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Amortization of the cost of the leased properties for 2016 using the straight-line method and assuming a zero salvage value.
What entry should be made to correct for this error, assuming that the books are not closed for 2015?
What entry is necessary to correct for this error, assuming that the books are not closed for 2014?
For years prior to 2014, pretax income under the two methods was as follows: percentage-of-completion $120,000, and completed-contract $80,000.
Prepare Shannon's 2014 journal entry to record the change in accounting principle.
Tedesco's depreciable assets had a cost of $250,000 with a $40,000 salvage value, and an 8-year remaining useful life at the beginning of 2014.
On January 1, 2015, Sesame revised these estimates to a total useful life of 4 years and a salvage value of $10,000.
The expense related to this building will now appear as an administrative expense rather than a selling expense on the current year's income statement.
Management has decided to switch from the FIFO inventory valuation method to the LIFO inventory valuation method for all inventories.
Prepare Simmons's entries related to Armstrong's net income and dividends, assuming Simmons now owns 10% of Armstrong's stock.
Change from completed-contract to percentage-of-completion method on construction contracts.
Prepare the general journal entries that should be made at December 31, 2015, to record these events.
Peter M. Dell Co. purchased equipment for $510,000 which was estimated to have a useful life of 10 years with a salvage value of $10,000 at the end.
Gerald Englehart Industries changed from the double declining-balance to the straight-line method in 2015 on all its plant assets.
A tax lawsuit that involved the year 2013 was settled late in 2015. It was determined that the company owed an additional $85,000 in taxes related to 2013.
Accrued vacation pay for the year of $31,100 was not recorded because the bookkeeper "never heard that you had to do it."
Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed.
Prepare a schedule showing the determination of corrected income before taxes for 2014 and 2015.
Prepare comparative retained earnings statements for Madrasa Inc. for 2013 and 2014. The company had retained earnings of $200,000 at December 31, 2012.
What amounts would appear on Ludwick's December 31, 2016, balance sheet relative to the lease arrangement?
Prepare the journal entry to record depreciation of the leased asset for the year 2014.
Amirante Inc. manufactures an X-ray machine with an estimated life of 12 years and leases it to Chambers Medical Center for a period of 10 years.
You are a senior auditor writing a memo to your supervisor, the audit partner in charge of this audit.
Evaluate the criteria for classification of the lease, and describe the nature of the lease..
What is the theoretical basis for the accounting standard that requires certain long-term leases to be capitalized by the lessee?