QUESTION: 1

Refer to the Exhibit.

The following information relates to a business at its year end:

The prime cost of goods manufactured during the year is:

$5,550,000
$8,150,000
$8,350,000
$8,800,000

Answer(s): C

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The balance on LMN's cash account at 31 December 20X6 is $108,000 (debit) On performing the monthly bank reconciliation the following is discovered.

· a payment of $2,000 made to a supplier has not yet appeared on the bank statement,

· an automated receipt from a customer for $5,000 has not yet been recorded in the cash book, and

· a pigment to a supplier of $1,500 was incorrectly recorded in the cash book as $1,050

The balance showing on the bank statement at 31 December 20X6 is

$111,450
$101,450
$114,550
$104,550

Answer(s): A

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QUESTION: 3

Refer to the Exhibit.

On 1 May year 1 a company pays insurance of $1,800 for the period to 30 April year 2

What is the charge to the income statement and the entry in the statement of financial
position for year 1 ended 30 November?