for $5‚000‚ paying $1‚000 in cash and the balance of $4‚000 on account. 3. Paid $750 in cash for supplies. 4. Earned $9‚500 in revenue‚ receiving $4‚100 in cash and $5‚400 on A/R. 5. Paid $1‚500 in cash on accounts Payable. 6. Paid $2‚000 in cash dividends to stockholders. 7. Paid $800 in cash as expenses (rent). 8. Earned $450 in cash from consumers on account. 9. Paid $3‚000 as salaries. 10. Incurred $300 of utilities expense on account. (b) Service Revenue 9‚500 Dividends -2‚000 Rent Expense -800
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development plays a major role in the acquisition and payment cycle. The major accounts that are associated with the acquisition and payment cycle are‚ accounts payable‚ inventory‚ and expenses. The methodology for designing tests for phase 1 – 3 of the process includes; identification of client risks affecting other accounts‚ setting tolerable misstatements‚ assessing inherent risk for accounts‚ and assessing control risks for accounts. Business functions included in the acquisition and payment cycle includes:
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Changes Coming for Accounts Payable in 2015 [New Corcentric Webinar] (1888 PressRelease) Corcentric’s latest Webinar details the big 2015 trends that will impact AP departments for the foreseeable future. McLean‚ VA - Corcentric‚ a leading provider of accounts payable automation and electronic invoicing software‚ announced that it will host a new Accounts Payable Webinar‚ "AP Trends for 2015: Are You Ready?" on Wednesday‚ November 19‚ 2014 at 2:00 PM ET/11:00 AM PT. The accounts payable landscape is
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time cash balances have decreased. Accounts receivable and inventory have increased in this same time span‚ as well. Cash has decreased from $120.1 to $9.4‚ a decline of 92% (120.1 – 9.4 / 120.1) over the four year time span. The Accounts Receivable‚ during this same time‚ went from $90.6 in 2002 to $146.4 in 2005‚ an increase of 62% (90.6 – 146.4 / 90.6). Likewise‚ inventory has increased from $468.3 to $656.9‚ an increase of 40% (468.3 – 656.9 / 468.3). For accounts receivable (increase of 62%)‚ inventory
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performed accurately and on-time and set a reminder schedule for regular transactions. Display and alerts user on the due date of the recurring transactions .Access past transactions and create new transactions from the Bank Register Reconcile bank accounts as of a past date. Undo previous month’s bank reconciliation when reconciled in error. Enter interest earned and service fees from the Bank Reconciliation screen. Drill down from Bank Reconcile screen to original transactions .Enter bank statement
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shareholdings. Share issues can be fully payable on application or in instalments. When a company issues a prospectus‚ there is no accounting treatment. Accounting treatment occurs when applications are received. When applications are received‚ two accounts are introduced. Cash Trust and Application. The cash trust account is where the application money goes into when applications are received. It is put in a cash trust account rather than a cash account because the company does not legally own
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Date Account Debited Invoice No. Ref. Accounts Receivable Dr. Sales Cr. Cost of Sales Dr. Inventory Cr. Purchases Journal P1 Date Account Credited Terms Ref. Inventory Dr. Accounts Payable Cr. Cash Receipts Journal CR1 Date Account Credited Ref. Cash Dr. Sales Disc’ Dr. Accounts Receivable
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XXX c. Purchased equipment on account. Equipment XXX Accounts Payable XXX d. Purchased equipment for cash. Equipment XXX Cash XXX e. Purchased supplies on account. Supplies XXX Accounts Payable XXX f. Purchased supplies for cash. Supplies XXX Cash XXX g. Rendered services on account. Accounts receivable XXX Service Income XXX h. Rendered services for cash. Cash XXX Service Income XXX i. Billed the Customer for service rendered. Accounts receivable XXX Service Income
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result in account receivable is low. Number 2 is computer software development. Because there is no inventory‚ meanwhile computer software development need put lots of effort to R&D. Airline is number 3. Inventory is a small amount. But because of the nature and cost of airplanes‚ the ROE and financial leverage is remarkable. Railroad is number 4. Railroad is a long-term project‚ and need to borrow massive amount of capital. I see it from high percentage of account receivable‚ account payable‚ at the
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$48‚000 $66‚000 Δ Bad debt expense (on incremental sales only) Policy one 1.75% ($800‚000) (14‚000) New policy 2.0% ($1‚100‚000) (22‚000) Δ Investment in accounts receivable (incremental sales only) Policy one $800‚000 × 50/365 = $109‚589 Policy two $1‚100‚000 x 65/365 = $195‚890 Δ Opportunity benefit on investment in accounts receivable at 16% Policy one: $109‚589 × 16% = (17‚534) Policy two: $195‚840 × 16% = (31‚342) Total incremental change $ 16‚466 $ 12‚658
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