this were the case how much would net income have been in 1997 and 1998? What would be the percentage increase in net income from 1997 t0 1998? Compare that to the actual reporting change in net income from 1997 to 1998 Year 1995 1996 1997 1998 Revenue 6075 9050 11936 15262 Reported R&D 860 1326 1863 2601 Adjusted R&D 860*40%=344 1326*40%=530.4 1863*40%=745.2 2601*40%=1040.4 R&D Capitalized 860-344=516 1326-530.4=795.6 1863-745.2=1117.8 2601-1040.4=1560.6 Reported NI 1453 2195 3454 4490 Adjusted
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started her business by investing $30‚000 in cash. This transaction would have what effect on the accounting equation? The financial statement that should be completed first is the Liability‚ owner’s capital‚ and revenue accounts normally have what type of balance? A chronological record of financial transactions expressed as debits and credits to accounts is provided by which record If the book value of an asset is $12‚500 and
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|ADJUSTMENT FOR ACCRUALS AND PREPAYMENTS | |Learning outcome | |Explain the foundations of accruals and prepayments‚ including the nature of the resulting change in the income statement. | |Show the entries for accruals and prepayments in the journal‚ ledger and final accounts.
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Key Formulas SEE Articulation- Pg. 16 Income= Revenues - Expenses Assets = Liabilities + Equity Gross Profit = Sales Revenue- COGS Pg. 12 Assets (Listed in order of solvency) Cash………………………………………………………………..$1‚955 Non-Cash………………………………………………………..13‚043 Total Assets….....................................................$14998 Current yr net income % Return on = Net Income = [(Prev. yr S/E + Current yr. S/)/2] Equity (ROE) Average S/E Pg. 21 Beginning retained Earnings + Net Income
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– Matching: Match the Resource Flow with the Type of Revenue Listed below in the left column are some events that may or may not be revenues for the General Fund. Listed in the right column are the classifications of revenues for governmental funds. Correctly match each event with the appropriate revenue classification. Unless specifically stated otherwise‚ assume all amounts are earned‚ measurable‚ and available. If the event is not a revenue‚ state how the event would be reported in the current
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Identification: o The main issue is when to recognize the revenue with respect to the new subscriptions‚ keeping in mind the incentive of management to present the financial statements in the best possible light to facilitate the loan from the bank. o The bank is the user of the financial statements and will likely want statements prepared in accordance with GAAP or IFRS‚ as they are more reliable and relevant.
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Stockholders Equity $34‚800 c) The Grays actual net income for March is: Net income = $ 25‚000 + 18‚900 +(1‚000 -8‚000 - 800 - 1‚000 - 750 -400 -100) = $ 43‚900 – 10‚050 = $ 33‚850 d) The revenue earned in March was $8‚850. ($18‚900 - $10‚050) Total revenue earned from customers – total expenses for March. Assets Liabilities Stockholders’
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PROBLEM 1-3B (a)Special Delivery Income Statement For the Month Ended May 31‚ 2012 Revenues Service revenue$10‚400 Expenses Salaries and wages expense$2‚000 Maintenance and repairs expense 2‚900 Advertising expense 800 Insurance expense 400 Total expenses 6‚100 Net income$4‚300 Special Delivery Retained Earnings Statement For the Month Ended May 31‚ 2012 Retained earnings‚ May 1$ 0 Add: ADVANCE \r 1 Net income 4‚300 4‚300 Less: Dividends 1‚700 Retained earnings
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CASE STUDY 1 -THE COMPLETE ACCOUNTING CYCLE The Entire Case Study is due Sunday at Midnight Mountain time at the end of Week 3. This Case Study is worth 100 points or 10% of your final course grade. This Case Study relates to TCO’s D and E and Chapters 3 and 4. MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW. There are 10 Sheets in the Workbook including this one. All of the Information you need for the Project is located in this Workbook. Requirements Requirement 1 - Prepare
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stockholders b. Recorded at the declaration date c. Dividends in arrears are not recorded as a current liability 4. Refundable Deposits 5. Unearned Revenues -cash is received prior to revenue being earned 6. Gift Cards- recorded as unearned revenue when sold Revenue is recognized when: a. Gift cards are redeemed b. When gift card usage is deemed remote 7. Sales Taxes 8. Income Taxes Payable 9. Employee-Related
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