Long Term Liabilities – Bonds MULTIPLE CHOICE QUESTIONS EXERCISE 1. From the standpoint of the issuing company‚ a disadvantage of using bonds as a means of long-term financing is that a. bond interest is deductible for tax purposes. b. interest must be paid on a periodic basis regardless of earnings. c. income to stockholders may increase as a result of trading on the equity. d. the bondholders do not have voting rights. 2. If a corporation issued $3‚000‚000 in bonds which pay 5% annual interest
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with closing of the books. Step 1. Collect and analyze the transactions and determine their effect on the financial position of the company. Step 2. Journalize transactions into the general journal‚ also known as the book of original entry. Step 3. Post to the general ledgers which are organized by account. Step 4. Prepare an unadjusted trial balance to ensure that debits and credits are indeed equal. Step 5. Prepare adjustments to bring accounts to their proper balances
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you change (in document header)? I can change the items doc. Header and Reference Page 16 Why can’t you change the amount of the line item? account‚ it can’t be changed Page 17 Who made the changes and when were they made? In the SAP system‚ as the amount finacial Globle Bike Inc 09/02/2014
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for Arynetta Floyzelle to match costs and revenues in a specific time period? How do closing entries help her in this regard? In order for Arynetta to remain efficient in reporting the revenue and expenses of her business‚ she must begin each new period with a zero balance. Also‚ the “Owner’s capital must reflect prior periods’ revenues‚ expenses‚ and withdrawals.” (Wild‚ 2013‚ p. 145) Using closing entries will assist her in doing this by 3. What objectives are met when Arynetta Floyzelle
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This customer preference is out of control of the Aalst management and therefore is no indicator of their performance at all. What does the variance report tell you about the managerial performance of the Aalst location? Price variance The first entry of price variance measures how much more gross profit was generated due to the fact that Aalst increased the sales revenues to € 11 and while assuming that the variable expenses stayed the same‚ namely € 5 per vehicle serviced. To calculate that adjusted
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nyo‚ natural wag na kaung magbalak magbukod‚ ala na nmn kau paghiwalayin eh :D‚ parang prepaid expense din when the accounting period ends‚ then lahat namn ng narecord mo naexpense (take note ha expense) ay nagamit mo‚ wag ka na gumawa ng adjusting entry ala na kwenta un kasi la nmn kau paghihiwalayin na accounts‚ para lang po yan sa paghihiwalay ng expense mo sa asset mo pa nung pagdating ng end of accounting period‚ pero pag Asset account nirecord mo nung umpisa aun nid mo na mag adjusting kasi may
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Copyright © 2011 John Wiley & Sons‚ Inc. Weygandt‚ Accounting Principles‚ 10/e‚ Solutions Manual (For Instructor Use Only) 1-33 PROBLEM 1-1B (a) VINCE’S TRAVEL AGENCY | | | | | | | | | | | | | Owner’s Equity | | | Cash | + | AccountsReceivable | + | Supplies | + | Equipment | = | AccountsPayable | + | Owner’sCapital | – | Owner’s Drawings | + | Revenues | – | Expenses | | | | | | | | | | | | | | | | | | | | 1.2.3.4.5.6.7.8.9.10. | | +$15
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of original entry‚ which mean both the debit and credit effects of the transaction are not shown in the Trial Balance. For example‚ a transaction “sell goods for cash” we should Debit cash and Credit sales. If this error is committed‚ this transaction will be omitted and remain unrecorded. This will not be shown in both the debit and credit side of the Trial Balance by the same amount‚ thus the Trial Balance will still be balances. The second type of error is the “reversal of entry”. For example
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Learning Team Weekly Reflection The third week of class‚ Team “C” collaborated together and shared our understanding for chapter four. The objective was to identify the difference between accrual basis and cash basis accounting‚ create adjusting entries‚ and prepare an adjusted trail balance. Differentiate between Accrual Basis and Cash Basis Accounting Accrual basis is a process in which companies use to show a change in their financial statements. These changes are recorded for the period
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Completed Exercise 4.1 TABLE 4.9 Journal of the Portland After School Program July 1‚ 20XX–December 31‚ 20XX (a) July 1‚ 20XX— Received unrestricted donation check in the amount of $15‚000 from the Multnomah County Department of Health and Human Services. Debited Cash $15‚000 Credited Revenue $15‚000 (b) July 19‚ 20XX—Paid Great Northwest Insurance Company $9‚000 for six more months of fire and liability insurance coverage. Debited prepaid insurance $9‚000 Credited
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