Why is it necessary for accountants to assume that business entity will remain a going concern?

Q: What steps are taken to prepare Income and Expenditure Account from a Receipt and Payment Account?

A: Introduction: Non-trading entities prepare the income and expenditure account to determine the…

Q: Using the information in the table, calculate the total assets reported on the balance sheet for the…

A: Asset defines something the company has ownership or has right over it to get future benefits.

Q: What is the EPS and dividend growth in years 2-7? What is the current stock price? Why does the…

A: The plowback ratio is important because it determines how much earnings are reinvested back into the…

Q: On October 31, 2021, Flowing Wind Company issued a $3,500,000, 10-year bond at 7% when the market…

A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…

Q: Lansing Company's current-year income statement and selected balance sheet data at December 31 of…

A: Cash flow from operating activities is a part of cash flow statement. The cash flow statement is an…

Q: Prepare two T accounts for each transaction. On each T account, select the account title of one of…

A: After maintain of journal entry the accounts are posted to T-accounts. It is an important part of…

Q: James Inc. purchased the following assets in February 2022 for a total price of $2,900,000. Below…

A: Section 179 means a section that is implemented for the allowing deduction of the cost of equipment.…

Q: The following data are taken from the financial statements of Sheffield Company. Accounts receivable…

A: As per the given information: 20222021Accounts receivable (net), end of year$555,000$470,000Net…

Q: Current Year Loan Interest = $1,663; Depreciation = $10,000; Tax Rate = 34%. The After Tax Cash Flow…

A: Cash Flow states that the flow of cash into the Business and from the Business. The Transaction and…

Q: What aspects of accounting for inventory on financial statements would be of interest to…

A: Inventory can be defined as assets held for sale in the ordinary course of business or in the…

Q: Journal Entries Allied Merchandisers was organized on May 1. Macy Company is a major customer…

A: Introduction: An Income statement usually uses a journal entry to record a company transaction.…

Q: Prepare Liquidators Final statement of Account.

A: When a Company is get liquidated, A liquidator has been appointed. All the Assets are realized and…

Q: Prepare three journal entries: one to establish the petty cash fund, the second to record the…

A: Petty cash books is created to make day to day expenses by division without involvement of head…

Q: Can also do a journal entry when the on December 31 Record the adjustment entry for $40 interest…

A: Ideally cash balance as per cashbook must reconcile with bank balance as per bank statement. If…

Q: C10.58 Solid State sells electronic products. The controller is responsible for preparing the master…

A: Introduction Accounts Receivables: Accounts Receivable (AR) is the term used to describe the money…

Q: Alphabet Company, which uses the periodic inventory method, purchases different letters for resale.…

A: The inventory can be valued using various methods as LIFO, FIFO, weighted average and specific…

Q: Recommend THREE (3) audit procedures which can be performed to prevent external auditor's reliance…

A: The external auditor shall determine whether work of the internal audit function can be used for the…

Q: QUESTION 3 Hercules Health Club provides the following information regarding their expected…

A: Supplies Budget :— The office supply budget is a breakdown of costs that can serve as a spending…

Q: Required information [The following information applies to the questions displayed below.] Lansing…

A: Introduction: The direct method is one of two accounting treatments that are used to create a cash…

Q: The beginning inventory and the purchases and sales of inventory for March for the Carolina Company…

A: FIFO Inventory Method :— Under this method, it is assumed that first input or purchases are used for…

Q: Pharoah Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The…

A: Break even refers to the situation when there is no loss or no profit or at this point the total…

Q: Instructions: 1. 2. 3. 4. As of June 30, the end of current fiscal year, the accountant of Universe…

A: Journal Entry :- A journal entry is the act of recording any transaction, whether one that is…

Q: Problem 5 - Property Plant and Equipment Requirements:  Calculate the (A) Cost Basis, (B) Straight…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Maxell Company uses the FIFO method to assign costs to inventory and cost of goods sold. The company…

A: Inventory valuation is based on the flow of exemption used by the company. There are many methods…

Q: The Superior Print Limited is a printing firm and do provide other stationery services to its…

A: Horizontal analysis and vertical analysis are methods for analyzing the performance of companies.…

