Thank you Patterson School of Accounting and all the faculty and staff for supporting all my scholastic endeavors, and for continuing the integrity and excellence of the accounting program. Most importantly, thank you to my God for giving me the ability to learn and the resources to pursue my dreams.
Home Heaters
Transaction Cash Accounts Receivable provision for bad debts Inventory Land Building Accum Dep- Building Equipment Accum Dep- Equipment. Transaction Leased Equipment Accum Dep- Leased Equipment Accounts Payable Interest Payable Note Lease Payable Common Stock Retained Earnings Dividends.
Totz and Doodlez
Therefore, the gain from the sale of the building of the company's former headquarters must be reported separately as non-operating income in the continuing operations section of the income statement. Therefore, the proceeds received from the settlement must be reported separately as nonoperating income in the continuing operations section of the income statement.
Rocky Mountain Chocolate Factory, Inc
Listed below are the journal entries of several major economic events that occur for Rocky Mountain Chocolate Factory, Inc. Rocky Mountain is an international franchisor, confectionary manufacturer and retail operator whose revenues are derived from three main sources: chocolate and other confectionery to franchises and other retail. stores, franchise fees and royalties, and company-owned sales. Weighted average common shares outstanding 6,012,717 Corrective effect of employee stock options 197,521 Weighted average common shares outstanding,.
Small Business Fraud Schemes
Physical audit: A physical count of inventory should be done periodically to make sure that sales and ending inventory match the total inventory. Segregation of duties: There should be only one employee authorized to make returns during the shift. Physical Audit: There must be a physical count of cash at the end of an employee's shift.
Division of duties: There should be more than one person handling complaints and customer service. Access Controls: Each employee's code on the register should be changed periodically to ensure that they are kept unique and secret. Approval Authority: Large dollar transactions or transactions requiring a large amount of change in cash to be returned to the customer must be required to have manager approval before they occur.
Separation of duties: The job of reporting and filing should be separated to reduce the risk of fraud.
Inventory
Inventory surpluses are recorded without accounting for an estimated provision for obsolete or unmarketable inventory. Obsolete or unmarketable inventory legislation does not appear directly in the company's financial statements; it is calculated from the inventory being. If the company has chosen to have the account appear on the financial statements, it should appear on the balance sheet as a deduction under the "Inventory" account.
The cost of finished goods transferred from work in progress for the current year is. The cost of raw materials transferred to work in process for the current year is The total allowance for obsolete or unmarketable items is $24,148; the company estimated that 13.07% of finished goods would be obsolete or unmarketable.
Additionally, I would like to know why the estimate for obsolete goods is so high seeing that the ending balance of the allowance accounts is over $10,000 for 2011 and 2012.
WorldCom, Inc
Assets add value to the company if they generate future cash flows, improve sales, or reduce expenses. Expenses are defined as the economic cost of operating a business to produce revenue; according to accounting principles, all expenses must be matched with an income. In general, a cost is capitalized if it adds to the value of the asset or if the purchased resource provides a benefit for more than one operating cycle.
This principle of capitalizing certain costs and then depreciating them is so that the cost of the cost matches the income it generates. The capitalization of the cost of property, plant and equipment appears on the current asset section of the balance sheet. The expenditure is found on the statement of cash flows under investing activities as "capital expenditure".
WorldCom previously reported that net income was that which included the capitalization of a portion of line costs incurred throughout the year.
Targa Co
The restructuring plan includes the shutdown of Targa's Armor Track line research and development facility, displacing 120 to 125 of its 140 employees. In addition, the facility manager at the affected location will receive $50,000 per their employment agreement. The company is also involved in irrevocable contracts with relevant parties that will affect the restructuring plan over the next 18 months.
Employees who do not wish to complete employment through a facility closure are entitled to only two weeks' severance benefits, while employees who complete service through a facility closure are entitled to severance and one-time benefits. The plan sets forth the terms of the benefit arrangement, including the benefits employees will receive upon termination (including but not limited to cash payments), in sufficient detail to enable employees to determine the type and amount of benefits they will receive. receive if involuntary discontinued. Targa will record the fair value of the one-time severance benefits, which is $2.5 million, on the communication date, which is 27 December 20X1.
Costs incurred due to the relocation of the business area and the training of new employees are considered costs of the outgoing activity.
Merck & Co., Inc
This gives the issued shares a dollar value of $29.8 million as shown on the balance sheet. When a company buys back shares and buys its own shares on the open market, it reduces the number of shares outstanding and therefore increases the remaining shareholder interest in the company. When the repurchase of shares is made in good faith, it is in the best interest of the shareholders.
