7 8 8 8 9 01-7-08 01-7-08 01-7-08 01-7-08 01-7-08 01-7-08 During 08 During 08 During 08 During 08 During 08 Dr cash cash Prepaid rent Equipment(bookshelve) Equipment(Computer) Security desposit inventory account receivable cash cost Goods solds account payable cash employee compensation account payable cash interest expense rent expense depreiation depreiation income tax expense Dr-Amount Categ.1 25‚000 c.asset 30‚000 c.asset 20‚000 c.asset 4‚000 n.asset 10‚000 n.asset 8‚000 c.asset 160‚000 c.asset
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partner in the firm Sears and Roebucks. Fred’s investment in the partnership consists of P12‚000 in cash‚ and the following assets of the proprietorship: accounts receivable P14‚000 less allowance for doubtful accounts of P2‚000‚ and equipment P20‚000 less accumulated depreciation of P4‚000. It is agreed that the allowance for doubtful accounts should be P3‚000 for the partnership. The fair market value of the equipment is P17‚500. Instructions: Journalize Fred’s admission to the company Sears and
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events and transactions occurred during April. April 1 Stockholders invested $40‚000 cash in the business in exchange for common stock. 4 Purchased land costing $30‚000 for cash. 8 Incurred advertising expense of $1‚800 on account. 11 Paid salaries to employee $1‚500. 12 Hired park manager at a salary of $4‚000 per month‚ effective May 1. 13 Paid $1‚500 cash for a one –year insurance policy. 17 Declared and paid a $1‚000 cash dividend
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the inventory by $9‚400 and Accounts payables by $9‚400 6. Inventory costing $4‚500 was sold for $7‚200 on credit. This will increase revenue and Accounts Receivables by 7‚200 7. $3‚500 in cash was received for merchandise sold on credit. Accounts receivables reduced by 3‚500 and cash increased by 3‚500 8. Dividends of $3‚000 were declared. Accounts payables will increase by 3‚000 9. The declared dividends of $3‚000 were paid. Cash will decrease by $3‚000 and account payables will decrease by
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DAMARK PACKAGING INC: WRAPPING UP MEXICO Instructions: Prepare answers to the following questions. The case midterm will be two of these questions plus one on the case not listed below. QUESTIONS: 1. Size up Damark’s operations in Canada‚ the United States and Mexico. Assess the strengths and sustainability of its activities in each market. Canada Highest Margin Largest Potential Market for our machines Best A/R management Best Inventory Management THESE ALL ALIGN WITH OUR SUCCESS FACTORS MANAGEMENT
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Current Position Jones Electrical Distribution (hereinafter Jones Electric) is currently facing an issue with cash flows‚ which will ultimately affect the overall profitability and growth potential for the company. The owner‚ Nelson Jones‚ is diligent in paying his suppliers within ten days in order to capitalize on a two percent early pay discount‚ but in doing so‚ has over-extended cash flows. Though the company has been profitable and growing over the past three years‚ its current lender‚ Metropolitan
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Dell’s Working Capital Substantive Issues Dell manufactures‚ sells‚ and services personal computers. The company markets directly to its customers and builds computers after receiving a customer order. This build-to-order model enables Dell to have much smaller investments in working capital than its competitors. It also enables Dell to enjoy more fully the benefits of reductions in component prices and to introduce new products more rapidly. Dell has grown quickly and has been able to finance
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b. Inspection of document/records ii. Cutoff; make sure sales are recorded in proper period. c. Agreeing the total of the accounts receivable subsidiary ledger to the accounts receivable general ledger account. c. Reperformance-does total agree? iii. completeness d. Discussing the adequacy of the allowance for doubtful accounts with the credit manager. d. Inquiry iv. Valuation and allocation e. Comparing the current-year gross profit percentage
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Assessment 1. Written Assessment 1. Give an example of daily financial records that you could have to maintain? Update your accounts receivable and accounts payable daily on your accounting computer using the software provided or modifies to suit the organisational particular needs. 2. What are the requirements regarding identifying and rectifying errors in documentation? - Using the right accounting method: cash and accrual - Using professional bookkeeping method: hiring specialist‚ qualified
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Cash Flow from Operating Activities Net cash provided by operating activities was Rs. 14‚455.5 million in the nine-month period of fiscal 2004. During this period there was a decrease in accounts receivable of Rs. 2‚911.5 million‚ and prepaid expenses and other current assets of the TCS Division increased by Rs. 1‚781.5 million during this period. Unbilled revenues increased by Rs. 1‚428.94 million. Net cash provided by operating activities was Rs. 8‚774.8 million and Rs. 12‚605.5 million in
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