T1 ay13 14 actbas1 individual business case

Jun 11, 20130 likes2,681 views

The document provides the statements of financial position for Galaxy Corporation and Universal Corporation as of July 31, 2012. Galaxy has total assets of P6,020,000 consisting mainly of cash, accounts receivable, land, and building. Its total liabilities are P1,100,000 and owner's equity is P4,920,000. Universal has total assets of P9,120,000 consisting mainly of cash, accounts receivable, land, building, and equipment. Its total liabilities are P3,280,000 and owner's equity is P5,840,000. The document asks you to assume the role of a banker considering a 90-day loan of P600,000 to each company and which

ACTBAS1 INDIVIDUAL BUSINESS CASE
1ST
Term, Academic Year 2013-2014
Williams, J., Haka, S., Bettner, M., & Carcello, J. (2012)
Financial Accounting, 15th
edition, McGraw-Hill Irwin (with modifications)
Galaxy Corporation and Universal Corporation are in the same line of business and both were recently
organized, so it may be assumed that the recorded costs for assets are close to current market values. The
statements of financial position of the two companies as of July 31, 2012 are as follows:
Galaxy Corporation
Statement of Financial Position
July 31, 2012
Assets Liabilities & Owner鈥檚 Equity
Cash P 900,000 Liabilities:
Accounts Receivable 1,300,000 Notes Payable (due in 60 days) P 620,000
Land 1,860,000 Accounts Payable 480,000
Building 1,900,000 Total Liabilities P 1,100,000
Office Equipment 60,000 Owner鈥檚 Equity:
Galaxy, Capital 4,920,000
Total Assets P 6,020,000 Total Liabilities & Owner鈥檚 Equity P 6,020,000
Universal Corporation
Statement of Financial Position
July 31, 2012
Assets Liabilities & Owner鈥檚 Equity
Cash P 240,000 Liabilities:
Accounts Receivable 480,000 Notes Payable (due in 60 days) P 1,120,000
Land 4,800,000 Accounts Payable 2,160,000
Building 3,000,000 Total Liabilities P 3,280,000
Office Equipment 600,000 Owner鈥檚 Equity:
Universal, Capital 5,840,000
Total Assets P 9,120,000 Total Liabilities & Owner鈥檚 Equity P 9,120,000
Instructions:
a. Assume you are a banker and that each company has applied for a 90-day loan of P600,000. Which
would you consider to be the more favorable prospect? Explain your answer fully.
b. Assuming that you are considering purchasing one of the companies. For which business would you be
willing to pay the higher price? Do you see any indication of financial crisis that you might face shortly
after buying either company? Explain your answer fully. (For either decision, additional information
would be useful, but you are to reach your decision on the basis of the information available).

Format:
飩� Short bond paper
飩� Double spaced
飩� One inch margin in all sides
飩� Minimum of two pages (not including the cover page)
飩� Font: Arial 12
飩� Cover page:
Deadline: July 2, 2013
BUSINESS CASE
Presented to the
Accountancy Department
De La Salle University
In partial fulfillment
Of the course requirements
In ACTBAS1 (sec)
Surname, First Name, M.I.
Date

The summary identifies 10 facts discovered about Billy Beard's Billboard Screen statement of financial position. Several items were not accounted for correctly according to GAAP principles, including cash that included Billy's personal funds, an uncollectible receivable, a donated asset still on the books, taxes paid considered an asset, and overvalued land. The corrected statement of financial position prepared by the group will properly account for these items and other payables according to GAAP.

Reinvestment Zone No. 17City of College Station

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The College Station City Council document discusses Prospect, an insurance claims processing company, considering opening a new 300+ seat facility in College Station. Prospect selected College Station out of three finalists for the facility. The proposed facility would represent a $500,000 capital investment in personal property and $7-8 million in real property with the construction of a 50,000 square foot building. It would also create over 300 new jobs with a projected $12 million annual payroll. The City Council will hold a public hearing and vote on establishing a Tax Abatement Reinvestment Zone and entering into agreements to provide incentives to bring Prospect to College Station.

T1 ay13 14 acctba1 individual business casekennethcrisostomo

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This document presents the statements of financial position for Galaxy Corporation and Universal Corporation as of July 31, 2012. Galaxy has total assets of P6,020,000 consisting mainly of cash, accounts receivable, land, and building. Its total liabilities are P1,100,000 and owner's equity is P4,920,000. Universal has total assets of P9,120,000 consisting mainly of cash, accounts receivable, land, building, and equipment. Its total liabilities are P3,280,000 and owner's equity is P5,840,000. The document instructs to assume being a banker considering a 90-day loan of P600,000 for each company and which would be

Introduction to accounting acctba1 part 1 05282013kennethcrisostomo

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Accounting identifies, records, and communicates the economic events of a business to internal and external users. It recognizes business transactions by assigning monetary values and prepares financial statements such as the income statement, balance sheet, and statement of cash flows. Accounting provides important information to managers in areas like marketing, finance, and real estate for decision making.

