Depreciation

An aging of a company's accounts receivable indicates that $4,500 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a debit to Allowance for Doubtful Accounts for $3,300. debit to Bad Debt Expense for $4,500. credit to Allowance for Doubtful Accounts for $4,500. debit to Bad Debt Expense for $3,300. The financial statements of the Melton Manufacturing Company reports net sales

recognize that many financial statement users would be confused of when the property, plant, and equipment are reported at fair value as well as depreciation expense will be based on actual economic depreciation of the property, plant, and equipment for each year. I understand the purpose of revaluation based on the fair value and applying the economic depreciation in order to improve and provide accurate asset and expense valuation on a continuing basis to financial

and capital gain. (a) Compute recaptured depreciation and capital gain (loss), if any. (b) Find the firm’s tax liability. |(a) Book Value ’ 100,000 (1 – 0.20 – 0.32 – 0.19) ’ $29,000 | |Recaptured depreciation ’ 40,000 – 29,000 | |’ $11,000

hours used per part is readily available at no additional cost. 4. A possible change to the plan proposed by the consultant would be to create pools based on the depreciation costs of a machine rather than which room the machine is located. There is no evidence that all test machines in the mechanical room have a higher depreciation expense than those in the main room. A part

CHAPTER 21 Accounting for Leases ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief  Exercises Exercises Problems Concepts for Analysis *1. Rationale for leasing. 1, 2, 4 1, 2 *2. Lessees; classification of leases; accounting by lessees. 3, 5, 7, 8, 14 1, 2, 3, 4, 5 1, 2, 3, 5, 7, 8, 11, 12, 13, 14 1, 2, 3, 4, 6, 7, 8, 9, 11, 12, 14, 15, 16 1, 2, 3, 4, 5, 6 *3. Disclosure of leases. 19 2, 4, 5, 7, 8 2, 3, 5 *4. Lessors;

of a capital asset are donated, they are recorded at their fair value at the time of receipt, plus ancillary charges. The capital assets are reported in the government activities column of the government-wide financial statements. In addition, depreciation for capital asset are done at the government wide level. There are certain assets that are not depreciated such as land, land improvement, noncapitalized work of art, historical treasure, and eligible infrastructure assets using the modified approach

October 31, 2010. Cash received from customers $300,000 Revenue earned 350,000 Cash paid for expenses 170,000 Cash paid for computers on November 1, 2009 that will be used for 3 years (annual depreciation is $16,000) 48,000 Expenses incurred, not including any depreciation 200,000 Proceeds from a bank loan, part

personnel expenditures. The upgrading costs for PJ-2 and PJ-3 apply to the end of year 4 and year 7 respectively. Estimation of total operating cost is in Appendix B. Depreciation PJ-1: Straight line depreciation over 25 years from 15 m to the salvage value of zero. Thus, the annual depreciation is . In year 3, the book value of PJ-1 is . In year 6, the book value of PJ-1 is . The market value in year 3 for PJ-1 is 5 m and thus below the book value and get a tax

Paper-368903, Financial Accounting Assessment 2 Case Study Question 1. 1. RBD has complied with revenue recognition norms and provided following disclosures in accordance with NZIAS18:- a) Revenue of $329,269 (NZ’000’s) from sale of burgers, pizzas, coffee and beer has been reported only after completion of transaction and fulfillment of conditions. b) Revenue of $ 1130 (NZ’000s) from services is reported in the same year in which services are rendered. c) Unrecognized revenue due to nonfulfillment

statements. • Based on the financial statements in 1984 Harnischfeger made changes from the previous year, the corporation computed depreciation expenses on plants, machinery and equipment using the straight-line method. Prior to the accounting changes in 1984, the company had experienced some financial losses was able to recover. There has been a change in depreciation accounting when it comes to profit. Before they used to apply the accelerated methods for the operating