Week Three Exercise Assignment Inventory 1. Specific identification method. a. cost of goods sold. Cash $35‚000 Sales $35‚000 Woods Good $11‚000 Wood Inventory $11‚000 Moon Goods $4‚000 Moon Inventory $4‚000 Total Cost of goods $15‚000 b. gross profit. Sales Revenue $35‚000-Cost of Goods $15‚000=$20‚000 Gross Profit c. ending inventory. $21‚800 (sunset)+ $31‚200 (earth)=$53‚000 (ending inventory) 2. Inventory valuation methods: basic computations. 3. Perpetual inventory system:
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business owner may have a great idea but without the accounting infrastructure in place a business will not be stable. I will discuss what financial and accounting records may be necessary for the business. Also the assets‚ inventory‚ depreciation and how I will price my services. The world of elementary textbook publishing is dominating by four large publishers. According to Dirk Smillie‚ who writes for Forbes Magazine‚ the industry of elementary and secondary textbook industry
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Aviator Airways Ltd and Eagle Airlines Ltd This comparative study of accounting policies adopted by two international airlines for the depreciation of aircraft‚ spares and spare engines provides an insight into the differences in accounting policy that may emerge‚ even when accounting practice in the jurisdictions involved is regulated. Non-current assets Depreciation Depreciable amount Useful Comparability of results Financial statement analysis Aviator Airways Ltd (Aviator) and Eagle Airlines
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transaction #2 above * Insurance expense for February – refer to transaction #3 above * Depreciation expense on vehicle for February – refer to transaction #12 * Repair supplies on hand - $80 *Acct. No. Assets 101 Cash 102 Accounts Receivable 103 Prepaid Rent 104 Prepaid Insurance 105 Office Supplies 106 Repairs Supplies 107 Vehicle 108 Office Equipment 111 Accumulated Depreciation Liabilities 201 Accounts Payable 203 Salaries Payable 205 Unearned Revenue
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natural business year as the fiscal year. 4. A prepaid expense is reported as an asset on the balance sheet. 5. Depreciable plant assets (such as equipment‚ buildings‚ and machinery) lead to adjustments for depreciation. 6. The Accumulated Depreciation contra account is used for depreciation. It provides financial statement users with additional information about the relative age of the assets. Without the contra account information‚ the reader would not be able to tell whether the assets are
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Part A On 1 July 2011‚ Kookaburra Ltd acquired an item of plant at a cost of $200 000. The plant has an expected useful life of eight years‚ and Kookaburra Ltd adopts the straight-line method of deprecation. The tax depreciation rate for this type of plant is 25%. The company tax rate is 30%. Kookaburra Ltd measures plant at fair value. At 30 June 2012‚ Kookaburra Ltd determines the fair value of the plant to be $186 000. Due to recent developments in plant technology‚ the remaining useful
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N/S FIRST NAME SURNAME REGISTRATION NUMBER 1 2 NKURUNZIZA Alphonse PSF20114402 3 NSABIMANA Anselme PSF20114652 4 NSABIMANA Noel PSF20114655 5 NSANZAMAHORO Olivier The chosen enterprise is Bralirwa ltd. First part of our assignment report focus on description and nature of business of bralirwa ltd‚ its vision‚ mission‚ strategic plan and policies need to achieve those goals. Second part is about financial statement of bralirwa ltd from 2010 to 2013 and then
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From: WGU Student Date: 3/23/14 Re: Depreciation Method Recommendations The calculation of the straight line method of depreciation is by taking the cost of the item minus its salvage value then dividing that figure by the expected year’s life cycle of the item. This is a non complex calculation and it reduces net income and the equal amounts of depreciation are deducted from every life cycle year of the item. The double declining balance method of depreciation is calculated at double or 200% for
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CHAPTER 21 Accounting for Leases ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Brief Exercises Topics Questions *1. Rationale for leasing. 1‚ 2‚ 4 *2. Lessees; classification of leases; accounting by lessees. 3‚ 5‚ 7‚ 8‚ 14 *3. Disclosure of leases. 19 *4. Lessors; classification of leases; accounting by lessors. 5‚ 6‚ 9‚ 10‚ 11‚ 12‚ 13 6‚ 7‚ 8‚ 11 *5. Residual values; bargainpurchase options; initial direct costs. 15‚ 16‚ 17‚ 18 *6
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accordingly within companies’ jurisdiction. In some cases‚ companies are required to keep two sets of accounting records. For example‚ publicly traded companies are required to use GAAP by the U.S. Securities and Exchange Commission. But GAAP and IFRS depreciation rules don ’t always match up. Companies routinely account for earnings and expenses differently on their annual reports‚ compared with their tax returns . A contributing factor to keeping separate records is the different treatment in measuring
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