Bookkeeping Basic & Quickbooks for ContractorsTerry Chong

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This document summarizes a presentation given by Focus-Grow Bookkeeping on bookkeeping basics and QuickBooks for contractors. It introduces the presenters Terry Chong and Wayne Lee and their credentials. The presentation covers why bookkeeping is important, cash flow management, basic accounting principles, how to use QuickBooks, and working with clients. It emphasizes the importance of getting organized, properly tracking income and expenses, and generating key financial reports for business decision making.

FIN 360BUSINESS DESCRIPTION Please include a pie chart depic.docxssuser454af01

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FIN 360 BUSINESS DESCRIPTION Please include a pie chart depicting the sizes of the various business Resources: Company annual report Company 10-K filing Company Investor Relations website FIN 360 COMPETITIVE POSITION What is the company鈥檚 respective industry market share of each line of business? Is its market share growing or contracting and why? RESOURCES .. Barron鈥檚, Bloomberg, Business Source Complete, CNBC, Google Finance, IBES World, Morningstar Direct, Mutual Fund Management Commentary on Holdings, S&P NetAdvantage, Statista, ValueLine, Wall Street Journal, Zacks, Yahoo Finance FIN 360 INVESTMENT POSTIVES Bullet point rationales鈥� what are the positive attributes of your stock recommendation back it up by facts Examples鈥� new product introduction, niche market with growing market share, cost cutting initiative will grow operating margins RESOURCES .. Barron鈥檚, Bloomberg, Business Source Complete, CNBC, Google Finance, IBES World, Morningstar Direct, Mutual Fund Management Commentary on Holdings, S&P NetAdvantage, Statista, ValueLine, Wall Street Journal, Zacks, Yahoo Finance EXERCISE 9-8A a. Event Assets = Liab. + Equity Rev. Exp. = Net Inc. Cash Flow 1. 2. 3a. 3b. 4. 5. 6. 7. 8. 9. 10. EXERCISE 9-8A (cont.) b. Ozark Sales General Journal for 2016 Event Account Title Debit Credit 1. Cash Common Stock 2. Merchandise Inventory Accounts Payable 3a. Cash Sales Revenue Sales Tax Payable 3b. Cost of Goods Sold Merchandise Inventory 4. Warranty Expense Warranties Payable 5. Sales Tax Payable Cash 6. Cash Notes Payable 7. Warranty Payable Cash 8. Operating Expense Cash 9. Accounts Payable Cash 10. Interest Expense1 Interest Payable EXERCISE 9-8A b. (cont.) Ozark Sales T-Accounts for 2016 Assets = Liabilities + Stockholder鈥檚 Equity Cash Accounts Payable Common Stock 1. 5. 9. 2. 1. 3a. 7. Bal. Bal. 6. 8. 9. Sales Tax Payable Sales Revenue Bal. 284,600 5. 3a. 3a. 510,000 Bal. Bal. 510,000 Merchandise Inventory 2. 3b. Warranties Payable Cost of Goods Sold Bal. 7. 4. 3b. Bal. 4,000 Bal. 330,000 Interest Payable Operating Expenses 10. 8. Bal. 667 Bal. 78,000 Notes Payable Warranty Expense 6. 4. Bal. 50,000 Bal. 10,200 Interest Expense 10. Bal. 667 EXERCISE 9-8A (cont.) c. Ozark Sales Income Statement For the Year Ended December 31, 2016 Sales Revenue Cost of Goods Sold Gross Margin Expenses Operating Expenses $78,000 Warranty Expense 10,200 Total Operating Expenses Operating Income Interest Expense Net Income ...

