Period | Cash Interest | Effective Interest | Decrease in Balance | Outstanding Balance | 6/30/2008 | | | | 4,300,920 | 12/31/2008 | 260,000 | 258,055 | 1,945 | 4,298,975 | 6/30/2009 | 260,000 | 257,939 | 2,061 | 4,296,914 | 12/31/2009 | 260,000 | 257,815 | 2,185 | 4,294,729 | 6/30/2010 | 260,000 | 257,684 | 2,316 | 4,292,412 | 12/31/2010 | 260,000 | 257,545 | 2,455 | 4,289,957 | 1. (a) ------------------------------------------------- (b)
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Teresa Chu Chapter 2-1 The Account Record increases and decreases in a specific asset, liability or equity item Debit = “Left” Credit = “Right” Account Name T-Account form Debit / Dr. Credit / Cr. Chapter 2-2 Debits and Credits Double-entry system Dual effect of transaction Each transaction MUST affect 2 or more accounts to keep the basic accounting equation balance DEBIT = CREDIT for each transaction Chapter 2-3 Summary of Debit/Credit Rules Debits > Credits → Debit
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Are the financial ratios for the hospital improving? The Answer is: No There is a essential use and limitations of financial ratio analysis, One must keep in mind the following issues when using financial ratios: One of the most important reasons for using financial ratio analysis is comparability and for this, a reference point is required. Usually, financial ratios are compared to historical ratios of the business itself, competitor’s financial ratios or the overall ratios of the industry
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Most businesses need immediate feedback about how well they are doing. For example, management usually wants monthly reports on financial results, most large corporations are required to present quarterly and annual financial statements to stockholders, and the Internal Revenue Service requires all businesses to file annual tax returns. Many business transactions affect more than one of these arbitrary time periods. For example, a new building purchased by Bank of America or a new airplane purchased
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The Accounting Equation All aspects of accounting is based off of the fundamental principle of Assets = liabilities + owners’ equity. Each of these elements has their own unique function within the accounting equation. In the accounting equation, each side of the equation balances with the other at all times. This equation is commonly used on the balance sheet. Assets Assets are anything of value that a company owns, which includes cash as well. Several types of assets exist, such assets are
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Discussion 1: “Debits and Credits.” Students will respond to the following: o Maria Alvarez, a beginning accounting student, believes debit balances are favorable and credit balances are unfavorable. Upon what does Maria make this assumption? If you choose one over the other, what is your rationale? It depends on Maria Alvarez perspective. For explaining the rationale of this introduction, I would like to explain the meaning of debit and credit first. As stated Chapter 2 (Weygandt&Kimmel&Kieso
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analyzing and recording transactions. The bookkeeper, for example, would review the invoices, purchase orders, bank statements, etc. After the transactions have been analyzed they are now ready to be posted to the journal using the double-entry accounting system. The double-entry accounting system means that the transactions are recorded in at least two or more accounts so that the debits and credits equal. After the transactions are recorded in the journal they are now ready to be posted to the
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FI504 exam 1. The ACE Company has five plants nationwide that cost $100 million. The current market value of the plants is $500 million. The plants will be recorded and reported as assets at a. $100 million. b. $600 million. c. $400 million. d. $500 million. _____ 2. A basic assumption of accounting that requires activities of an entity be kept separate from the activities of its owner is referred to as the a. stand alone concept. b. monetary unit assumption. c. corporate form of ownership
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Craddock Cup Question Number 1 In determining whether to keep or drop the Craddock Cup, the overhead expense allocations of City field rental, CYSL salaries and CYSL rent should be revised. In determining whether to keep or drop the Craddock Cup, the allocation of City filed rental fee of $1200 from CYSL to the Craddock Cup should be eliminated. CYSL rented 10 soccer fields from the city for 40 weeks a year for a total fee of $48000. However, even if the Craddock Cup was dropped, the rental
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Message About Reporting Wendy Nelson XACC/280 Version 2 Financial Accounting Concepts and Principles October 21, 2012 Allison Hubley Message about Reporting In order to bench mark a company and give a good reading on where they started and where they are is by keeping good record of sales, expenses, inventory, bills, invoicing, and investment. This is important in the terms of profitability and ability to have investors interest. Investors want to see the history of what the business
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