of financial reporting.

Instructions
1. The assignment must be hand-written.
2. The number of pages for the assignment is unlimited but the assignment must be concise
and relevant, that is, neither too large nor too small.
3. There may be similarities between assignments of individuals but any two assignments
completely identical to each other in all respects will carry no marks, that is, both of them
will get zero.
4. The submission date of the assignment is 09 March 2023