SPM 4723 Annotated Bibliography You second major proje.docxsusanschei

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SPM 4723 Annotated Bibliography You second major project for the course will be an annotated bibliography. Instead of writing a paper, an annotated bibliography requires you to research a particular legal topic or question, of your choosing, in sports and find academic and law review articles that address that topic. You will develop a question about a legal topic in sports and find seven law review articles to summarize. Each article summary should be 300-350 words in length and should both explain the contents of the article and its relevance to your question or topic. The summaries should be written in your own words. You are required to select law review articles using LexisNexis. The format for the annotated bibliography is explained below. Please put your topic as the title for your paper. Next, each annotation should begin with the APA citation for the article in bold print (do not include web links), followed by a summary of the article (300-350 words) explaining how it addresses your question. The complete annotated bibliography should be double-spaced, 12pt Times New Roman font with one-inch margins. You will be submitting it through Turnitin via Canvas, do not include your name, course number, date or UFID on your annotated bibliography (similar to the case briefs). You should start each annotation on a separate page, and please remember to begin each annotation with the APA citation for the article as instructed above. This assignment is due on Wednesday, April 22nd. 1.Which of the following is not a key component of the conceptual framework of accounting? Select one: a.听internal users b.听the objective of financial reporting c.听cost constraint on useful financial reporting d.听elements of the financial statements 2.The balance sheet and income statement for Joe's Fish Hut are presented below: Joe's Fish Hut Balance Sheet As at December 31 2016 2015 ASSETS Current Assets Cash $180,623 $60,300 Accounts receivable $18,900 $14,200 Inventory $23,600 $25,300 Total Current Assets $223,123 $99,800 Property, plant & equipment $129,000 $184,000 Less: Accumulated depreciation $-26,900 $-21,600 TOTAL ASSETS $325,223 $262,200 LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts payable $28,000 $41,800 Current portion of bank loan $9,500 $9,500 Total Current Liabilities $37,500 $51,300 Non-current portion of bank loan $71,000 $42,000 TOTAL LIABILITIES $108,500 $93,300 Shareholders' Equity Common shares $80,000 $54,400 Retained earnings $136,723 $114,500 TOTAL SHAREHOLDERS' EQUITY $216,723 $168,900 TOTAL LIABILITIES AND EQUITY $325,223 $262,200 Joe's Fish Hut Income Statement For the Year Ended December 31, 2016 Sales $137,000 COGS $83,200 Gross Profit $53,800 Operating Expenses Insurance Expense $1,600 Rent Expense $5,380 Salaries Expense $5,150 Telephone Expense $840 Interest Expense $1,340 Depreciation Expense $5,300 Total Operating Expenses $19,610 Operating Profit Before .

SPM 4723 Annotated Bibliography You second major proje.docxwilliame8

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ProblemIssuance听of听stock听organization听costs.听Snowbound听Corporat.docxbriancrawford30935

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Problem Issuance听of听stock:听organization听costs.听Snowbound听Corporation听was听incorporated听in听July.听The听firm's听charter听authorized听the听sale听of听200,000听shares听of听$10听par-value听common听stock.听The听following听transactions听occurred听during听the听year: 听听听听7/1: 听 Sold听45,000听shares听of听common听stock听to听investors听for听$18听per听share.听Cash听was听collected听and听the听shares听were听issued. 听听听听7/7: Issued听600听shares听to听Sharon听Dale,听attorney-at-law,听for听services听rendered听during听the听corporation's听organizational听phase.听Dale听charged听$12,600听for听her听work. 听听8/11: Sold听20,000听shares听to听investors听for听$22听per听share.听Cash听was听collected听and听the听shares听were听issued. 12/14: Issued听30,000听shares听to听the听MJB听Company听for听land听valued听at听$900,000. Instructions Prepare听journal听entries听to听record听each听transaction. Student Guidance ReportAshford University ACC205Guidance ReportWeek FourLISTEN TO AUDIO/VIDEO EXPLAINING THE GUIDANCE REPORTYELLOW INDICATES ACCOUNT AMOUNTS CHANGEDChange Account to:Based Upon Course Start DateAccount to be changedOriginal AmountJan - FebMar-AprMay-JunJul-AugSept-OctNov-DecCh 7 Ex 2Loan$ 225,000$ 250,000$ 260,000$ 270,000$ 280,000$ 290,000$ 450,000QuestionsYOUR ANSWERS BASED UPON COURSE START DATEa. Compute Hall鈥檚 accrued interest as of December 31, 20X1.b. Present the appropriate balance sheet disclosure for the accrued interest and the current and long-term portion of the outstanding debt as of December 31, 20X1.c. Repeat parts (a) and (b) using a date of December 31, 20X2, rather than December 31, 20X1. Assume that Hall is in compliance with the terms of the loan agreement.Accrued interest 12/31/X2DisclosureAccount to be changedOriginal AmountJan - FebMar-AprMay-JunJul-AugSept-OctNov-DecCh 7 Ex 4Salary expense5000051,00052,00053,00054,00055,00056,000QuestionsYOUR ANSWERS BASED UPON COURSE START DATESalary expenseSocial Security PayableMedicare PayableFed Taxes PayableState Taxes PayableInsurance PayableCashPayroll Tax ExpenseSocial Security PayableMedicare PayableState unemploymentFed unemploymentAccount to be changedOriginal AmountJan - FebMar-AprMay-JunJul-AugSept-OctNov-DecCh 7 Pb 212/1 Note payable2000025,00026,00028,00030,00031,00033,00012/1 Interest rate015%15%15%15%15%15%Warranty2027202820292030203120322033Purchase on account1600017,00018,00019,00020,00021,00022,000Note payable50006,0007,0008,0009,00010,00011,000Warranty repair162172182192202222232Salary accural14001,5001,6001,7001,8001,9002,000Vacation6%360006%37,0006%38,0006%39,0006%40,0006%41,0006%42,00012/26 interest120$ 120$ 120$ 120$ 120$ 120$ 120a. Prepare journal entries to record the preceding transactions and events.CashNotes PayableWarranty expenseWarranty LiabilityMerchandiseAccounts PayableCashNote PayableWarranty LiabilityCashSalary ExpenseSalary PayablePayroll ExpenseAccrued Vacation Payableb. Determine accrued interest as of December 31, 20XX, and prepare the necessary adjusting entry or entries.12/1 one month accrual12/26 60 day note-accrue 5 daysTotal Interest Acc.

