Question 1: Define accounting. Answer : Accounting is a process of identifying the events of financial nature‚ recording them in Journal‚ classifying in their respective ledgers‚ summarising them in Profit and Loss Account and Balance Sheet and communicating the results to the users of such information‚ viz. owner/s‚ government‚ creditors‚ investors etc. According to the American Institute of Certified Accountants‚ 1941‚ “Accounting is an art of recording‚ classifying and summarising in a significant
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Chapter 5: Cost Behavior: Analysis and Use As we shall see in later chapters‚ the ability to predict how costs respond to changes in activity is critical for making decisions‚ controlling operations‚ and evaluating performance. Three major classifications of costs were discussed in this chapter—variable‚ fixed‚ and mixed. Mixed costs consist of variable and fixed elements and can be expressed in equation form as Y = a + bX‚ where X is the activity‚ Y is the cost‚ a is the fixed cost element‚ and
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Exercise 11-1 (10 minutes) 1. 2. 3. Exercise 11-2 (10 minutes) Average operating assets £2‚200‚000 Net operating income £400‚000 Minimum required return: 16% × £2‚200‚000 352‚000 Residual income £ 48‚000 Exercise 11-3 (20 minutes) 1. Throughput time = Process time + Inspection time + Move time + Queue time = 2.8 days + 0.5 days + 0.7 days + 4.0 days = 8.0 days 2. Only process time is value-added time; therefore the manufacturing cycle efficiency
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On July 1‚ 2010‚ Rossillon Company issued $4‚000‚000 face value‚ 8%‚ 10-year bonds at $3‚501‚514.This price resulted in an effective-interest rate of 10% on the bonds Rossill on uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest July 1 and January 1. Instructions (Round all computations to the nearest dollar.) (a) Prepare the journal entries to record the following transactions. (1) The issuance of the bonds on July 1‚ 2010. (2) The accrual
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Q1. Show the effect of each of the seven listed transactions on the balance sheet items of Carpet Center Plus. Indicate the new balances after the transaction of May 2 and each subsequent transaction. The effects of the May 1 transaction are already filled in to provide you with an example. May | 1 | Issued capital stock for $75‚000. | | 2 | Purchased a small office building at a price of $58‚000 for the land and $65‚000 for the building. Paid $43‚000 cash and signed a note payable for the
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Jordan Company Solution Jordan Company has two departments‚ X and Y. Overhead is applied based on direct labor cost in Department X and machine-hours in Department Y. The following additional information is available: Budgeted Amounts Direct labor cost Factory overhead Machine-hours Actual data for Job #10 Direct materials requisitioned Direct labor cost Machine-hours Department X $180‚000 $225‚000 51‚000 mh Department X $10‚000 $11‚000 5‚000 mh Department Y $165‚000 $180‚000 40‚000 mh Department
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accounts payable increased very much. And we can may be assume that there are also gains from the company’s activities. Thus‚ accounts receivable slightly increased‚ in parallel with the company’s activities we can also assume that company sales increased. Company is not in trouble with receivables. ANSWER 3: Retained Earnings didn’t increase by the amount of net income for the month because‚ Diane Maynard got a dividend of 11.700 USD which she then used to repay her loan. Thus Retained
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ACCOUNTING: COMPANY REPORT ON SNAGS LTD Prepared for: Management of Snags Ltd Table of Contents Executive Summary 3 Introduction 4 Ratio Analysis 5 Return on Equity Ratio 6 Return on Assets Ratio 6 Asset Turnover Ratio 7 Inventory Turnover Ratio 7 Account Receivables Turnover Ratio 8 Gross Profit Margin 9 Net Profit Margin 9 Current Ratio 10 Gearing Ratio (Debt to Equity Ratio) 11 Profitability 11 Liquidity 11 Efficiency 12 Capital Structure
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Contents QUESTION ONE: Accounting Concepts and Conventions 1 a) Accounting Concepts 1 i) The going concern concept. 1 ii) The accruals concept (or matching concept) 1 iii) The entity concept: 3 iv) The money measurement concept: 3 v) The historical cost concept: 4 vi) The realization concept: 4 vii) Duality concept: 4 b) Accounting conventions 5 QUESTION TWO: Clashing accounting concepts and conventions that might bring about inconsistency in the accounting process 9 1. Clash between
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1. award: 0 out of 0.00 points On January 1‚ Puckett Company paid $2.64 million for 88‚000 shares of Harrison’s voting common stock‚ which represents a 40 percent investment. No allocation to goodwill or other specific account was made. Significant influence over Harrison is achieved by this acquisition and so Puckett applies the equity method. Harrison distributed a dividend of $2 per share during the year and reported net income of $613‚000. What is the balance in the Investment in Harrison
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