follows: |No. |Item Description |Treatment over time |Rationale for the treatment | |1 |Building lease $5‚000 per year |Expense |Mike can not control the property as the lease contract did not | | | |Be amortized by $5‚000 per year
Premium Depreciation Expense Generally Accepted Accounting Principles
matching concept d) adjust and record prepaid expenses‚ expenses due‚ income accrued and income received in advance on balance day e) adjust and record bad debts‚ bad debts recovered‚ doubtful debts and provision for doubtful debts f) record the general journal entries to incorporate balance day adjustments Balance Day Adjustments Definition of Balance Day Adjustment are entries made at the balance day in order to match the revenues and expenses accurately so that profit can be determined
Premium Expense Generally Accepted Accounting Principles Balance sheet
indirect methods Evaluate the comments that follow as being True or False. If the comment is false‚ briefly explain why. a. Both the direct and indirect methods will produce the same cash flow from operating activities. True b. Depreciation expense is added back to net income when the indirect method is used. True c. One
Premium Generally Accepted Accounting Principles Cash flow statement Expense
Review When starting the company‚ three owners contributed €50000 cash and a software which was valued €10000. During the year‚ the company collected money from its clients monthly and thus maintained the cash flow. Meanwhile‚ several types of expenses were incurred throughout the year with different payment agreements or periods. Besides a lease settlement for office accommodation‚ the company made an initial investment for refurbishment‚ new fixtures‚ office furniture‚ computer and photocopying
Premium Balance sheet Income statement Generally Accepted Accounting Principles
The company’s total losses/expenses as management has estimated are $11 million. The total amount that the auditor might suggest would be about $18.6 million. This means that the materiality threshold is broken for materiality of misstatement of net income‚ even though as shown below‚ each entry itself does not break that threshold by itself. The deferred costs can be divided over the next 2 years. So this year’s entry would be as follows and there should be a disclosure note about the remaining
Premium Revenue Income statement Generally Accepted Accounting Principles
Sold for $28‚000 on May 1‚ 2011. (For multiple debit/credit entries‚ list amounts from largest to smallest eg 10‚ 5‚ 3‚ 2.) Account/Description Debit Credit CashEquipmentAccum. deprec.-EquipmentLoss on disposalGain on disposalDepreciation expense Accum. deprec.-EquipmentCashEquipmentGain on disposalDepreciation expenseLoss on disposal (To update depreciation) EquipmentLoss on disposalGain on disposalDepreciation expenseAccum. deprec.-EquipmentCash CashAccum
Premium Depreciation 2008 1982
outlined the following Process and Procedure for reimbursement. First‚ staff should understand it is the policy of the company to reimburse staff and guests for reasonable and necessary expenses incurred in connection with approved travel. Prepayment of reimbursement is allowed only when payment for the expenses has not been and will not be received from another source. The company has significant airline‚ vehicle rental‚ and charter bus discounts that can be obtained when booking travel through
Premium Travel Cost Trip
Exercise 13-2 |EXERCISE 13–2 |The Regal Cycle Company manufactures three types of bicycles—a dirt bike‚ a mountain bike‚ and a racing | |(30 minutes) |bike. Data on sales and expenses for the past quarter follow: LO2 | | | |[pic]
Premium Variable cost Cost Costs
spreadsheet and note cell formula in formula bar. Oven is estimated to last seven years and building twenty. For simplicity‚ no salvage value was considered. [ 2 ]. Rent expense was expected to increase by $58‚000 a year. Half of that amount has been added to the $12‚000 they would have paid at the Duxbury location. Interest expense came from amortization tables.
Premium Depreciation Expense Inventory
January and the remaining $140‚000 is paid in February. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $30‚000 per year. General and administrative salaries are $72‚000 per year. Maintenance expense equals $1‚000 per month and is paid in cash. Equipment reported in the December 31‚ 2013‚ balance sheet was purchased in January 2013. It is being depreciated over eight years using the straight-line method with no salvage value. The following amounts
Premium Expense Balance sheet Depreciation