Metricon construction company is among the largest builders in Australia. The company constructed approximately 5000 houses in a year. As an accountant you are required to advice Metricon whether it should treat newly constructed houses as its assets or inventory in the balance sheet. Why?
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Metricon construction company is among the largest builders in Australia. The company constructed approximately 5000 houses in a year. As an accountant you are required to advice Metricon whether it should treat newly constructed houses as its assets or inventory in the balance sheet. Why?
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- Roy Akins was the accounting manager at Zelco, a tire manufacturer, and he played golf with Hugh Stallings, the CEO, who was something of a celebrity in the community. The CEO stood to earn a substantial bonus if Zelco increased net income by year-end. Roy was eager to get into Hugh’s elite social circle; he boasted to Hugh that he knew some accounting tricks that could increase company income by simply revising a few journal entries for rental payments on storage units. At the end of the year, Roy changed the debits from “rent expense” to “prepaid rent” on several entries. Later, Hugh got his bonus, and the deviations were never discovered. Requirements How did the change in the journal entries affect the net income of the company at year-end? How did the change in the journal entries affect the net income of the company at year-end?Can someone please help me check my work on this? Aracel Engineering completed the following transactions in the month of June. J. Aracel, the owner, invested $240,000 cash, office equipment with a value of $10,000, and $77,000 of drafting equipment to launch the company. The company purchased land worth $53,000 for an office by paying $7,400 cash and signing a note payable for $45,600. The company purchased a portable building with $56,000 cash and moved it onto the land acquired in b. The company paid $2,900 cash for the premium on an 18-month insurance policy. The company provided services to a client and collected $8,700 cash. The company purchased $26,000 of additional drafting equipment by paying $10,500 cash and signing a note payable for $15,500. The company completed $17,500 of services for a client. This amount is to be received in 30 days. The company purchased $1,600 of additional office equipment on credit. The company completed $25,000 of services for a customer on…Can someone please check my work on this? Aracel Engineering completed the following transactions in the month of June. J. Aracel, the owner, invested $240,000 cash, office equipment with a value of $10,000, and $77,000 of drafting equipment to launch the company. The company purchased land worth $53,000 for an office by paying $7,400 cash and signing a note payable for $45,600. The company purchased a portable building with $56,000 cash and moved it onto the land acquired in b. The company paid $2,900 cash for the premium on an 18-month insurance policy. The company provided services to a client and collected $8,700 cash. The company purchased $26,000 of additional drafting equipment by paying $10,500 cash and signing a note payable for $15,500. The company completed $17,500 of services for a client. This amount is to be received in 30 days. The company purchased $1,600 of additional office equipment on credit. The company completed $25,000 of services for a customer on credit. The…
- Mallard Incorporated (MI) is a small manufacturing company that makes model trains to sell to toy stores. The company purchased equipment for a new addition to its factory for $30,000, paying $3,000 in cash and signing a note due in six months for the remaining balance. How does this transaction affect the accounting equation?Roy Akins was the accounting manager at Zelco, a tire manufacturer, and he played golf with Hugh Stallings, the CEO who was something of a celebrity in the community. The CEO stood to earn a substantial bonus if Zelco increased net income by year-end. Roy was eager to get into Hugh’s elite social circle. He boasted to Hugh he knew of some accounting tricks to increase the company’s income by simply revising a few journal entries for rental payments on storage units. At the end of the year, Roy changed the debits form “rent expense” to “prepaid rent” on several entries. Later Hugh got his bonus, and the deviations were never discovered. How did the change in the journal entries affect the net income of the company at year-end? Who gained and who lost as a result of these actions?Lita Lopez started Biz Consulting, a new business, and completed the following transactions during itsfirst year of operations.a. Lita Lopez invested $70,000 cash and office equipment valued at $10,000 in the company.b. The company purchased an office suite for $40,000 cash.c. The company purchased office equipment for $15,000 cash.d. The company purchased $1,200 of office supplies and $1,700 of office equipment on credit.e. The company paid a local newspaper $500 cash for printing an announcement of the office’s opening.f. The company completed a financial plan for a client and billed that client $2,800 for the service.g. The company designed a financial plan for another client and immediately collected a $4,000 cash fee.h. Lita Lopez withdrew $3,275 cash from the company for personal use.i. The company received $1,800 cash as partial payment from the client described in transaction f.j. The company made a partial payment of $700 cash on the equipment purchased in transaction d.k. The…
- On October 1, 2021, Santana Rey launched a computer services company, Business Solutions, that is organized as a proprietorship and provides consulting services, computer system installations, and custom program development. October 1 S. Rey invested $50,000 cash, a $24,000 computer system, and $11,500 of office equipment in the company. October 3 The company purchased $1,400 of computer supplies on credit. October 6 The company billed Easy Leasing $5,700 for services performed in installing a new web server. October 8 The company paid $1,400 cash for the computer supplies purchased on credit on October 3. October 10 The company hired a part-time assistant. October 12 The company billed Easy Leasing another $1,500 for services performed. October 15 The company received $5,700 cash from Easy Leasing as partial payment toward its account. October 17 The company paid $780 cash to repair its computer equipment. October 20 The company paid $1,683 cash for advertisements…PQR is the accounting intern for, a firm that has many small clients that need monthly accounting services. Ray has been asked by the partner in charge to analyze the asset section of firms’s balance sheets which follow: 2011 2012 Cash $2,500 $3,900 Accounts receivable, net 35,000 40,000 Inventory 85,000 122,000 Other current assets 3,400 4,110 Total current assets 125,900 170,010 Property, plant & equipment, net 180,000 230,000 Other assets 15,000 26,000 Total assets $320,900 $426,010 Required Prepare a common-size analysis of the assets section of the firms balance sheet for 2011 and 2012.Round all percentage answers to one decimal placeWhat is the correct journal entry for the following transaction? A firm sells a car for $40 cash. The cost of the car is $30 and it has accumulated depreciation of $20. The firm is a business consulting firm, and the car is therefore classified as property, plant & equipment.
- Baltimore Company paid $3,600 cash for the right to use office space during the coming year. Which of the following shows how this event would affect Baltimore’s balance sheet?. PQR is the accounting intern for, a firm that has many small clients that need monthly accounting services. Ray has been asked by the partner in charge to analyze the asset section of firm’s balance sheets which follow: 2011 2012 Cash $2,500 $3,900 Accounts receivable, net 35,000 40,000 Inventory 85,000 122,000 Other current assets 3,400 4,110 Total current assets 125,900 170,010 Property , plan &equipment , net 180,000 230,000 Other assets 15,000 26,000 Total assets $320,900 $426,010 Required Prepare a common-size analysis of the assets section of the firm’s balance sheet for 2011 and 2012.Round all percentage answers to one decimal placeMr. Hamed Al Busaidi a leading a used furniture trader in Oman. He buys used furnitures from various trader and re-sells directly to the customer who need used furniture. At the end of one month he sold 10 numbers of office chairs for the value of OMR 100. Which of the following accounting treatment will be correct for the amount of OMR 100? a. It is treated as sales revenue for the business b. It is treated as Non current asset for the business c. It is treated as current liability for the business d. It is treated as expenses for the business