January 2006 related to this purchase. (b) Prepare the 31 December 2006‚ adjusting entry to record interest expense related to the note for the first year. (c) Prepare the 31 December 2008‚ adjusting entry to record interest expense related to the note for the second year. (d) Prepare the entry Mission would record on 31 December 2008‚ the due date of the note to record interest expense for the third year and payment of the note.
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improperly eliminating and deferring current period expenses. Specific tactics: * Avoiding depreciation expenses on their garbage trucks by both assigning unsupported and inflated salvage values and extending their useful lives. * Assigning arbitrary salvage values to other assets that previously had no salvage value. * Failing to record expenses for decreases in the value of landfills as they were filled with waste. * Refusing to record expenses necessary to write off the costs of unsuccessful
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Presentation Handouts | | | v | 6 | Copy of Oral Presentation Slides | | | vi | | | | | | | Main References | | | 23 | ABSTRACT OF THE CASE To be or not to be…that’s the question. To capitalize or to expense‚ that’s the main theme of the case. Joan asked her professor on how to determine which expenditure is to be capitalized‚ and which to be expensed. She posed several situations to her professor. Basically‚ for each scenario given‚ capitalization
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uses the percentage of sales method for recording bad debts expense. For the year‚ cash sales are $300‚000 and credit sales are $1‚200‚000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn Company make to record the bad debts expense? Debit Bad Debt Expense $12‚000‚ Credit – Allowance for Doubtful Accounts $12‚000 2) Using the percentage of receivables method for recording bad debts expense‚ estimated uncollectible accounts are $15‚000. If the balance
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“Revenue hours” represent the key activity that drives costs at Salem Data Services. Which expenses in Exhibit 2 are variable with respect to revenue hours? Which expenses are fixed with respect to revenue hours? a. Variable Expenses – Wages for Hourly Personnel‚ Power b. Fixed Expenses – Wages for Salaried staff‚ Systems development and maintenance‚ Administration 2. For each expense that is variable with respect to revenue hours‚ calculate the cost per revenue hour.
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manufacturing equipment will cost SGD54.6 million o The new equipment costs will be paid throughout the next two years. o The new equipment will be depreciated over seven years. o Assume that funding for the new equipment will be through debt Interest expense is weighted for short-term debt and long-term debt: 6.53% The new packaging machine will cost SGD1.82 million. o Depreciated over 10 years: SGD182‚000 per year o Initial year maintenance costs for machine’s lifetime: SGD3‚640 o Price of new machine
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the Bad Debts Expense account for years ending 30 June 2013 and 30 June 2014. B. Prepare the necessary general journal entries to bring the allowance for doubtful debts to the appropriate amount at 30 June 2013 and 30 June 2014. A. Allowance for Doubtful Debts 2013 30/6 2012 Accounts Receivable $33 120 1/7 Balance $16 200 2013 Balance 25 000 30/6 Bad Debts Expense $58 120 41 920 $58 120 2013 2014 Accounts Receivable 23 380 1/7 June 30 Balance 25 000 Bad debts expense 20 070 2014
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Executive summary Do D’ Dips is a potential company that will introduce‚ munchkins dip into different flavors‚ soon in the market. Our company offers high priced munchkins at its unique and matchless features. We are targeting some specific segments that will help us reach out for more opportunities in the market having the food as a basic human need. We aim to be the market leader in the chocolate industry in Davao. According to our survey‚ most of the respondents have sweet taste preference but
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=14030 – 2470 – 3980 = 7580 Net working capital = current assest – current liabilities NWC = 3840 – 2470 NWC = 1370 2. Building an income statement Lifetime‚ Inc.‚ has sales of $585‚000‚ cost of $273‚000‚ depreciation expense of $71‚000‚ interest expense of $38‚000‚ and tax rate of 40%. What is the net income for this firm? Income statement Sales 585000 Costs 273000 Deprectiation 71000 EBIT 241000 Interest 38000 Taxable income 203000 Taxes 81200
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Balances Cash and equivalents $ 119‚115 Accounts receivable 162‚500 Merchandise inventory 700‚680 Store equipment 21 5‚000 15‚475 Supplies inventory 38‚250 Prepaid insurance Selling expense 24‚900 105‚750 Sales salaries Miscellaneous general expenses 31‚000 6‚220 Sales discounts Interest expense 9‚300 Social security tax expense 9‚600 Total S 1‚437‚790 The data for the adjustments are 1. Cost of merchandise sold‚ $302‚990. 2. Depreciation on store equipment‚ $12‚750. 3. Supplies inventory‚ January 3 1
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