Coastal Couriers Entity Sole Trader is in the business of delivering documents and packages in allregions in Namibia using its fleet of delivery vans. Coastal Couriers Entity's head office is located inWindhoek. It operates a fleet of five delivery vehicles. Because of increase demand for its deliveryservices prior to the summer school holidays and the need for an additional delivery vehicle, it hasrented a delivery vehicle for three months at a cost of N$ 40 000. The business wants to recognise therented vehicle as an asset in the financial records of the business.You are required to:Discuss whether the treatment prosed by the business is correct or not.

Lets understand the basics. There are difference between the revenue and capital expenditure.…

Answered: Coastal Couriers Entity Sole Trader is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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TechSpecialist (Pty) Ltd (hereafter referred to as “TechSpecialist”) is a small to medium-sized enterprise involved in the purchase and sale of IT hardware and accessories. TechSpecialist is located around Thohoyandou industrial area. The Thulamela Municipality is their largest client, which they have obtained through the annual tender process. The entity has experienced cash flow difficulties due to the Covid 19 pandemic. TechSpecialist has enjoyed tremendous support from the Thulamela Municipality; however, as is customary with government institutions, the Thulamela Municipality have a 60- day payment policy. In other words, the Thulamela Municipality has up to 60 days to pay an invoice before they can allow their suppliers to charge them interest. The Thulamela Municipality has on certain occasions paid supplier invoices within 20 days but on other occasions, they have paid the invoices on the 60th day. On 28 July 2021, TechSpecialist delivered IT equipment to the Thulamela…
The Department of Roads for a large Canadian city has several depots throughout the city where they store rock- salt. The rock-salt is used during the winter. The fiscal year starts on April 1 and ends on the following March 31. At April 1 2021, they had an inventory of 2,000 tons of rock-salt worth $800,000. The following are transactions occurred during the fiscal year:< Summer and Fall 2021: Purchased 68,000 tons at an average price of $300/ton< Months of December 2021 and January 2022: used 62,000 tons February 1 2022: purchased 40,000 tons at $505/ton Month of February 2022: used 20,000 tons March 12 2022: helped a neighbouring city that had run out of salt by giving them 20,000 tons in exchange for equipment worth $12.2 million Required: 1. Calculate the value of the rock salt in the remaining inventory at March 31 2022 based on: FIFO • Weighted average - Periodic 2. Which method of inventory valuation do you recommend they use? Explain your response.<
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Focus on ethics (Note: This case is based on an actual situation.) Stan Sewell paid $50000 for a franchise that entitled him to market software programs in the countries of the European Union. Sewell intended to sell individual franchises for the major language groups of Western Europe-German, French, English, Spanish and Italian. Naturally, investors considering buying a franchise from Sewell asked to see the financial statements of his business. Believing the value of the franchise to be $500000, Sewell sought to capitalise his own franchise at $500000. The law firm of St Charles & LaDue helped Sewell form a company empowered to issue 500000 ordinary shares. Solicitors suggested the following chain of transactions: 1 Sewell's cousin, Bob, borrows $500000 from a bank and purchases the franchise from Sewell. 2 Sewell pays the company $500 000 to acquire all its shares. 3 The company buys the franchise from cousin Bob. 4 Cousin Bob repays the $500 000 loan to the bank. In the final…
Exquisite Exports inc. based in St-Jérôme, QC sells products to Total S.A. in Paris, France, under the following terms: Terms of sale: CPT, port of Le Havre, Incoterms 2020 20 wooden pallets with Maple syrup loaded in on 40-ft ocean container Terms of delivery: ocean freight Terms of payment: open account, net 60 days The container accumulated detention charges at origin for 300USD due to cargo readiness issue. Who is responsible to pay the charges?

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