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Type: Posts; User: AdamUTsel

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  1. Answers
    2
    Views
    670

    Wrong, any expense effects your bottom line (i.e....

    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.
  2. Answers
    2
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    539

    The relationship by the way the BS and IS is...

    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...
  3. Question: Plant assets

    by AdamUTsel
    Answers
    5
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    1,153

    Yes, the sale of the land JE is correct. You...

    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.
  4. Your tax return is done on a cash basis. You...

    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...
  5. Answers
    1
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    729

    a) 6% b) 37% Think of the company as 100...

    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...
  6. Answers
    2
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    3,080

    Mathematically... x = (x1y1 + x2+y2 +... +...

    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
  7. Answers
    2
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    483

    The cash flow statement was previously known as...

    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.
  8. Answers
    5
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    23,898

    Total games won / Total games played = Winning...

    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**
  9. Answers
    4
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    2,320

    The statement notes that services were performed...

    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).
  10. Answers
    4
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    2,320

    Dr. Unearned revenue 1,400 Cr. Art Service...

    Dr. Unearned revenue 1,400
    Cr. Art Service Revenue 1,400
  11. Answers
    1
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    576

    It is a component of the cost of capital and...

    It is a component of the cost of capital and therefore is capitalized and depreciated.
  12. Answers
    2
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    640

    Just track your cash inflows and outflows. Its...

    Just track your cash inflows and outflows. Its simple adding and subtracting. Transactions that occur on account have no influence on the cash.
  13. Answers
    2
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    632

    Your JE's from the scenario are: Dr. Cash 3700...

    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
  14. Answers
    2
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    949

    Your liabilities increased by $1,100. Your net...

    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.
  15. Answers
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    4,702

    Beginning OE +Net Income -Dividends paid...

    Beginning OE
    +Net Income
    -Dividends paid
    -Ending retained earnings
    =Contributed Capital during the period
  16. Answers
    1
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    476

    I think you may be missing some information from...

    I think you may be missing some information from the question such as opening period balances in your posting.
  17. The question is ambiguous. It needs to specify...

    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...
  18. Answers
    1
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    1,561

    Second answer, as you reduce your prepaid, you...

    Second answer, as you reduce your prepaid, you recognize the expense.

    Dr. Expense
    Cr. Prepaid asset
  19. Answers
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    2,365

    You need to use Gordon's growth model which is a...

    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...
  20. Answers
    1
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    497

    Technically, this is more complex than a simple...

    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...
  21. Question: Cost Accounting

    by AdamUTsel
    Answers
    2
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    682

    There is a notable difference. See below: ...

    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...
  22. Answers
    4
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    1,564

    Variable costing is a method in which the costs...

    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...
  23. Answers
    1
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    6,768

    22. If income summary means "net income" then...

    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...
  24. Question: Cost structure

    by AdamUTsel
    Answers
    1
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    824

    The Total Contribution Margin (TCM) is Total...

    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...
  25. You can look at any public 10k or 10q filings for...

    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)
  26. Answers
    1
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    924

    An indicator of a company's short-term liquidity,...

    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...
  27. Answers
    1
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    1,031

    You would recognize a loss on the donation for...

    You would recognize a loss on the donation for the difference between the fair value and the cost of the asset.
  28. Answers
    1
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    594

    DR: A/R CR: Service Revenue

    DR: A/R
    CR: Service Revenue
  29. Answers
    4
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    783

    Prepaid rent: DR. Prepaid rent 3600 CR. Cash...

    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...
  30. Answers
    1
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    6,705

    You need to do a regression analysis. Excel has...

    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.
  31. If you prepay for something, it is an asset. The...

    If you prepay for something, it is an asset. The value of the prepaid is reduced as you incur (receive) the subscriptions.
  32. Answers
    4
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    1,012

    You cannot charge an impairment loss for an asset...

    You cannot charge an impairment loss for an asset you no longer retain.
  33. Answers
    4
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    1,012

    Dr. Accumulated Depreciation Dr. Cash Received...

    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...
  34. Answers
    3
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    9,960

    One growing issue is historical versus fair value...

    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....
  35. Answers
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    5,904

    Increased $30k. Uses basic accounting equation...

    Increased $30k.

    Uses basic accounting equation A = L + OE
  36. Answers
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    931

    No. Net sales = gross sales -...

    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...
  37. Answers
    4
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    783

    You have used up $4,500 of the value of the...

    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...
  38. Question: Owners equity

    by AdamUTsel
    Answers
    1
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    706

    An investor would rather see earned capital (i.e....

    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....
  39. Answers
    1
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    597

    No. Your original entry when you purchased the...

    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...
  40. Answers
    1
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    1,351

    Balance sheet.

    Balance sheet.
  41. I believe so. You may need to maintain...

    I believe so. You may need to maintain records/receipts proving the space was used for office purposes in case of an IRS audit.
  42. Question: Lifo Fifo

    by AdamUTsel
    Answers
    1
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    950

    FIFO is currently the standard for inventory...

    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...
  43. Answers
    3
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    1,187

    Fixed costs are expenses that do not change in...

    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...
  44. Answers
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    1,455

    This is correct.

    This is correct.
  45. Any account can be a debit or credit in a journal...

    Any account can be a debit or credit in a journal entry. You will have to be more specific.
  46. Answers
    2
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    628

    Here is some more color: The accrual method is...

    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...
  47. Answers
    2
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    628

    Cash basis is when cash is paid or actually...

    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.
  48. Answers
    1
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    817

    Was your first balance suppose to read Retained...

    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...
  49. Answers
    1
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    746

    You make a formal annoucement to shareholders...

    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,...
  50. Net Income should equal $40k. Use A = L + OE...

    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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