to retained earning. In 2004 plant maintenance expenditure was $44000. Normally plant maintenance was about $60,000 a yr. $60,000 had indeed been budgeted for 2006. Income statement of company contains this $60,000for plant maintenance expenses with an offsetting credit to reserve account as a noncurrent liability. In January 2006 company issued $100000 bond in return of $80,000 to one of its stakeholder. Discount of 20000 arose because 5% interest rate was below the ongoing
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For exclusive use George Mason University, 2015 4230 AUGUST 20, 2010 WILLIAM E. FRUHAN CRAIG STEPHENSON Flash Memory, Inc. In May of 2010, Hathaway Browne, the CFO of Flash Memory, Inc., was preparing the company’s investing and financing plans for the next three years. As a small firm operating in the computer and electronic device memory market, Flash competed in product markets that reflected fast growth, continuous technological change, short product life cycles, changing customer
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Financial Projection Use fund Start-up Expenses | First month (RM) | First 6 month (RM) | Salary- CEO | 1,800 | 10,800 | Salary- 5 Staff | 7,500 | 45,000 | Advertising- Newspaper | 450 | 2,700 | Advertising- Magazine | 800 | 4,800 | Brochure fees | 120 | 720 | Promotion- Coupon | 6,500 | 8,500 | Promotion- Discount | 5,000 | 7,500 | Web site registration and maintenance fee | 300 | 1,800 | EPF | 1,116 | 6,696 | SOCSO | 163 | 978 | Rental | 45,000 | 120,000 | Insurance (Company)
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Sullivan and others subverted the objectives of providing useful information to external users by using accounting entries to achieve targeted performance. 2. The fraud at WorldCom revolved around two accounting irregularities: accrual releases and expense capitalization. a. Explain how these two accounting treatments increased WorldCom’s net income. b. What effect did these accounting treatments have on the company’s balance sheet? A. In regards to accrual releases, GAAP required
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Accounts Payable 25,000 Long Term Notes Payable 75,000 Common Stock, $10 par, 2,000 shares authorized & outstanding 20,000 Retained Earnings 147,000 Sales Revenue 700,000 Salaries Expense 150,000 Utilities Expense 3,500 Cost of Goods Sold 350,000 Administrative Expenses 55,000 Sales Expenses 15,000 _______ Totals $1,003,000 $1,003,000 Flip is a small company and records adjusting entries & closing entries only at fiscal (calendar) year end. Correcting and
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records is essential for the effective running of the business and as an indicator of performance and the economic health of the company. This can be achieved in one of two ways; the cash basis method or the accrual basis method. The former captures expenses at the time they are paid and revenues when payment for goods or services is received. This is perhaps more familiar to those without knowledge of generally accepted accounting principles, because it more closely resembles personal financial management
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| Labour | 2,000 | | Disposal of old computers | 2,000 (adjustable value 6,000) | 1st September 2011 | Notes: The new computer system has an effective life of 5 years. The company uses the prime cost method of depreciation. Other deductible expenses: $230,000 (deductible under s 8-1). Issue: Calculate the taxable income of Books Galore Pty Ltd for 2011/12 tax year. Answer: Income in terms of sales: The income for the year would be determined on an accruals basis. The related cases could
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Rs/kW/year or Rs/kVA/year). Chargeable quantity is the number of units or items. Charge is the price multiplied by the chargeable quantity. Aggregate Revenue Requirement is the Revenue requirement of the Licensee for recovery of allowable expenses and return on capital, through tariffs, pertaining to his Licensed Business. 3. Costing The goal of the MERC regulations is to to regulate tariffs of power generation, transmission and distribution and to protect the interests of the consumers
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not been growing sufficiently enough to provide Rocky with the means to grow his company as the town develops. A lack of inventory system which affects his most profitable sales group: walk-ins has also increased his short term debt and interest expenses which all eat away at the already tight profit margins. Decline of popularity for kids’ leagues which was the major aspect of the local sporting scene and attributed to covering his business costs is another growing concern. In order to gain more
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deferred for 10 years. Not all companies put this money aside since it is an expense that will not occur for 10 years. I agree with the players on this. Since this 20% is used as a pension for the players that will not be on the roster at the time this should be removed from current expenses. It should appear as a liability on the balance sheet if the owner’s do not have a separate fund set aside. It would become an expense in the year that it is paid and not before then. 3. Amortization of Signing
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