AS
Amandeep Singh
Answers (6)
AS
Answered
The most time-consuming task involved in payroll set up is preparing the QBO Employee List.The Employee List contains information such as:
A) Basic employee information such as: name,address,phone number,salary or wage rate,and social security number.
B) Employee basic information and their status as a full-time or part-time.
C) Employee basic information and their status as an employee,owner,or subcontractor.
D) Employee name,address,wage rate,and employee status.Social security and other information is legally private and is not obtained.
A) Basic employee information such as: name,address,phone number,salary or wage rate,and social security number.
B) Employee basic information and their status as a full-time or part-time.
C) Employee basic information and their status as an employee,owner,or subcontractor.
D) Employee name,address,wage rate,and employee status.Social security and other information is legally private and is not obtained.
On Jul 16, 2024
A
AS
Answered
Lobes Co. owns 65% of Banes Limited. During 20X5, Banes sold equipment to Lobes for a gain of $150,000, recognizing a gain on sale (before taxes)of $75,000. Lobes determined that the equipment had a useful life of 10 years, and took a full year's deprecation in 20X5. On April 1, 20X8, Lobes sold the equipment to an unaffiliated company for $110,000. Ignore any taxes.
Required:
Prepare the appropriate consolidation adjustments relating to the equipment for each year ending December 31, 20X5, to 20X8.
Required:
Prepare the appropriate consolidation adjustments relating to the equipment for each year ending December 31, 20X5, to 20X8.
On Jul 12, 2024
This is an upstream sale, and therefore there is an impact on the non-controlling interest.
The various adjustments are provided in journal entry format below:
20X5:
Gain on sale of equipment $75,000 Equipment $75,000\begin{array}{llr} \text { Gain on sale of equipment } &\$ 75,000\\ \text { Equipment } &&\$75,000\\\end{array} Gain on sale of equipment Equipment $75,000$75,000
Accumulated depreciation7,500 Depreciation expense 7,500\begin{array}{llr} \text { Accumulated depreciation} &7,500\\ \text { Depreciation expense } &&7,500\\ \end{array} Accumulated depreciation Depreciation expense 7,5007,500
The net impact of the above adjustments on net income will be to decrease it by $67,500. Of this amount, 35% is attributable to the NCI, while the rest belongs to the owners of the parent.
20X6:
Retained earnings, opening 43,875 NCI 23,625 Accumulated depreciation 7,500 Equipment 75,000\begin{array} { l } \text { Retained earnings, opening } &43,875\\\text { NCI } &&23,625\\\text { Accumulated depreciation } &7,500\\\quad \text { Equipment }&&75,000\end{array} Retained earnings, opening NCI Accumulated depreciation Equipment 43,8757,50023,62575,000 Accumulated depreciation 7,500 Depreciation expense 7,500\begin{array}{llr} \text {Accumulated depreciation } &7,500\\ \text { Depreciation expense } &&7,500\\\end{array}Accumulated depreciation Depreciation expense 7,5007,500
The decrease in the depreciation expense of $7,500 will increase net income by that amount. Of this amount, $2,625 is attributable to the NCI, while the rest is attributable to the owners of the parent.
20X7:
Retained earnings, opening 39,000 NCI 21,000 Accumulated depreciation 15,000 Equipment 75,000\begin{array} { l } \text { Retained earnings, opening } &39,000\\\text { NCI } &&21,000\\\text { Accumulated depreciation } &15,000\\\quad \text { Equipment }&&75,000\end{array} Retained earnings, opening NCI Accumulated depreciation Equipment 39,00015,00021,00075,000 Accumulated depreciation 7,500 Depreciation expense 7,500\begin{array}{llr} \text { Accumulated depreciation } &7,500\\ \text { Depreciation expense } &&7,500\\\end{array} Accumulated depreciation Depreciation expense 7,5007,500
Again, the decrease in depreciation expense of $7,500 will increase net income by that amount. Of this amount, $2,625 is attributable to the NCI, while the rest is attributable to the owners of the parent.
20X8:
Retained earnings, opening 34,125 NCI 18,375 Accumulated depreciation 22,500 Equipment 75,000\begin{array} { l } \text { Retained earnings, opening }&34,125 \\\text { NCI } &&18,375\\\text { Accumulated depreciation } &22,500\\\quad \text { Equipment }&&75,000\end{array} Retained earnings, opening NCI Accumulated depreciation Equipment 34,12522,50018,37575,000 Accumulated depreciation 1,875 Depreciation expense 1,875\begin{array}{ccc}\text { Accumulated depreciation } & 1,875 & \\\text { Depreciation expense } & & 1,875\end{array} Accumulated depreciation Depreciation expense 1,8751,875
(assuming three months' depreciation is taken)
Equpment 75,000 Accumulated depreciation 24,375 Gain on sale of equipment 50,625\begin{array}{lll}\text { Equpment } & 75,000 & \\\text { Accumulated depreciation } & & 24,375 \\\text { Gain on sale of equipment } & & 50,625\end{array} Equpment Accumulated depreciation Gain on sale of equipment 75,00024,37550,625
The overall impact of the above entries on net income will be to increase it by $52,500 × 35% attributable to the NCI, while the rest is attributable to the owners of the parent.
