Customer response letter Example

Customer response letter Example Customer response letter – Essay Example 1 February of the Address Dear of the Yes, unprofessional and rude attitude of the staff is certainly a critical issue that our company is facing these days. Late serving of orders and unwillingness to accept criticism upon mistakes are two such issues that we need to work out as soon as possible. We have heard it from some other customers too that they face indecent behavior when they come in contact with the waiters. Customers definitely feel very bad and dejected when they face such behavior of waiters in response of complaints. I really apologize from the behalf of my company upon whatever you have experienced with our waiter service and assure you that we will take considerable steps very shortly to resolve this issue. Late serving, display of rude behavior, and not accepting the mistakes are some of the main issues related to the waiter staff that we definitely need to sort out in order to maintain our image as a leading bistro of San Diego. To improve the service of our waiter staff, we are moving towards a proper solution. The solution is to fire all those waiters out of their jobs who show indecent behavior with the guests. We cannot tolerate such incidents anymore because to remain alive in this tough competition of bistros here in San Diego, we must improve our customer service at any cost. To help us in this, from now on you will simply need to fill a service experience form and put it in the box attached right next to your table. The form will help us know how pleased the guests are with the waiters. We will give warning to uncooperative waiters and if do not show improvement in their behaviors, they will be fired from their jobs and fresh and well-mannered candidates will be given the opportunity to work with us.In the end, I would like to thank you for being a regular customer of our bistro. I apologize again for the objectionable experience and assure you that we will take immediate steps to resolve this issue. Our business is all about providin g memorable and pleasant dining experience to our customers. We will definitely make sure that such incidents never occur again with any of our precious guests.Sincerely,SFSU ID#

Amelia Earhart and Sally Ride essays

Amelia Earhart and Sally Ride essays Amelia Earhart and Sally Ride each achieved major goals in fields that were traditionally reserved for men. Amelia Earhart became the first woman in history to make a solo transcontinental flight in 1928 and Sally Ride became the first woman in space in 1983. After achieving these goals, they each spoke to girls and women. They encouraged them not to feel restricted by what society expected of them as women. Amelia Mary Earhart was born on July 24, 1897, in Atchison, Kansas. Her parents' names were Edwin and Amy and she had a sister named Muriel. Amelia was a tomboy when she was young. She loved playing outdoors. She was also interested in stories of women who combined marriage and career, which was a rare occurrence at that time. During World War One, at the age of 20, Amelia served in a Voluntary Aid Detachment. She loved flying, but wartime restrictions prevented her from going up in the air. Amelia knew that her goal in life was to become a pilot. She chose a woman, Neta Snook, to teach her to fly. Amelia felt that she would be less self-conscious learning from a woman. She bought her own plane. In 1928, Amelia rode on a transcontinental airplane flight. The flight made her the first woman to cross the Atlantic Ocean by air. In 1931, Amelia married George Palmer Putnam. He was a publisher who promoted Amelia's flights. Amelia became the first woman to fly across the Atlantic Ocean on her own in 1932. The transatlantic flight marked the high point in Amelia's accomplishments because it was a great step forward for women. Margaret Dreier Robins of the Women's Trade Union League said, "Is it not in us in America to think that if one of us does something we can do it also?". From 1928 to 1937, Amelia promoted aviation to women. She believed that women could play an important role in the promotion of flying, and if they were uncooperative they could hold back its promising future. Although she had already set records i...

