of accounts is helpful for identifying the accounts to be used when encountering less frequent transactions. The chart of accounts and the general ledger accounts can also be modified to provide more detailed...
of accounts is helpful for identifying the accounts to be used when encountering less frequent transactions. The chart of accounts and the general ledger accounts can also be modified to provide more detailed...
automatically and only require information on the other account. Examples of Double Entry When a company borrows money from a bank, the company’s asset Cash is increased and the company’s liability Notes Payable or...
loss computed using a past cost) Current and future costs that will differ between two alternatives in a decision. (Costs that will not differ are irrelevant and can be ignored.) Information provided in a timely manner...
) and credits Prepaid Insurance for $400 A second method of recording a prepaid expense is to record the entire payment in the expense account. Using the information above, the following entries will occur: On December 1...
that was prepared by the organization The receiving report that was prepared by the organization The “match” part of the three-way match refers to comparing the quantities, price per unit, terms, and other...
. Typically, the machine hours are between 4,000 and 7,000 hours per month. Based on this information, the flexible budget for each month would be $40,000 + $10 per MH. Now let’s illustrate the flexible budget by using...
improvements to land, buildings, machinery, equipment, furniture, fixtures, vehicles, computer information systems, leasehold improvements, etc. Join PRO to Track Progress Mark the Question as Read Must-Watch Video...
SG&A, variable interest) average $8 per unit of product, and its selling prices average $20 per unit. The result is an average contribution margin of $12 per unit and an average contribution margin ratio of 60% ($12...
in the accounting periods in which the asset is being used. More Information on the Depreciation Entry It is important to understand the following: The depreciation entry will cause a decrease in the company’s net...
be on hand based on the accounting information. Examples of Determining the Cost of Missing Inventory If a company’s accounting records or its inventory system uses the perpetual inventory system (and it is maintained...
to be $800,000 for the new year. The company produces similar products and it expects to use 20,000 machine hours. Based on this information, the company’s plant-wide overhead rate will be $40 per machine hour. If...
be an increase to the net profit. If the business is a regular corporation, net profit may mean after income tax expense. Example of Net Profit Assume that a sole proprietorship business had the following information...
balance sheet will report that the company will collect the net amount of $220,000. However, the credit manager’s recent review indicates that the company will not be collecting a total of $25,000 of the accounts...
of the company’s monthly income statements is $1,000 ($480,000 divided by 480 months). Additional Information Depreciation expense is referred to as a noncash expense because the recurring, monthly depreciation entry...
distributed to the stockholders since the corporation was formed. The account Treasury Stock, which has a debit balance representing the amount paid by the corporation to repurchase its own shares of stock which it did...
and distribute to its stockholders, the following corporation information should be considered: Present cash balance Cash needed to finance the business operations (growth, inflation, etc.) Cash needed to finance future...
Our Explanation of Financial Statements provides you with the highlights of each of the five external financial statements issued by U.S. corporations. Our insights will give you a good understanding of what the...
the following information: December 31 (and the year) Depreciation Expense $10,000 (in the debit column) Accumulated Depreciation $10,000 (in the credit column) A short explanation such as “Depreciation for the...
that are affected by the Statement. In the left panel of the website, the first four links (Recent Additions, Action Alert, Project Activities, and Exposure Documents) allow you to monitor the status of rules being...
of the balance sheet date will be a noncurrent or long-term liability. The company should also disclose pertinent information for the amounts owed on the notes. This will include the interest rates, maturity dates,...
value of the cash inflow $6,210 (from the example above) and the $5,000 (which is the present of the $5,000 paid today). Assuming the same information, except that the rate for discounting the cash amounts is 12%, the...
What is a blank check? Definition of Blank Check A blank check often refers to a check that has been signed by an authorized check signer without completing the other information (date, payee, amount). A blank check...
, there is $6.00 on hand and there are $93.00 of petty cash vouchers. This indicates a shortage of $1.00. Using the above information, the journal entry to replenish the petty cash fund will include a credit of $94.00 to...
in the control account. To find the amount that a specific customer owes, its recent payments, and its recent purchases on credit, you will quickly get that information from the Accounts Receivable Subsidiary Ledger....
include an additional amount that is added to the retailer’s cost of the product. This additional amount must be sufficient to cover the retailer’s selling, general and administrative expenses and some profit....
the required amount of college credits, many students enroll in a CPA Review course just prior to sitting for the CPA Exam. Within AccountingCoach.com’s Accounting Career Center we provide othe assistance and links...
units of Product X is $360,000, or $36 per unit From the above information, we see that the incremental cost of manufacturing the additional 2,000 units (10,000 vs. 8,000) is $40,000 ($360,000 vs. $320,000). Therefore,...
Receivable—the items that can be turned into cash QUICKLY. Cash Wrong. The quick ratio includes Cash, Temporary Investments, and Accounts Receivable—the items that can be turned into cash QUICKLY. Inventory is NOT...
Our Explanation of Present Value of a Single Amount discusses the time value of money and the need to discount future amounts to the time of an investment or other transaction. The present value of 1 table is used to...
Our Explanation of Depreciation emphasizes what the depreciation amounts on the income statement and balance sheet represent. Learn why depreciation is an estimated expense that does not assist in determining the current...
Our Explanation of Accounts Receivable and Bad Debts Expense helps you understand the accounting for the losses associated with selling goods and providing services on credit. You will understand the impact on the...
Our Explanation of Bookkeeping provides you with a rich understanding of the recording of transactions. It then discusses the additional steps necessary for preparing accurate financial statements. This is great for...
Our Explanation of Bookkeeping provides you with a rich understanding of the recording of transactions. It then discusses the additional steps necessary for preparing accurate financial statements. This is great for...
static 17. The __________ variance is the difference between 1) the fixed manufacturing overhead absorbed by (or assigned to) the products manufactured, and 2) the budgeted amount of fixed manufacturing overhead....
Our Explanation of the Balance Sheet provides you with a basic understanding of a corporation's balance sheet (or statement of financial position). You will gain insights regarding the assets, liabilities, and...
Our Explanation of Standard Costing uses an easy-to-relate to example for illustrating a manufacturer's standard costs and variances. Also provided is a chart which indicates each variance, what it tells you, and where...
. Select... periodic perpetual 29. Susie’s Crafts has some of its items out on consignment at Smith’s Pharmacy. The cost of these items should be reported as Inventory on the balance sheet of __________. Select......
activities Cash flows from investing activities Cash flows from financing activities In addition, the SCF must disclose some supplemental or supplementary information, including significant noncash transactions (such as...
at the time of purchase, the materials are recorded in inventory at their __________ cost. Select... bill budgets efficiency output price rate standard unfavorable usage variance Use the following information for...
. The federal form that summarizes the information on the employees’ W-2 forms is __________. Select... Form W-3 Form W-4 Form W-5 Form W-6 23. Generally, if a company has the right to control the services provided by...
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