ACC 405 Final Project One Scenario Posey Company O.docxbartholomeocoombs

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ACC 405 Final Project One Scenario Posey Company Overview You are a financial accountant for Posey Company tasked with preparing consolidation documentation at year end. You have the following information: December 31, 20X5 Posey Company acquired 90% of Stargell Corporation鈥檚 outstanding common stock for $1,116,900. On that date: 飩� The fair value of the noncontrolling interest was $124,100; 飩� Stargell reported common stock outstanding of $487,000, premium on common stock of $267,000, and retained earnings of $407,000; the book values and fair values of Stargell鈥檚 assets and liabilities were equal except for land, which was worth $30,000 more than its book value. On April 1, 20X6 飩� Posey issued at par $200,000 of 10% bonds directly to Stargell; interest on the bonds is payable March 31 and September 30. On January 2, 20X7 飩� Posey purchased all of Stargell鈥檚 outstanding 10-year, 12% bonds from an unrelated institutional investor at 98. The bonds originally had been issued on January 2, 20X1, for 101. Interest on the bonds is payable December 31 and June 30. Since the date it was acquired by Posey 飩� Stargell has sold inventory to Posey on a regular basis. The amount of such intercompany sales totaled $67,000 in 20X6 and $83,000 in 20X7, including a 30% gross profit. 飩� All inventory transferred in 20X6 had been resold by December 31, 20X6, except inventory for which Posey had paid $18,000 and did not resell until January 20X7. 飩� All inventory transferred in 20X7 had been resold at December 31, 20X7, except merchandise for which Posey had paid $16,667. As of December 31, 20X7 飩� Stargell had declared but not yet paid its fourth-quarter dividend of $12,750. 飩� Both Posey and Stargell use straight-line depreciation and amortization, including the amortization of bond discount and premium. 飩� On December 31, 20X7, Posey鈥檚 management reviewed the amount attributed to goodwill as a result of its purchase of Stargell common stock and concluded that an impairment loss in the amount of $25,000 had occurred during 20X7 and should be shared proportionately between the controlling and noncontrolling interests. 飩� Posey uses the fully adjusted equity method to account for its investment in Stargell. On December 31, 20X7, trial balances for Posey and Stargell appeared as follows: Posey Company Stargell Corporation Item Debit Credit Debit Credit Cash $ 49,500 $ 39,000 Current Receivables 121,500 90,100 Inventory 317,000 364,900 Investment in Stargell Stock 1,243,800 Investment in Stargell Bonds 985,000 Investment in Posey Bonds 200,000 Land 1,241,000 518,000 Buildings and Equipment 2,940,000 1,915,000 Cost of Goods Sold 1,829,000 .

Intermediate Accounting . CH 13 . by MidoCoolMahmoud Mohamed

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The document discusses current liabilities and contingencies. It defines current liabilities as obligations due within one year and lists common types like accounts payable, notes payable, income taxes payable. It also discusses classification of short-term debt expected to be refinanced. Contingencies are defined as uncertain gains or losses, with loss contingencies accrued if probable and reasonably estimable. Common contingencies include litigation, guarantees, and environmental liabilities.

