would bring you down to $494/week and $19‚760/year. Even if your hired help does not work as quickly and efficiently as you and despite the fact that you would have to train them‚ any additional income that is made is purely profit to you‚ since your expenses are coved already by charging higher prices for your product. It seems that you could make these extra items at no additional cost by using your clean scrap. This would save on
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if the problem only has ’Expenses’ as a descriptor‚ then don’t use ’Rent Expense’ even if the company pays rent). Similarly‚ when you are dealing with transactions in the ‘real world’‚ only use descriptions in the company’s ‘Chart of Accounts’ when making journal entries. 4. In this problem‚ there is no depreciation expense on the Equipment although there should be. We will cover depreciation expense in a later chapter. 5. Also‚ there is no supplies expense although there should be
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Depreciation:- accumulated depreciation is an asset‚ so it will increase with a debit. Why adjusting entries are prepared give some reasons? Answer: Adjusting entries have to be made because a company’s assets‚ expenses‚ and liabilities never stay the same from one accounting period to another. I will try to give you at least two examples of why adjusting entries must be made. Example 1. A customer purchases items on account for the amount of $500. When the sale is first made the company
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a business reason and possible client error reason were provided. The following accounts provide the possibility for audit risk: Cash- 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
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|Sales | |Less Operating expenses |Less Cost of merchandise sold | |=Net income |=Gross Profit | | |Less Operating expenses | |
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CHAPTER 1 OVERVIEW OF FINANCIAL REPORTING‚ FINANCIAL STATEMENT ANALYSIS‚ AND VALUATION Solutions to Questions‚ Exercises‚ and Problems‚ and Teaching Notes to Cases 1. Value Chain Analysis Applied to the Timber and Timber Products Industry. Exhibit 1.A below contains a depiction of the value chain. The links in the value chain are as follows: 1. Timber Tracts: Plant and maintain timber tracts (Weyerhaeuser) 2. Logging: Harvests timber (Weyerhaeuser) a. Sawmills:
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Task 01 Activity A - Important Notes: According to company strategic plans‚ the company aims to achieve a net profit before tax of $1‚000‚000. The chief risks to this goal are: poor sales due to economic downturn increases in expenses such as wage expenses. In addition to Australian operations‚ the company is considering manufacturing overseas to take advantage of reduced costs. The company is also considering diversifying its product range to reduce exposure to poor sales of one product. Sales
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BFN1014 Financial Management I (Semester 53) BFN1014 Financial Management I TUTORIAL 1 (Week 2): Tutorial Questions Chapter 1: The Role of Managerial Finance Review Questions 1-3 Which legal form of business organization is most common? Which form is dominant in terms of business revenues? What is the goal of a firm and‚ therefore‚ of all managers and employees? Discuss how one measures achievement of this goal. What are the major differences between accounting and finance with respect to emphasis
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| |148‚000 | | | | | |Less other expenses:
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Incomes Profit from trading activities Subscriptions Income from investments Donations Income from other activities [dinner dance‚ raffles‚ festivals] Expenditure Depreciation $ $ XX XX XX XX XX XX XX 1 Salaries and wages Expenses on other activities [prizes] Loss from trading activities All
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