of 5 years and a $10‚000 residual value. Calculate depreciation expense and the year-end book value for 2010 and 2011 using the double declining-balance method of depreciation. *$120‚000 = $300‚000 2/5 **$72‚000 = $180‚000 2/5 Exercise 3: Hubbard Company purchased a truck on January 1‚ 2009‚ at a cost of $34‚000. The company estimated that the truck would have a useful life of 4 years and a residual value of $4‚000. A. Calculate depreciation expense under straight line and double declining balance
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to up – date the accounts at the end of the financial period Adjustments in respect of the following are required i) Prepaid Expenses ii) Accrued Expenses iii) Income Accrued iv) Income received in advance v) Bad Debts vi) Doubtful Debts vii) Depreciation a) Cash Basis Accounting - means that revenues and expenses are not recognized until the cash is received or paid - it ignores credit transactions b) Accrual Basis Accounting - means that revenue is recognized when earned and expenses when incurred
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Week Three Exercise Assignment Inventory 1. Specific identification method. Boston Galleries uses the specific identification method for inventory valuation. Inventory information for several oil paintings follows. Painting Cost 1/2 Beginning inventory Woods $21‚000 4/19 Purchase Sunset 21‚800 6/7 Purchase Earth 31‚200 12/16 Purchase Moon 4‚000 Woods and Moon were sold during the year for a total of $35‚000. Determine
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Accounting Assignment #434 Best Friends Vet Clinic Part A Qantas Airline Short Report in accordance to Accounting Perspective Introduction On November 14‚ 2012‚ Qantas applied a capital management measure by 1) repaying its $650 million debt earlier than scheduled and 2) investing up to &100 million in an on-market share buy-back. This was fulfilled to reflect the Board’s goal: returning shareholders’ value‚ maintaining a strong balance sheet while still have the flexibility to
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Chapter 1: Environment and Theoretical Structure of Financial Accounting Accounting Principles Board (APB) The Accounting Principles Board (APB) followed the CAP. Asset/liability approach With the asset/liability approach‚ recognition and measurement of assets and liabilities drives revenue and expense recognition. Auditors Auditors express an opinion on the compliance of financial statements with GAAP. Capital markets The capital markets provide a mechanism to help our economy allocate
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indicate the proper accounting treatment of those items that are not included in the cost of the equipment. c. Compute the total cost debited to the college’s Equipment account. d. Prepare a journal entry at the end of the current year to record depreciation on the exercise equipment. Podunk College will depreciate this equipment by the straight-line method (half-year convention) over an estimated useful life of 4 years. Assume a zero residual value. Problem 9.2A Comparison of Straight-Line and
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the following: a. prescription of the period of assessment and collection b. error in disallowing claimed depreciations (upon these supplemented facts) i. Basilan Estates‚ Inc. claimed deductions for the depreciation of its assets up to 1949 on the basis of their acquisition cost. ii. Accordingly‚ from 1950 to 1953 it deducted from gross income the value of depreciation computed on the reappraised value. iii. Upon investigation and examination of taxpayer’s books and papers‚ the
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CASH FLOW AND FINANCIAL PLANNING: A. ANALYZING A FIRM’S CASH FLOW THE STATEMENT OF CASH FLOW “Cash flow‚ the lifeblood of the firm‚ is the primary ingredient in any financial valuation model.” - the summary of a firm’s cash flow over a given period‚ which uses the data from income statement‚ along with the beginning and end of period balance sheets. - allows the financial manager and other interested parties to analyze the firm’s cash flow - used to evaluate progress toward projected
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indirect method of operating cash flow. The largest adjustment to net income for both companies was the depreciation and amortization expense. In 2006 the net cash provided by operating activities for General Mills was $1‚771 millions‚ which was an increase of $60 millions from the $1711 millions in 2005. The largest adjustment to convert accrual net income into cash from operation was depreciation and amortization expenses totaling $424 millions in 2006. As for Kellogg’s in 2006 the net cash provided
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years is $28‚751‚000. The amount is 2010 is $14‚838‚000. The amount in 2011 is $13‚913‚000. B) The amount of depreciation expense in 2009 is $1‚104 (millions)‚ 2010 is $1‚093 and 2011 is $1‚086. C) Amounts on Cash Flow Statement for the most recent year that relate to depreciation‚ gains and sales of property and equipment‚ and purchases and sale of property of equipment is: Depreciation: 2011 - $954 (mill) Amortization: 2011 - $132 (mill) Proceeds from sale of equipment‚ property and investments/subsidiaries:
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