Inversely, when a share repurchase is seen as treasury stock, the cost of the treasury stock is naturally disclosed as a decrease in total shareholders’ equity. Alcoa would report the purchase of the treasury stock by debiting treasury stock and crediting cash for the charge of the purchase. The treasury stock ought to be disclosed independently in the shareholders' equity area of Alcoa’s balance sheet as an unallocated cut of shareholders' equity. These shares are treated as issued although not part of common stock outstanding. If subsequently resold for a sum larger than the cost, Alcoa should report for the sale of the treasury stock by debiting cash for the sale cost, crediting treasury stock for cost, and crediting additional paid-in capital from repurchased stock for the excess of the selling price over the cost.
only the portion of the loss attributable to inventory sold during the period is recorded in the financial statements. B. the market value figure for ending inventory is substituted for cost and the loss is buried in cost of goods sold C. a loss is recorded directly in the inventory account by crediting inventory and debiting loss on inventory decline. D. there is a direct reduction in the selling price of the product that results in a loss being recorded on the income statement prior to the sale. 15) Designated market value A. may sometimes exceed net realizable value. B. should always be equal to net realizable value less a normal profit margin.
ii) Compliance with U.S. GAAP for Tesco: Tesco was also incorrect in their dealing of the refund from a customer’s perspective. Article 605-50-25-10 on “Customer's Accounting for Certain Consideration Received from a Vendor” states that “a rebate or refund of a specified amount of cash consideration… shall be recognized as a reduction of the cost of sales based on a systematic and rational allocation of the cash consideration offered to each of the underlying transactions” (FASB ASC). This means that Tesco should not have recorded the £750 million as sales
Decrease Cash Increase Assets (c) Issued common stock to investors in exchange for cash Increase Cash Decrease in Stock Equity. (d) Paid an account payable in full. Decrease Cash Decrease Liability 10. What is the normal balance for each of these accounts? (a) Accounts Receivable.
Federal Taxes Class Week 1 Assignment 1 Problems 3-31. Tom and Linda’s taxable income for 2011 is follows. First we have to subtract itemized deductions from AGI. So, $40000-$11950=$28050. Then we have to subtract 4 exemptions from $28050.
Accrued Vacation Pay- Current Liability B. Estimated Tax Payable- Current Liability C. Service warranties on appliance sales- Currently Liabilities D. Bank overdraft- Current Liability E. Personal injury claim pending- Footnote Disclosure. F. Unpaid bonus to officers- Current Liability G. Deposit received from customer to guarantee- Current Liability H. Sales tax payable- Current Liability I. Gift certificates sold to customers but not yet rendered- Current Liability. J.
Cui xin yuan Case 11 -1 Polluter Corp Objectives: the appropriate classification in the statement of cash flows for the company’s purchase and sale of Emission allowances Accounting pronouncement: ASC 230 -10 statement of cash flow ASC 350 -30 -25 -3 General Intangibles Other than Goodwill Question 1: What is the appropriate classification in the statement of cash flows for the company’s purchase of Emission Allowances? The recognition of intangibles is defined under ASC 350 -30 -25 -3[Costs of internally developing, maintaining, or restoring intangible assets that are not specifically identifiable, that have indeterminate lives, or that are inherent in a continuing business or nonprofit activity and related to an entity as a whole, shall be recognized as an expense when incurred According to case, Upon receipt of the EAs, the Company recorded the EAs as intangible assets with a cost basis of zero, in accordance with The Federal Energy Regulatory Commission (“FERC”) accounting guidance for EAs. And To meet its need for additional EAs in fiscal years 2010–2014, on April 2, 2010, the Company spent $3 million to purchase EAs with a vintage year of 2012 from Clean Air Corp Acquiring of emission allowances means that Polluter Corp. had to buy allowances from another company. The emission allowances re regarded as tangible assets with zero cost basis. because the Emission and the cost of emission allowances have indetermination lives and inherent in a continuing business , the emission allowance is recognized as expense when incurred.
Economics 203: Intermediate Microeconomics I Instructor: Dr. Donna Feir University of Victoria Fall 2013 Problem Set #3 Coverage: Chapter 5 “Applications of Rational Choice and Demand Theories,” and Chapter 16.1 ”General Equilibrium.” All page and question references refer to the Frank and Parker text. Recommended Completion Date: October 15, 2013. Question 1: Page 159 in Old Text and Page 172 in New Text, Problem 2. Question 2: A consumer is originally buying bundle C on the diagram below. Suppose that the government places a tax on the purchases of gasoline, but also give out a lump sum rebate.
| | | = | $787,526.87 | Rounded as last step | b)This is not correct. The investor sold the security 39 days later. To calculate the sale price, the maturity value of the Note must be discounted from its maturity date back to the date of sale. The period of the time line that we are interested in is from the maturity date (time 123 days) back to the sale date (time 39 days). Note also that the interest rate we must use is a simple discount rate.
All remaining inventory is valued at the lower of cost on a first-in, first-out (“FIFO”) basis or market value. The FIFO cost of inventory approximates replacement or current cost. The Company performs physical counts of perishable inventory in stores every four weeks and nonperishable inventory in stores and all distribution centers twice a year. The Company uses a combination of the retail inventory method and cost method to determine the cost of its inventory before any LIFO reserve is applied. The Company records an inventory shrink adjustment upon physical counts and also provides for estimated inventory shrink adjustments for the period between the last physical inventory and each balance sheet