Useful life = ($35‚000‚000 ̶ $5‚000‚000) / 5 years = $6‚000‚000 per year b. Depreciation per unit = (Cost – Residual value) / Useful life in units = ($35‚000‚000 ̶ $5‚000‚000) / 6‚000‚000 miles = $5 per mile Units-of-production = Depreciation per unit × Current year usage = $5 per mile × 1‚000‚000 miles = $5‚000‚000 for year 1 c. Double-declining-balance = (Cost – Accumulated depreciation) × 2 × (1 / Useful life) = ($35‚000‚000 ̶ $0) × 2 × (1/ 5 years) = $14‚000‚000
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Chapter 20 Accounting Changes and Error Corrections True / False Questions 1. Most‚ but not all‚ changes in accounting principle are reported using the retrospective approach. True False 2. Prior years’ financial statements are restated when the prospective approach is used. True False 3. The after-tax cumulative effect on income is no longer required for changes in accounting principles. True False 4. Most changes in accounting principle require
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Lecture 1 – Corporate Financial Reporting and Revision LECTURE OUTLINE Outline the nature and characteristics of companies Describe the sources of corporate financial reporting in Australia Identify which entities need to prepare financial reports that comply with accounting standards Account for share issues and dividends Account for asset revaluations and asset impairment Nature of Companies Type of organization established under the cooperation’s act 2001 Legal capacity and powers
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1. Construct a balance sheet for Sophie’s Sofas given the following data. (Be sure to list the assets andliabilities in order of their liquidity.) | Cash balances | = | $ | 8‚000 | Inventory of sofas | = | $ | 180‚000 | Store and property | = | $ | 80‚000 | Accounts receivable | = | $ | 20‚000 | Accounts payable | = | $ | 15‚000 | Long-term debt | = | $ | 150‚000 | | BALANCE SHEET OF SOPHIE’S SOFAS | Assets | | Liabilities & Shareholders’ Equity | | Cash | $ |
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following balance sheet items (A) assets‚ (L) liabilities‚ or (E) stockholders’ equity? A: Assests Liabilities Stockholder’s equity: c: Investments in stock d: Cash e: Land f: Inventory h: Marketable securities i: Patents m: Taxes payable p: Prepaid expenses q: Goodwill r: Tools s: Buildings a: Cash dividends payable b: Mortgage notes payable g: Unearned rent n: Account payable. o: Organizational costs j: Capital stock k: Retained earnings. l: Accounts receivable 3-4: Usually current assets are listed
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amounted to $18‚200. 5. Cash collected from pledges totaled $91‚000. 6. Salaries were paid in the amount of $47‚000. Included in this amount is the accrued wages payable at the end of 2011. (The portion of wages expense attributable to administrative expense is $15‚000 and fund-raising expense is $2‚000. The remainder is for animal care.) 7. Jefferson Animal Rescue entered an agreement with KDAC‚ Channel 7 News‚ to find more homes for shelter pets. This special adoption program highlights a shelter
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PRINCIPLES OF ACCOUNTING(POA)/ACCOUNTING FOR MANAGERS(AFM) Basic Accounting Concepts & Terminologies ACCOUNTING- DEFINITION Accounting means the various technical activities performed by accountants‚ including financial accounting‚ bookkeeping and management accounting. Accounting is considered to be as old as money. However in 1494 Lucas Fra Pacoili‚ an Italian Merchant is universally regarded as the father of modern system of accounting or double entry system of accounting. Accounting has
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of a business as a whole over the fair value of all net identifiable assets. | | Recorded when created internally through advertising expense. | Which of the following is considered a "contra" account? | Unearned Revenue. | | Goodwill. | | Accumulated Depreciation. | | Costs of Good Sold. | Using the straight-line method‚ depreciation expense for 2012 would be: | $12‚000. | | $11‚000. | | $60‚000. | | None of the other answers are correct. | Using the straight-line
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|11‚000 | |Depreciation on factory building | | |1‚500 | | |Depreciation on office equipment | | | |800 | |Insurance on factory building | | |1‚500 | | |Miscellaneous expenses—factory
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Total (Rs.) A. Direct Materials Consumed : Purchases .............. Add : Opening Stock of Raw material .............. Expenses on Purchases .............. Less : Closing Stock of Raw Material .............. Direct Material consumed .............. .............. B. Direct Labour (Wages) .............. C. Direct Expenses .............. D. Prime Cost (A + B + C) .............. E. Factory/Works Overheads • Indirect materials‚ bolts‚ nuts‚ screws‚ thread
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