Q: Journal entry worksheet

A: Issue of shares is one of the important source of finance being used in business. It can be common…

Q: Required: Use the 5-step model to analyse the problem and give all entries required from date of…

A: Given in the question:   Franchise Contract Date March 1, 2019 Non-Refundable…

Q: Creek Company uses the percentage of credit sales method in determining its bad debt expense. The…

A: Introduction: A bad debt expense is recognized when a receivable is really no longer collectible…

Q: Schedule of Expected Cash Collections Collection of Cash Sales Credit Sales: Collected Month of Sale…

A: Answer:-  Income statement meaning:- Income statement is a part of the financial statement of the…

Q: Presented below are the financial statements of Cullumber Company. Cullumber Company Comparative…

A: Statement of cash flows is one of the financial statement of the business. This shows all cash…

Q: Salisbury Corporation has been producing and selling 30,000 caps a year. The company has the…

A: Minimum Acceptable Price :— It is variable cost per unit plus contribution loss per unit.…

Q: The following balance sheet has been prepared by the accountant for Limestone Company as of June 3,…

A: Liquidation - The voluntary creditor's procedure and the voluntary member's process are two subtypes…

Q: Peas and Carrots, LLC manufactures running shoes. The company produces two products: Forrest and…

A: Operating income is the amount of income earned by an entity after deducting the operating expenses…

Q: Cash flows from operating activities with the indirect method include: A. changes in accounts…

A: Introduction:- A cash flow statement denotes total amount cash is inflows and cash outflows your…

Q: The following data were taken from the financial records of Crane Company. Net Sales Beginning…

A: Average inventory = Beginning inventory+ Ending inventory 2                               2021 =…

Q: Exercise 10-16 Disposal of assets LO P2 Diaz Company owns a machine that cost $126,900 and has…

A: The book value of an asset is calculated as the difference between the cost of assets and…

Q: 2. Determine 30 (including the total cost assigned to each job as of April the balances from March…

A: Job 306 Job 307 Job 308 Direct Labor cost in April 90200 163000 118000 X Overhead rate 50% 50%…

Q: James Inc. purchased the following assets in February 2022 for a total price of $2,900,000. Below…

A: Lets understand the basics. When multiple assets are purchased for a single price then asset needs…

Q: On July 1, 2019, when its $1 par value common stock was selling for $66 per share, Marin Corp,…

A: Date Account Titles and Explanation Debit Credit July 1, 2019 Cash $ 27,348,000…

Q: Compute the Office Products Division’s ROI for this year. 2. Compute the Office Products Division’s…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: On February 11, Year 1, an individual 100 shares of stock at $10 per share. On June 11, Year 2, the…

A: Capital Assets :— Capital assets are significant pieces of property such as homes, cars, investment…

Q: Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as…

A: The variance seems to be the difference between the actual and budgeted results within the budgetary…

Q: Prepaid rent should be ________ and rent expense should be ________ for rent incurred during the…

A: Prepaid rent is rent paid in advance. As rent is an expense prepaid rent is a type of prepaid…

Q: The following balances were taken from the Ramirez Company ledger at the end of the period:…

A: Journal Entry :— When any transaction occurs then it is first recorded as journal entry in…

Q: Morgan Industries is comparing and contrasting its ending inventory value in terms of the three…

A: Answer : Option b. Weighted Average inventory cost method is correct answer.   Weighted Average cost…

Q: Secret Bakery bought a mixer at the cost of RM12,500. It is expected to last for eight years and has…

A: Since you have specifically asked for part d so we are answering the same for you.   Depreciation is…

Q: Assume the St. Cloud plant uses three separate  overhead rates to assign overhead costs to jobs.…

A: Plant wide overhead rate :— It is calculated by dividing budgeted plant wide overhead cost by…

Q: Complete the inventory schedule assuming the Weighted Average (WAVG)                   inventory…

A: It has been mentioned in the question that the average weighted inventory valuation has been used by…

Q: A company purchased two machines to mill silver plates. A smaller machine has a setup cost of 600…

A: Answer:-  Break even point meaning:- Break-even point is reached when the total cost and total…

Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…

A: Units produced  in year 1 = Total units/useful life. = 399,000/10 =39900 units