Difference between historical cost and fair value accounting In order to make the most profitable and rational decisions entity’s stakeholders have to evaluate organisation’s financial statements. Today’s world of rapidly changing prices has made it difficult to estimate what something is actually worth. Thus leading to debates at what price – historical costing price or market value – assets and liabilities should be reported. Therefore‚ before making any evaluations about reported transactions
Premium Balance sheet Generally Accepted Accounting Principles Asset
2ACCT 455 CHAPTER 2 Solutions 2. Suppose that P.V. Ltd. paid a dividend of $10 at the end of year 1 (any portion of year 1 net income would do). Then‚ its year 2 opening net assets are $276.36‚ and net income would be: P.V. Ltd. Income Statement For Year 2 Accretion of discount (10% × 276.36) P.V.’s balance sheet at time 2 would be: P.V. Ltd. Balance Sheet As at Time 2 $27.64 Financial Asset Cash: (140 + 14 + 150) $304.00 Shareholders’ Equity Opening Balance: 276.36 (286.36 - 10.00 dividend)
Premium Balance sheet Generally Accepted Accounting Principles Asset
to bonds payable on balance sheet. Income bonds payableClassify as long-term liability on balance sheet. EXERCISE 14-3 (15-20 minutes) 1.Paul Simon Company(a)1/1/04Cash 200‚000 Bonds Payable 200‚000(b)7/1/04Bond Interest Expense 4‚500 (200‚000 X 9 X 3/12) Cash 4‚500(c)12/31/04Bond Interest Expense 4‚500 Interest Payable 4‚500 2.Graceland Company(a)6/1/04Cash 105‚000 Bonds Payable 100‚000 Bond Interest Expense 5‚000 (100‚000 X 12 X 5/12)(b)7/1/04Bond Interest Expense 6‚000 Cash 6‚000 (100
Premium Bond Generally Accepted Accounting Principles Discounted cash flow
1. Conversion cost is the sum of direct labor cost and direct materials cost. F 2. Depreciation on office equipment would be included in product costs. F 3. When the predetermined overhead rate is based on direct labor-hours‚ the amount of overhead applied to a job is proportional to the estimated amount of direct labor-hours for the job. F 4. Indirect materials are charged to specific jobs. F 5. When a job is completed‚ the goods are transferred from the production department to the finished goods
Premium Variable cost Costs Fixed cost
Technology integration solution for Bidco Oil Company in Kenya Microsoft SharePoint Portal Server 2003 Customer Solution Case Study Oil Manufacturer Enhances Productivity Through Portal Integration and Collaboration Overview Country or Region: Kenya Industry: Manufacturing Customer Profile Bidco Oil Refineries Ltd headquartered in Thika Kenya is the largest manufacturer and distributor of high-quality edible oils fats margarine soaps and detergents in the East and southern African regions. Business
Premium Microsoft SharePoint Microsoft Office
June 11‚ 2013 ACC 557 Dr. Malone Assignment #3 BP began as the Anglo Persian Oil Company in the early 1900’s. The company was founded and financed by Mr. D’Arcy of London and the Burmah Oil Company. The oil excavation in Persia took many tumultuous years‚ with set back after set back that almost led Mr. D’Arcy to financial ruin “But vindication was in the air. By the early morning of 26 May 1908‚ the whole camp reeked of sulphur. At four o’clock the drill reached 1‚180 feet and a fountain of
Premium
Cost management | Wilkerson Company Case | | 1. What is the competitive situation faced by Wilkerson? The competitive situation faced by Wilkerson is quite severe. Price cutting in its main product has led to a huge drop in profit. While price increase in another product line partially made up the loss. We will discuss the detailed situation line by line. (1) Valves It was the first product line developed by Wilkerson and its high quality brought it a loyal customer base. Even
Premium Variable cost Costs Cost accounting
ILLUSTRATION QUESTION 1 ABC Bhd uses material X which obtain from an outside supplier. Each delivery of material X consists of 30‚000 kg at a cost of RM5 per kg. The cost of ordering is RM10 per order. The lead time for delivery can vary between 12 and 18 days and the rate of usage of material X also varies between 320 and 480 kg per day. Stockholding cost amount to 9% per annum of the average stockholding value. Required: Calculate the following: |Re-order level in kg
Premium Costs
operating units of Polysar Limited. The primary users of its products‚ such as butyl and halobutyl‚ are manufacturers of automobile tires; other users are from various industries. In 1986‚ Rubber group contributed 0.8 billion which is 46 percent of the company annual sale. The operation of the group is divided into four divisions‚ NASA (North America and South America) and EROW (Europe and rest of the world)‚ Research department and Global Marketing department. NASA and EROW operate as profit centers each
Premium Costs Variable cost Total cost
Chapter 6. Master Budget and Responsibility Accounting 6-16 1. Total revenues $5‚623‚500 2. Total revenues $5‚631‚100 6-17 210‚000 6-18 2‚530‚000 6-19 Prod budget–FG 47‚000 units Pur budget–DM 131‚000 gallons 6-20 1. $3‚000‚000 2. 4‚500‚000 units 3. 100‚000 4-gallon units 6-21 1. Wool: 3‚000‚000 skeins; $6‚017‚450 Dye: 50‚000 gal; $249‚850 2. Weaving: $3.3664/DMLH Dyeing: $28.4644/MH 3. $1‚219.11 4a. $200‚000‚000 4b. $190‚000‚000 5a. $121‚928‚300
Premium Budget Trigraph Inventory