St. Matthew's Feast Essay Example | Topics and Well Written Essays - 500 words

St. Matthew's Feast - Essay Example St. Matthew's Feast is September 21st. He is the patron saint of accountants and tax collectors. St. Matthew's symbols are the sword, for his martyrdom, and the money bag, as he used to work as a tax collector ("Biography of St. Matthew"). Levi (Matthew) was born in the 1st century. His birth place is Palestine ("St. Matthew Biography. Evangelist, Saint"). He was raised in the city called Capernaum. St. Matthew's nationality is Jew, he was born and raised as he was. His father's name was Alphaeus. Matthew obtained a wide knowledge of languages; apart from Hebrew, he knew also Aramaic and Greek ("Biography of St. Matthew"). It was useful for his apostolic activity. His missionary movement was at initially limited to the Palestine's society. Nothing clear is known about his further life. Traditionally Ethiopia is indicated as his field of work. Other views add Parthia and Persia. There are contradicting views on his death: some point on his natural death but mainly martyrdom is noted: â€Å"Roman martyrology, the official record of saints for the Roman Catholic Church, holds that Matthew was martyred 'in Ethiopia',† ("Biography of St. Matthew"). Another sources are not so sure about the proofs of it. St. Matthew's Gospel was composed to fill a painfully felt need for his kindred compatriots, both devotees and unbelievers. It served as a token of his view and as a consolation in the trial to come, particularly the risk of falling back to Judaism. This goal is higher, probably any religion intends to focus people.

Lead like Jesus Essay Example | Topics and Well Written Essays - 250 words

Lead like Jesus - Essay Example It is a journey of patience, perseverance, and dedication. Leaders must be able to activate change in behavior which was achieved by Jesus in his disciple. Transformational leadership involves influencing the behavior of others and ensuring that they achieve greatness or objectives they need to achieve. The actions of Jesus reveal servant leadership that involves doing what he wants the follower to undertake (Blanchard and Hodges 6). Change in behavior is an action of motivation and the development of personal drive which influence personality development. The leadership depicted by Jesus covered all aspects of effective leadership including motivation, guidance, and the setting a role model for the mentors to follow and achieve success. In the talks and teaching of Jesus, the followers learnt of his objective, mission and role in the world and depicting to the learners the main reasons for the change. In spite of the challenges, role model leadership depicted by Jesus surpassed the current leadership strategies because of the involvement in the activities directly (Blanchard and Hodges 6). Therefore, the leadership of Jesus influenced the followers and enabled them to develop and become effective leaders as depicted in the

Scarlet Letter Essay Example for Free

Scarlet Letter Essay The Scarlet Letter There are many forms to degrade a person, some are deep wounds that can leave an imprint forever, and some go through one ear and out the other. There have been many occasions where ones life is played upon, where the only solution is death. But there are two of those imprints I want to focus on; revenge and hatred and how these two abhorrent features can destroy a person physically and spiritually. Revenge is defined as to inflict punishment in return for injury or insult. In Nathaniel Hawthornes novel, The Scarlet Letter, we find that two characters exemplify this theme. Roger Chillingworth and Reverend Arthur Dimmesdale have an extensive conflict that portrays an example for us. The clergymans shy and sensitive reserve had balked this scheme. Roger Chillingworth, however, was inclined to be hardly, if at all, less satisfied with the aspects of affairs, which Providence- using the avenger and his victim for its own purposes, and, perchance, pardoning where it seemed most to punish- had substituted for is black devices. In this quote from the book, it states that Roger Chillingworth, being the doctor of Dimmesdale, will use his medications against him. Chillingworth suspects of Dimmesdale committing a great sin that involves his wife Hester Prynne. Calm, gentle, passionless, as he appeared, there was yet, we fear, a quiet depth of malice, hitherto latent, but active now, in this unfortunate old man, which led him to imagine a more intimate revenge than any mortal had even wreaked upon an enemy. To make himself the one trusted friend, to whom should be confided all the fear, the remorse, the agony, the ineffectual repentance, the backward rush of sinful thoughts, expelled in vain! Chillingworth is taking advantage of being Dimmesdale so called friend, so he gets him to confess this reat sin that he is being suspected upon. He will be asking questions that will provoke Dimmesdale or rather make him think in such a way that he will express