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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The journal entry to record its purchase on January 1‚ 2008. (2) The journal entry to record annual depreciation at December 31‚ 2008‚ assuming the straight-line method of depreciation is used. (b) Calculate the amount of depreciation expense that Arlo should record for machine B each year of its useful life under the following assumption. (1) Arlo uses the straight-line method of depreciation. (2) Arlo uses the declining-balance method.The rate used is twice the straight-line rate. (3) Arlo
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-Simple Interest *Michael borrowed P30‚000 from bank savings. He was charged 12% simple interest and he paid it within 10 months. How much was the interest paid? -Rate *You invested P500 and received P650 after three years. What had been the interest rate -Principal *How much principal should you invest at 4% in order to have P3‚000 for a vacation to Europe in 3 years? -Final Amount *Find the final amount of the investment. P10‚000 invested at 6% compounded quarterly for 5 1/2 years
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........................................................... 200‚000 Interest expense...................................................................... 30‚000 Selling and administrative expense........................................ 40‚000 Depreciation expense............................................................. 20‚000 Preferred stock dividends....................................................... 80‚000 Taxes..........................................................................
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Once the estimated depreciation expense for an asset is calculated: (Points : 1) | It may be revised based on new information | 6. When originally purchased‚ a vehicle had an estimated useful life of 8 years. The vehicle cost $23‚000 and its estimated salvage value is $1‚500. After 4 years of straight-line depreciation‚ the asset’s total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5
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Once the estimated depreciation expense for an asset is calculated: (Points : 1) It may be revised based on new information 6. When originally purchased‚ a vehicle had an estimated useful life of 8 years. The vehicle cost $23‚000 and its estimated salvage value is $1‚500. After 4 years of straight-line depreciation‚ the asset’s total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:
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1. The final exam will be held from 9:30 to 11:30 am on Wednesday‚ October 19 in EX 200 (255 McCaul). 2. It is a closed book and closed note exam. No aid sheet is allowed. You will need a calculator‚ but no other electronic devices will be allowed during the exam. 3. The exam covers materials in classes 1 through 11 inclusive (i.e.‚ topics 1 through 8)‚ with more emphasis on topics 3 through 8. It will have both problem-solving and essay-type questions. It is not going to be an easy exam
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000 $15‚000 Depreciation shield 11‚220 15‚300 5‚100 Net Cash Flow $26‚220 $30‚300 $20‚100 ==================== Notes: 1. The after-tax cost savings is $25‚000(1-T)=$25‚000(.6)=$15‚000. 2. The depreciation expense in each year is the depreciable basis‚ $85‚000 times the MACRS allowance percentage of .33‚ .45‚ and .15 for Years 1‚ 2‚ and 3. Depreciation expense in Years 1‚ 2‚ and 3 is $28‚050‚ $38‚250‚ and $12‚750. The depreciation shield is calculated
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made this entry to air on the side of caution. (d) Because the general level of prices increased during the current year‚ Gonzales‚ Inc. determined that there was a $16‚000 understatement of depreciation expense on its equipment and decided to record it in its accounts. Depreciation Expense
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This paperwork - ACC 422 Week 3 Discussion Questions - consists of: DQ 1: What is the purpose of depreciation? Does the book value of a fixed asset (cost minus accumulated depreciation) communicate to a user what the asset is worth? Explain why or why not. Should the financial statements reflect the value of fixed assets? Explain why or why not. DQ 2: What is an intangible asset? Should all intangible assets be subject to amortization? Explain why or why not. Why are some
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