then had an agreement with other companies or third party garages to send them the shipments at no cost‚ until the shipments were sold and at no risk to that third party. After the shipments left the warehouse‚ ClearOne would list the revenue as a receivable on the transaction. ClearOne continued to do this at the end of every quarter‚ which conflicts with the GAAP principles. 2. The SEC alleges that by the end of fiscal 2002‚ ClearOne had stuffed inventory costing approximately $11.5 million into
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activities Net income $73‚750 Adjustments to reconcile net income to net cash provided by operating activities Increase in accounts receivable ($49‚625 - $65‚000) (15‚375) Increase in inventory ($252‚500 - $273‚750) (21‚250) Decrease in prepaid expenses ($6‚250 - $5‚375) 875 Decrease in accounts payable ($116‚625- $88‚125) (28‚500) Depreciation expense 18‚750 Loss on disposal of equipment 5‚125 Net cash provided
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PORTER COMPANY Work Sheet (Partial) For the Year Ended December 31‚ 2008 Adjusted Trial Balance Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Cash $18‚800 $18‚800 Accounts Receivable 16‚200 16‚200 Prepaid Insurance 4‚400 4‚400 Supplies 2‚300 2‚300 Equipment 44‚000 44‚000 Accum Dep - Equip $20‚000 $20‚000 Notes Payable 20‚000 20‚000
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1. IntroductionPensonic Company Pensonic is one of the most successful trading companies in Penang‚ Malaysia that sells a wide variety of electrical appliances. In addition to its own brand “Pensonic”‚ the company also owns the German brand “Lebensstil Kollektion” and owns the sole-distribution rights for the Dutch brand “Princess” in Malaysia. Pensonic also established a mass production hub and international distribution network of electrical home mechanism and an international distribution network
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net changes in the balance sheet accounts of Keating Corporation for the year 2011 are shown below. Account Debit Credit Cash $ 82‚000 Short-term investments $121‚000 Accounts receivable 83‚200 Allowance for doubtful accounts 13‚300 Inventory 74‚200 Prepaid expenses 17‚800 Investment in subsidiary (equity method) 20‚000 Plant and equipment 210‚000 Accumulated depreciation 130‚000 Accounts payable 80‚700 Accrued liabilities
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uncollectible accounts receivables and match them against revenues in the same accounting period in which the revenues are recorded. Second‚ companies record estimated uncollectibles as an increase (a debit) to bad debts expense and an increase (a credit) to allowance for doubtful accounts through an adjusting entry at the end of each period. Lastly‚ companies debit actual uncollectibles to allowance for doubtful accounts and credit them to accounts receivable at the time the specific account is written
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Question 1 Brown Ltd purchased equipment for $280‚ 000 on 1st July‚ 2010. It is expected that the equipment will have a residual value of $10‚ 000 at the end of its’ 3 year useful life (or 100‚000 machine hours). Calculate depreciation expense to the nearest whole dollar. a. Calculate the depreciation expense‚ accumulated depreciation and annual carrying amount for each of the 3 years ended 30th June‚ under the following depreciation methods: Straight line Reducing balance (rate = 47%)
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Harvard Business School 9-287-028 Rev. December 1‚ 1991 Advanced Medical Technology Corporation Early in April 1986‚ Tom Winter‚ vice president and loan officer of the Western National Bank of San Francisco‚ California‚ was reviewing a loan request for $8 million from Peter Haskins‚ president of Advanced Medical Technology Corporation. Advanced Medical Technology Corporation (AMT) developed‚ manufactured‚ and sold scientific medical instruments‚ needles and catheters that allowed rapid and
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Honors Program Credit – Accounting I Chapter 1 Hal Burton began a Web Consulting practice and completed these transactions during September of the current year: Sept. 1 Invested $100‚000 of his personal savings into a checking account opened in the name of the business. 2 Rented office space and paid $1‚200 cash for the month of September. 3 Purchased office equipment for $30‚000‚ paying $8‚000 cash and agreeing to pay the balance in one year. 4 Purchased office supplies for $750 cash. 8
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Sdn Bhd 225‚000 ordinary shares 281‚450 25‚000 6% preference shares 58‚000 RM20‚000 10% debentures 20‚000 Current assets Inventories 25‚000 30‚000 Account receivable 45‚000 35‚000 Bills receivable 14‚000 18‚000 Current account – E-Keen 25‚000 Bank 46‚550 155‚550 46‚700 129‚700 918‚000 659‚700 Shareholders’ equity Ordinary share capital of RM1.00 each 500‚000 300‚000 6% preference share
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