However, a company may buy back shares to appear more financially viable and to improve financial ratios; this would not benefit the remaining shareholders. This method records shares at the cost at which the shares were redeemed, not at par or the price investors originally paid when issued. The repurchase of own shares is shown as a cash outflow in the financial section of the cash flow statement.
Although treasury shares can be considered a future economic benefit if they are sold at a higher value than the company that bought them back (creating a profit), treasury shares cannot be considered an asset because companies cannot generate income from their own shares.
Xilinx, Inc
Restricted stock units differ from stock options in that, after the vesting period, the employee receives a share or cash equivalent instead of having to pay an exercise price. It would be beneficial for a company to offer both stock options and RSUs because they provide different benefits to the company and the employee. 62 Because stock options and RSUs must be granted, employee stock purchase plans offer the opportunity to gain ownership of a larger portion of the company at a discounted price.
Any tax benefits in excess of the deferred tax asset attributable to stock option compensation expense will be classified as financing cash flows. The exercise price for stock options will be the closing market price on the grant date. Because a stock option is issued at the exercise price for a future date, it is uncertain whether the market price of the stock will exceed the predetermined exercise price, making the stock options worthless.
The annual progress of Xilinx stock options and restricted stock units follows the trend described in the article.
Bier Haus
The bartender then pours the beer into a large cup and hands it to the student. 68 Step 5: Bier Haus would recognize the revenue from this transaction when the bartender hands the student the beer, as the performance obligation is then satisfied. The student takes the beer in the new mug and enjoys it while reading the codification.”.
The bartender then offers the student the large beer and a coupon for two pretzels (a typical business practice) for $7. The bartender pours the beer into the beer mug and hands it to the student. The student then takes the beer and coupon and heads to the dorm to study for the upcoming midterm accounting exam.
71 Step 2: The performance obligation that must be fulfilled is the pretzels that are given to the student.
ZAGG, Inc
Taxable income includes income that is received but not earned and expenses are not deducted until paid. In addition, tax accounting prohibits certain forms of income and expenses from being included in taxable income. Revenue recognition, accrued liabilities and limitations on certain forms of income and expenses create a difference between accounting income and taxable income.
An example is if a company pays a political expense of $50,000, their book income will be $50,000 less than their taxable income because lobbying and political expenses cannot be deducted from taxable income. Therefore, the company's lower taxable income in 2017 is made up for a higher taxable income in 2018. A deferred income tax expense arises from temporary tax differences that occur in the current year that will affect taxes payable in future years.
Therefore, a company would report deferred income taxes as part of their total income tax expense to account for the difference in the financial statements.
Build-A-Bear Workshop, Inc
- Executive Summary
- Glenwood Heating, Inc. Financial Statements
- Glenwood Income Statement
- Glenwood Trial Balance
- Glenwood Statement of Changes in Stockholders’ Equity
- Glenwood Classified Balance Sheet
- Glenwood Statement of Cash Flows
- Eads Heating, Inc. Financial Statements
- Eads Income Statement
- Eads Trial Balance
- Eads Statement of Changes in Stockholders’ Equity
- Eads Classified Balance Sheet
- Eads Statement of Cash Flows
- Financial Analysis and Recommendation
- Summary
- Part 1
- Part 2
- Part 3
- Part 4
- Book Income vs Taxable Income
- Definitions
- Permanent Tax Difference
- Temporary Tax Difference
- Statutory Tax Rate
- Effective Tax Rate
- Deferred Income Taxes
- Deferred Tax Assets and Liabilities
- Deferred Income Tax Valuation Allowance
- ZAGG, Inc. – Income Taxes
- Journal Entry for Income Tax Provision
- Journal Entry for Deferred Tax Asset and Liability
- Effective Tax Rate
- Balance Sheet Presentation
- Leased vs Purchased Assets
- Lease Definitions
- Operating Lease
- Capital Lease
- Direct-Financing Lease
- Sales-Type Lease
- Distinguishing Between Leases
- Hypothetical Lease Scenario
- Build-A-Bear Workshop’s Operating Lease Commitments
- Converting Operating Lease to Capital Lease
- Liquidity and Solvency Ratio Comparisons
An operating lease is short in terms of the useful life of the asset and is used to acquire equipment on a short-term basis. Instead of assuming the cost of the lease, the lessee must add assets and liabilities that correspond to the lease of the asset. When ownership passes from the landlord to the tenant at the end of the lease.
A sales lease is similar to a direct finance lease, except that the profit arising from the contract is recognized at the inception of the lease in addition to the interest income received during the term of the lease. The profit recognized is the present value of all lease payments less the purchase price of the leased asset. 82 - If ownership is transferred from the lessor to the lessee at the end of the lease,
If the lease period is greater than or equal to the useful/economic life - If the present value of the lease payments is greater than or equal to 90%.
