BarCharts‚ Inc.® WORLD’S #1 QUICK REFERENCE GUIDE ACCOUNTING BASICS CONCEPTS‚ PRINCIPLES & BASIS A. Entity Concept • An organization stands apart from other organizations as a separate economic unit B. Going Concern Concept • Entity will continue to operate long enough to recover cost of its assets C. Time Period Concept • Report information at regular intervals D. Reliability Principle • Accounting records must be based on the most reliable (verifiable by an independent observer)
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manufacturing swimming pool accessories. Cabarita Ltd’s statements of financial position for the years ended 30 June 2012 and 30 June 2013 are presented below. 2013 ($) Assets Cash Accounts receivable Allowance for doubtful debts Inventory Property‚ plant and equipment Less Accumulated depreciation Total assets Liabilities Bank overdraft Accounts payable Accrued wages Provision for annual leave Loans Total liabilities Net assets Equity Share capital Revaluation reserve Retained earnings Total equity
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Identify the entries associated with acquisition‚ disposal‚ and sales of plant assets. Distinguish between tangible and intangible assets. Differentiate between accounts payable‚ notes payable‚ and accrued expenses. Calculate depreciation and amortization expense using various methods. Distinguish between revenue and capital expenditures‚ and the entries associated with each. Business - Accounting ACC 291 All Week 2 Assignments - Individual WileyPlus assignment
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3 40‚000 $16 640‚000 Production batch 4 36‚000 $20 720‚000 140‚000 2‚240‚000 Problem 2 One Percent: Net Receivables Percent W/O Allowance AMT Year End Net Receivables 742‚000 1% 7‚420 734‚580 Two Percent: Net Receivables Percent W/O Allowance AMT Year End Net Receivables 742‚000 2% 14‚840 727‚160 The more accurate allowance method would be the "balance sheet" approach or the age of the receivables. If we were given the amounts of the receivables‚ by age‚ we could make a
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1‚ 2012. The cost of the goods sold is 374‚000. All purchase and sales transactions are on credit The accounts receivable trade have a net value of 120.000 This value is composed of a gross value of 140.000 and an allowance for uncollectible accounts 20.000 A few clients have gone bankrupt in the accounting year 2012. The face value of
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Business reason: Acquired a loan during the period to obtain cash; Client error: Not properly recording all expenses paid in cash Accounts Receivable- Business reason: Increase in sales; Client error: recording sales in the wrong period (cutoff error) Allowance for Bad debts- Business reason: changed percentage of sales used to record; Client error- Used incorrect percentage to calculate to raise revenue amounts Inventory- Business reason: Reduced inventory through selling goods at a rate faster than produced
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calculate the corporate taxes is different compared to that of the production director’s. The pre-tax profits of the two approaches are different which lead to different after-tax profits. The methods for depreciation are different. That is： 1. Their depreciation methods are different. Depreciation is the reduction in the book value of an asset due to usage
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1.0 Introduction Ryan C. Fuhrmann explains that an investing activity usually refers to cash spent on investments in capital assets such as plant and equipment‚ which is collectively referred to as capital expenditure‚ or capex Its mean that investing activities refer to Assets are resources controlled by company for the purposed of generating profit. The assets can classified into two (2) types- current and noncurrent: (1) Current asset (short term) is resources or claims to resources (balance
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Sales Cost of Goods Sold Operating Expenses Nonoperating Revenue and Expense Other Issues 5-7 A Checklist for Earnings Quality Sales Key areas that affect earnings quality 1. 2. 3. 4. 5. Premature revenue recognition Gross vs. net basis Allowance for doubtful accounts Price vs. volume changes Real vs. nominal growth 5-8 Sales Premature revenue recognition Revenue should not be recognized until there is evidence that a true sale
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indicate the proper accounting treatment of those items that are not included in the cost of the equipment. c. Compute the total cost debited to the college’s Equipment account. d. Prepare a journal entry at the end of the current year to record depreciation on the exercise equipment. Podunk College will depreciate this equipment by the straight-line method (half-year convention) over an estimated useful life of 4 years. Assume a zero residual value. Problem 9.2A Comparison of Straight-Line and
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