MODULE 9 Self-test case (100 Minutes) Scents for Less Ltd. Updated Sept 12‚ 2011 As a recently graduated CGA‚ you started your new position as controller for Scents for Less Ltd. (SFL) on August 1‚ 2011. It is now a week later and you are working on several specific tasks assigned to you by your employer. You are understandably eager to impress your new employer and are looking forward to your new responsibilities. SFL produces generic colognes in relatively small quantities and sells them
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CASE 7-2. Joan Holtz(C) Joan Holtz said to the accounting instructor‚” The general principal for arriving at the amount of a fixed assets that is to be capitalized is reasonably clear‚ but there certainly are a great many problems in applying this principle to specific situation. QUESTION 1: 1. Suppose that the Bruce Manufacturing Company used its own maintenance crew to build an additional wing on its existing factory building. What would be the proper accounting treatment for the following
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Solution to Mid-Term Exam ADM 4348M Winter 2011 SPECIAL TOPICS IN FINANCIAL ACCOUNTING March 1‚ 2011 DMS 4140 17:30-20:30 Professor : Sheldon Weatherstone Duration: 3 hours Instructions 1. Non-programmable calculators are permitted‚ but you cannot share calculators. 2. Books and notes are not permitted. 3. Please do not ask the professor or the invigilator to explain or interpret questions. State any assumptions you feel are necessary. 4. Write your
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The FASB issued SFAS No. 13‚ “Accounting for Leases” to establish standards of financial accounting and reporting for the lessees and lessors. The three leasing options to available are operating‚ sales-type‚ and direct financing. This memo will define each option‚ compare operating versus capitalizing and give a recommendation for XYZ Company. Lease Definitions A lease can be either capital or operating. It is considered to be a capitalized lease when all the benefits and risks of ownership
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Simulation Review Essay Macy Skalski HCS/405 Health Care Financial Accounting University of Phoenix- AXIA Instructor Sherida Douglass November 19‚ 2012 Simulation Review Essay The Elijah Heart Center is facing the financial distress common in specialized health care organizations. This is the combination of the need for improved technology‚ a reduced income‚ and the demand for expansion. Without the needed technology and expansion‚ there is little that the hospital can do to improve the
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Building/Portfolio Insurance 13 Building/Portfolio Contact 14 Unit/Site Maintenance 15 Unit/Site Lookup 19 Site Copy 20 Site Property Information 22 Site – Equipment 25 Site – Insurance 26 Site – Contact 27 Revenue Transactions 29 Tenant Lease Invoice Creator (Receivables) 29 Without Alternate Tenants 34 With Alternate Tenants 35 Recognition Schedule Entry 36 Journal Entry Processing 44 Create Recognition Journal Entry Action 47 Reverse Recognition Journal Entry Action 47 Stub/Reverse
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of financial leasing over the equipment. Alternative Courses of Action To buy the equipment To lease the equipment (WITHOUT Buying Purchase Option) To lease the equipment (WITH Buying Purchase Option) Recommendation 1. What are the different kinds of leases available and which one would be best suited for Paulo’s restaurant? Explain why? 2. Calculate the net advantage to leasing (NAL) the restaurant equipment. It is assumed that the old equipment has no resale
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1 - Energy Costs Find information on energy cost: Advantages (government websites) 2 - Cost of Equity‚ Appropriate Discount Rate (WACC) Cost of equity 1. Formula Risk Free Rate + (Market Premium x Overall Company Beta) 2. Each part a. Risk free rate (10-year T-bill) i. bond rating chosen * interest rate * b. Market premium c. Beta i. Appropriate Discount Rate (WACC) 1. Formula Weight of Debt x After-Tax Cost of Debt) + (Debt to Equity x Cost of Equity) 2. WACC (important – why is it important
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X 120C Intermediate Accounting Theory & Practice Winter 2013 Quiz 2 Chapter 20 Chapter 21 True-False Conceptual – 40 questions Multiple Choice Conceptual – 40 questions STUDENT NAME:__RUPALI KAYPEE_______________________________ TRUE-FALSE—Conceptual Chapter 20 1. A pension plan is contributory when the employer makes payments to a funding agency. F 2. Qualified pension plans permit deductibility
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in Hong Kong arise in the LL case: ownership can be required or one should engage in direct development of assets to include in the portfolio. High returns are generated when investing directly in real estate; this is generated by cash flows from lease contracts. They can use more debt financing which can favour their tax situation. Another merit is the possible increase in NPV. By owning the title directly‚ the company can use their own expertise and knowledge to change the negative NPV of a project
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