sale and 10% in the second month following the sale. 75% of all purchases are paid for in the month they are purchased‚ with the remaining 25% paid for in the following month. The selling expenses are $24‚000 each month. Administrative expenses are $155‚000 per month‚ including $45‚000 of depreciation expense. Expenses are paid in the month they are incurred. The cash balance on 1 April 20X9 is $12‚000. The following sales and purchases data in 20X9 have been compiled for the preparation of the budget:
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the conceptual basis for the design and use of newly emerging activity-based cost (ABC) systems. TVaditional cost systems use volume-driven allocation bases‚ such as direct labor dollars‚ machine hours‚ and sales dollars‚ to assign organizational expenses to individual products and customers. But many ofthe resource demands by individual products and customers are not proportional to the volume of units produced or sold.^ Thus‚ conventional systems do not measure accurately the costs of resources
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Capital 34.083 44.875 30.000 17.308 17.308 0 + Income - Expenses 0 -6.000 -9.000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -50.692 -17308 -75 -4.200 -117 23.000 -10.000 -300 45.000 -21.000 68.000 Ref. a Description Cash Debit 30.000 Paid-in capital - Common Stock b Cash 30.000 15.000 Notes Payable Interest Expense 15.000 75 Notes Payable c Rent Expense 75 8400 Cash d Credit Equiptment 8400 7000 Cash Depreciation Expense 7000 117 Accumulating Depreciation 117 ASSET ACOUNTS
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used in the journaling process (i.e.‚ performing journal entries) and also serves as the title for each ledger. All the accounts will be filed under one of five categories: • Assets • Liabilities • Owner’s Equity • Revenue • Expenses Each account can be assigned a number for identification purposes. Most systems will assign a block of numbers to one of the five categories to be applied to the sub-categories. Some charts leave gaps of numbers between the sub-category listings
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6/30/13 10‚800 $34‚800 The adjusting entry required on December 31‚ 2012‚ would be a. Insurance Expense 22‚000 Prepaid Insurance 22‚000 b. Insurance Expense 20‚200 Prepaid Insurance 20‚200 c. Prepaid Insurance 17‚600 Insurance Expense 17‚600 d. Insurance Expense 25‚600 Prepaid Insurance 25‚600 ANS: D Policy 279248 3 months
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JetBlue Contents Memorandum 3 Summary of Strategy Assessment and Identification of Strategic Issues 3 Key Strategic Issue‚ Options and Recommendations for Action 3 Best Option Recommendation 4 I. Case Update (Exhibit 1) 5 Bibliography 7 II. JetBlue’s Strategy in Detail (Exhibit 2) 8 Mission/Purpose/Vision 8 Goals/Objectives 9 Major Policies 9 III. JetBlue’s SWOT Analysis (Exhibit 3) 11 IV. Analysis of JetBlue’s Financial Performance (Exhibit 4)
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600‚000 Investment in Safeco 650‚000 (E) Stockholders’ equity—Safeco‚ 1/1 7‚000‚000 Investment in Safeco 7‚000‚000 (R) Equipment‚ net 500‚000 Inventory 200‚000 Goodwill 300‚000 Investment in Safeco 1‚000‚000 (O) Depreciation expense 100‚000 Cost of goods sold 200‚000 Goodwill impairment loss 50‚000 Equipment‚ net 100‚000 Inventory 200‚000 Goodwill 50‚000 b. Calculation of equity in net income for 2015: Safeco’s reported net income $ 2‚000‚000 Revaluation writeoff:
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Liabilities Stockholders’ Equity Assets $23‚500 $56‚500 $80‚000 2) RE‚ Beg. Sales Expenses Dividends Net Loss $65‚000 $29‚500 $33‚000 $3‚500 ($3‚500) 3) Salaries Expense‚ Beg. Increase Decrease Increase Increase Salaries Expense‚ Ending $0 $450 $175 $600 $350 $1‚225 4) Purchases Credit Cash Debit Cash Credit Accounts Payable $375 $375 375 375 5) Allied‚ Inc. Insurance Policy $3‚600 Debit Insurance Expense Credit Prepaid Insurance 1‚800 1‚800 6) Supplies‚ Beginning Supplies Purchased Amount
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Matt Swenson Case 4 – Taxing Situations Surf’s Up 1) The difference between the tax expense and the taxes actually paid should be reported as a deferred tax liability of $40‚000. The reason for this is tax law allows $200‚000 to be deducted for depreciation but GAAP only allows $100‚000 of depreciation to be recorded for the year so this means that there will be $100‚000 of depreciation in the future that will be deducted on the income statement but not for tax purposes‚ resulting in a future
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000 Share premium 24‚000 Nil Reserves and surplus 1‚34‚400 1‚30‚000 Total 7‚48‚400 4‚90‚000 Income statement Sales 2‚40‚000 Cost of goods sold 1‚34‚600 Gross Profit 1‚05‚200 Less Operating expenses: Depreciation – machinery 20‚000 Depreciation – building 32‚000 Other expenses 40‚000 92‚000 Net profit from operation 13‚200 Gain on sale on long-term investment 4‚800 Total 18‚000 Loss on sale of machinery 2‚000 Net Profit 16‚000 Adjustments: 1) Machinery worth Rs.70000
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