it physically. The reason why Dimmesdale seems to be sick is because of the secret sin he keeps inside, its destroying him. Making him weak, pale, rather old, and putting him in a position where he believes that medicine will cure it. Dimmesdale being the preacher of the town will have a great spiritual agony that will haunt him through this life and the next, making this the spiritual sickness that will not leave unless he confesses. And the cause of this all would be Chillingworth. Hatred can destroy victim or attacker, being an intense dislike, extreme aversion or hostility. All of these aspects, Chillingworth was putting upon Dimmesdale, slowly making him pay for the sin. In a word, old Roger Chillingworth was a striking evidence of a mans faculty of transforming himself into a devil, if he will only, for a reasonable space of time, undertake a devils office. He was going through stages of hatred that transformed him into something that he didnt foresee. Chillingworth was turning into a devil within a blink of an eye. Hester said to Chillingworth while talking to him about Dimmesdale, Since that day, no man is so near him as you. You tread behind his every footstep. You are beside him, sleeping and waking. You search his thoughts. You burrow and rankle in his heart! Your clutch is on his life, and you cause him to Chillingworth is like a dark shadow haunting Dimmesdale every mille-second of the day, and Dimmesdale not knowing what Chillingworths real intensions are. In this case, hatred was destroying both Chillingworth and Dimmesdale, one turning into a devil and the other being tortured and pressured. With this I come to a conclusion that revenge, hatred, and a person, dont mix well. Just like oil and water. Think about having the conscience follow you throughout your life, that with a simple act of these implements you completely destroyed a person into pieces. It degrades him or her, self-esteem drops down to a low level, but most importantly you can put that person into a place where death is the only answer to escape. A rattlesnake, if cornered will become so angry it will bite itself. That is exactly what the harboring of hate and resentment against others is a biting of oneself. We think we are harming others in holding these spites and hates, but the deeper harm is to ourselves. †E. Stanley Jones

Disability as Power in the Works of Mary Duffy, Frida Kahlo, and Vassar

What do you do without either of your arms? What do you do for a living constrained to a wheelchair? What do you do without control over your own body? Many people in the world today spend their lives wishing things were not as they were, attempting to forget how they are, or trying to change how they are going to be. When "disabled" people succeed, it is commonly thought that those individuals are amazing for overcoming their disabilities and thriving in life. Is this really what they are doing? The following three women, Mary Duffy, Frieda Kahlo, and Vassar Miller transform their disabilities into the ability to create complex forms of art that force the audience to gain a different perspective on disabilities. Their disabilities become their power. The artists use this power to force their audiences to look at their disabilities in an utterly new way using the "stare and tell" method. These women do not succeed despite their disabilities, but instead succeed because of them . The "stare and tell" is a term that Rosemarie Garland Thomson, a disability studies scholar and writer, has created to explain a method in performance art that forces the audience to look at disabilities in an entirely new light. She states "As a fusion of both seeing and telling, disability performance art foregrounds the body as an object both to be viewed and to be explained." The artist first beckons the audiences to break the social "normative" and forces the audience to stare at the artist?s disability. Once the attention of the audience is solely on the artist and his or her disability, the method then takes on the "tell" aspect and enables the audience to become aware of what exactly the artist has to say in his or her own words. Mary Duff... ...ly amazing affects she had on her audience. Although she died in 1998 at the age of seventy-four, her poetry is still gaining fame and affecting people across the United States. Often, many people do not know of such individuals. If one has heard of them is it most likely in the category of amazing individuals who are able to overcome life?s most challenging obstacles and succeed in ways never imagined. This is just not so. These women do not succeed in spite of their disabilities, but instead succeed because of them. Mary Duffy, Vassar Miller, and Freida Kahlo have all forced their audiences to visually give attention to their disability and thus have challenged societies stereotypical assumptions, whether on stage, in writing, or on a canvas. Their endeavors are summarized in the words of Frieda Kahlo, "Feet, what do I need them for, if I have wings to fly?"

