Revenue. | | Goodwill. | | Accumulated Depreciation. | | Costs of Good Sold. | Using the straight-line method‚ depreciation expense for 2012 would be: | $12‚000. | | $11‚000. | | $60‚000. | | None of the other answers are correct. | Using the straight-line method‚ the book value at December 31‚ 2012 would be: | $44‚000. | | $49‚000. | | $55‚000. | | $60‚000. | Using the double-declining balance method‚ depreciation expense for 2012 would be: | $24‚000. |
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to. AmeriSouth claimed that the water distribution‚ sanitary-sewer systems‚ gas lines and electric were eligible for 15 year depreciation‚ while many of the items replaced in the renovation were eligible for 5 year depreciation. This would allow AmeriSouth to depreciate $3.4 million of the property over 5 or 15 years instead of 27.5‚ thereby increasing their depreciation deduction by roughly $397‚000 in 2003‚ $640‚000 in 2004‚ and $375‚000 in
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Adjusting Entries – Examples Let’s work with some examples. We are working with a one year accounting period that ends on 12/31/X2. Let’s use a three step process. Step 1 – Analyze the transaction. Step 2 – Record in the journal. Step 3 – Post to the ledger. Example 1: On 12/31/X2 (before the adjusting process)‚ Supplies‚ an asset‚ has a balance of $2‚500. Employees take a physical account of the supplies on hand. That physical count reveals that $1‚200 of supplies remains. Step 1 ‐‐ The balance
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and equipment to sales H&M: (420+222+7134) / 78346 = 9.9% Burberry: (58.2+99.2) / 995.4 = 15.8% (b) Ratio of depreciation to sales H&M: (14+1750) / 78346 = 2.25% Burberry: (1.9+27)/ 995.4 = 2.9% The above ratios can be used to measure the efficiency of a firm’s investment policy. Burberry has a higher land‚ buildings and equipment to sales ratio as well as a higher depreciation to sales ratio. The higher the ratio of land‚ buildings and equipment to sales‚ the smaller the investment required
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financial statements Harnischfeger Corporation computed depreciation expenses on plants‚ machinery and equipment using the straight-line method for financial reporting purposes. 2. What is the effect of the depreciation accounting method change on the reported income in 1984? How will this change affect profits in future years? The effect of this change was applied retroactively to all assets that were subjected to accelerated depreciation. It increased net income by $11 million or $0.93 per
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Preparation of Consolidated Statement of Financial Position 1 The consolidation process • Before consolidating‚ it may be necessary to adjust subsidiary’s financial statements where: 1. The subsidiary’s end of reporting period is different to the parent’s. In such cases the subsidiary is required to prepare adjusted financial statements as at the parent’s reporting date. 2. The subsidiary’s accounting policies are different to the parent’s. In such cases the subsidiary is required to
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change in principle. T 7. Indirect effect of an accounting change. T 8. Retrospective application impracticality. F 9. Reporting changes in accounting estimates. T 10. Change in principle vs. change in estimate. F 11. Accounting for change in depreciation method. F 12. Accounting for change in reporting entities. T 13. Example of a change in reporting entities. F 14. Accounting error vs. change in estimate. T 15. Accounting for corrections of errors. T 16. New principle created by FASB standard
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* Question 1 0 out of 10 points | | | Winston Corp. had $1‚800 of supplies on hand at January 1. During the year‚ supplies with a cost of $4‚000 were purchased. At December 31‚ the actual supplies on hand amount to $1‚300. After the adjustments are recorded and posted at December 31‚ determine the balances in the Supplies and Supplies Expense accounts. Supplies ; Supplies ExpenseAnswer | | | | | Selected Answer: | [None Given] | Correct Answer: | $1‚300; $4‚500 | Response
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Corporate Reporting and Financial Analysis Prof Wang Jiwei HOMEWORK #2 Suggested Solutions Question 1 Determinants of Income P2-9. Determining missing amounts on income statement |AJAX Corporation | |Income Statement | |For the
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Accountancy Department College of Business and Accountancy Notre Dame University Cotabato City‚ Philippines CPA – MOCK BOARD EXAMINATION AUDITING PROBLEMS MR. RONALD GERMO MAMARIL INSTRUCTION: Select the correct answer for each of the following questions. Mark only one answer for each item by shading the box corresponding to the letter of your choice on the sheet provided. STRICLY NO ERASURES ALLOWED. Use pencil no. 1 only. CASE 1: STOCK INVESTMENT
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