Analyzing Liquidity Using the Cash Conversion CycleCredit Management Association

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The document discusses analyzing a company's liquidity position using the cash conversion cycle, which is defined as the average time in days that it takes for a dollar invested in current assets to be converted back to cash. It describes how to calculate a company's cash conversion cycle using inventory conversion cycle, accounts receivable collection period, and accounts payable deferral period. It also discusses how shortening a company's cash conversion cycle can improve its liquidity and cash flow by reducing inventory days, collection period, or extending payables.

FABM2 week 2 Fundameentals of FABM 2.pptxCarljohnCallos

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A note on financial alternativeskumar gaurav

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This document discusses financial alternatives for companies, including internal and external financing options. Internal financing involves improving cash flow, adjusting working capital like accounts receivable and inventory, or disposing of fixed assets. External financing includes raising equity privately or publicly, as well as taking on short or long-term debt. Short-term debt is less than 2 years and includes lines of credit, revolving credit, and bridge loans. Long-term debt finances assets for over 2 years. The document provides examples of how adjusting accounts receivable, inventory, and accounts payable can generate internal cash flow. Overall, exploring all alternatives is important to find a beneficial short and long-term financing solution.

Assignment 1 Chapter 2 Mini Case Financial .docxtrippettjettie

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Assignment 1: Chapter 2 Mini Case: 鈥淔inancial Statement and Cash Flow Analysis鈥� In the mini case in our textbook we were given an account balance sheet for Jaeden Industries as of December 31, 2010 along with their income statement and balance sheet from the previous year. It also stated that the firm鈥檚 dividend payout ratio is 25% and the tax rate is 34%. The firm鈥檚 stock price on December 31, 2009, was $ 42.89 and on December 31, 2010, it was $ 56.82. In part A of our assignment it asks us to use the financial statements in the text to determine Jaeden鈥檚 free cash flow, liquidity, debt and profitability ratios, and market ratios for year 2010. Part A Jaeden鈥檚 Free Cash Flow The measure of free cash flow (FCF) is the amount of cash flow available to investors; the providers of debt and equity capital. It represents the net amount of cash flow remaining after the firm has met all operating needs and has made all required payments on both long- term (fixed) and short- term (current) investments (Graham, Megginson, Smart pg. 34). However, in order to determine the free cash flow you have to obtain the operating cash flow (OCF), which are cash inflows and outflows directly related to the production and sale of products or services. OCF = [Earnings before interest and taxes (EBIT) 脳 (1 - T)] + Depreciation (T=.34%) OCF = (42000000-26460000-1621000-800000) x (1 鈥� T) + Depreciation OCF = 13119000 x (1 - .34) + 800000 OCF = 9458540 Now that we have the OCF we can solve for the FCF FCF = OCF 鈥� Capital Expenditures + Depreciation 鈥� Networking Capital FCF = 9458540 鈥� 2932000 鈥� (4530181-190000-150000) FCF = 9458540 鈥� 2932000 鈥� 4190181 FCF = 2336359 Jaeden鈥檚 free cash flow is 2336359 Jaeden鈥檚 Liquidity Our textbook states that liquidity ratios measure a firm鈥檚 ability to satisfy its short-term obligations as they come due. Current ratio and quick ratio are two measures of liquidity. Current Ratio is defined as current assets divided by current liabilities and it is used to measure a firm鈥檚 ability to meet short-term obligations. Current assets include cash, marketable securities, accounts receivable, and inventory. Current liabilities include accounts payable, notes payable, and accruals. Quick ratio is somewhat similar except it excludes a certain asset that is, inventory. Inventory turnover provides a measure of how quickly a firm sells its goods (Graham, Megginson, Smart pg. 43). Inventory turnover can be converted into average age turnover simply by dividing the turnover figure by the amount of days in a year. Current Ratio = Current Assets / Current Liabilities Current Ratio = (3689000 + 5423000 + 1836000 + 4118000) / (3136000 + 706000 + 500000) Current Ratio = 15066000 / 4342000 Current Ratio = 3.469829572 Quick Ratio = Current Assets 鈥� Inventory / Current Liabilities Quick Ratio = (3689000 + 5423000 + 1836000) 鈥� 4118000 / (3136000 + 706000 + 500000) Quick Ratio = (10948000 鈥� 4118000) / (3136000 + 706000 + 5000 ...

