could make a more specific estimate for uncollectable accounts. Problem 3 Example A Example B Original cost 4‚500‚000 Original cost 4‚500‚000 Useful life 10 Useful life 6 Residual Value 500‚000 Residual Value 500‚000 Depreciation per Year: 400‚000 Depreciation per Year: 666‚666.67 Year of Disposal 5 Year of Disposal 5 Problem 4 & 5 Company A Tropical Wave Corporation Partial Income Statement For the Year Ended December 31 Sales: Water Sports Equipment $4‚500‚000 Lotion
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made this entry to air on the side of caution. (d) Because the general level of prices increased during the current year‚ Gonzales‚ Inc. determined that there was a $16‚000 understatement of depreciation expense on its equipment and decided to record it in its accounts. Depreciation Expense
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1. The final exam will be held from 9:30 to 11:30 am on Wednesday‚ October 19 in EX 200 (255 McCaul). 2. It is a closed book and closed note exam. No aid sheet is allowed. You will need a calculator‚ but no other electronic devices will be allowed during the exam. 3. The exam covers materials in classes 1 through 11 inclusive (i.e.‚ topics 1 through 8)‚ with more emphasis on topics 3 through 8. It will have both problem-solving and essay-type questions. It is not going to be an easy exam
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ACC 422 Final Exam Copy this link to your browser and download http://www.finalexamguide.com/ACC-422-Final-Exam-3-WileyPlus-263.htm Question 2 Presented below is information related to Rembrandt Inc. ’s inventory. (per unit) Skis Boots Parkas Historical Cost 273.79 152.75 76.37 Selling Price 312.70 208.95 106.27 Cost to distribute 27.38 11.53 3.60 Current replacement cost 292.52 151.31 73.49 Normal profit margin 46.11 41.79 30.62 Determine the following:
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1‚400 Supplies 3‚000 (e) 100 2‚900 2‚900 Equipment 34‚800 34‚800 34‚800 Accumulated depreciation $1‚600 (b) 300 $1‚900 $1‚900 Accounts payable 5‚400 5‚400 5‚400 Salary payable (c) 800 800 800 Thomas‚ capital 35‚700 35‚700 35‚700 Thomas‚ drawing 2‚100 2‚100 2‚100 Service revenue 8‚600 (a) 600 9‚200 $9‚200 Depreciation expense (b) 300 300 $300 Salary expense 1‚700 (c) 800 2‚500 2‚500 Rent expense (d)
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Statement of Cash Flows Preview of Chapter Usefulness and Format Usefulness of the Statement of Cash Flows Provides information to help assess: 1. Entity’s ability to generate future cash flows. 2. Entity’s ability to pay dividends and obligations. 3. Reasons for difference between net income and net cash provided (used) by operating activities. 4. Cash investing and financing transactions during the period. SO 1 Indicate the usefulness of the statement of cash flows. Usefulness
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Eagle Impairment Case Question 1 IFRS According to the facts provided for Eagle in Italy‚ we assume that the commercial building‚ which represents a cash-generating unit (CGU)‚ meets the requirement for a recoverable test under IFRS. The impairment loss is required when the building’s book value exceeds the higher of the asset’s value-in-use and fair value less costs to sell. Carrying value 1‚100 > 900 Higher of Value in use (900)
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ACCOUNTING FOR INCOME TAXES F 1. Taxable income is a tax accounting term and is also referred to as income before taxes. F 2. Pretax financial income is the amount used to compute income taxes payable. T 3. Deferred tax expense is the increase in the deferred tax liability balance from the beginning to the end of the accounting period. T 4. A deferred tax liability represents the increase in taxes payable in future years as a result of taxable temporary differences existing at the end
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Q1 - Internal Controls (lecture 3): 15 Marks. ------------------------------------------------- He said he will ask either a petty cash question or a bank reconciliation one but not both. The question will also probably test us on e-controls or cash control for cash receipts and cash payments. What is internal control? It is the organisational plan and all the related measures that an entity adopts to: * safeguard assets * encourage adherence to company policies * promote operational
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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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