Goal Getter Polytechnic (GGP) offers physical activity and wellbeing courses. Programs include Health Bridging Certificate, Certificate in Avalanche Risk Management, Certificate in Exercise, Certificate in Outdoor and Adventure Education, Diploma in Wellness and Relaxation Massage, Bachelor of Applied Science, Postgraduate Certificate in Applied Science and Postgraduate Diploma in Applied Science. GGP is well-known for training some of the best and brightest professionals in the sports, exercise, wellbeing and adventure industries in New Zealand. GGP attracts its students by providing a stimulating environment that incorporates a mix of hands-on and theoretical learning together with valuable industry insight and contacts during work placements. GGP has two operating departments: (i) Personal Training, and (ii) Sport, Exercises and Health; and two support departments: (i) Facility and Equipment (F&E) Maintenance, and (ii) IT Service. GGP uses budgeted total maintenance hours to allocate facility and equipment maintenance costs, and percentage of IT processing time to allocate IT services costs to a department. In the 2021 financial plan, the Facility and Equipment Maintenance budget is $900,000, while the IT Service budget is $350,000. Other projected data for 2021 are below. Support Department IT service Operating Departments Personal training Sport, exercises and health F&E maintenance Budgeted costs incurred before $900po0 $350000 $3200000 $1800000 any interdepartmental costs allocation($) F&E maintenance 6000 38000 22000 ( in maintenance hours) IT service by IT processing time _(in%) 7.00% 0.00% 53.00% 40.00% Required: 1. Prepare a schedule which allocates support department costs using the step-down method with the sequence of allocation based on the highest-percentage support concept. Compute the total amount of support costs allocated to each of the two operating departments. 2. Allocate the support departments' costs to the two operating departments using the reciprocal services method. 3. In the case presented in this problem, which of the two allocation methods (step-down and reciprocal services), would you recommend? Why?
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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