2013 Units Purchased Units Unit Cost Total Cost 5000 $700 $3,500,000 4000 $800 $3,200,000 Average Cost 6000 $900 $5,400,000 12100000 15000 $12,100,000 15000 $806.67 or $807.00 Compute the gross profit (sales minus COGS) and the profit ratio for 2014 assuming that Cast Iron purchased 28,000 units during the year. Sales for 2014 27,000 units x $2,000 $54,000,000 Gross Profit Gross Profit Ratio COGS for 2014
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Portfolio Project a. What are the primary lines of business of these two companies as shown in their notes to the financial statements? The Coca-Cola Company’s main line of business consisting of non-alcoholic beverage concentrates and syrups focuses on sparkling beverages such as Coca-Cola, Diet Coke, Fanta, and Sprite. Additionally, the Coca-Cola Company also owns or licenses many other brands including water, juices, coffees, sports, and energy drinks (The Coca-Cola Company, 2007). PepsiCo
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seller is exposed to continued risks of ownership through return of the product is what? Page 910 2. In selecting an accounting method for a newly-contracted long-term construction project, the principal factor to be considered should be what? Page 933 The percentage-of-completion method must be used when certain conditions exist. Review the necessary conditions? Page 912 In accounting for a long-term construction-type contract using the percentage-of-completion method, the gross profit recognized
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Emily Schnarr Honors Component Accounting 303 Chapter 3 Accounting, Analysis, and Principles Accounting: 1) Depreciation Expense $9,500 Accumulated Depreciation 9,500 2) Interest Expense 8,250 Interest Payable 8,250 3) Unearned Service Revenue 10,000 Service Revenue 10,000 4) Advertising Expense 2,500 Prepaid Advertising 2,500 5) Salaries and Wages Expense 3,500 Salaries and Wages Payable 3,500 Analysis: Revenues Ticket Revenues $360
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BA 114.2 FIRST MODULE – 1ST EXAM (23-01-2011) INVESTMENT PROPERTY PAS 40 >property(land or building or part of a building or both) held by an owner or by the lessee under a finance lease to earn rentals (1) or for capital appreciation (2) or both(3) * equipment or movable property can’t qualify as investment property >generates cash flows that are largely independent of the other assets of the entity *Finance lease> transfers substantially all the risks and rewards incident to ownership
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Under HKAS 16, Property, Plant and Equipment (PPE) are tangible assets that are held by an entity. They are for use in the production or supply of goods or services, for rental to others, or for administrative purposes and expected to be used during more than one period. PPE includes land, land improvements, buildings, equipment, machinery and motor vehicles. In the aspect of relevance, if it is capable of making a difference in the decisions made by users, it could be defined as relevant. This
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c. is demonstrated by the use of supplementary information presenting the effects of changing prices. d. requires that the financial statements be consistent and comparable. 4. When converting from cash basis to accrual basis accounting, which of the following adjustments should be made to cash receipts from customers to determine accrual basis service revenue? a. Subtract ending accounts receivable. b. Subtract beginning unearned service revenue. c.
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INTERMEDIATE ACCOUNTING I (ACC 221) 21 Aug 2013 - 15 Oct 2013 TEACHER: Dr. Joseph L. Ilk, CPA, CMA, CVA, CPCM TELEPHONE: Office: (703) 805-4473 Home: (540) 582-6008 E-mail: jilk@nvcc.edu If you e-mail me, please put “ACC 221" and either "E40W" or "E80W" ” in the subject line. If you do not I will not recognize the e-mail and will delete the file. The student needs to put their First and Last Name in the e-mail so I know who it came from. OFFICE HOURS: Mon-Fri 8:00 p.m
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balance sheet is a statement that presents an organized array of assets, liabilities, and shareholders’ equity at a point in time. It is a freeze frame or snapshot picture of financial position at the end of a particular day marking the end of an accounting period. Question 3-2 The balance sheet does not portray the market value of the entity (number of common stock shares outstanding multiplied by price per share) for a number of reasons. Most assets are not reported at fair value, but
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When establishing accounting standards is basically saying they want you all accounting firms and accountants to be uniform. They don’t want any outliers doing something completely different on their accounting reports when another accountant is following the set of standards given to him by AICPA and FASB. FASB has a need for balancing their accounting considerations and economic consequences. Political process is basically a process that forms and administrates public policy that is usually between
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