Current & Non Current Assets

INVENTORY – PERIODIC INVENTORY SYSTEM In a Periodic Inventory System, no effort is made to keep up – to – date records of either the inventory or the cost of goods sold. Instead, these amounts are determined only periodically __ usually at the end of each year. It is used by very small businesses having manual accounting systems. Questions 1 – 3 (Meigns & Meigns), Question 4 (Fess & Warren) Question 1:- Mach IV Audio uses periodic inventory system. One of the store’s most popular products is a minidisc car stereo system. The inventory quantities, purchases, and sales of this product for the most recent year are as follows: Number of units| Cost per unit| Total Cost| Inventory – Jan 01| 10| Rs. 299| Rs. 2990| Purchases – May 12| 15| 306| 4590| Purchases – July 09| 20| 308| 6160| Purchases – Oct 04| 8| 315| 2520| Purchases – Dec – 18| 19| 320| 6080| Goods available for sale| 72| | Rs. 22340| Units sold during the year| 51| | | Inventory| 21| | | Instructions: Compute the cost of December 31 inventory and the cost of goods sold for the above mentioned product under each of the following cost flow assumptions: a.First-in, first-out b. Last-in, first-out c. Average cost (round to the nearest rupee, except unit cost) Question 2: – Same three inventory valuation methods under periodic inventory system | Number of units| Cost per unit| Total Cost| Inventory – Jan 01| 9| Rs. 3. 00| Rs. 27. 00| Purchases 1| 12| 3. 50| 42. 00| Purchases 2| 30| 3. 80| 114. 00| Purchases 3| 40| 4. 00| 160. 00| Purchases 4| 19| 5. 00| 95. 00| Goods available for sale| 110| | Rs. 438. 00| Units sold during the year| | | | Inventory – Dec 31| 20| | |Question 3: – Same three inventory valuation methods under periodic inventory system | Number of units| Cost per unit| Total Cost| Beginning Inventory | 10| Rs. 80| Rs. 800| First Purchases (Mar. 1)| 5| 90| 450| Second Purchases (July 1) | 5| 10 0| 500| Third Purchases (Oct. 1) | 5| 120| 600| Fourth Purchases (Dec. 1) | 5| 130| 650| Goods available for sale| 30| | Rs. 3,000| Units in ending inventory| 12| | | Units sold| 18| | | Question 4: – Stewart Co. ’s beginning inventory and purchases during the fiscal year ended March 31, 2012, were as follows: | | Units| Unit Cost Rs. Total Cost Rs. | April 01, 2011| Inventory| 1,000| 50. 00| 50,000| April 10, 2011| Purchases| 1,200| 52. 50| 63,000| May 30, 2011| Purchases| 800| 55. 00| 44,000| Aug 26, 2011| Purchases| 2,000| 56. 00| 112,000| Oct. 15, 2011| Purchases| 1,500| 57. 00| 85,500| Dec. 31, 2011| Purchases| 700| 58. 00| 40,600| Jan. 18, 2012| Purchases| 1,350| 60. 00| 81,000| March 21, 2012| Purchases| 450| 62. 00| 27,900| Total| | 9,000| | 504,000| Stewart Co. uses the periodic inventory system, and there are 3,200 units of inventory on March 31, 2012.Determine the cost of ending inventory using the three costing methods. Practice Question (Fees & Warren) Exe r. 10-3 Page 366| Exer. 10-4 Page 366| Prob. 10-3A Pg. 369| Prob. 10-3B Pg 374| INVENTORY – PERPETUAL INVENTORY SYSTEM In a Perpetual Inventory system, merchandising transactions are recorded immediately as they occur. The system draws its name from the fact that the accounting records are kept perpetually up – to – date. This system is very easy to use. It is cost effective, & thus widely used because of the growing use of computerized accounting.Question 1: – World Class Grocery Wholesalers performed the following transactions, all on credit, and all related to a particular chocolate bar. July 01 Beginning Inventory 23 units of Rs. 4 each. July 02 Purchased 57 units of Rs. 5 each. 12 Purchased 51 units of Rs. 8 each. 13 Sold 60 units for Rs. 12 each. 18 Sold 20 units for Rs. 12 each. 22 Purchased 26 units of Rs. 9 each. 26 Sold 18 packs for Rs. 15 each. Instructions for Questions 1, 2 & 3: – a) Prepare the Inventory Subsidiary Ledger and, b) Give the journal entries to record the Purchases, the Cost Goods Sold and the Sales assuming that the wholesalers uses . First-in, First-out Method (FIFO) 2. Last-in, First-out Method (LIFO) 3. Average Cost Method Question 2: – Sohail Books deals with school books. This question is related to Credit purchases and sales of Urdu Qaida for class 1. March 04 Purchased 100 copies for Rs. 12 each. 11 Sold 35 copies for Rs. 17. 