T or F: The Cash account is found in some adjusting entries. T or F: All adjustments affect both the Balance Sheet and the Income Statement. Matching from types of Adjusting Entries: (1) Accrued expense; (2) Accrued revenue; (3) Deferred expense; and (4) Deferred revenue: ____ Unpaid salaries ____ Rent received in advance ____ Prepaid insurance ____ Interest earned but not received ____ Rent paid in advance
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(15%) 100‚000 Proprietor’s Capital 65‚000 2 Rent Expense (September) 1‚485 Cash 1‚485 3 Merchandise Inventory 137‚500 Accounts Payable 137‚500 4 Furniture and Fixtures (10-yr life) 15‚500 Cash 15‚500 5 Advertising Expense 1‚320 Cash 1‚320 6 Wages Expense 935 Cash 935 7 Office Supplies Expense 1‚100 Cash 1‚100 8 Utilities Expense 275 Cash 275 At the end of September‚ Thompson had
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CHAPTER 10 SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 10-1 $27‚000 + $1‚400 + $10‚200 = $38‚600 BRIEF EXERCISE 10-2 |Expenditures | | | | | | | | | |Capitalization Period | |Weighted-Average Accumulated Expenditures | |Date | |Amount | |
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accounting concept? A) B) C) D) 2) Going concern. Historical cost. Consistency. Prudence. Which statement relating to depreciation is true? A) The cash account is affected by charging depreciation B) Accumulated depreciation represents the portion of an asset’s cost that has been transferred to depreciation expense C) Accumulated depreciation is a contra-expense account D) Depreciation represents cash that can be used to replace assets when they wear out 3) As at 31 December 2010 there are outstanding
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To: CFO of Athina Building Supplies Ltd. From: IV Consulting Group’s consultants- Purpose: Recommendations for the CFO of Athina Building Supplies Ltd. We are writing to you on behalf of IV Consulting Group after closely examining the financial statements of your national retail and commercial building supplier chain‚ Athina Building Supplies Ltd.’s. We have stumbled upon several issues‚ which will be discussed in detail below. We have prepared an insightful report on our findings and recommendations
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debt =14030 – 2470 – 3980 = 7580 Net working capital = current assest – current liabilities NWC = 3840 – 2470 NWC = 1370 2. Building an income statement Lifetime‚ Inc.‚ has sales of $585‚000‚ cost of $273‚000‚ depreciation expense of $71‚000‚ interest expense of $38‚000‚ and tax rate of 40%. What is the net income for this firm? Income statement Sales 585000 Costs 273000 Deprectiation 71000 EBIT 241000 Interest 38000 Taxable income 203000 Taxes
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Exercises and Problems –W2 E9-1 The following expenditures relating to plant assets were made by Spaulding Company during the first 2 months of 2011. 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 truck. 4. Paid $17‚500 for parking lots and driveways on new plant site. 5. Paid $250 to have company name and advertising slogan
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Accumulated Depreciation – Off Equip $ 5‚220 $ 6‚960 Accounts Payable 9‚860 9‚860 Salaries Payable 2‚750 Rent Payable 1‚750 Unearned Sales Revenues 2‚175 1‚150 Unearned Rent Revenues 2‚100 525 J. Hanson‚ Capital 18‚395 18‚395 Sales Revenues 48‚800 50‚975 Rent Revenues 1‚575 3‚150 Salaries Expense 20‚400 23‚150 Office Supplies Expense 1‚875 Rent Expense 15‚825 17‚575 Insurance Expense 0
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Task 1 1. A roll forward is an important test in relation to year-end balance of gross PPE. It is necessary for the auditor to have assurance about the amount on the year-end 2011 balance sheet. However‚ a majority of the dollar amounts on the balance sheet should have been tested in the previous year. Roll forward allows the auditor to asses any activity since the last recording on the balance sheet. The mathematical accuracy is crucial because if the numbers are off‚ the auditor could be tested
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