Statement of Financial Position.pptxmarissacasarenoalmue

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Here are the solutions to the problem solving exercises: 1. Learning is Fun Company's total assets = Current assets + Noncurrent assets = Php 100,000 + Php 76,000 = Php 176,000 2. For Happy Selling Company: Total assets = Total liabilities + Total equity = Php 10,000 + Php 20,000 = Php 30,000 3. Happy Selling's current assets = Cash + Accounts Receivable + Prepaid Expense = Php 250,000 + Php 0 + Php 15,000 = Php 265,000 4. Happy Selling's current assets = Cash + Accounts Receivable +

Accounting Economics And Business 20 NovDr. Trilok Kumar Jain

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444ChapterLiabilitiesAfter studying this chapter, yo.docxgilbertkpeters11344

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444 Chapter Liabilities After studying this chapter, you should be able to: 1 Explain a current liability, and identify the major types of current liabilities. 2 Describe the accounting for notes payable. 3 Explain the accounting for other current liabilities. 4 Explain why bonds are issued, and identify the types of bonds. 5 Prepare the entries for the issuance of bonds and interest expense. 6 Describe the entries when bonds are redeemed or converted. 7 Describe the accounting for long-term notes payable. 8 Identify the methods for the presentation and analysis of long-term liabilities. S T U D Y O B J E C T I V E S Feature Story The Navigator鉁� 10 FINANCING HIS DREAMS What would you do if you had a great idea for a new product, but couldn鈥檛 come up with the cash to get the business off the ground? Small businesses often cannot attract investors. Nor can they obtain traditional debt financing through bank loans or bond issuances. Instead, they often resort to unusual, and costly, forms of nontraditional financing. Such was the case for Wilbert Murdock. Murdock grew up in a New York housing project, and always had great ambitions. This ambitious spirit led him into some business ventures that failed: a medical diagnostic tool, a device to eliminate carpal-tunnel syndrome, custom-designed sneakers, and a device to keep people from falling asleep while driving. Scan Study Objectives 鈻� Read Feature Story 鈻� Read Preview 鈻� Read text and answer p. 453 鈻� p. 458 鈻� p. 461 鈻� p. 463 鈻� p. 465 鈻� Work Comprehensive p. 469 鈻� Review Summary of Study Objectives 鈻� Answer Self-Study Questions 鈻� Complete Assignments 鈻� The Navigator鉁� Do it! Do it! JWCL165_c10_444-505.qxd 8/12/09 7:24 AM Page 444 445 Another idea was computer- ized golf clubs that analyze a golfer鈥檚 swing and provide immediate feedback. Murdock saw great potential in the idea: Many golfers are willing to shell out considerable sums of money for devices that might improve their game. But Murdock had no cash to develop his product, and banks and other lenders had shied away. Rather than give up, Murdock resorted to credit cards鈥攊n a big way. He quickly owed $25,000 to credit card companies. While funding a business with credit cards might sound unusual, it isn鈥檛. A recent study found that one-third of businesses with fewer than 20 employ- ees financed at least part of their operations with credit cards. As Murdock explained, credit cards are an appealing way to finance a start-up because 鈥渃redit-card companies don鈥檛 care how the money is spent.鈥� However, they do care how they are paid. And so Murdock faced high interest charges and a barrage of credit card collection letters. Murdock鈥檚 debt forced him to sacrifice nearly everything in order to keep his business afloat. His car stopped running, he barely had enough money to buy food, and he lived and worked out of a dimly lit apartment in his mother鈥檚 basement. Through it all he tried to maintain a po.

IFA II CH 1 Current Liab, Prov and Cont.pptEbsaAbdi

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1. The document discusses current liabilities and contingencies from an accounting textbook chapter. It defines current liabilities and lists common types like accounts payable, notes payable, and current maturities of long-term debt. 2. One learning objective is to explain the classification of short-term debt expected to be refinanced. This debt is excluded from current liabilities if management intends to refinance and has the ability to, such as securing a financing agreement. 3. Employee-related liabilities are identified as a type of current liability. The document provides examples and journal entries related to classifying various debt obligations.

