works. It might be a bit easier if we started with an example which would be the Genie Car Wash, Inc. in Chapter 2 of your textbook. Pick a transaction from Genie and let us know how it impacts the accounting equation. Make sure to identify the two accounts impacted. Why is it important to record your selected transaction? Discussion 2 In this graded discussion, we will be examining the operation of the Accounting Information System (AIS)
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so that Runway could enter into an exchange transaction with a third party, which are the new customers. Besides, the $25 is the fair value of the cost obtaining a new customer. Moreover, under ASC section 605-50-45-3, it also says that if the consideration consists of a free product or service, or anything other than cash (including credits), the cost of the consideration should be recognized as an expense. (ASC 605-50-45-3) Therefore, the $25 referral credit should be recorded as a marketing expense
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Interperiod Equity: Pension contribution amounting $225,000 calculated by actuary should be recognized in 2014, at the time when employees earned the benefits Q # 3: Budgetary Compliance: Cost of vehicles should be recognized when payment for cars were made. $105,000 in 2014 Interperiod Equity: Cost of vehicles should be recognized over the 3 years in which cars would be used (35,000 per year) Q # 4: Budgetary Compliance: Interest revenue amounting $1,000 should be recognized when received
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Inc. financial statements. A. Summary Report 1. Operational strengths and weaknesses of Competition Bikes Inc. a. Horizontal Analysis: A popular method of analyzing financial statements, horizontal analysis is defined as “the comparison of historical financial information over a series of reporting periods, or of the ratios derived from this financial information.” (Accounting Tools, 2014) Horizontal analysis is often used to examine a company’s financial performance over a period of time such
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APPENDIX C UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K FOR ANNUAL AND TRANSITION REPORTS PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 È ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 31, 2009 ‘ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 000-22754 URBAN
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the result of management’s stewardship of resources in their care. These financial statements are useful to a wide range of users across the globe in making economic decisions. Financial statements comprises of a balance sheet, a profit and loss account, a statement of changes in equity, a cash flow statement, and notes comprising a summary of significant accounting policies and other explanatory notes (IAS 1). The accounting report is a major way of getting a picture of what a company is doing and
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to market accounting can change values on the balance sheet frequently. In contrast the historical cost is based on the past transactions. Valuation guidelines are mainly useful to compare the market value of investments with book value of investments. An investment can be accounted for by the cost, equity or consolidated methods of accounting. The ownership level determines the accounting method. The cost method is used if ownership is less than 20%, the equity method if ownership is between
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depreciation and Depreciation expense and how are they related? Accumulated Depreciation is a contra account in the Balance sheet and is used to record the effect of depreciation on the value of assets in the BS. Each Accumulated depreciation account has a respective Asset class to which the accumulated depreciation can be closed out in the event of an asset sale or write down. Depreciation expense is an expense account which affects the profits. This is often
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Jake Phillips Case Study 1 Financial Reporting and Analysis Under Armour Inc. Under Armour is a sports clothing and accessories company. The company is a supplier of a wide range of sportswear and casual apparel mainly focusing on hi-tech sportswear for professional athletes. It has now broadened its horizons and Under Armour began offering footwear in 2006, it continues to expand its offerings. The company was founded on January 26, 1996 by Kevin Plank, a former University of Maryland special
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the management overview are the realization of lower gross profit margins because of being and online retailer. The long-term financial focus is to increase sales through the internet, by improving operating margins, efficiently managing operating costs, and investments in longer-term strategic initiatives. To realize lower rates and better savings which can be passed on to the customer, Blue Nile, Inc. has negotiated exclusive agreements with a large number of diamond suppliers. They do not
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