Sunset Boards. Sunset Boards is a small company that manufactures and sells surfboards in Malibu. Tad Marks‚ the founder of the company‚ is in charge of the design and sale of the surfboards‚ but his background is in surfing‚ not business. As a result‚ the company’s financial records are not well maintained. The initial investment in Sunset Boards was provided by Tad and his friends and family. Because the initial investment was relatively small‚ and the company has made surfboards only for
Premium Generally Accepted Accounting Principles Balance sheet Income statement
the preceding information‚ what will be the balance in the investment account on Dec 31‚ 2007? A. $150‚000 B. $157‚500 C. $154‚500 D. $153‚500 3. Based on the preceding information‚ what amount of investment income will be reported by Rotor for the year 2007? A. $6‚500 B. $7‚500 C. $7‚000 D. $25‚000 4. Based on the preceding information‚ what amount will Rotor report as the balance in the investment account on Dec 31‚ 2008? A. $150‚000 B. $157‚500 C. $153‚400 D. $153‚500
Premium Generally Accepted Accounting Principles Balance sheet Asset
(10 min.) E 1-23 Req. 1 The owner’s equity increased during the year by $4‚000. Beginning owner’s equity: $19‚000 – $9‚000 = $10‚000 Ending owner’s equity : $27‚000 – $13‚000 = $14‚000 Change in owner’s equity: $14‚000 – $10‚000 = $4‚000 Req. 2 Owner’s equity can change three ways: Owner’s equity can increase through: Owner contributions and/or Net income Owner’s equity can decrease through:
Premium Generally Accepted Accounting Principles Balance sheet Liability
90/bushel. The cost of sales was calculated by multiplying these 180‚000 bushels by a total production cost per bushel of $0.531. In the balance sheet‚ inventory is made up of 30‚000 bushels stored at the farm at a current price of $3.07. The accounts receivable balance includes the 20‚000 bushels awaiting collection at a price of $2.90 per bushel. Grennell Farm Income Statement (Collection Method) ------------------------------------------------- Year Ending December 31‚ 2009 Sales Revenue
Premium Generally Accepted Accounting Principles Balance sheet Asset
stockholders’ equity. ANS: Q. Rights to receive money from customers are a. liabilities. b. prepaid expenses. c. accounts receivable. d. accounts payable. ANS: Q. Which of the following is considered an asset? a. Accounts payable b. Prepaid expense c. Bad debt d. Stockholders’ equity ANS: Compiled by Manek. 2011. P age |1 ACCY111 / SAMPLE TEST PAPER Q & A Q. The role of accounting in business is best defined as a. an information system that provides reports to stakeholders about the economic
Premium Generally Accepted Accounting Principles Balance sheet
building was $30 million and its tax basis was $20 million. At December 31‚ 2013‚ the carrying value of the building was $28 million and its tax basis was $13 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2013 was $45 million.On January 1‚ 2010‚ Ameen Company purchased a building for $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31‚ 2012‚ the carrying
Premium Generally Accepted Accounting Principles Depreciation Finance
issues raised by the transformation from U.S. Generally Accepted Accounting Principles (US GAAP) to International Financial Reporting Standards (IFRS) in the timber industry. I will cover the following topics: different accounting treatment under U.S. GAAP and IFRS‚ the influence on investment decisions‚ Plum Creek’s reason for the opposition against transformation‚ and conclude with my preferred accounting treatment under different roles. ACCOUNTING TREATMENT The concern is mainly on recognition
Premium Generally Accepted Accounting Principles Financial statements Balance sheet
Balance | December 31‚2009 | Cash | $45‚000 | | Marketable securities | $25‚000 | | Accounts receivable | $125‚000 | | Allowance for doubtful accounts | | $5‚000 | Merchandise inventory | $250‚000 | | Office Supplies | $1‚200 | | Prepaid insurance | $6‚600 | | Building and fixtures | $1‚791‚000 | | Accumulated depreciation | | $800‚000 | Land | $64‚800 | | Accounts payable | | $70‚000 | Unearned customer deposits | | $8‚000 | Income taxes payable |
Premium Generally Accepted Accounting Principles Balance sheet
organization had the following account balances: [pic] .:. The following took place during 2012: 1. Additional supplies were purchased on account in the amount of $15‚000. 2. Unconditional (and unrestricted) pledges of support were received totaling $95‚000. In light of a declining economy‚ 5 percent is expected to be uncollectible. The remainder is expected to be collected in 2012. 3. Supplies used for animal care amounted to $16‚700. 4. Payments made on accounts payable amounted to $18‚200
Premium Generally Accepted Accounting Principles Asset Depreciation
see the balance sheets of my company. He has left behind a book with the numbers already entered in it. Would you be willing to prepare balance sheets for me? Also‚ any comments you care to make about the numbers would be appreciated. The Cash account is healthy‚ which is a good sign‚ and he told me that the Net income for the month of June was $19‚635. The book contained a detailed record of transactions‚ and from it the friend was able to copy off the balances at the beginning of the month
Premium Generally Accepted Accounting Principles Accounts receivable