18 Purchased 80 copies for Rs. 13 each. 19 Sold 40 copies for Rs. 19 each. 27 Sold 41 copies for Rs. 20 each. Question 3: – Noman Company Inventory & Sales Data Month Ended January 31, 2010 Date| Description| Units| Unit Cost Rs. | Date| Des| Units | Unit Cost Rs. Jan 01 12 15 18 | Beg. InventoryPurchasesSalesPurchases | 50 100 50 200 | 1. 00 1. 50 2. 00 | Jan 20 22 27 30| PurchasesSalesPurchasesSales| 100150 50 80| 2. 50 4. 00| Practice Question (Fees & Warren) Exer. 10-5 Page 366| Exer. 10. 6 Page 366| Prob. 10-4A Pg. 369| Prob. 10-4B Pg 374| Practice Qu estion (Meigs & Meigs – 13th Edition) Exer. 8. 2 Page 351| Prob. 8. 1 Page 356| Prob. 8. 2 Page 356| _____________________________ Perpetual Inventory SystemInventory Subsidiary Ledger ( ) Date| Purchased| Sold| Balance| | Units| UnitCost Rs. | TotalCostRs. | Units| Unit CostRs. | TotalCostRs. | Units| UnitCostRs. | TotalCostRs. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 6 (Photocopies) of this page, if you don’t want to make this format 6 times in your register SUMMARY OF THE JOURNAL ENTRIES MADE IN PERPETUAL AND PERIODIC INVENTORY SYSTEM Event| Perpetual Inv. System| Periodic Inv.System| Purchasing inventory| Inventory Accounts Payable (or Cash)To record the purchase of inventory| Purchases Accounts Payable (or Cash)To record the purchase of inventory| Sale of Inventory| Accounts Receivable (or Cash) SalesTo record the sale of inventoryCost of Goods Sold InventoryTo upd ate Cost of Goods sold and inventory accounts| Accounts Receivable (or Cash) SalesTo record the sale of inventory(In the periodic inventory system, no entry is made at the time of sales to update Cost of Goods sold and inventory accounts. | Settlement of A/Payable to suppliers| Accounts Payable CashTo record payment for inventory purchased on credit| Accounts Payable CashTo record payment for inventory purchased on credit| Collection from credit customers| Cash Accounts ReceivableTo record cash collection from credit customers. | Cash Accounts ReceivableTo record cash collection from credit customers. | Income Statement of a Service Business: – Revenue – Expenses = Net Income Income Statement of a Merchandising Business Delta TradersIncome Statement For the year ended December 31, 2011 Sales Rs. 6, 000 Less: Sales Returns 1, 000 Net Sales 5, 000 Less: Cost of Goods Sold 1, 150 Gross Profit 3, 850 Less: Operating Expenses Salaries Expense Rs. 00 Utility Expense 100 Depr eciation Expense – machine 50 650 Net Income 3, 200 HOW TO CALCULATE COST OF GOODS SOLD Inventory – Jan 01 ————————-Add: Purchases ———————— Carriage Inwards —————-Less: Purchases Returns —————- Purchases Discount —————- Net Purchases ———————Cost of goods available for sale ——–Less: Inventory – Dec 31Cost of Goods Sold| 55050| Rs. 00 (100)(50)| Rs. 10004501450(300)1150| Questions 1 & 2 The data of two questions is given below. Prepare a Trading Account for the year ended Dec 31 Sales| Rs. 10, 600| | Sales| Rs. 210, 420| Sales Returns| 1, 200| | Sales Returns| 4, 900| Inventory – Jan 01| 5, 000| | Inventory – Jan 01| 9, 410| Purchases| 3, 500| | Purchases| 108, 680| Ca rriage Inwards| 500| | Carriage Inwards| 840| Purchases Returns| 400| | Purchases Returns| 3, 020| Purchases Discount| 200| | Purchases Discount| 700|Inventory – Dec 31| 2, 500| | Inventory – Dec 31| 11, 290| FORMATS OF FINANCIAL STATEMENTS Delta Traders Income Statement For the year ended December 31, 2011 | Rs. | Rs. | Rs. | Sales | | 6, 000| | Less: Sales Returns | 700| | | Sales Discount| 300| 1, 000| | Net Sales | | | 5, 000| LESS : COST OF GOODS SOLD| | | | Inventory – Jan 01| | 1, 000| |Add: Purchases| 