The various adjustments are provided in journal entry format below:
20X5:
Gain on sale of equipment $75,000 Equipment $75,000\begin{array}{llr} \text { Gain on sale of equipment } &\$ 75,000\\ \text { Equipment } &&\$75,000\\\end{array} Gain on sale of equipment Equipment $75,000$75,000
Accumulated depreciation7,500 Depreciation expense 7,500\begin{array}{llr} \text { Accumulated depreciation} &7,500\\ \text { Depreciation expense } &&7,500\\ \end{array} Accumulated depreciation Depreciation expense 7,5007,500
The net impact of the above adjustments on net income will be to decrease it by $67,500. Of this amount, 35% is attributable to the NCI, while the rest belongs to the owners of the parent.
20X6:
Retained earnings, opening 43,875 NCI 23,625 Accumulated depreciation 7,500 Equipment 75,000\begin{array} { l } \text { Retained earnings, opening } &43,875\\\text { NCI } &&23,625\\\text { Accumulated depreciation } &7,500\\\quad \text { Equipment }&&75,000\end{array} Retained earnings, opening NCI Accumulated depreciation Equipment 43,8757,50023,62575,000 Accumulated depreciation 7,500 Depreciation expense 7,500\begin{array}{llr} \text {Accumulated depreciation } &7,500\\ \text { Depreciation expense } &&7,500\\\end{array}Accumulated depreciation Depreciation expense 7,5007,500
The decrease in the depreciation expense of $7,500 will increase net income by that amount. Of this amount, $2,625 is attributable to the NCI, while the rest is attributable to the owners of the parent.
20X7:
Retained earnings, opening 39,000 NCI 21,000 Accumulated depreciation 15,000 Equipment 75,000\begin{array} { l } \text { Retained earnings, opening } &39,000\\\text { NCI } &&21,000\\\text { Accumulated depreciation } &15,000\\\quad \text { Equipment }&&75,000\end{array} Retained earnings, opening NCI Accumulated depreciation Equipment 39,00015,00021,00075,000 Accumulated depreciation 7,500 Depreciation expense 7,500\begin{array}{llr} \text { Accumulated depreciation } &7,500\\ \text { Depreciation expense } &&7,500\\\end{array} Accumulated depreciation Depreciation expense 7,5007,500
Again, the decrease in depreciation expense of $7,500 will increase net income by that amount. Of this amount, $2,625 is attributable to the NCI, while the rest is attributable to the owners of the parent.
20X8:
Retained earnings, opening 34,125 NCI 18,375 Accumulated depreciation 22,500 Equipment 75,000\begin{array} { l } \text { Retained earnings, opening }&34,125 \\\text { NCI } &&18,375\\\text { Accumulated depreciation } &22,500\\\quad \text { Equipment }&&75,000\end{array} Retained earnings, opening NCI Accumulated depreciation Equipment 34,12522,50018,37575,000 Accumulated depreciation 1,875 Depreciation expense 1,875\begin{array}{ccc}\text { Accumulated depreciation } & 1,875 & \\\text { Depreciation expense } & & 1,875\end{array} Accumulated depreciation Depreciation expense 1,8751,875
(assuming three months' depreciation is taken)
Equpment 75,000 Accumulated depreciation 24,375 Gain on sale of equipment 50,625\begin{array}{lll}\text { Equpment } & 75,000 & \\\text { Accumulated depreciation } & & 24,375 \\\text { Gain on sale of equipment } & & 50,625\end{array} Equpment Accumulated depreciation Gain on sale of equipment 75,00024,37550,625
The overall impact of the above entries on net income will be to increase it by $52,500 × 35% attributable to the NCI, while the rest is attributable to the owners of the parent.
AS
Answered
In a job order cost accounting system, when goods that have been ordered are received, the receiving department personnel count the goods, inspect the goods, and complete a
A) purchase order
B) sales invoice
C) receiving report
D) purchase requisition
A) purchase order
B) sales invoice
C) receiving report
D) purchase requisition
On Jun 16, 2024
C
AS
Answered
The Magnuson-Moss Act requires a minimum limited warranty on every sale of goods.
On Jun 12, 2024
False
AS
Answered
Accounts payable are:
A) Amounts owed to suppliers for products and/or services purchased on credit.
B) Amounts received in advance from customers for future services.
C) Estimated liabilities.
D) Not usually due on specific dates.
E) Always payable within 30 days.
A) Amounts owed to suppliers for products and/or services purchased on credit.
B) Amounts received in advance from customers for future services.
C) Estimated liabilities.
D) Not usually due on specific dates.
E) Always payable within 30 days.
On May 17, 2024
A
AS
Answered
Assigning separate discount rates to individual projects when determining which projects should be accepted by the firm:
A) May cause the firm's overall weighted average cost of capital to vary over time if the projects accepted change the overall risk level of the firm.
B) Will cause the firm's overall cost of capital to remain constant over time.
C) Will cause the firm's overall cost of capital to decrease over time.
D) Will change the debt-equity ratio of the firm over time.
E) Negates the principle goal of creating the most value for the shareholders.
A) May cause the firm's overall weighted average cost of capital to vary over time if the projects accepted change the overall risk level of the firm.
B) Will cause the firm's overall cost of capital to remain constant over time.
C) Will cause the firm's overall cost of capital to decrease over time.
D) Will change the debt-equity ratio of the firm over time.
E) Negates the principle goal of creating the most value for the shareholders.
On May 13, 2024
A