CHAPTER 21 Accounting for Leases SOLUTIONS TO EXERCISES EXERCISE 21-1 (15–20 minutes) (a) This is a capital lease to Adams since the lease term (5 years) is greater than 75% of the economic life (6 years) of the leased asset. The lease term is 831/3% (5 ÷ 6) of the asset’s economic life. (b) Computation of present value of minimum lease payments: $9,968 X 4.16986* = $41,565 *Present value of an annuity due of 1 for 5 periods at 10%. (c) 1/1/12 Leased Equipment..................................
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the objective of financial reporting. Identify the qualitative characteristics of accounting information. Define the basic elements of financial statements. •6 •7 Describe the basic assumptions of accounting. Explain the application of the basic principles of accounting. Describe the impact that constraints have on reporting accounting information. •8 •5 What Is It? Everyone agrees that accounting needs a framework—a conceptual framework, so to speak—that will help guide the development
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Contemporary Literature Final Paper Never Marry Me Sandra Cisneros’ short story “Never Marry a Mexican” details the life of a young, Chicana woman who struggles with an intense yearning and contempt for love and the union of marriage. It opens speaking about her childhood and recounts individual, life-altering events that have led her to foster her adult beliefs as well as her disillusionment with marriage. She has internalized events that occurred in her parent’s marriage and used these to
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CHAPTER 19 Accounting for Income Taxes ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. Reconcile pretax financial income with taxable income. 2. Identify temporary and permanent differences. 3. Determine deferred income taxes and related items— single tax rate. 4. Classification of deferred taxes. 5. Determine deferred income taxes and related items— multiple tax rates, expected future income. 6. Determine deferred taxes, multiple rates, expected future losses. 7. Carryback and carryforward
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P20-1 (2-Year Worksheet) On January 1, 2010, Cunningham Company has the following defined- benefit pension plan balances. Projected benefit obligation $4,500,000 Fair value of plan assets 4,200,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2011, the company amends its pension agreement so that prior service costs of $500,000 are created. Other data related to the pension plan are as follows. 2010 2011 Service cost $150
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Chapter 12 1P. |$ in millions| Investment in bonds (face amount)|80|| Discount on bond investment||14| Cash price of bonds||66| Cash at .04 x $80 million|3.2|| Discount on bond investment|0.1|| Interest revenue at .05 x $66||3.3| Cash at .04 x $80 million|3.2|| Discount on bond investment|0.11|| Interest revenue at .05 x ($66 + .1)||3.31| Fuzzy Monkey| Book Value| December 31, 2011| Investment in bonds|$80.00M|| Less: Discount on bond investment ($14 - .1 - .11M)|13
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E2-7 A. 6 Matching B. 5 Historical Cost C. 7 Full Disclosure D. 2 Going Concern E. 11 Conservatism F. 1 Economic Entity G. 4 Periodicity H. 10 Industry I. 9 Materiality J. 3 Monetary Unit E2-8 A. (Principle) Historical Cost B. ? C. (Principle) Full Disclosure D. (Principle) Matching E. Materiality F. Industry G. (Assumption) Economic Entity H. (Principle) Full Disclosure I. (Principle) Revenue Recognition J
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E 17-1 a.) 1.Trading d.) 2.Available-for-Sale b.) 2. Available-for-Sale e.) 3. Held-to-Maturity c.) 1.Trading f.) 2. Available-for-Sale E 17-2 Held-to-Maturity Securities 300,000 Cash 300,000 Cash (10% x 300,000) 30,000 Interest Revenue 30,000 Cash 30,000 Interest Revenue 30,000 E 17-9 a.)Fair Value Adjustment 1,300 Unrealized Holding Gain or Loss 1,300 b.) Current Assets Available-for-Sale Securities 54,500 c.) Cash 15,000
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performance • Predicting future performance • Help assess the risk or uncertainty of achieving future cash flows b. Limitations • Companies omit items that cannot be measured reliably • Income is affected by the accounting methods employed • Income measurement involves judgment c. Quality of Earnings • Companies have incentives to manage income to meet or beat Wall Street expectations, so that o market price of stock increases
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ACCT 307 Intermediate Accounting 2, Part B Assignment Professor: Allan Bishop Student Name: Darrell Allen Student Number: 810-390-377 Date: April 4th, 2013 1. The two companies that I have chosen are WalMart and Target. They are both retailer industries that sell numerous different items as well as provide services to customers. Particularly Walmart, which offers auto-repairs, eye-glasses, prescription drugs and fast food service (McDonalds). They sell items such as clothing, basic food
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