pay-off Qantas’ decision to pay its debt earlier than scheduled is quite advantageous. The company can save money from paying monthly interest and free up cash flow from having to pay back loan every month – especially if the company has a lot of expenses to cover (Almeida‚ 2013). Moreover it also improves the company’s credit score – the use of historical data and statistical techniques to evaluate the credit risk of a potential applicant (Bridges‚ n.d.‚ p.2). With the improved credit score‚ Qantas
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many ways and also very different. These similarities and differences are going to be discussed as well as component depreciation‚ revaluation
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CHAPTER 3 The Accounting Information System ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions 1. Transaction identification. 1‚ 2‚ 3‚ 5‚ 6‚ 7‚ 8 2. Nominal accounts. 4‚ 7 3. Trial balance. 6‚ 10 4. Adjusting entries. 8‚ 11‚ 13‚ 14 5. Financial statements. 6. Closing. 12 7. Inventory and cost of goods sold. 9 8. Comprehensive accounting cycle. *9. Brief Exercises Exercises Problems 1‚ 2 1‚ 2‚ 3‚ 4‚ 17 1 2‚ 3‚ 4 1‚ 2‚ 7‚ 8 5‚ 6‚ 7‚ 8‚ 9‚ 10‚ 20 1‚ 2‚ 3‚ 4
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E16-1 2008 Expense and liability for vacations: Salaries and Wages Expense 7200 Salaries and Wages Payable 7200 Expense and liability for sick days: Salaries and Wages Expense 4320 Salaries and Wages Payable 4320 Record sick leave taken by employees: Salaries and Wages Payable 2880 Cash 2880 2009 Expense and liability for vacations: Salaries and Wages Expense 7920 Salaries and Wages Payable 7920 Expense and liability for sick days:
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updated. Solutions Manual‚ Module 3 © Cambridge Business Publishers‚ 2013 3-1 Q3-4. 1. Prepaid Expenses – Allocating assets to expense to reflect expenses incurred during the period. Example: Recording supplies used by increasing (debiting) Supplies Expense and decreasing (crediting) Supplies or recording depreciation expense and reducing PPE (or increasing accumulated depreciation). 2. Unearned Revenues – Adjusting unearned revenues to recognize only revenues earned during the period
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principle in determining the acquisition cost of plant assets. Pg. 402 Depreciation is the application of the cost principle in determining the acquisition cost of plant assets. This application applies the classes: land improvements‚ buildings‚ and equipment. To determine the acquisition cost of plant assets should be stated at the market value. It would also be reported on the balance sheet as a deduction. Depreciation of plant assets are determined on the assets wear and tear. As it gets older
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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) 500 500 500 Utilities expense 600 600 600 Supplies expense
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Accounting Presentation Group members The Accounting Information of The Personnel‚ procedures‚ devices‚ and System records used by an organization to develop accounting information and communicate that information to decision makers The accounting process Economic activities Actions (decisions) Accounting “links” decision makers with economic activities and with the results of their decisions. Decision makers Accounting information Types of Accounting
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receivable PPE Accumulated depreciation – Equipment PPE Buildings CA Cash CL Interest payable IA Goodwill CL Income taxes payable CA Inventory LTI Investments PPE Land LTL Mortgage payable CA Supplies PPE Equipment CA Prepaid rent EXERCISE 2: Account Debit or Credit Financial Statement Accounts Payable Credit Balance Sheet Accounts Receivable Debit Balance Sheet Common Stock Credit Balance Sheet Depreciation Expense Debit Income Statement Interest Expense Debit Income Statement Interest
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June 2011 Depreciation Expense Accumulated Depreciation (Record depn @ 800‚000/4 useful life) 200‚000 30 June 2011 Accumulated Depreciation Part A 200‚000 Part A Revaluation Increment (Gain) (Revalue Part A to $690‚000) 200‚000 200‚000 90‚000 90‚000 1 July 2010 Part B Cash (Purchase of Part B) 500‚000 500‚000 30 June 2011 Depreciation Expense 100‚000 Accumulated Depreciation (Record depn @ 500‚000/5 useful life) 30 June 2011 Accumulated Depreciation Part B
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