He negotiated a new lease on the warehouse with his landlord; the lease has a term of 5 years with two options to renew each for an additional 5 years. The lease period commenced on March 14, 2013. Cost of the leasehold improvements was $88,000. The cost of leasehold improvements is included in class 13. The capital cost is amortized over the initial lease term plus the first option period under Schedule III.
The business required £30,000 cash for working capital. The company gets a loan of £450,000 which was transfer into the business bank account in January as shown in appendix 6. The cash budget shows a balance of £3,918 in January and £16,335 February. The loan calculation is shown in appendix 8. This is expected to be paid back within 8 years by monthly paid instalments of £5.718.41 which was calculated on a 5.1% interest rate.
ACCT 311 Homework Assignment 7 https://hwguiders.com/downloads/acct-311-homework-assignment-7/ ACCT 311 Homework Assignment 7 1. On December 31, Year One, Ace signs a lease to use a truck for four years. The truck has a current value of $58,600. Four annual payments of $10,000 are to be paid with the first made on December 31, Year One. After that time, the truck (with an expected life of eight years) will be returned to the lessor.
Date: December 9, 2013 To: Michelle From Olajide Jaji RE: Taxation of stock option benefits. Dear Michelle, You have requested our office consider the below questions categorized in sessions. Part (A) What amounts need to be reported in her 2012 income tax return relating to the 1,000 Netcrawler share acquired in April 2012 and the 2000 shares sold in 2012. Answer to question Facts and Assumptions * Michelle is an employee of Netcrawler Software Limited in 2012. * June 2011, Netcrawler granted Michelle an employee stock option, valid until 2013 to acquire up to 1,000 common shares of Netcrawler at $20 per share.
What was Brady Brothers cash basis income? Cash basis income: $6,000 (cash received) - $5,000 (cash paid) = Answer: $1,000 Question 3: What was Brady Brothers accrual basis income? Accrual basis income: $12,000 (revenue earned) - $8,000 (expenses incurred) = Answer: $4,000 Question 4: Anderson Company’s balance sheet at the end of the year revealed the following information: Clients owe Anderson Company $35,300 for completed projects. Anderson Company owns office equipment totaling $95,500. Anderson Company owns $5,000 of material used on various client projects.
One of the items was sold during the year. Required: Based on this information, how much product cost would be allocated to cost of goods sold and ending inventory, assuming use of: a. LIFO b. FIFO c. Weighted average (total cost/total number) | |Cost of goods sold |Ending inventory | |LIFO |700 |800 | |FIFO |800 |700 | |Weighted Average |750 |750 | Problem 2. Teague Company purchased a new machine on January 1, 2012, at a cost of $150,000. The machine is expected to have an eight-year life and a $15,000 salvage value. The machine is expected to produce 675,000 finished products during its eight-year life.
It is expected that the equipment has to be replaced after five years. Assume that the residual value is 0. On January 3 a store location was found and three months' rent was paid in advance, totalling € 3,300. Business operations began on January 3. Additional operating facts for January are as follows: New and second hand books were bought and paid, totaling € 3,200. Cash sales of € 4,000.
ACCT 311 Final Exam Solution https://hwguiders.com/downloads/acct-311-final-exam-solution/ ACCT 311 Final Exam Solution 1. XYZ Company sells appliance service contracts agreeing to repair appliances for a two-year period. XYZ’s past experience is that, of the total dollars spent for repairs on service contracts, 40% is incurred evenly during the first contract year and 60% evenly during the second contract year. Receipts from service contract sales for the two years ended December 31, year 2, are as follows: Year 1 | $500,000 | Year 2 | $600,000 | Receipts from contracts are credited to unearned service contract revenue. Assume that all contract sales are made evenly during the year.
In 2013 the couple sold their house for $500,000 and bought a new house for $700,000 in cash. When they sold their house they paid 6% to the real estate agent which in total was $30,000 in fees. They file jointly and had joint ownership of the sold property. Research Issue Is the sale of the home in 2013 made by Mr. Junkiewicz and his wife a taxable transaction? Law and Analysis The taxpayer relief act of 1997 exempted from taxation the profits on the sale of a personal residence of up to $500,000 for married couples filing jointly and $250,000 for singles.
Accounts Payable Home depot reported its January 31, 2010 accounts payable at $4,863,000 and on January 30, 2011 the same was reported the following fiscal year at $4,717,000. There is a loss of ($-146,000) which possibly indicates the repayment of construction loans, now that Home Depot now operates over 2,000 retail locations with 1,976 in the USA, 179 stores in Canada, 85 stores in Mexico and 8 stores in China. (Home Depot, 2011). Total Current Liabilities The total current liabilities for the home depot organization in January 31, 2010 was reported at $10,363,000 and the same was reported the following fiscal year on in January 30, 2011 at $10,122,000, once again there is a decrease from 2010 to 2011. Two Largest Current Liabilities