. . . . . . . . . $ 7‚000 Accounts receivable . . . . . . . . . . . . . . . . . . . 16‚500 Office supplies . . . . . . . . . . . . . . . . . . . . . . 2‚000 Trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170‚000 Accumulated depreciation—Trucks . . . . $ 35‚000 Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75‚000 Accounts payable . . . . . . . . . . . . . . . . . . . . . 11‚000 Interest payable . . . . . . . . . . . . . . . . . . . . . . 3‚000 Long-term notes
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CHAPTER 21 ACCOUNTING FOR LEASES CONTENT ANALYSIS OF EXERCISES AND PROBLEMS Time Range (minutes) 5-10 Number E21-1 Content Operating Lease. (Easy) Annual rental payments‚ no renewable option clause‚ executory costs. Lessee’s journal entries to record agreement‚ payments‚ expenses. Capital Lease. (Moderate) Calculation of rental payments made at end of year. Table summarizing lease payments‚ interest expense. Journal entries. IFRS differences. Capital Lease. (Moderate) Payments made at beginning
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|1 |The time period assumption states that |D | | |a. a transaction can only affect one period of time. | | | |b. estimates should not be made if a transaction affects more than| | | |one time period. | | | |c. adjustments to the enterprise ’s accounts can only be made in | | | |the time period when the business terminates its operations. | | | |d. the
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Interest Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money‚ or money earned by deposited funds. When money is borrowed‚ interest is typically paid to the lender as a percentage of the principal‚ the amount owed to the lender. The percentage of the principal that is paid as a fee over a certain period of time (typically one month or year) is called the interest rate. A
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construct the corresponding adjusting entries on October 31. (a) One month of the company’s rent expired during October. (b) The company’s equipment originally cost $30‚000 and was expected to benefit the company for 5 years. Straight line depreciation method is used. Assume a $5‚000 salvage value. (c) The company’s employees earned $400 during the last week of October that will be paid on
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Multiple Choice—Conceptual Answer No. Description b 21. Differences between taxable and accounting income. c 22. Differences between taxable and accounting income. b 23. Determination of deferred tax expense. a 24. Differences arising from depreciation methods. a P25. Temporary difference and a revenue item. b S26. Effect of future taxable amount. c P27. Causes of a deferred tax liability. d S28. Distinction between temporary and permanent differences. b S29. Identification of deductible
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500 000. The wages for December were - wages of production workers were - Wages of administration people were - wages of distribution workers were 100 000‚ out of which: 60 000 30 000 10 000 Depreciation of production machines and buildings were Depreciation of administrative buildings were Depreciation of distribution cars were 20 000 10 000 5 000 Costs of marketing were 80 000 Interest costs related to loans received were 5 000 Tax expenses were 3 000 10 printing machines were produced in December
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200930 June 2012 | Transfer of non-current asset at 30/06/2009Gain on sale EquipmentDeferred Tax Asset Income Tax ExpenseDepreciation of computer three years after transferRetained EarningsDeferred Tax Asset ComputerAccumulated Depreciation Depreciation Retained EarningsIncome Tax ExpenseRetained Earnings Deferred Tax Asset | 6‚0001‚8004‚2001‚8003‚600360720 | 6‚0001‚8006‚0001‚2002‚4001‚080 | 30 June 2012 | Intragroup borrowingsLoan Payable Loan ReceivableInterest Revenue
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INTRODUCTION The accounting concepts are rules and guidelines which the accountant follows and uses when deciding between differing options to make. They help to ensure the accounting information is presented accurately and consistently. All formal accounting statements should be created‚ preserved and presented according to the concepts and conventions’. The following will look at each of the concepts and conventions and relate them to the profit and loss account for a sole trader. GOING
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Multiple choice When preparing a bank reconciliation‚ which of the following items should be added to the book balance? EFT receipts deposits in transit collection items both EFT receipts and collection items Which of the following must be added to beginning Retained Earnings to compute ending Retained Earnings? net income expenses dividends all of these answers are correct The use of the FIFO method increases taxable income: when prices are constant when prices are declining
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