ACCT1501 2012 Sem1 Tutorial Question Solution Week 5 DQ4. 14 The main reason for not including human capital on the balance sheet is the measurement problem. If we take the consulting firm‚ the problem is putting a dollar figure on each staff member. Would it be based on years of past service‚ years to retirement‚ ability to generate future revenues etc. There is also an issue of control‚ as you will see in later chapters. Options for measurement include: i Present value of future profits generated
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Acct 328 ® Exam 2 Part 1 – 60% Name of Company – Each student can make up a company name Type of business – service company •sole proprietorship Chart of Accounts – see below. The numbers correspond to dates in the month of February (Use journal entries only) 1. Initial capital of $100‚000 2. Prepaid rent - $19‚200 for 2 years 3. Prepaid insurance - $24‚000 for 2 years 4. Purchased a desk on account for $500 5. Purchased office supplies for $950 6. Sold 20 bicycles
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Finances in business Process-------Recording ------interpreting/analyzing -----communicating Internal external (potential investors) Users A=B+C (A)Assets = (B) Liabilities + (C) Owner’s Equity Assets = Liabilities + owner’s Equity what IS OWNED/ Owed to you Cash Loan Investments Accounts receivable Account payable Withdrawals Inventory Note payable Revenues Equipment Bond payable Expenses Prepaid Insurance Accrued
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1. An Accounting Information System (AIS) * collects and processes transaction data and disseminates the information to interested parties. * Helps management answer such questions as: * How much and what kind of debt is outstanding? * Were sales higher this period than last? * What assets do we have? * What were our cash inflows and outflows? * Did we make a profit last period? Basic Terminology (see Textbook for definitions) * Event * Transaction * Account
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CASE STUDY #2 – DARDEN RESTAURANTS‚ INC. – TRANSACTIONS AND ADJUSTMENTS Concepts a. To prepare accrual-based financial statements‚ a company must adjust its accounts. This is accomplished with periodic adjustments (also known as adjusting journal entries or accounting adjustments). For each account below‚ explain the types of transactions or events that necessitate periodic adjustments to the account for the typical company. i. “Inventories‚ net.” – If a company purchases products to be resold
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The history of accounting is as old as civilization and is among the most important professions in economic and cultural development. Much of what we know about the daily lives of ancient people comes from accounting records‚ such as inventories and sales records‚ found at archeological sites. People in all civilizations have maintained various types of records of business activities and the earliest known records kept are the clay tablet records for the payment of wages in the Mesopotamian Valley
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Mune Company recorded journal entries for the declaration of $50‚000 of dividends‚ the $32‚000 increase in accounts receivable for services rendered‚ and the purchase of equipment for $21‚000. What net effect do these entries have on equity? Decrease of $18‚000. Maso Company recorded journal entries for the issuance of ordinary shares for $40‚000‚ the payment of $13‚000 on accounts payable‚ and the payment of salaries expense of $21‚000. What net effect do these entries have on equity? Increase
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School of Mechanical‚ Materials and Manufacturing Engineering MM2MN1 – Management Studies “1” Balancing the Books Objectives and Learning Outcomes • • • • • • • Double entry accounting The balance sheet The balance sheet equation The trial balance The trading‚ profit and loss account Opening and closing stock The ledger Prof John Dominy February 2013 MANAGEMENT STUDIES “1” BALANCING THE BOOKS Introduction Now that we have planned our business and established that it is viable
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Completed Exercise 4.1 TABLE 4.9 Journal of the Portland After School Program July 1‚ 20XX–December 31‚ 20XX (a) July 1‚ 20XX— Received unrestricted donation check in the amount of $15‚000 from the Multnomah County Department of Health and Human Services. Debited Cash $15‚000 Credited Revenue $15‚000 (b) July 19‚ 20XX—Paid Great Northwest Insurance Company $9‚000 for six more months of fire and liability insurance coverage. Debited prepaid insurance $9‚000 Credited
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Assisnment PrintView Page of 12 I C*N‚WL awar0: 4 t . 10 points priceof purchased with an invoice taos Company merchandise resalefrom TusconCompany for Taospaidwithin the n160. merchandise costTuscon The had and termsof 2110‚ $14‚322. $21‚000 credit period. inventory system. Assume bothbuyer seller a perpetual that and use discount (Omit the "$" sign in your l(a)Prepare entriesthat the buyershouldrecordfor the purchase. response.) General Journal Merchandise inventory payable lAccounts
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