Professional Documents
Culture Documents
FORM TP 23124
May/June 2003
CARIBBEAN
EXAMINATIONS
COUNCIL
1.
2.
Answer the questions on the Answer Sheet provided and return it.
3.
Silent electronic calculators may be used, but ALL necessary working should be clearly
shown.
-2School Project
The principal at the Southborough Comprehensive High School decided to convert the school's
photocopying activity into a business operation. Effective September 1, 2001, a charge of $2 per page
was implemented for all copying done on the school's photocopy machines. Students and teachers
were required to take materials to the photocopy room during the normal school hours to have them
copied by the machine operator. There was no limit as to the type and quantity of materials to be
photocopied.
The photocopying room was equipped with:
-
$150000
$30 000
$8000
$5000
$3000
$9000
$6000
In addition, there is a supply of photocopy ink, paper and a wide variety of other stationery items.
For the first 3 months of operation the records showed the following:
Number of pages photocopied
$60000
$20 000
$10000
$ 8000
$18000
$ 5000
$ 6000
All purchases were on credit but teachers and students received no credit. At the end of the three-month
period the value of photocopy paper, ink and other stationery items on hand amounted to $7 000. It was
decided to depreciate all fixed assets by 10% per year.
GO ON TO THE NEXT PAGE
001093/F 2003/2
-3QUESTIONS
1.
2.
3.
4.
5.
6.
What was the revenue for the first THREE months of operation?
7.
8.
9.
10.
What is the total depreciation expense on ALL fixed assets for the three-month period?
11.
Prepare a statement to show the profit OR loss on the operation for the THREE months.
(Include an appropriate heading).
12.
13.
14.
15.
16.
Give THREE benefits to the school when the photocopying activity is treated as a business
operation.
17.
18.
Show the value of the TWO photocopying machines at the end of TWO years.
19. Suggest THREE ways of expanding the services of the photocopy room.
20.
Assuming that the trend for the next 9 months of operation will be NO different from the
trend set in the FIRST 3 months, prepare a statement to show the profit OR loss on operations
for a full year.