Case 9-23 1. a. Sales budget: April May June Quarter Budgeted sales in units 35‚000 45‚000 60‚000 140‚000 Selling price per unit × $8 × $8 × $8 × $8 Total sales $280‚000 $360‚000 $480‚000 $1‚120‚000 b. Schedule of expected cash collections: February sales $ 48‚000 $ 48‚000 March sales 112‚000 $ 56‚000 168‚000 April sales 70‚000 140‚000 $ 70‚000 280‚000 May sales 90‚000 180
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Income Statement Income statements present an ordered list‚ grouped by broad categories of revenues and expenses. The income statement begins with revenues followed by a list of expenses. U.S. GAAP and IFRS requirements for the presentation of income statements are similar‚ with some important differences. *Other than separating revenues from expenses‚ U.S. GAAP provides little guidance about which items the firm must separately display or their order. IFRS requires‚ at a minimum‚ the
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Escareno Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (8‚400 units): ($) 764‚400 Variable expenses: ($) 445‚200 Contribution margin: ($) 319‚200 Fixed expenses: ($) 250‚900 Net operating income: ($) 68‚300 If the company sells 8‚200 units‚ its total contribution margin should be closest to: Merchandise with a sales price of $500 is sold on account with term 2/10‚ n/30. The journal entry to record the sale would
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Assessable income=ordinary income + statutory income. Ordinary income: income deriving from the courts (s6-5) Negative propositions: items that are not income by ordinary concepts: 1.Amounts not convertible into money :In Tennant v Smith (1892) free accommodation provided to a bank manager was held not to be ordinary income because building could not be sub-let and the benefit thereby converted to money. In FCT v Cooke & Sherden (1980) an incentive prize offered by a manufacturer was not income of the
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E4-4 (Multiple-Step and Single-Step) Two accountants for the firm of Allen and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2012 information related to Webster Company ($000 omitted). Administrative expense Officers’ salaries $4‚900 Depreciation of office furniture and equipment 3‚960 Cost of goods sold 63‚570 Rent
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Company G Comparative Income Statements December 31‚ Years 12 and 11 Year 12 #N/A #N/A #N/A Year 11 123‚708‚000 86‚409‚000 37‚299‚000 25‚827‚000 222000 2‚316‚000 28‚365‚000 #N/A 23‚478‚000 267000 2‚163‚000 25‚908‚000 11‚391‚000 2‚349‚000 -45‚000 153‚000 2‚457‚000 2‚261‚231 10.01% -16.85% 7.07% 9.48% 19.85% 183000 384000 -201000 #N/A 117000 366000 -249000 11‚142‚000 66‚000 18‚000 48‚000 2‚309‚231 66.41% 4.92% -19.28% 20.73% 5‚052‚000 #N/A 4‚419‚000 6‚723‚000 633‚000 1‚676‚231 14.32% 24
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the change in net assets. The income statement approach’s main goal‚ on the other hand‚ is to determine revenues‚ expenses‚ and earnings. This approach uses cash flows or the ability to generate income as its primary measurement. A common way of measuring the income streams an asset might generate would be the discounted cash flows associated with that item. At the core‚ the main difference between the approaches is their concept of value. The income statement sees value as the ability to generate
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a $900 cash withdrawal from the company. Requirements: Complete the accounting equation worksheet for the transactions. Total each worksheet column. Verify that Assets = Liabilities + Equity. In proper order and form‚ prepare and Income Statement‚ Statement of Owners’ Equity and Balance Sheet. Harley’s Cutter Accounting Equation Worksheet Assets = Liab + Equity Cash AccRec PPE Note Pay Capital - Draws + Rev - Exp
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Definition of Gross Income‚ Taxable Income‚ and Net Income Gross income refers to all income but not excluding exempt income and subject to final income tax. Example of gross income include: salaries and wages‚ commission‚ sale of and other dealings in property‚ rents‚ dividends‚ and securities. Exclusion from gross income or those incomes that are exempted from tax include: life insurance proceeds paid to beneficiaries upon the death of the insured; compensation for injuries or sickness‚ retirement
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December 20. The bank sent her a statement indicating that it had paid the charge on January 3. P may deduct the expense in which cases? a. 1 b. 1 and 2 c. 1 and 3 d. 1‚ 3‚ and 4 e. 1‚ 2‚ 3‚ and 4 2. The crucial reason for determining whether an item is deductible as an expense under § 162 or under § 212 is that a. production of income expenses are not deductible. b. § 162 business expenses usually are deductions for A.G.I.‚ while § 212 production of income expenses usually are miscellaneous
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