Debate 8-3 Capitalization Versus Expense Present arguments for capitalizing all of the above costs. Your arguments should utilize the conceptual framework definitions and concepts. In order to figure out what kind of cost should be capitalizing or expense, we should know about the difference between capitalizing and expense. The word capitalizing means to record the amount of the item in a balance sheet rather in a income statement. However, the expense means the money spent or cost incurred
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accounts are not listed in any particular order. The firm’s accounting year began on 1 January. All accounts had normal balances. Prepaid Insurance Insurance Expense Supplies on Hand Advertising Expense S. Gill, Capital 1 January Cash Accounts Payable Rent Expense Supplies Expense Electricity Expense Service Fees Accounts Receivable Salaries Expenses S. Gill, Drawings Required: a) Prepare a trial balance from the given data. $ 320 80 560 230 21 000 9 500 480 720 350 140 9 420 16 500 1 800 700 (8marks)
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BTG 3221 Topic #8: General Deductions Section 8-1 of ITAA97 sets out the provisions for the deductions from their assessable income that allow taxpayers to arrive at their taxable income for the year. This section has two positive limbs and two negative limbs: Positive limbs “You can deduct from you assessable income any loss or outgoing to the extent that: (a) It is incurred in gaining or producing your assessable income; or (b) It is necessarily incurred in carrying on a business for
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A Business Plan Presented to By: Mark David Solomon T. Sanchez March 2014 [pic] Business Logo TABLE OF CONTENTS Business Logo Company Profile A. Brief History Industry Analysis A. Industry Background and Overview B. Trends Marketing Analysis Management Ownership A. Form of Ownership B. Organizational Policies C. Roles and Responsibilities
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Drawings $2,000; Service Revenue $50,000; Salaries and Wages Expense $27,000; and Supplies Expense $7,000. The closing entries are as follows: (1) | Close revenue accounts. | | (2) | Close expense accounts. | | (3) | Close net income/(loss). | | (4) | Close drawings. | | Post the closing entries in the order presented in the problem and use the numbers as a reference. Salaries and Wages Expense | | | | | Supplies Expense | | | | | Service Revenue | | | | | Owner’s
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charge, but generally 25 percent of self-pay charges become a bad debt. Note that bad debts are treated as expense in health care. They may not be shown as a reduction lowering revenues. The full charge for self-pay patients is shown as revenue, and then the uncollectible amount is shown as an expense. No payment for charity care is ever received, and charity care is not shown as a revenue or expense. The
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guarantees of the owner. [pic] [pic] 1.1 Yearly Profit Potential It is very important to note that the minimum monthly amount of loan payback should decrease as principal decreases. Furthermore, the profit projected in the table is after all expenses and monthly loan payback have been subtracted. All net profit will then be paid
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conversion cost of February? (conversion cost = (direct labor + overhead expenses) payments to repair technicians $ 52,500 Overhead expenses $ 121,000 Conversion Cost $ 173,500 D. What was the total repair cost for February? Total Cost = (direct material + direct labor = overhead expenses) Cost of Materials used $ 120,250 payments to repair technicians $ 52,500 overhead expenses $ 121,000 Total Repair Cost $ 293,750 Exercise
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Activities— ------------------------------------------------- Expenditures and Expenses ------------------------------------------------- Questions for Review and Discussion 1. Expenditures are decreases in net financial resources, whereas expenses are reductions in overall net assets. Expenditures are governmental fund equivalents of expenses. In effect, expenditures are expenses that are determined on the modified accrual rather than the full accrual basis of accounting
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Past experience shows that 25% of a month’s sales are collected in the month of sale, 70% in the month following sale, and 3% in the second month following sale. The remainder is uncollectible. c. Budgeted merchandise purchases and budgeted expenses for the third quarter are given below: | | |July |August |September | | |Merchandise purchases |$210,000 |$218,750 |$120,313 | | |Salaries and wages
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