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Type: Posts; User: AdamUTsel
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Wrong, any expense effects your bottom line (i.e. net income). If you're paying interest expense on the bonds you issued, you are reducing your net income.
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The relationship by the way the BS and IS is through your retained earnings/equity accounts. While this is not reflected on the IS, your net income/loss are closed into retained earnings for the...
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Yes, the sale of the land JE is correct. You only need remove the asset from your books and recognize and gain/loss for the difference since GAAP does not permit depreciation on land.
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Your tax return is done on a cash basis. You would only record income you received during the taxable year (i.e. the 29,000). They need to reissue the 1099 as it is incorrect and not acceptable...
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a) 6%
b) 37%
Think of the company as 100 employees. If 18% do the activity this mean 18 employees. If 12 males of the 100 employees do the activity, then 6 females must make up the remainder of...
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Mathematically...
x = (x1y1 + x2+y2 +... + xNyN) / (x1 + x2 +... + xN)
For you the answer, is $11.33.
(60+240+210) / (10+20+15) = 510 / 45 = $11.33
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The cash flow statement was previously known as the statement of changes in financial position or flow of funds statement. The cash flow statement reflects a firm's liquidity or solvency.
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Total games won / Total games played = Winning percentage
Total games lost / Total games played = Losing percentage
Winning percentage + Losing percentage = 1.00
**Assuming no ties**
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The statement notes that services were performed (so revenue should be recognized now) and payments had already been received (cash already booked prior against an unearned revenue account).
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Dr. Unearned revenue 1,400
Cr. Art Service Revenue 1,400
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It is a component of the cost of capital and therefore is capitalized and depreciated.
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Just track your cash inflows and outflows. Its simple adding and subtracting. Transactions that occur on account have no influence on the cash.
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Your JE's from the scenario are:
Dr. Cash 3700
Cr. Revenue 3700
Dr. Dividends paid 750
Cr. Cash 750
Dr. Expenses 930
Cr. Cash 930
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Your liabilities increased by $1,100. Your net change in assets is $2,000 as land purchased for cash is a wash as far as change in assets.
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Beginning OE
+Net Income
-Dividends paid
-Ending retained earnings
=Contributed Capital during the period
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I think you may be missing some information from the question such as opening period balances in your posting.
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The question is ambiguous. It needs to specify if they are referring to dividends declared, paid, or receivable, or payable. In general, cash dividends paid out are a reduction of your...
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Second answer, as you reduce your prepaid, you recognize the expense.
Dr. Expense
Cr. Prepaid asset
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You need to use Gordon's growth model which is a widely used dividend discount model to solve this problem. It assumes that dividends will increase at a constant growth rate (less than the discount...
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Technically, this is more complex than a simple debit/credit. In theory, though, the offset is to an unearned account since he cannot withdraw (a few execeptions) against this account without...
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There is a notable difference. See below:
Semi-variable costs are fixed below a certain level of volume, known as the breakpoint, and they are variable above that level. As explained, these costs...
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Variable costing is a method in which the costs to be inventoried include only the variable manufacturing costs. Fixed factory overhead is treated as a period cost-it is deducted along with the...
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22. If income summary means "net income" then the answer is C. I believe it must be this because all of the other options are expenses or revenues that in total are closed to retained earnings at...
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The Total Contribution Margin (TCM) is Total Revenue (TR, or Sales) minus Total Variable Cost (TVC):
TCM = TR − TVC
The Unit Contribution Margin (C) is Unit Revenue (Price, P) minus Unit...
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You can look at any public 10k or 10q filings for any of the major airlines online at Edgars on the SEC website.
SEC Filings & Forms (EDGAR)
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An indicator of a company's short-term liquidity, the quick ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. The higher the quick ratio, the better...
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You would recognize a loss on the donation for the difference between the fair value and the cost of the asset.
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DR: A/R
CR: Service Revenue
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Prepaid rent:
DR. Prepaid rent 3600
CR. Cash 3600
As each month passes, you should reduce your prepaid by 1/3 (1 month) and recognize the rent expense.
DR. Rent Expense 1200
CR. Prepaid...
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You need to do a regression analysis. Excel has a feature for this that will provide a formula Y= mx +b, which will hold true over a relevant range, if you enter your parameters above.
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If you prepay for something, it is an asset. The value of the prepaid is reduced as you incur (receive) the subscriptions.
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You cannot charge an impairment loss for an asset you no longer retain.
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Dr. Accumulated Depreciation
Dr. Cash Received
Dr. Loss on Sale of Asset
Cr. Asset
It would be categorized in a "non-operating" section of your income statement. There is not set in stone rule...
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One growing issue is historical versus fair value accounting. See FAS 157, Standard on Fair Value Accounting (applicable to financial/investment securities currently) and the arguments on both ends....
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Increased $30k.
Uses basic accounting equation A = L + OE
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No.
Net sales = gross sales - returns/allowances
Total Debt = Short Term Borrowings + Current Portion of Long Term Debt + Current Portion of Capital Lease + Long Term Debt + Long Term Capital...
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You have used up $4,500 of the value of the policy. Therefore, you would need to recognize the expense on this portion of the policy.
When the policy was first purchased (prepaid for) you...
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An investor would rather see earned capital (i.e. net income from prior periods). This solely reflects the performance of the business. Paid in capital is money given by investors (i.e....
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No.
Your original entry when you purchased the home (assuming you paid cash):
Dr. Property - House 15k
Cr. Cash* 15k
*If financing was used, this would be a note payable that would be...
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I believe so. You may need to maintain records/receipts proving the space was used for office purposes in case of an IRS audit.
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FIFO is currently the standard for inventory accounting. This is because dollars on the books are added and subtracted simultaneously with the physical material that those dollars represent. The...
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Fixed costs are expenses that do not change in proportion to the activity of a business, within the relevant period or scale of production. For example, a retailer must pay rent and utility bills...
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Any account can be a debit or credit in a journal entry. You will have to be more specific.
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Here is some more color:
The accrual method is the more commonly used method of accounting. Under the accrual method, transactions are counted when the order is made, the item is delivered, or the...
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Cash basis is when cash is paid or actually collected, expenses or revenues are recognized.
For accrual basis, this is based on properly matching your revenue and expenses as they are incurred.
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Was your first balance suppose to read Retained Earnings, Dec 31, 2008 $311,800?
Otherwise you answer would just be that balance without any work required...
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You make a formal annoucement to shareholders typically.
To account for declared cash dividends, you book the following entry:
Dr Cash Div Declared
Cr Dividends Payable
On payments date,...
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Net Income should equal $40k.
Use A = L + OE to solve
400 = 150 + OE
250 = OE
Owners Equity Changes
Capital Stock 120
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