Ocean Carriers Project Analysis Introduction Ocean Carriers receives a lease for a ship over three years starting in 2003. However‚ the company currently does not hold qualified ships that can meet customers’ demand. Our report is not only to assist Ms. Linn to decide whether or not to purchase a new ship but also give a reasonable suggestion on how long to hold on the ship regarding the NPV and long term prospective of dry bulk industry. Upon business operating in U.S or H.K‚ we consider four scenarios
Premium Supply and demand Depreciation
supplies expense………………………. | 1‚200 | | Utilities expense………………………………. | 850 | | Malpractice insurance expense……………….. | 6‚000 | | Office rent expense…………………………… | 24‚000 | | Continuing education expense………………... | 2‚650 | | Depreciation expense: fixtures………………... | 4‚500 | | Miscellaneous expense………………………... | 6‚000 | | Income taxes expense…………………………. | 29‚400 | 170‚400 | Net income………………………………………. | | $ 54‚600 | The firm’s statement of retained earnings indicates
Premium Generally Accepted Accounting Principles Revenue Accounts receivable
Accountancy Department College of Business and Accountancy Notre Dame University Cotabato City‚ Philippines CPA – MOCK BOARD EXAMINATION AUDITING PROBLEMS MR. RONALD GERMO MAMARIL INSTRUCTION: Select the correct answer for each of the following questions. Mark only one answer for each item by shading the box corresponding to the letter of your choice on the sheet provided. STRICLY NO ERASURES ALLOWED. Use pencil no. 1 only. CASE 1: STOCK INVESTMENT IN SAN
Premium Generally Accepted Accounting Principles 1920 Balance sheet
and a residual value of $40‚000 was purchased for $120‚000. What is the depreciation expense for year 2 under the double-declining-balance method of depreciation? 2. As a recent graduate of State University you ’re aware that IFRS requires component depreciation for plant assets. A friend has asked you to succinctly explain what component depreciation means. Which of the following correctly describes component depreciation? 3. Given the following account balances at year end‚ compute the total
Premium Depreciation Generally Accepted Accounting Principles Balance sheet
fixed assets should be capitalized when they are ready for use‚ which means when its physical completion is complete. FRS 15 deals with three issues regarding tangible fixed assets: • their initial measurement; • their revaluation; • their depreciation. A tangible fixed asset should initially be measured at cost. FRS permits a choice as to whether tangible fixed assets are stated at cost or at revalued amount. However‚ where an enterprise chooses to adopt a policy of revaluing some assets‚ all
Premium Balance sheet Asset Generally Accepted Accounting Principles
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
Premium Balance sheet Depreciation Expense
Chapter 3: Financial Statements‚ Cash Flow‚ and Taxes This chapter has a lot of definitions. They are important‚ but we don’t like to make students memorize too many of them early in the course. We let our students use a formula sheet that includes the key definitions. Note that there is an overlap between the T/F and multiple-choice questions‚ as some of the T/F statements are used in multiple-choice questions. Multiple Choice: True/False 1. The annual report contains four basic financial statements:
Premium Tax Depreciation Balance sheet
Financial Statement: A Summary report which quantitatively describes the financial health of a company Purpose of financial Statement: The objective of financial statements is to provide information about the financial position‚ performance and changes in financial position of an enterprise to the shareholders and lenders. it is useful to a wide range of users in making economic decisions. Components of Financial Statement: Profit & Loss Statement / Income Statement Retained earnings
Premium Generally Accepted Accounting Principles Depreciation Balance sheet
additional burden costs‚ which also varied from part to part. High-technology components were tested using more automated test equipment. These tests took longer‚ but did not require as many hours of direct labor. The test equipment also had a higher depreciation expense. It is common for a cost system to become obsolete when the process experiences increased automation. In these situations parts being tested through automation are not charged enough overhead while other‚ more labor intensive tests are
Premium Depreciation Cost Price
Each old PC sold was Rs 1000 and each new PC was bought for Rs 2000. The PCs were sold for cash and were purchased for cash. Owing to this transaction‚ how much should Charlie Corporation’s Fixed Asset account change for this year? You may ignore depreciation. Answer :
Premium Generally Accepted Accounting Principles Expense Depreciation