Greene Company Miriam Aranda .docxwhittemorelucilla

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Greene Company Miriam Aranda Content Layout Information Part 1- Subsidiaries Part 2- Greene鈥檚 Consolidated Balance Sheet Part 3- Overseas Companies Conclusion References Information 鈥淕reene is a rapidly expanding manufacturing company, and is considering some additional acquisitions. The company would like to diversify, and is trying to decide between the two different scenarios outlined in Part 1 and Part 3.听 To help him make his decision, the Chief Financial Officer would like specific information on how the potential acquisitions would affect financial reporting鈥� (ACG 4201-- Writing Project and Presentation, n.d.). This Photo by Unknown Author is licensed under CC BY Part 1- Subsidiaries According to FASB ASC 810-10-10-1, 鈥淭he purpose of consolidated financial statements is to present, primarily for the benefit of the owners and creditors of the parent, the results of operations and the financial position of a parent and all its subsidiaries as if the consolidated group were a single economic entity鈥� (FASB, n.d.) Part 1- Subsidiaries Insurance Under the industry, insurances companies use SAP. Different reporting periods Different accounting principles. Lumber Historical cost Follows GAAP Part 1- Subsidiaries Parent company and subsidiaries are not required to report under the same accounting policies (insurance). Preparation- eliminate parent company鈥檚 investment account . intra-entity balances and transactions be eliminated (sales and purchases) Intercompany receivables and payable Subsidiary鈥檚 retained earnings or deficit are not included in the consolidated retained earnings. Part 2- Greene鈥檚 Consolidated Balance Sheet Part 2- Greene鈥檚 Consolidated Balance Sheet Part 3- Overseas Companies Factors need to know to be considered when determining the functional currency for a consolidated subsidiary are as follow: (1) Sales Prices, (2) Expenses, (3) Intercompany transactions, (4) Cash Flows, (5) Sales Markets, and (6) Financing (Christensen, Cottrell, & Budd, 2016). As it is also stated under FASB ASC 830-10-55-5. This Photo by Unknown Author is licensed under CC BY-NC Part 3- Overseas Companies: Economic indicators New Zealand Economy is largely based on export and imports Financial markets are open to global financial encounter U.S. dollar to New Zealand dollar Exchange rate is the increase of domestic interest rates Spain US dollar to Euro European Central Bank Open markets Continuous research on inflation Part 3- Overseas Companies In high inflationary economies, functional currency designation is stated which is the U.S. dollar for U.S. companies. When acknowledging investments across borders, one of the main important tasks to understand is the different and variety of accounting standards other countries Converting foreign currency into U.S. dollar can be done in 3 different exchange rates; current rate, h ...

PARTNERSHIP ACCOUNTINGshahzadebaujiti

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This document discusses partnership accounting, including: 1. What a partnership is, with key features being two or more persons in business together to share profits and losses. 2. The different types of capital accounts including fluctuating, fixed, partners' current accounts, and profit and loss appropriation accounts. 3. How to record transactions in the capital accounts, including contributions of cash or assets and distributions. 4. Methods for valuing and allocating goodwill when new partners are admitted or profit sharing ratios change.

pengantar akuntansi 2 atmajaya jakarta-chapter11Yusup Aris Andika

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1. Current liabilities are obligations due within one year that will be paid using current assets. Examples include accounts payable, notes payable, unearned rent, taxes payable, wages payable, and the current portion of long-term debt. 2. Contingent liabilities are potential future obligations whose occurrence or amount are uncertain. If the liability is probable and reasonably estimable, a liability is recorded. Otherwise, the contingency is disclosed in notes to the financial statements. 3. Product warranties are an example of a contingent liability. If a warranty is provided with a product sale, an estimated expense for future repairs is recorded as a liability based on past repair experience.

Acc week 7Shu Shin

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The document discusses the principles of internal checks in accounting, including: 1) The need to prepare adjusting entries to account for expenses/revenues on an accrual basis rather than cash basis in order to match revenues to the period earned and expenses to the period incurred. 2) Examples of common types of adjusting entries such as prepaid expenses, unearned revenues, accrued expenses, and accrued revenues. 3) How to calculate and record provisions for doubtful debts to account for expected uncollectible accounts receivable.

Entrepreneurship development revision exercisesAlphonse Bisangabagabo

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PROCESS ENGINEERING & ECONOMICS - COST ACCOUNTING & ESTIMATIONpriyachemical

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The document provides details on accounting procedures and concepts. It discusses: 1. The basic accounting equation that assets must equal liabilities plus equity. It explains debits and credits in accounting entries. 2. How accounting records like journals and ledgers are used to record transactions and summarize them in a trial balance. 3. Key financial statements like the balance sheet and income statement. The balance sheet presents assets, liabilities, and equity on a particular date while the income statement shows profits/losses over a period. 4. Illustrative examples are provided of balance sheet preparation from trial balance details for different companies. Accounting ratios and limitations of financial statements are also briefly covered.