550| | | Carriage Inwards| 50| | | | 600| | | Less: Purchases Returns| (100)| | | Purchases Discount| (50)| | | Net Purchases| | 450| | Cost of goods available for sale| | 1, 450| | Less: Inventory – Dec 31| | (300)| 1, 150| Gross Profit| | | 3, 850| Less : Operating Expenses| | | | Salaries Expense| | 500| | Utilities Expense| | 100| | Depreciation Expense – machine| | 50| 650| Net Profit| | | 3, 200| | | | | | Delta Traders Statement of Fina ncial Position December 31, 2011AssetsCurrent Assets Cash ————————– Accounts Receivable ————- Repair Revenue Receivable ——- Inventory ————————- Supplies ————————- Prepaid Insurance —————- Total Current Assets ———–Plant Assets Land ——————————— Shop ——————————— Less: Accumulated Depreciation Machine ————————–Less: Accumulated Depreciation Total Plant Assets ————-TOTAL ASSETS ——————Liabilities & Owner’s EquityLiabilities A ccounts Payable —————- Unearned Repair Revenue ——- Total Liabilities —————Owner’s Equity Capital (Dec 31, 2011) ———— TOTAL LIABILITIES & OWNER’S EQUITY ——- | Rs. ——————————————————————————————————– ————— 5,000 2,700 3,000 1,400———————————————————————————————————| Rs. 3,700 1,000 800 300 500 1,300————- 1 0,000 2,300 1,600————————–3,2004,440 ————————————| Rs. 7, 60013,90021,500 7,640 13,860 21,500| Question 1:- The following trial balance was extracted from the books of F. Bell on December 31, 2011. Draw up his Income Statement for the year ended December 31, 2011, and a Balance Sheet as at that date Debit Rs. | Credit Rs. | Sales| | 210, 420| Purchases| 108, 680| | Inventory: Jan 1, 2011| 9, 410| | Carriage Outwards| 1, 115| | Carriage Inwards| 840| | Return Inwards| 4, 900| | Return Outwards| | 3, 720| Salaries & Wages Expense| 41, 800| | Fuel Expense| 912| | Rent Expense| 6, 800| | General Expenses| 318| | Motor Vehicle| 14, 400| | Allowance for Depreciation – motor vehicle| | 520| Fixtures & Fittings| 912| | Accounts Receivable| 23, 200| | Accounts Payable| | 13, 580| Cash| 24, 780| | Drawings| 9, 000| | Capital| | 18, 827| | 24 7, 067| 247, 067| Inventory at December 31, 2011 was Rs. 11, 290 NON – CURRENT ASSETS 1. TANGIBLE ASSETSPlant assets / Property, Plant & Equipment / Fixed Assets / Non Current Assets FIRST STAGE: – AQUISATION OF PLANT ASSETS Question 1: – Wilmet College recently purchased new computing equipment for its library. The following information refers to the purchase and installation of this equipment: 1. The list price of the equipment was $275, 000; however, Wilmet College qualified for an education discount of 25, 000. 2. Wilmet paid sales tax of $15, 000 at the date of purchase. 3. Freight charges for delivery of the equipment totaled $1, 000. 4. Installation costs related to the equipment amounted to $5, 000. 5. During installation, one of the computer terminals was accidentally damaged by a library employee. It cost the college $300 to repair this damage. 6.As soon as the computers were installed, the college paid $4, 000 to print admission brochures, featuring t he library’s new, state-of-the-art computing facilities. Instructions: – a. Compute the total cost debited to the college’s Computing Equipment account. b. Prepare a journal entry at the end of the current year to record depreciation on the computing equipment. Wilmet College will depreciate this equipment by the straight line method (half-year convention) over an estimated useful life of 5 years. Assume a zero residual value. (Meigs & Meigs – Problem 9. 1 / Page 402 For Practice: – Fees & Warren – Exercise 11-1 / Page 404 SECOND STAGE: – DEPRECIATION OF PLANT ASSETSQuestion 2: – On January 2, 2005, Jansing Corporation acquired a new machine with an estimated useful life of 5 years. The cost of the machine was $40, 000 with an estimated residual value of $5, 000. The depreciation rate per year is 40 %. a. Prepare a complete depreciation table under the two depreciation methods listed below. Assume that a full year of depreciati on was taken in 2005. 