ACCOUNTING PROBLEMS

ACCOUNTING PROBLEMS



Accounting Problems

Preparation of a Budget

To find out the budget I have find out the expenditure that is required to run the business. I have calculated all the variable cost and the fixed cost which is required by the business. I have calculated this budget for a year. I have sum up all the heads which are given in the assumptions to run a program. I have sum the following cost to get the total budget to run the program.

The variable cost per year

$1,000

Drivers cost per year

$10,500

Bus currently cost per year

$8,750

Instructor cost per year

$15,750

Rent of the building per year

$60,000

Phone per year

$1,200

Postage last year

$900

Accounting fees last year were

$3,000

Insurance per year

$3,600

Cost to get the program certified

$400

Cost of printing and distributing brochures

$600

Total Budget

$105,700

Budget= Cash Inflows-Cash Outflows

Budget= $1,009,200- $1,114,500

Budget= ($105,300) Problem 3

The budget was prepared by including the revenues and costs related to the firm. In the first case, the assumptions were provided with the large set of data that was used for calculating the total revenues and costs. The total number of weeks and the children were given which were crucial to calculate values for the budget. The total costs were calculated by including all the charges associated with the business. The total costs of the business were $105,700. The labor costs formed a major part of the budget. There were several charges associated with the labor that had a lot of value during the creation of a budget. In the budget section, there was a need to calculate the total payments of the business. The actual and forecasted payments were prepared in order to make it easier in preparing the budget for the report.

The forecast payments were divided into three sections. There were actual, forecast and additional information. The actual payments included the two month ...