Problemset c questionsnamninh

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The document provides financial information for several hypothetical companies and instructions to calculate various financial ratios based on the information provided. Specifically: - It presents income statements, balance sheets, and other financial data for multiple companies including Starbucks, Graham Corporation, Barnette Enterprises, Batman Corporation, Spiderman Corporation, and Howard Company. - For each company, it provides calculations or financial statement preparation tasks to analyze profitability, liquidity, and solvency based on ratios such as net income, earnings per share, working capital, current ratio, debt-to-assets ratio, and free cash flow. - It also provides condensed financial information for Janzan Corporation and instructs the calculation and interpretation of liquidity,

Debt CRISIS PPT CRISIS PPT Debt CRISIS PPT CRISIS PPTnikhilgaikwad892402

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New 0sssdedfsfdsf

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This document outlines the weekly discussion topics and assignments for a course on accounting. In week 1, students are asked to demonstrate the accounting equation using personal transactions and to define accounts and debits and credits. Week 2 discusses differences in accounting cycles for various companies and the purpose of bank reconciliations. Week 3 covers the differences between LIFO and FIFO inventory methods and depreciation. Week 4 defines current liabilities and discusses entity types. Week 5 analyzes ratios and profit margins. The final paper involves a financial statement analysis of a public company to make an investment recommendation.

Adjusting entries 08022013kennethcrisostomo

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This document discusses key accounting principles and concepts related to revenue and expense recognition, adjusting entries, depreciation, doubtful accounts, and inventory. It explains that revenues are recognized when earned and expenses when incurred, and that adjusting entries are made at the end of each accounting period to apply these principles. Methods for recognizing and estimating depreciation, doubtful accounts, and taking physical inventory are also summarized.

Posting to the gl and preparing tb 08012013kennethcrisostomo

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The document discusses the process of posting journal entries to individual accounts in the general ledger and preparing a trial balance. It explains that a trial balance is a list of open ledger accounts and their balances that is prepared to verify the equality of debits and credits. The document also outlines some common errors that can occur in a trial balance such as transposition errors, sliding errors, and amounts posted to the wrong side of an account. Steps for locating errors in an unbalanced trial balance are provided.

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T1 ay13 14 actbas1 individual business case

1. ACTBAS1 INDIVIDUAL BUSINESS CASE 1ST Term, Academic Year 2013-2014 Williams, J., Haka, S., Bettner, M., & Carcello, J. (2012) Financial Accounting, 15th edition, McGraw-Hill Irwin (with modifications) Galaxy Corporation and Universal Corporation are in the same line of business and both were recently organized, so it may be assumed that the recorded costs for assets are close to current market values. The statements of financial position of the two companies as of July 31, 2012 are as follows: Galaxy Corporation Statement of Financial Position July 31, 2012 Assets Liabilities & Owner鈥檚 Equity Cash P 900,000 Liabilities: Accounts Receivable 1,300,000 Notes Payable (due in 60 days) P 620,000 Land 1,860,000 Accounts Payable 480,000 Building 1,900,000 Total Liabilities P 1,100,000 Office Equipment 60,000 Owner鈥檚 Equity: Galaxy, Capital 4,920,000 Total Assets P 6,020,000 Total Liabilities & Owner鈥檚 Equity P 6,020,000 Universal Corporation Statement of Financial Position July 31, 2012 Assets Liabilities & Owner鈥檚 Equity Cash P 240,000 Liabilities: Accounts Receivable 480,000 Notes Payable (due in 60 days) P 1,120,000 Land 4,800,000 Accounts Payable 2,160,000 Building 3,000,000 Total Liabilities P 3,280,000 Office Equipment 600,000 Owner鈥檚 Equity: Universal, Capital 5,840,000 Total Assets P 9,120,000 Total Liabilities & Owner鈥檚 Equity P 9,120,000 Instructions: a. Assume you are a banker and that each company has applied for a 90-day loan of P600,000. Which would you consider to be the more favorable prospect? Explain your answer fully. b. Assuming that you are considering purchasing one of the companies. For which business would you be willing to pay the higher price? Do you see any indication of financial crisis that you might face shortly after buying either company? Explain your answer fully. (For either decision, additional information would be useful, but you are to reach your decision on the basis of the information available).

2. Format: 飩� Short bond paper 飩� Double spaced 飩� One inch margin in all sides 飩� Minimum of two pages (not including the cover page) 飩� Font: Arial 12 飩� Cover page: Deadline: July 2, 2013 BUSINESS CASE Presented to the Accountancy Department De La Salle University In partial fulfillment Of the course requirements In ACTBAS1 (sec) Surname, First Name, M.I. Date

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