You are partner in charge of the audit of Shangri‑La, Inc. The company is a real estate developer, specializing in luxury vacation areas. The company's operations have been profitable, although not spectacular. Most of the development property is pledged as collateral for bank loans; there is a reasonable stockholders' equity of about $10,000,000.…
1. Ida needs to test the U.S. commercial building for recoverability under both U.S. GAAP and IFRSs. Recoverability test is one of the requirement tests for impairment. As a result, we need to verify if impairment should be recognized.…
The company applies manufacturing overhead cost to production on the basis of $8 per machine-hour. A total of 30,000 machine-hours were recorded for October. g. Production orders costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Production orders that had cost $480,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 25% above cost.…
F, a 50 percent owner of Y, is single and has no other tax information. F's A.G.I. is…
Chapter 3 Solutions, 3rd day Exercise 3-13 (15 minutes) 1. | Actual manufacturing overhead costs | | $ 48,000 | | Manufacturing overhead applied: 10,000 MH × $5 per MH | | 50,000 | | Overapplied overhead cost | | $ 2,000 | | | | | 2. | Direct materials: | | | | Raw materials inventory, beginning | $ 8,000 | | | Add: Purchases of raw materials | 32,000 | | | Raw materials available for use | 40,000 | | | Deduct: Raw materials inventory, ending | 7,000 | | | Raw materials used in production | | $ 33,000 | | Direct labor | | 40,000 | | Manufacturing overhead cost applied to work in process | | 50,000 | | Total manufacturing cost | | 123,000 | | Add: Work in process, beginning | | 6,000 | | | | 129,000 | | Deduct: Work in process, ending | | 7,500 | | Cost of goods manufactured | | $121,500 | | | | | Problem 3-24 (60 minutes) 1. a. b. | Actual manufacturing overhead costs: | | | Insurance, factory | $ 7,000 | | Depreciation of equipment | 18,000 | |…
Homework Week 2 Exercise E1-1 SEC – K Audit – G Sole Proprietorship – I Corporation – E Accounting – A Accounting Entity – D Audit Report – J Cost Principle – F Partnership – C FASB – L IASB – H Unit of Measure – B GAAP – N IFRS – M E1-2 Accounts receivable – Asset Cash and cash equivalents – Asset Net sales – Revenue Notes payable – Liability Taxes payable – Liability Retained earnings – Stockholders’ Equity Cost of products sold – Expense Marketing, administrative and other operating expenses – Expense Income taxes – Expense Accounts payable – Liability Land – Asset Property, plant and equipment – Asset Long term debt – Liability Inventories – Asset Interest expense – Expense E1-3 Notes payable to banks – Liability General and administrative – Expense Accounts payable – Liability Dividends payable – Liability Retained earnings – Stockholders’ Equity Cash and cash equivalents – Asset Accounts receivable – Asset Provision for income taxes – Expense Cost of goods sold – Expense Machinery and equipment – Asset Net sales – Revenue Inventories – Asset Marketing, selling and advertising – Expense Buildings – Asset Land – Asset Income taxes payable – Liability Distribution and warehousing costs – Expense Investments (in other companies) – Asset E1-11 Henshelwood Limitd Income Statement For the Month of January 2013 Total Revenues $ 448,500.00 Less: Total expenses (excluding income tax) $ 283,500.00 Pretax income $ 165,000.00 Less: Income tax expense $ 51,750.00 Net Income $ 113,250.00 Henshelwood Limited Balance Sheet At January 31st, 2013 Assets Assets 2013 Cash 97,725.00 Receivables from customers 51,750.00 Merchandise inventory 144,900.00 Total Assets 294,375.00 Liabilities Liabilities 2013…
3/3/2014 BUSS6000 Succeeding in Business Introduction Dr Helen Parker Business Programs Unit The University of Sydney Business School THE UNIVERSITY OF SYDNEY BUSINESS SCHOOL Today’s Lecture ›Unit Introduction - The teaching team - The ‘Zen’ questions ›Curriculum Overview ›Next week… ›The interactive BIZ QUIZ!…
Q3-1 The basic idea underlying the preparation of consolidated financial statements is the notion that the consolidated financial statements present the financial position and the results of operations of a parent and its subsidiaries as if the related companies actually were a single company.…
2. The land and buildings should be recorded on the premise of “in-use” or “in-exchange”.…
Student Name and ID (Print Legibly) ________________________________________________________________ True or False/Multiple Guess/Fill in the blank Identify the choice that best completes the statement or answers the question. Carefully and completely fill out this test with the answer that best fits the question. For each answer, clearly circle your choice from the options provided (a, b, c, d, etc.). Dont make me guess, I wont award credit if it isnt obvious.…
ABC Company could reach $3 million in annual sales within 3 years if the company used shingle scrap material to build cedar dollhouses. The new product would add additional costs but would project an aggressive growth in revenue for the company. In the following reports I will show you how beneficial the cedar dollhouses would be to ABC Company.…
According to (Oster, 2014), "Percentage of receivables and percentage of sales are two accounting allowance methods used to reconcile customer accounts deemed noncollectable. When allowed by generally accepted accounting principles (GAAP), these two strategies are preferred over direct write-off of bad debt expenses. Percentage of receivables and percentage of sales provide a business with the ability to accurately estimate the expected bad debt losses they will have in each succeeding fiscal reporting period." Percentage of sales method is a good way to see an estimate for bad allowance under the Henerally Accepted Accounting Principles (GAAP).For GAAP it does not allow a direct write off method. Percentage of receivables is accounted for on the balance sheet that is annually done. There are doubtful accounts that have to be accounted for in the journal.…
* Colon cancer is taking 655,000 deaths worldwide per year, and it is the second leading cause of cancer-related deaths in Canada.…
a. Determine the current value of the bond if present market conditions justify a 14 percent required rate of return.…
The difference between the two types of accounting is when revenues and expenses are recorded. In cash basis accounting revenues are recorded when cash is actually received and expenses are recorded when the expenses are actually paid.…