Answer:
Find the attached dividend analysis spreadsheet for Theater Inc.
Explanation:
In analyzing the dividends in the respective years, I first calculated yearly preferred dividends which is $75,000 i.e 25,000*$100*3%
In any year where total dividends declared and paid fell short of $75,000,the entire amount is given as preferred dividends with balance carried over to future years.
W Smith, a sole trader, for the year ended 31 December
2013. W Smith has forwarded to you all books of prime
entry and ledgers, and in addition has given you the
following information:
1) Mr Smith had taken £2,000 out of the business bank
account to take his wife on holiday.
ii) Up to last year the machinery and vehicle used in
the business had been depreciated using the reducing
balance method. W Smith thinks that they should now
be depreciated using the straight-line method.
iii) Mr Smith is confident, given his order book that
the business will continue to operate in its present
form for many years.
iv) Mr Smith had purchased ten staplers, four flip
charts and four packets of whiteboard markers which
will be used in the business for the next couple of
years.
V)
Mr Smith informs you that he has just found an
unopened electricity bill for £900 which was for the
quarter October to December 2013
Required
In each case, identify and then explain the main
accounting concepts being highlighted and indicate
how each should be treated in the final accounts.
Answer:
Identification and Explanation of Highlighted Accounting Concepts and Treatment in the Final Accounts:
1. Economic Entity: The business (economic entity) is separate from the individual (W. Smith). Accounts are kept to ensure this separation of ownership from the business. This withdrawal is treated as Drawings, a reduction of capital (owner's equity) in the balance Sheet.
2. Consistency concept: This concept requires that an accounting estimate or principle is consistently applied. However, if there is a change in an accounting estimate, the effect of the change needs to be disclosed in the final accounts.
3. Going concern concept: A business is assumed to continue indefinitely in life. Therefore, assets and liabilities are stated at their cost or fair values. Where there is a contrary view, this must be disclosed and accounts be kept to reflect the revised view. Then, assets and liabilities will reflect market or disposal values.
4. Materiality concept: This concept requires that values in accounts be material. Though, materiality is a matter of judgement, a threshold can be established based on the value of the individual item to the value of the business. Will its disclosure or not affect decisions of a knowledgeable investor or analyst, is a consideration under the materiality concept. The office stationery can be expensed in the income statement if the amount involved is not material, even though, they will continue to be used in the business for more than a year. This somehow contradicts the concept of the matching principle.
5. Accrual Concept: The concept states that "Revenue is recognized when earned, and expenses are recognized when assets are consumed," and not when cash is received or paid. This unpaid electricity bill for £900 must be accrued in the income statement as an expense and treated as a liability in the balance sheet in line with the accrual concept.
Explanation:
These are the basic accounting concepts:
1. Accruals concept
2. Conservatism concept
3. Consistency concept
4. Economic entity concept
5. Going concern concept
6. Matching concept
7. Materiality concept
Check all that apply.
O Send a separate letter to each interviewer.
O Use a business letter format.
O Mention something you liked about the interview.
O Send thank-you letters to prospective coworkers.
O Send a quick text to the interviewer
Answer:
The answers that seem to be correct are *Mention something you liked about the interview and *Use a business letter format. This would be a polite and friendly kind of a feedback mixed with good professionalism.
Explanation:
Now let's see why we rejected the other answer options.
1st of all, Sending a separate letter to each interviewer might be difficult as it could be really difficult to find the contact information of all the interviewers.
Sending thank-you letters to prospective co-workers is not a appropriate thing as you have not been selected still for the job.
Sending a quick text to the interviewer might not be appropriate as well. This is because those who interviewed you during the process are much more experienced and qualified than you and you should maintain your relationship with them professionally and with the utmost respect.
Answer:
15.167%
Explanation:
For computing the WACC we need to do the following calculations which are shown below:
Cost of equity = Risk free rate + Beta × Market risk premium
= 3% + 2 × 9%
= 21%
After tax cost of debt = Cost of debt × (1-Tax Rate)
= 5% × (1 - 0.30)
= 3.50%
Now
WACC = Weight of debt × Cost of debt + Weight of equity × Cost of equity
= 5 ÷ 15 × 3.50 + 10 ÷ 15 × 21
= 1.167% + 14%
= 15.167%
Answer:
Most likely time
Explanation:
Related concepts to understand the problem.
In the probabilistic approach to project network analysis the most likely time is the best estimate of the time required to complete an objective (m) or a path (M), supposing everything proceeds as usual.
Solution and Explanation:
Depreciation expense is calculated as follows:
Depreciation expense = Cost of machine minus residul value divide useful life of asset
= (159600 - 0) / 8 = 19950
Thus, annual depreciation expense is $19950
Partial year depreciation expense = Anuual depreciation multiply period
= 19950 mulitply 0.5 = $9975
Thus, partial depreciation expense for the 01st january 2023 to July 1, 2023 is $9975
the jorunal entry is as follows:
Depreciation account Dr. 9975 ($)
Accumulated depreciation Cr. 9975 ($)
1. if machine is sold for $79800 cash
Cash 79800
Accumulated depreciation 89775
gain on sale of machinery 9975
Machinery 159600
2. If machine is sold for $67032
Cash 67032
Accumulated depreciation 89775
loss on sale of machinery 2793
Machinery 159600