Accruals and Prepayments of Income Revision 1) You work as an accounts assistant for Snazzy Magazine‚ a subscription only publication in South Wales. You have been given the following information relating to the year to 31st December 2010: Subscriptions paid into the bank account of Snazzy Magazine during 2010 - £4‚800. This figure includes subscriptions of £1‚200 for 2011. You are to provide the T account which clearly shows the amount transferred to the Income Statement and the balance
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the most recent fiscal year‚ November 30‚ 2011‚ the accounting records reflected total assets of $500‚000 and total liabilities of $200‚000. During the current fiscal year ending November 30‚ 2012‚ the following summarized events occurred: a. Issued additional common shares for $200‚000. b. Borrowed $120‚000 cash from the bank and signed a 10-year promissory note. c. Built an addition on the factory for $200‚000 and paid cash to the contractor. d. Purchased equipment for
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statement reporting and MACRS for income tax reporting. At December 31‚ 2012‚ the carrying value of the 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
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The accruals and going concern concepts are regarded as fundamental in the preparation of financial statements. Discuss the advantages and disadvantages of these concepts‚ explaining the reasons why these concepts may be difficult to apply or may be inconsistent with other concepts. Accounting statement and records are a periodic summary of account activity within a period and the documentations involved in the preparation of it (Thomas and Ward‚ 2012: 4). They are done based on a set of rules developed
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Cash and Cash Equivalents Cash This includes money and other negotiable instrument that is payable in money and acceptable by the bank for deposit and immediate credit. Examples are bills and coins‚ checks‚ bank drafts and money orders. To be included or considered as cash‚ it must be unrestricted as to use‚ meaning‚ it must be readily available for use or payment of current obligations‚ thus‚ not subject to contractual or legal restrictions. The following items are included in “cash”:
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The Usefulness of Accounting Estimates for Predicting Cash Flows and Earnings Baruch Lev* New York University Siyi Li University of Illinois Theodore Sougiannis University of Illinois and ALBA January‚ 2009 * Contact information: Baruch Lev (blev@stern.nyu.edu)‚ Stern School of Business‚ New York University‚ New York‚ NY 10012. The authors are indebted to the editor and reviewers of the Review of Accounting Studies for suggestions and guidance‚ and to Louis Chan‚ Ilia Dichev‚ John Hand
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the balance sheet I did) In going over the numbers‚ she remarked‚ "it’s sort of surprising that cash increased by $31677‚ but net income was only $19635. Why was that? Her friend replied‚ "A partial answer to that question is to look at an income statement for June. I think I can find the data I need to prepare one for you." In addition to the data given in the case‚ her friend found a record of cash reciepts and disbursements‚ which is summarized in Exhibit 1. She also learned that all accounts
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Adjustment for Accruals and Prepayment Adjustment to final accounts are usually made at the end of a financial year Adjustments for accruals and prepayments are based on the accrual concept. The Accrual Concept • The Accrual concept states that income and expenditure should be recorded in the period in which they are incurred and not when they are actually received or paid Accrued Expenses • Accrued expenses are those that are not paid in the accounting period in which they are due (incurred)
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Discuss the issues surrounding accounting treatment for assets and liabilities under the accrual accounting for the government of Malaysia. There are a lot of issues relating accounting treatment for assets and liabilities under accrual accounting for the government of Malaysia. This essay will separate the issues regarding assets and liabilities in different paragraphs. Issues relating accounting treatment of assets One of the issue is that there are several assets that does not exist in private
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2.4.3 CASH 2.4.3.1 POLICY 1. The amount of cash kept in the office must be kept to a minimum to reduce the risk of fraud or theft. This amount should be determined by the PO or CO Head of Finance on the basis of regular cash requirements. An imprest petty cash system should be implemente (see Annex 2.4.03 Petty Cash Book template‚ and below Guidelines). 2. The maximum imprest for a petty cash fund should not exceed the equivalent of CHF 2‚000. The PO Representative or Country
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