1. Straight-line 2. Declining balance method (Depreciation Rate per year is 40 %) (Meigs & Meigs – Exercise 9. 4 / Page 400) Question 3: – On August 3, 2000, Srini Construction purchased special-purpose equipment at a cost of $1, 000,000.The useful life of the equipment was estimated to be 4 years, with a residual value of $50, 000. The depreciation rate is 50 % per year & half year convention is to be used. a. Compute the depreciation expense to be recognized each calendar year for financial reporting purpose under the straight-line depreciation method. b. Compute the depreciation expense to be recognized each calendar year for financial reporting purpose under the declining balance method with the per year depreciation rate of 50 % (Meigs & Meigs – Exercise 9. 3 / Page 400) For Practice: – Fees & Warren – Exercises 11-5, 11-6 & 11-7 / Page 405 Meigs & Meigs – Problems 9. 2 & 9. 3THIRD STAGE: – DISPOSAL OF PLANT ASSETS Question 4: – During the current year, Ramirez Developers disposed of plant assets in the following transactions: Feb 10Office equipment costing Rs. 26, 000 was given to a scrap dealer at no charge. At the date of disposal, accumulated depreciation on the equipment amounted to Rs. 25, 800. Apr 01Ramirez sold land and a building to Claypool Associates for Rs. 900, 000, receiving Rs. 100, 000 cash and a five year, 9 percent note receivable for the remaining balance. Ramirez records showed the following records: Land Rs. 50, 000; Building, Rs. 550, 000; accumulated depreciation: Building (at the date of disposal), Rs. 250, 000.Aug 15 Ramirez traded-in an old truck with a new one. The old truck had costRs. 26, 000, and its accumulated depreciation amounted to Rs. 18, 000. The list price of the new truck was Rs. 39, 000, but Ramirez received a Rs. 10, 000trade-in allowance for the old truck and paid Rs. 29, 000 in cash. Ramirez includes trucks in its Vehicle account. Oct 0 1Ramirez traded in its old computer system as part of the purchase of a new system. The old system had cost Rs. 15, 000, and its accumulated depreciation amounted to Rs. 11, 000. The new computer’s list price was Rs. 8, 000. Ramirez accepted a trade-in allowance of Rs. 500 for the old computer system, paying Rs. , 500 down in cash, and issuing a 1-year, 8 percent note payable for the Rs. 6, 000 balance owed. Instructions: – Prepare journal entries to record each of the disposal transactions. (Meigs & Meigs – Problem 9. 4 / Pg 404) For Practice: – Fees & Warren – Ex. 11-12 & Ex. 11-13 Question 5: – On January 5, 2005, a machine was bought by J & P Traders at a list price of Rs. 43,000. The cost of its carriage in was Rs. 800, installation and testing charges were Rs. 4,200 Its estimated useful life is 4 years and its estimated residual value is Rs. 2, 000. Instructions: a. Calculate the cost price of the machine and give a proper journal entr y of the acquisition of the tangible asset. b.Calculate the per year depreciation expense using the straight line method. c. Prepare the depreciation schedule for all the four years. d. Give the adjusting entries to record depreciation for the last useful year. e. After its useful life, the machine was traded-in for a new machine. The new machine’s list price was Rs. 58, 000. J & P Traders accepted a trade-in allowance of Rs. 3, 000 for the old machine, paying Rs. 9, 000 down in cash, and issuing a 1-year, 8 percent note payable for the Rs. 46, 000 balance owed. 2. INTANGIBLE ASSETS Similarities between Tangible and Intangible assets 1. Plant Assets 2. Long Lived 3. Recorded at cost 4. Cost is expensed over useful life in a systematic manner.For Intangible assets, Straight line method over 40 years is followed. 