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the rate of 11% means that the holder of 1 $80.00 par value P stck will receive an annual return of 11% or $8.80 per share.

No. Shert term borrowing are not included. Items that are included in calculating cost of capital are long term debt, common shares, preffernce shares and retained earnings only. That is they are...

Cost of Common Stock is higher due to floatation cost and other incidental cost in issuing new shares of common Stock. Retained earnings is lower because retained earnings is for internal financing...

Nice work mate. Is this formula good? Coz all I know about IRR is through interpolation and or by use of a financial calculator.

hint. Available for sale securities are recorded based on their market value at the end of each year. Any gains and or losses due to market appreciation or deline would be recorded as unrealized gain...

Assuming you used the expense method of accounting the entry would be:

dr. prepaid insurance 2700
Cr. Insurance expense 2700

But if you used the accrual no need to adjust the unexpired but the...

... PV factror... cash flow... PV
purchased dryer... 1.0000... (6000)... (6000)
sold dryer... 1.0000... 2000... 2000
yearly saving... 3.6847... 1500... 5527
net presnet value... 1527.05

Temporary accounts are also called nominal accounts, they are the items that normaly comprise the income statement..

They are closed by either dr or cr depending on its nature.

If it is an...

Its increase will be equal to the contribution margin.

All accruals and defferals are subjst to adjustments at year end.

Try to solve it first, the changes in the balances, show you're solution and help you in some areas that you don't get.

Ahh. OK, I missed that he nest thing you should do now is to classify whether the transaction is an operting activity, investing activity, financing activity.

Basically in classifying accounts we...

We don't do homeworks here try to solve it first.

Activity based costing

Try to solve first the net income.

After that, you can categorize the cash flow to its categories.

If the sold units increases the contibution margin would also incerase.
Example, if sales increased by 10%, then CM would also increase by 10%

a. The loss on the cash sale of equipment is 2,250.
-the loss on sale of eqpt would be added back to the OA cash flow

b. Sold equipment costing 56,875 with accumulated depr. Of 18, 125 for 14,687...

Dr. Equipment
Cr. Accounts receivable

Lowering estimated doubtfuk accounts would mean lesser expense thus increasing income.

think about the accounting equation:

asset=liabilities+equity.

you'll find your answer in that equation.

Dr. Depreciation
Cr. Acuumulated depreciation

This cost are already paid up. The problem that arises if this cost are not allocated is that the expenses of the corporation would be undertsted and therefore the income will be overstated.

Yes. All of the mentioned above are fixed cost.

the land should be valued at its appraised value to update its present book value. It is the only property that doesn't depreciate but rather appreciate.

Dr. Furniture 1060
dr. supplies 160
Cr. Accounts payable

Imagine how you make your entries in thye journal. Debits are left, and credits are right on T-account.

These are expense and not part of the COGS. Those expenses can be classified as frieght out and is not part of COGS

Can anyone give me a url where I can download problems in MAS.
Other names Managerial accounting, management advisory services.
Tnx.:)

Dr. Vales
Cr. Cash

It can be included in the cash and cash equivalents account.

stock dividend is issuing unisued stock to stockholders in the form of dividend.
stock split is the shange in par value of stock.
ex. Stock split 2 for 1.
this means, say you own 10 shares 100...

Dr. Cash/accounts receivable 12800
Cr. Sales 12800

If PERPETUAL inventory system

dr. cost of goods sold 7350
Cr. Inventory 7350

If PERIODIC inv system

If income and sales is ovestted then, either the cash account or account receivable is also ovestated.

Entry to record sale:

dr. cash 1500
dr. accum dep 1857
Cr. Equipment (original cost)

* cr. Gain on disposal IF the dr. (cash+accum dep) exceeds the cr. (cost of equipment)

* dr gain on...

Dr. Doutful accounts exp 5000
Cr. Allowance for doubtful accounts 5000

The debit should be a expense account. (any appropriate account)
The credit woulod be cash

In interim period, costs that will not benefit other inteim peiod will be recorded in the perion where they occur. But if it is evident that the cost will benefit though whole year, it will be...

I don't really understand you're situation, make it clearer. So that I can help you about that.

if what you are talking about is a trade in transaction, the cost of the new equipment that should be recorded is equal to the bookvalue of the old equipment plus cash given off. But if it a separate...

If you make your entry on nov or dec, I think your trial balance won't balance. The debit would be understated by 167. ;)

I think it would be better like this.

For example if the lease term is...

I suggest you get a copy of international acounting standards (IAS). It will tell you what to do about accounting and everything about accounting.

Reversing entries are just optional, personaly I find these entries annoying, why reverse, if you can just adjust. But it still depends on the company policy if they are going to use reversing...

You always use accumulated depreciation account to allocte the cost of your machinery.

Yes the rate would always affect the amount.

The difference would be accounted for as gain/loss on foreign currency translation.

If the current amt is higher than what is recorded, then it...

remember your acctg equation:
asset=liabilites+owners equity

asset (38000) = liabilities (20,000)+ RE (12000) + capital (6000) (balancing figure)

your total SHE would be, capital+retained...

I agree to CaptainForest. You cant, make it a positive number. A dr. on income can only mean a loss. In doing business you don't always make a profit.

the primary difference betwwen the two is that, in stock dividend, the company issues new shares of stock as a dividend to increase the shares issued. While in stock split, the company doesn't issue...

Try to ans it first, maybe someone would help you in the prob.

one way of amortizint it is by first estimating its useful life in hours. Once it is done, the rest would be easy, just base your amortization by multipliying no. of hours used to its amortization...

The offsetting of A/R is only used when the company has a high ratio of uncollected debts. Usually if a business entity has receivables outstanding for a long time, and is not sure if they can still...