of each year) Pmt (FV of OA) = FV (adj.) n=18 i=6% factor = 30.90565 x 1.06 = 32.7599 Pmt(32.7599) = 200‚000 Pmt = $6‚105 a. $6‚471. b. $6‚105. c. $11‚111. d. $5‚924. Ch 7 p43. Why is the allowance method preferred over the direct write-off method of accounting for bad debts? (conceptual question) Balance
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University 1. What is the gain or loss on the sale of equipment that originally cost $20‚000‚ has $14‚000 of accumulated depreciation and is sold for $11‚000? a. $9‚000 loss b. $23‚000 loss c. $5‚000 gain d. $3‚000 loss 2. On February 1‚ 2014‚ Bob Inc.‚ has the following balances for accounts receivable and allowance for doubtful accounts: Accounts Receivable -- $330‚000; Allowance for Doubtful Accounts -- $11‚000. During 2014‚ Bob had $3‚350‚000 of credit sales‚ collected $3‚290‚000 of accounts receivable
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E8-3. The ledger of Hixson Company at the end of the current year shows Accounts Receivable $120‚000‚ Sales $840‚000‚ and Sales Returns and Allowances $30‚000. 2. Exercise BE9-13. Correct. Information related to plant assets‚ natural resources‚ and intangibles at the end of 2011 for Spain Company is as follows: buildings $1‚100‚000; accumulated depreciation-buildings $650‚000; goodwill $410‚000; coal mine $500‚000; accumulated depletion-coal mine $108‚000. Complete the partial balance sheet of
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GROSS MARGIN………………………..$ 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
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Abbreviations |B.P. Bond Payable |PIC Paid In Capital.| |C.S. Common Stock |APIC Additional PIC | |CSE Common SE |PMR Profit Margin | |EOF End of |Ratio | |Financing (Period) |PV Present Value | |FV Future Value |R.E. Retained | |IE Interest Expense|Earnings | |I.S. Income |S.H. ShareHolder | |Statement |S.E. ShareHolder | |FS Financial |Equity | |Statements |SYD Sum of the | |LCM
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org Contents PAGE INTRODUCTION TO THE PAPER 5 CHAPTER 1: INTRODUCTION TO FINANCIAL REPORTING 7 CHAPTER 2: FINANCIAL STATEMENTS 11 CHAPTER 3: DOUBLE ENTRY BOOKKEEPING 17 CHAPTER 4: INVENTORY 39 CHAPTER 5: IRRECOVERABLE DEBTS AND ALLOWANCES 47 CHAPTER 6: NON-CURRENT ASSETS 57 CHAPTER 7: ACCRUALS AND PREPAYMENTS 75 CHAPTER 8: SALES TAX 89 CHAPTER 9: BOOKS OF PRIME ENTRY 93 CHAPTER 10: CONTROL ACCOUNT RECONCILIATIONS 109 CHAPTER 11: CORRECTION OF ERRORS AND SUSPENSE ACCOUNTS
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1. Chiller Company has credit sales of $5.60 million for year 2010. Chiller estimates that 1.32% of the credit sales will not be collected. Historically‚ 4% of outstanding accounts receivable is uncollectible. On December 31‚ 2010‚ the company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $3561. Chiller prepares a schedule of its December 31‚ 2010‚ accounts receivable by age. Based on past experience‚ it estimates the percent of receivables in each age category that will become
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tax liability in each of the following four cases. Case 1 Case 2 Case 3 Case 4 Accounting profit (loss) After debiting as expense: Goodwill impairment loss* Entertainment costs* Donation to political party* Depreciation expense – plant Long-service leave expense For tax purposes: Tax depreciation for plant Long-service leave paid *These items are non-deductible for tax purposes. Assume a tax rate of 30%. $40 000 $20 000 $5 000 $(10 000 ) 6 000 — 1 000 4 000 600 — 6 000 3 000 2 000 600 — 7 000
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Bookkeeper ’s Hiring Test Basic Test Payroll Option Depreciation Option Inventory-Perpetual Option Test Name: AIPB Hiring Test Test Form: 5 Test Points: 25.00 _________________________________________________ Name: ________________________________ Date: _________________ [1]BASIC BANK01 - BAT 003 Which of the following statements is true? A. An asset account is increased by a credit B. An expense account is increase by a credit C. A revenue account is decreased by a credit D. An equity
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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
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