13. The interest on a $4‚000‚ 6%‚ 60-day note receivable is $40. 14. The maturity value of a $2‚000‚ 6%‚ 60-day note receivable dated February 10th is $2‚020 15. A disadvantage of the corporate form of business is government regulation.. 16. James Corporation issued 2‚000 shares of $5 par value common stock for $20 per share. The entry to record this transaction includes a credit to Paid-in Capital in Excess of Par for $30‚000.
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by this period will be linearly amortized value of the building ($ 32‚000: 10 years = $ 3200) in the form of remission of fixed assets‚ which then will be transferred to the account of depreciation as shown in Figure 2. |Remission of fixed assets ( annualy ) |Depreciation ( annualy ) | | | | |Dt |Ct |years
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Week Three Exercise Assignment 1. Specific identification method. Boston Galleries uses the specific identification method for inventory valuation. Inventory information for several oil paintings follows. Painting Cost 1/2 Beginning inventory Woods $21‚000 4/19 Purchase Sunset 21‚800 6/7 Purchase Earth 31‚200 12/16 Purchase Moon 4‚000 Woods and Moon were sold during the year for a total of $35‚000. Determine the
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is expected to be used for 80‚000 working hours during its 8-year life. Instructions: Compute depreciation using the following methods in the year indicated. (a) Straight-line for 2012 and 2013‚ assuming a December 31 year-end. (b) Declining-balance using double the straight-line rate for 2012 and 2013. (c) Units-of-activity for 2012‚ assuming machine usage was 2‚900 hours. (Round depreciation per unit to the nearest cent.) A) 15‚000 1 / 8= .125 128‚000-8‚000=120‚000 120‚000 x .125=
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Chapter 2 Worldwide accounting diversity Chapter Outline I. Considerable differences exist across countries in the accounting treatment of many items. These differences can result in significantly different amounts being reported in the financial statements prepared by companies using different GAAP. II. A variety of factors influence a country’s accounting system. A. Legal system – in code law countries‚ accounting rules tend to be legislated; common law countries tend to have
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Manufacturing Expense | | 350000 | | | | Cash | | 350000 | 12/31 | PPE | | 150000 | | | | Cash | | 150000 | 12/31 | Interest Expense | | 750 | | | | Cash | | 750 | 12/31 | Depreciation Expense | | 10625 | | | | Accum. Depreciation | | 10625 | | To record depreciation expense for Jul-Dec((150‚000+62‚500 -0)/10)*1/2 years | 12/31 | COGS | | 195000 | | | | Cash | | 195000 | 12/31 | Patent Amortization | | 25000 | | | | Accum. Amortization | | 25000
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1. Near year end‚ P‚ a cash basis‚ calendar year taxpayer‚ paid for various deductible expenses as described below. 1. The payment was dropped in the mail before year end. 2. P gave a note evidencing her promise to pay the amount in three months. 3. The amount was charged on her Master Card on December 28. The charge appeared on her bill for the period December 1 through December 31‚ which she received in January and which she paid on January 20. The bank actually paid the expense in January
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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 by operating activities $33‚375 Cash flows from investing activities Cash received from sale of equipment 13‚625 Cash paid for equipment
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CHAPTER 10 Acquisition and Disposition of Property‚ Plant‚ and Equipment ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises 1‚ 2‚ 3‚ 4‚ 5‚ 13 Concepts Problems for Analysis 1. Valuation and classification of land‚ buildings‚ and equipment. 1‚ 2‚ 3‚ 4‚ 6‚ 7‚ 12‚ 13‚ 15‚ 21 2. Self-constructed assets‚ capitalization of overhead. 5‚ 8‚ 20‚ 21 4‚ 6‚ 12‚ 16 3. Capitalization of interest. 8‚ 9‚ 10‚ 11‚ 2‚ 3‚ 4 13‚ 21 4‚ 5‚ 7‚ 8‚ 9‚ 10‚ 16 1‚ 5‚ 6‚ 7 3 4. Exchanges
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information. The policy that is chosen must be applied to a whole class of assets May change policy‚ but only if results in more relevant/ reliable information The cost model • AASB 116 requires that assets are carried at cost less any accumulated • depreciation • impairment losses • Repair and maintenance costs are expensed as incurred‚ not capitalised – • Capitalisation requires (at time of expenditure) increased probable future economic benefit – 3
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