could make a more specific estimate for uncollectable accounts. Problem 3 Example A Example B Original cost 4‚500‚000 Original cost 4‚500‚000 Useful life 10 Useful life 6 Residual Value 500‚000 Residual Value 500‚000 Depreciation per Year: 400‚000 Depreciation per Year: 666‚666.67 Year of Disposal 5 Year of Disposal 5 Problem 4 & 5 Company A Tropical Wave Corporation Partial Income Statement For the Year Ended December 31 Sales: Water Sports Equipment $4‚500‚000 Lotion
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Financial Statement Analysis Case Discussion Questions CASE: The Case of the Unidentified Industries - 2006 The questions are in the case. However‚ the following information might be helpful. 1. For purposes of this case the loans of the commercial bank are classified as accounts receivable and the deposits as accounts payable. 2. Unlike most business done on a credit basis where $1 of revenue creates a $1 accounts receivable‚ in advertising $1 of revenue creates $1/15% = $6.67 of accounts
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30 minutes. Time: 9:30am – 10:00am Concepts to be explained Adjusting and closing entries Unpaid salaries Rs. 7‚500 (accrued expense) Outstanding electric bills Rs. 6‚500 (accrued expense) Commission Receivable Rs. 5‚000 (accrued revenue) Depreciation of office furniture at 10% office equipment 15% (Office furniture Rs. 35‚ 000 and office equipment Rs. 45‚000) Allocate allowances for uncollectible 2% on accounts receivable. (Accounts Receivable Rs. 17‚000) Closing entries for
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are Accounts receivable‚ Unearned Revenue‚ Salary Expense‚ Prepaid Insurance and depreciation expense. The question in most cases is whether the account should be adjusted. What are the advantages and disadvantages of using automated accounting systems to do adjusting entries?: Some of the advantages are speed‚ Encryption for security‚ Posting to the general ledger can be automated. Some of the disadvantages are data can be lost due to hardware issues‚ computer related crime is on the increase
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Was the existing system adequate in the past? Why or why not? Why is it no longer adequate? The existing system was adequate in the past due to heavy reliance on direct labor hours. The ETO served as a central cost center‚ and transferred the costs to other divisions at direct costs plus allocated burden. Being in the late 1970s and early 1980s‚ technology testing of components required fewer cycles‚ and less complicated structures. Hence‚ such testing on products could be carried out by direct
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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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Constructing a balance sheet of Sophie’s sofas: Cash balances: $10‚000 Inventory of sofas: $200‚000 Store and property: $100‚000 Accounts receivable: $22‚000 Accts payable: $17‚000 Long-term Debt: $170‚000 Balance sheet of (insert name) Assets Liabilities & Shareholders equity cash $10‚000 accounts payable $17‚000 Accounts receivable $22‚000 Long term debt $170‚000 Inventory $200‚000 Shareholders equity $145‚000 Store and Property $100‚000 _______ ________ Total assets: $332
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calculate the corporate taxes is different compared to that of the production director’s. The pre-tax profits of the two approaches are different which lead to different after-tax profits. The methods for depreciation are different. That is： 1. Their depreciation methods are different. Depreciation is the reduction in the book value of an asset due to usage
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Which of these are the main sources of regulations governing financial reporting in Australia? A) The Corporations Act‚ The AASB‚ CLERP B) Accounting standards‚ conceptual framework‚ stock exchange listing rules C) Government legislation‚ stock exchange listing rules‚ accounting standards D) AASB‚ FRC‚ government legislation. If there is a conflict between the provisions of the Framework and the requirements of the accounting standards A) The statements of accounting concepts prevail B) The
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MEMORANDUM TO: The CFO of Bessrawl Corporation Implementation of the new accounting standards is a complex process and it requires time and effort‚ however switching to IFRS could be beneficial to your company. In this memo we would like to address the costs and benefits of switching from U.S GAAP to IFRS. We will also analyze the impact that the change would have on Bessrawl’s financial statements. One of the cons of switching to IFRS is the cost and time. The initial cost to convert to
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