Sales 9. 59‚000 2‚500 Sales Accounts Receivable – H 10‚000 / 200 x (200 – 150) = 2‚500 180‚000 Accounts Receivable – I 10. 180‚000 Inventory 120‚000 Cost of Sales 11. 2‚500 120‚000 Sales Returns and Allowances Sales 5‚000 5‚000 Problem 3 (Blooms Company) Account 1 2 3 4 5 6 Total Per client 12‚000 22‚000 97‚600 20‚000 55‚000 7‚500 215‚300 Adjustment Per audit (98‚800) (98‚800) Age Classification Not due 1-60
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PRINCPLE j. Rationale for accrual accounting. MATCHING PRINCIPLE k. The use of consolidated statements is justified. ECONOMIC ENTITY ASSUMPTION l. Reporting must be done at defined time intervals. PERIODICITY ASSUMPTION m. An allowance for doubtful accounts is established. MATCHING PRINCIPLE n. Goodwill is recorded only at time of purchase. HISTORICAL COST PRINCIPLE o. A company charges its sales commission costs to expense. MATCHING PRINCIPLE E3-1 April 2 Cash
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found the two to be virtually identical with regards to elements such as inventory types‚ inventory turnover‚ inventory writedowns‚ and more. Analyzing Property‚ Plant‚ and Equipment revealed that PepsiCo and Coca Cola have similar equipment and depreciation. In their Stockholders Equity section‚ we discovered that PepsiCo has a significant dilutive effect on stock options‚ while Coca Cola does not. Finally‚ we found that PepsiCo had the most tantalizing Unusual Items‚ due to its recent merger with
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Accounting Alternatives Case At the beginning of the year 20x1‚ two companies began operations to sell home heating units. Eads Heaters Inc. is located in Eads‚ Colorado‚ and Glenwood Heating Inc. is in Glenwood Springs‚ Colorado. The companies operate under similar economic conditions and have identical operations during the year. However‚ each manager makes different accounting choices and estimates when applying generally accepted accounting principles (GAAP) in preparing the company’s financial
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Harnischfeger Corporation Teaching Note INTRODUCTION The purpose of the "Harnischfeger Corporation" case is to expose students to the managerial motives for making major financial reporting policy changes. Generally accepted accounting principles (GAAP) allow companies wide latitude in the choice of accounting policies. After a firm chooses a set of accounting policies‚ current accounting rules permit changes from one alternative policy to another at the discretion of the management
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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 21‚500 Deferred tax liability 15‚500 8% serial bonds 80‚000 Common
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improves off-season sales which were very low. Promotion allowances: volume rebate/ quantity discount Appropriateness: There is a possibility of forward buying problem‚ wherein retailers buy a greater quantity during the deal period and the manufacturer will have to bear costs of extra work shifts. Since the manufacturer is giving a 4% points additional benefit on GM to retailers over the competitors‚ giving a promotion allowance might not yield as many benefits as anticipated. However‚ an
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000 1‚080‚000 Merchandise Inventory 1‚950‚000 1‚260‚000 Prepaid Expenses 351‚000 315‚000 Total Current Assets 4‚551‚000 3‚195‚000 Long-Term Investments 225‚000 Plant Assets: Property‚ Plant & Equipment 2‚190‚000 1‚440‚000 Accumulated Depreciation (450‚000) (270‚000) Total Plant Assets 1‚740‚000 1‚170‚000 Total Assets $6‚516‚000 $4‚365‚000 Equities: Current Liabilities: Accounts Payable $1‚275‚000 $1‚095‚000 Accrued Expenses 309‚000 282‚000 Dividends Payable 201‚000
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Company No: 631859 A TELITI DATACENTRES SDN. BHD. (Incorporated in Malaysia) REPORTS AND FINANCIAL STATEMENTS 30 SEPTEMBER 2011 CONTENTS PAGES Corporate Information 2 Directors’ Report 3-6 Statement by Directors and Statutory Declaration 7 Independent Auditors’ Report 8-9 Balance Sheet 10 Income Statement 11 Statement of Changes in Equity 12 Cash Flow Statement 13-14 Notes to the Financial Statements 15-23 1 Company No: 631859
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stock lowers the stock outstanding‚ it is subtracted from Stockholders’ Equity so that the stockholders’ net equity is for outstanding shares only. Treasury stock is‚ in essence‚ a reduction in paid-in capital. 3-36: Which depreciation method will result in the most depreciation over the life of an asset? Irrespective of the
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