Jefferson Animal Rescue is a private not-for-profit clinic and shelter for abandoned domesticated animals‚ chiefly dogs and cats. At the end of 2011‚ the organization had the following account balances: [pic] .:. The following took place during 2012: 1. Additional supplies were purchased on account in the amount of $15‚000. 2. Unconditional (and unrestricted) pledges of support were received totaling $95‚000. In light of a declining economy‚ 5 percent is expected to be uncollectible. The remainder
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12%. What is the NPV? | Figures in 000 ’s | | Year | 0 | 1 | 2 | 3 | 4 | 5 | Unit Sales | | 500 | 600 | 1‚000 | 1‚000 | 600 | Revenues | | 2‚000 | 2‚400 | 4‚000 | 4‚000 | 2‚400 | Costs | | 750 | 900 | 1‚500 | 1‚500 | 900 | Depreciation | | 1‚200 | 1‚200 | 1‚200 | 1‚200 | 1‚200 | Pretax Profit (includes salvage in year 5) | | 50 | 300 | 1‚300 | 1‚300 | 800 | Taxes at 35% | | 18 | 105 | 455 | 455 | 280 | Profit after tax | | 33 | 195 | 845 | 845 | 520 | | |
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The controller’s bonus is based on the next income. It is the controller’s belief that the switch in inventory methods would increase the net income of the company. What are the differences between the LIFO and FIFO methods? D2: A variety of depreciation methods are used to allocate the cost of an asset to all of the accounting periods benefited by the
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Qstn. No.1: Calculate the annual depreciation expense that Delta and Singapore Airlines would record for each $100 gross value of Aircraft. a. For Delta‚ what was its annual depreciation expenses (per $100 of gross aircraft value) prior to July 1‚ 1986‚ From July 1‚ 1986 through March 31‚ 1993 and from April 1st‚ 1993 on? b. For Singapore‚ what was its annual depreciation expense (per $100 of Gross aircraft value) prior to April1‚ 1989 and from April 1‚1989 on? | | | | Delta Airlines
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PAMANTASAN NG LUNGSOD NG MAYNILA FINANCIAL ACCOUNTING QUIZ 7 NAME: ____________________________ TRUE OR FALSE: 1. Assets under construction for a company’s own use do not qualify for interest cost capitalization. 2. Avoidable interest is the amount of interest cost that a company could theoretically avoid if it had not made expenditures for the asset. 3. When a company purchases land with the intention of developing it for a particular use‚ interest costs associated with those
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accelerated method for its US operating plants. 2. What is the effect of the depreciation accounting method change on the reported income in 1984? How will this change affect profits in future years? Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life by changing the depreciation method to straight line method the economic life of the asset was increased then depreciation expense was lowered resulting in higher net income. This change resulted in
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Table of Contents Accounting Concepts and policies…………………………………………………………….. 3 – 7 Relevance of accounting concepts and policies on financial report…………….. 7 – 10 Discount allowed and received………………………………………………………………… 11 – 13 Difference between carriage inwards and carriage outwards……………………. 11 – 13 Differences between straight line and reducing balance methods……………… 11 – 13 References……………………………………………………………………………………………… 14 - 16 Introduction Accounting Concepts and Principles These are rules and
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the beginning of 2009‚ Glass Manufacturing purchased a new machine for its assembly line at a cost of $600‚000. The machine has an estimated useful life of 10 years and estimated residual value of $50.000. Under the straight-line method‚ how much depreciation would Glass take in 2010 for financial reporting purposes? A. $55‚000. B. $60‚000. C. $65‚000 4. For 2009‚ Flamingo Products had net income of $1‚000‚000. At 1 January 2009‚ there were 1‚000‚000 shares outstanding. On 1 Ju1y 2009‚ the
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Because the methods employed in treating certain items within the accounting records may be varied from time to time‚ the concept of consistency has come to be applied more and more rigidly. For example‚ because there can be no single rate of depreciation chargeable on all fixed assets‚ every business has potentially a lot of discretion over the precise rate
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Exercises and Problems XACC/291 Principles of Accounting II Week 2 February 8‚ 2015 Exercise E9-1 The following expenditures relating to plant assets were made by Spaulding Company during the first 2 months of 2011 (determine cost of the plant acquisitions). 1. Paid $5‚000 of accrued taxes at time plant site was acquired. 2. Paid $200 insurance to cover possible accident loss on new factory machinery while the machinery was in transit. 3. Paid $850 sales taxes on new delivery
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