Using straight-line depreciation‚ what is the asset’s carrying value (book value) after 2 1/2 years? a. $8‚750. b. $12‚250. c. $14‚583. d. $16‚250. 2. On January 1‚ 2003‚ Superior Landscaping Company paid $17‚000 to buy a stump grinder. If Superior uses the grinder to remove 2‚500 stumps per year‚ it would have an estimated useful life of 10 years and a salvage value of $4‚500. The amount of depreciation expense for the year 2003‚ using units-of-production depreciation and assuming that
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Operating activities - decrease in accounts receivable $76‚000 g) Financing activities - paid dividend (97‚000) Note: this cash outflow may also be classified in operating activtiies if the company wishes. h) Operating activities - add back depreciation 67‚000 i) Operating activities - deduct gain on sale (3‚000) Investing activities - sold capital asset 13‚000 Requirement 3 a) Investing activities - cash paid for capital asset (no change from above) (18‚000) b) Financing activities
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HARVARD BUSINESS SCHOOL CASE STUDY DEPRECIATION AT DELTA AIR LINES ACCOUNTING ( SHAC 1033 ) 2014/2015 SEMESTER 1 GROUP MEMBERS : MOHD AMMARUL HAZIQ BIN SAIDIN A14HA0057 NURSAIDA SYAMIM BINTI FAUZI A14HA0136 NORHAMIZAH BINTI ABDUL HAMID A14HA0095 FATIN RAIHANAH BINTI MOHAMED RABEI A14HA0024 FOR: EN. KAMARUZZAMAN BIN ABDUL RAHIM FACULTY OF MANAGEMENT UNIVERSITI TECHNOLOGI
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Accrual vs. Cash Basis Accounting Alicia Wiley Grantham University Abstract In this paper I have defined accrual and cash basis accounting. Also‚ I have answered the following questions: Explain the difference between the accrual basis of accounting and the cash basis of accounting. What are the major reasons for using accrual accounting? What are the purpose of a journal and a ledger? Give an example of a contra-asset‚ and explain how it is recorded on the ledger as a transaction. Explain
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Answer all questions Question 1 An industrial product may be manufactured by two methods of production. Using Method X‚ fixed costs are RM6‚540‚000 per period and variable costs are RM57 per unit. Using Method Y‚ fixed costs are RM7‚800‚000 per period and variable costs are RM45 per unit. a) Calculate the level of output per period for which the total costs are the same. (3 marks) b) Calculate the total cost per period for Method X at this output. (2 marks) c) State
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IAS 16‚ Property‚ plant and equipment By Graham Holt Studying this technical article and answering the related questions can count towards your verifiable CPD if you are following the unit route to CPD and the content is relevant to your learning and development needs. One hour of learning equates to one hour of CPD. We ’d suggest that you use this as a guide when allocating yourself CPD units. Property plant and equipment (PPE) are tangible assets that an entity holds for its own use or for
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|1 |The time period assumption states that |D | | |a. a transaction can only affect one period of time. | | | |b. estimates should not be made if a transaction affects more than| | | |one time period. | | | |c. adjustments to the enterprise ’s accounts can only be made in | | | |the time period when the business terminates its operations. | | | |d. the
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Other Issues Pro Forma Financial Statements and Project Cash Flows Getting Started: Pro Forma Financial Statements Project Cash Flows Projected Total Cash Flow and Value More about Project Cash Flow A Closer Look at Net Working Capital Depreciation Evaluating Equipment Options with Different Lives Project Cash Flows Relevant Cash Flows Cash flows that occur (or don ’t occur) because a project is undertaken. Cash flows that will occur whether or not we accept a
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Financial Accounting Summary Financial Accounting – Summary Notes Financial Accounting – Summary Notes 1 Financial Statement Basics 3 Understanding of the 3 financial statements – (balance sheet‚ income statement and statement of cash flows). What does each financial statement represent? 3 What is the structure of each statement? 3 What is the link between the three statements? 4 Understanding of the basic mechanics of financial accounting – (debits‚ credits‚ transaction journal entries‚ adjusting
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construct the corresponding adjusting entries on October 31. (a) One month of the company’s rent expired during October. (b) The company’s equipment originally cost $30‚000 and was expected to benefit the company for 5 years. Straight line depreciation method is used. Assume a $5‚000 salvage value. (c) The company’s employees earned $400 during the last week of October that will be paid on
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