ACC501: COMPUTERISED ACCOUNTING TUTORIAL 4 DISCUSSION QUESTIONS i. ‘Why are adjusting entries necessary? Surely they cause too much delay in preparing financial statements‚ and the financial effect of any entries made is immaterial in the long run.’ Respond to this criticism. ii. The owner of a business reviews the income statement prepared by you and asks‚ “Why do you report a profit of only $30 000 when cash collections of $100 000 were received and cash payments for the period totalled only
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Income statement: In the case of sole proprietary and partnership concerns there are no prescribed forms of the income statement and balance sheet. Their preparation is also desirable but not compulsory. However‚ they are generally prepared. In the case of trading concern‚ a trading account and in the case of a manufacturing concern‚ a manufacturing account and a trading account can also be prepared. In such a case‚ the account heading is mentioned as follows: Manufacturing/trading and profit and
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50‚000 Total Noncurrent Assets ……………………………………………………………………………… $1‚307‚100 Total Assets $2‚080‚554 Liabilities and Stockholder’s Equity Liabilities Current Liabilities Accounts Payable $197‚532 Income Taxes Payable 62‚520 Salaries Payable 52‚000 Notes Payable to Banks 50‚000 Mortgage Payable-current portion 18‚000 Accrued Liabilities 9‚500 Accrued Interest on Notes payable 500
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150 of ITAA 1997 the contributions made in the superannuation benefit is deductible regardless of the fact that benefit is payable to the employee or his dependants. Therefore‚ the superannuation contribution amounting to $10000 will not be included in the assessable income of Nick. b) As per the principles of Ordinary Income compensation for loss of income is also an income therefore‚ it will form part of assessable income. Nick must include $50000 as his assessable income for the year. c) The
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Escareno Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (8‚400 units): ($) 764‚400 Variable expenses: ($) 445‚200 Contribution margin: ($) 319‚200 Fixed expenses: ($) 250‚900 Net operating income: ($) 68‚300 If the company sells 8‚200 units‚ its total contribution margin should be closest to: Merchandise with a sales price of $500 is sold on account with term 2/10‚ n/30. The journal entry to record the sale would
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Running head: CAPSTONE PROJECT Capstone Project- MGT660 Capstone Project- MGT660 A pro forma income statement is a projection of future business profits and losses. It allows the business to make operational changes that could affect the actual outcome before the projections are reality. The pro forma income statement for Once Upon A Child is a three year projection that accounts for a ten percent increase in gross sales each of the three years. The projections
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Case 9-23 1. a. Sales budget: April May June Quarter Budgeted sales in units 35‚000 45‚000 60‚000 140‚000 Selling price per unit × $8 × $8 × $8 × $8 Total sales $280‚000 $360‚000 $480‚000 $1‚120‚000 b. Schedule of expected cash collections: February sales $ 48‚000 $ 48‚000 March sales 112‚000 $ 56‚000 168‚000 April sales 70‚000 140‚000 $ 70‚000 280‚000 May sales 90‚000 180
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(Note: This is a continuation of the Cookie Chronicle from Chapters 1 through 3.) CCC4 Cookie Creations is gearing up for the winter holiday season. During the month of December 2011‚ the following transactions occur. Continuing Cookie Chronicle 219 Dec. 1 5 8 9 15 16 19 23 23 23 28 Natalie hires an assistant at an hourly wage of $8 to help with cookie making and some administrative duties. Natalie teaches the class that was booked on November 25. The balance out- standing is received.
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executives. Financial statements are the final product of accounting process. Income statement provides data for investment and other decisions. The net income is essentially the common income statement form‚ consisting of classifications such as income from continuing operations‚ discontinued operations‚ extraordinary items‚ and cumulative effects of changes in accounting principles. In this study we investigate the relative ability of comprehensive income and net income to summarize firm performance
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additional funds is best described as: A) a publicity problem. B) an agency problem. C) an adverse selection problem. D) a moral hazard. Section: 1.2 Ownership Versus Control of Corporations 4) What is the role of an auditor in financial statement analysis? Section: 2.1 The Disclosure of Financial Information 5) An agency problem can be alleviated by: A) requiring all firms to be sole proprietorships. B) compensating managers in such a way that acting in the best interest of shareholders
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