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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Intermediate Accounting Accounting Cycle Project You have been engaged to perform accounting services for Herman and Sons’ Law Offices. Your responsibilities include maintaining all accounting records and preparing annual financial statements. Herman and Sons’ opened on January 1‚ 2015. During the year‚ the firm had the following transactions: 1. January 2: The owners invested $200‚000 into the business and acquired 25‚000 shares of capital stock in return. 2. January 15: Herman and Sons’ took
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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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material issue in my opinion‚ which is the failure to reclassify from prepaid insurance to insurance expense. That is a nearly $900‚000 adjustment‚ clearly material. However‚ you missed the most material fixed asset issue‚ which is assets that were depreciated‚ but not yet placed in service. You made reference to prepaid insurance‚ and correctly adjusted the prepaid balance to note the failure to expense current year insurance‚ which would have reduced prepaid insurance. For other assets‚ I didn’t
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Cost Accounting - I Dakota Office Products PGP1 – Section B Group 6 Submitted By:- AMOL DHAIGUDE KHAGESH KAUSHAL MOHAMMAD AMIR POONAM VERMA R. ANAND SUBINAY BEDI Dakota Office Products Q.1) Why was Dakota’s existing pricing system inadequate for its current operating environment? The Account receivable policy is very liberal causing
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cash as well as for credit. The following is the summary of balances of various accounts for the transactions that took place during the year. Trial Balance as on December 31‚ 2010 Particulars | Expenses/Assets | Incomes/Liabilities | Capital | | 2000000 | Drawings | 2000 | | 12% loan | |
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Accounting Alternatives Case At the beginning of the year 20x1‚ two companies began operations to sell home heating units. Eads Heaters Inc. is located in Eads‚ Colorado‚ and Glenwood Heating Inc. is in Glenwood Springs‚ Colorado. The companies operate under similar economic conditions and have identical operations during the year. However‚ each manager makes different accounting choices and estimates when applying generally accepted accounting principles (GAAP) in preparing the company’s financial
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partially determined by revenue‚ a component of that profit reflects a customer’s promise to pay. Cash flow reflects only cash actually received. - Expenses are matched to revenue. An overriding accounting principle is to match the costs and expenses associated with the revenues generated during a given time period. The expenses charged to the income statement may not be those that were actually paid during that period. Many will be paid later when they are invoiced by a vendor. Cash
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– Machine A $10‚000 $12‚000 $10‚000 But you will notice that the Debits and Credits do not match. This is corrected by using an account called Gain (Loss) on the Disposition of Assets or similar. A Debit entry is a Loss (like an Expense) and a Credit entry is a Gain (like a Revenue). In this case there will be a $2‚000 Credit entry as shown below: Dr. Cash $8‚000 Dr. Accumulated Depreciation 4‚000 Cr. Equipment – Machine A $10‚000 Cr. Gain (Loss) on
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Unit 5007 Financial control 1.1 Assess the relationship(s) between a financial system or function and other systems or functions in an organisation Answer: Information and records are of critical importance to the functioning and controlling of systems in general‚ including organisational systems. Given the central importance of information and records to systems operation‚ including public sector organisations and the societies they exist to govern‚ we should not be surprised
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