5. At disposal, the book value is eliminated, gain / loss is recorded. Differences S. No| TANGIBLE ASSETS| INTANGIBLE ASSETS| 1. | Has physical existence| Has no physi cal existence| 2. | Term â€Å"Depreciation† is used. | Term â€Å"Amortization† is used. | 3. | Cost Price = list price + all other necessary expenses. | Cost Price = Purchase Price only| 4. | Depreciation period depends upon the estimated useful life. | Amortization period cannot be longer than 40 years. | 5. | Depreciation Expense-equip Accumulated Depreciation-Equip| Amortization Expense Patent|Intangible Assets are rights and privileges that result from the ownership of long lived assets that don’t possess physical substance. 1. GOODWILL * Largest Intangible asset on company’s balance sheet under the head of Intangible assets. * Recorded when transaction involves purchase of entire business. Here goodwill is the excess of cost over fair market value of net assets. (assets less liabilities) acquired. * Value of all favorable attributes that relates to a business. Includes 1. Exceptional management 2. Desirable location 3. Good customers relations 4. S killed employees 5. High quality products 6. Manufacturing efficiency 7. Weak Competition 2. PATENTS A right by the government to manufacture, use and sale of a product. * To encourage invention of a new product. * When patent is purchased from the inventor, purchase price is debited by the account title of Patents. * Are granted for 17 years (legal life). * Obsolesce may cause patent to be economically ineffective. 3. TRADE MARK / TRADE NAME * Name, symbol or distinctive design that identifies a business and a product. * Permanent exclusive right to use a trademark, brand name, commercial symbol. Is obtained by registering it with the government. * For a purchased trademark, cost is substantial and amortized over 40 years. * Is renewable. 4. FRANCHISE It is the right granted by the company to conduct a certain type of business in a specific geographical area. * Cost is quite substantial * Small cost – Amortized over a short period of 5 years. * Material cost – 40 year s. Amortization should be based on the life of the franchise. 5. COPYRIGHTS * Exclusive rights granted by the government to protect the production and sale of literary or artistic material for the life of the creator plus 50 years. NATURAL RESOURCES Examples: – Oil & Gas Reserves, gold, copper, coal mines, timber (forests), etc. As long as this asset is present in its natural environment, it is regarded as Property, Plant & Equipment.Once it is removed from its natural environment, it becomes inventory, i. e. a current asset. Question 1: – Rainbow Minerals paid Rs. 45, 000, 000 (Rs. 45 million) to acquire the Super Coal Mine, which is believed to contain 10 million tons of coal. The residual value of the mine after all of the coal is removed is estimated to be Rs. 5 million. Working: – Cost – Estimated Residual Value = Depletion Expense per ton Estimated Production In tons 45 million – 5 million = Rs. 4 Depletion Expense per ton 10 million Suppose in the first year, 2 million tons of coal was mined, the entry to record depletion would be 2010Debit (Rs) Credit (Rs) Dec 31 Inventory 8, 000, 000 Accumulated Depletion: Super Coal Mine 8, 000, 000 To record depletion of the Super Coal Mine for the year. (2, 000, 000 tons mined @ Rs. 4 per ton) Balance Sheet (extract) of Rainbow Mineral Property, Plant & Equipment Mining Properties: Super Coal Mine Rs. 45, 000, 000 Less: Accumulated Depletion 8, 000, 000 Rs. 37, 000, 000 (Meigs & Meigs, Page 389) Out of 2 million tons, 75, 000 tons of coal was sold. Record the Cost of Goods Sold.Cost of Goods Sold 300, 000 Inventory 300, 000 To record the cost of goods sold Question 2: – Salter Mining Company purchased the Northern Tier Mine for Rs. 21 million cash. The mine was estimated to contain 2. 5 million tons of copper and to have a residual value of Rs. 1 million. During the first year of mining operations at the Northern Tier Mine, 50, 000 tons of copper were mined of which 40, 00 0 tons were sold. Instructions: – a. Compute depletion expense per ton. Prepare a journal entry to record depletion during the year. b. Show how the Northern Tier Mine, and its