| | |Dr. Bad Debt Expense | | |Cr. Allowance for doubtful accounts | |Not good matching |Matches expenses to period of sale | |Accounts receivable on the Balance Sheet not at net realizable
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related acRevenues increase owners’ equity and expenses decrease owners’ eq- Income Determination True-False 1. To measure earnings under accrual accounting, revenues are recognized when they are received. 2. Revenues are earned when the seller substantially completes performance required by an agreement. 3. The matching principle requires that expenses be recognized in the same period in which the revenues are recognized that were produced by the expenses. 4. Recognition of revenue under the cash
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000.00 | c) Journal Entries January 1, 2008 | Debit | Credit | Cash | $94,924.31 | | Bonds Payable | | $94,924.31 | June 30, 2008 | Debit | Credit | Interest Expense | $4,746.22 | | Bonds Payable | | $746.22 | Cash | | $4,000.00 | December 31, 2008 | Debit | Credit | Interest Expense | $4,783.53 | | Bonds Payable | | $783.53 | Cash | | $4,000.00 | d) January 1, 2010 | Debit | Credit | Bond Payable | $19,628.12 | | Loss on Retirement of Bonds
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IBM Corporation In the seven years (since 1994), that Lou Gerstner reigned over IBM, the company’s earnings per share increased an average of 27% per year. This remarkable increase in earnings did not go unnoticed by the securities markets. Indeed, the company’s market value grew from less than $30 billion to over $200 billion during the period. Use the following financial statement data to: 1. Decompose IBM’s ROE (by quarter) and discuss the factors (and trends) that contribute to Big Blue’s
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Cycle ← Review Questions 18-1 General ledger accounts that are likely to be affected by the payroll and personnel cycle in most audits include the following: Cash Direct labor Inventory Salary expense Construction in progress Commission expense Wages payable Payroll tax expense Payroll taxes withheld Accrued payroll taxes 18-2 In companies where payroll is a significant portion of inventory, as in manufacturing and construction companies, the improper account classification
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Systems | Starting January 1, 2014 we here at Jax-on Co. have implemented a new accounting system for payroll. This includes using the CRC reimbursement system, and Concur expense reporting to accurately keep track of all mileage for full time employees and all expenses made while working for the company. Keeping track of expenses and mileage used by employees has been outsourced to this company to ensure that we are providing all employees with the right amount of compensation for their time and
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Audit Program Design Part II ACC/546 May 2, 2011 Audit Program Design Part II The audit of Apollo Shoes, Inc. requires a design of steps to develop audit objectives to plan the audit. The financial statements are divided into cycles to better manage the audit and disperse to staff within the firm. The following cycle’s sales and collection, payroll and personnel and acquisition and payment were developed to design test of controls, substantive tests of transactions and analytical procedures
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contract with Alpha Company to provide services for $15,000. 6/8/2011 Purchased on account and immediately used $1,500 of office supplies. 6/9/2011 Received $5,000 from Alpha Company for services performed to date. 6/15/2011 Paid $2,400 travel expense associated with consultation work. 6/16/2011 Provided services on account to Bravo Company for $6,000. 6/17/2011 Paid $3,000 salary to assistant. 6/23/2011 Billed Charlie Company $8,000 for consulting work performed. 6/25/2011 Paid Jose Alverado
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University of Phoenix Material Los Lobos Ledger Data | |12-31 | | |2007 |2006 | |Cash | $ 35,000 | $ 32,000 | |Accounts receivable
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CHAPTER 6: NON-BUSINESS SOURCE INCOME Introduction Section 4 of the Income Tax Act, 1967 set out the main classes of income on which tax is chargeable. Section 4(a) and Section 4(b) is discussed under Business Income and Employment Income respectively. Section 4 (c), Section 4(d), Section 4(e) and Section 4(f) is covered under this chapter as other sources of income. Section 4(c) Dividend Income Dividend is a distribution of company’s profit to its shareholders by way of cash or non-cash for
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