INVENTORY – PERIODIC INVENTORY SYSTEM In a Periodic Inventory System‚ no effort is made to keep up – to – date records of either the inventory or the cost of goods sold. Instead‚ these amounts are determined only periodically __ usually at the end of each year. It is used by very small businesses having manual accounting systems. Questions 1 – 3 (Meigns & Meigns)‚ Question 4 (Fess & Warren) Question 1:- Mach IV Audio uses periodic inventory system. One of the
Premium Depreciation Balance sheet Inventory
COMM 217 FINANCIAL ACCOUNTING FALL 2012 Section (lecture): B Group Project Part 2 (of 2) Dorel Inc. Presented to: Prof. George Kanaan Date: November 22nd 2012 John Molson School of Business – Concordia University $ = thousands of U.S. dollars Chapter 8 8.1 Cost of Sales Equation = Beginning Inventory + Purchases - Ending Inventory 1 846 470 000 = 510 068 000 + 177 811 000 - 442 409 000 Purchases for the year 2011 total $65 812 530. 8.2 Dorel calculates costs of
Premium Balance sheet Asset Inventory
GROSS MARGIN………………………..$ 3500 Salary Expense…………………………………..$(1‚000) Rent Expense………………………………….. $(2‚000) Utilities Expense …………………………….$(200) Depreciation Expense ……………………….$(90) TOTAL EXPENSES……………………....$ (3290) Net Income: 3500 – 3290 = $ 210 BALANCE SHEET as of April‚ 30th Cash 3‚870
Premium Balance sheet Inventory Depreciation
decreases * Depreciation expense - increases * Increase in investments - decreases * Decrease in accounts payable - decrease * Decrease in prepaid expenses - increases * Increase in inventory - decreases * Dividend payment - decreases * Increase in accrued expenses - decreases The Rogers Corporation has a gross profit of $880‚000 and $360‚000 in depreciation expenses. The Evans Corporation also has $880‚000 in gross profit‚ with $60‚000 in depreciation expense
Premium Generally Accepted Accounting Principles Cash flow statement Depreciation
Bethesda Mining In order to decide whether our company should undertake the project‚ we should refer to the project’s NPV and IRR. NPV indicates the possible profit (net cash flow) which the project will yield in future‚ a positive NPV suggests that company can earn profit from the investment and vice versa. IRR is the discounted rate which makes the NPV of all cash flows equal to zero‚ the greater the amount it exceeds the cost of capital (required rate of return)‚ the higher the net cash flow
Premium Generally Accepted Accounting Principles Depreciation
Harnischfeger Corp case study 1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements. Note 2 (pg. 17) states that in 1984 Harnischfeger changed their depreciation method that was being used to expense their plants‚ machinery and equipment from the direct method to the straight-line method for financial reporting purposes. An adjustment of the residual values on certain machinery and equipment was made. Harnischfeger also included
Premium Depreciation Pension Revenue
Accounting 211 Study Guide for Final Exam Chapters 7 – 12 Chapter 7: 1. Terminology Accounting information system People‚ records‚ and methods that collect and process data from transactions and events‚ organize them in useful forms‚ and communicate results to decision makers Accounts payable ledger Subsidiary ledger listing individual creditor (supplier) accounts Accounts receivable ledger Subsidiary ledger listing individual customer accounts. Batch processing
Premium Depreciation Generally Accepted Accounting Principles Balance sheet
The journal entry to record its purchase on January 1‚ 2008. (2) The journal entry to record annual depreciation at December 31‚ 2008‚ assuming the straight-line method of depreciation is used. (b) Calculate the amount of depreciation expense that Arlo should record for machine B each year of its useful life under the following assumption. (1) Arlo uses the straight-line method of depreciation. (2) Arlo uses the declining-balance method.The rate used is twice the straight-line rate. (3) Arlo
Premium Depreciation Stock 1966
-Simple Interest *Michael borrowed P30‚000 from bank savings. He was charged 12% simple interest and he paid it within 10 months. How much was the interest paid? -Rate *You invested P500 and received P650 after three years. What had been the interest rate -Principal *How much principal should you invest at 4% in order to have P3‚000 for a vacation to Europe in 3 years? -Final Amount *Find the final amount of the investment. P10‚000 invested at 6% compounded quarterly for 5 1/2 years
Premium Investment Depreciation Finance
........................................................... 200‚000 Interest expense...................................................................... 30‚000 Selling and administrative expense........................................ 40‚000 Depreciation expense............................................................. 20‚000 Preferred stock dividends....................................................... 80‚000 Taxes..........................................................................
Premium Generally Accepted Accounting Principles Stock market Depreciation