It is standard accounting procedure, or a generally accepted accounting principle (GAAP), to make a journal...
It is standard accounting procedure, or a generally accepted accounting principle (GAAP), to make a journal entry to remove the current year's principle from the long-term liabilities. This entry reduces the long-term liabilities and increases the current liabilities. Your company has a bank loan that requires a current ratio of 1.5 times. The owner has asked you, the bookkeeper, not to make the adjusting entry that would take the current portion from the long-term liabilities. If you make the adjusting entry, the company's loan will need to be repaid immediately (or the loan called). What should you do?
Homework Answers
Classifying assets and liabilities into Current and Non-current is a part of Accounting Standard requirements, also known as IFRS. In India, this requirement is as per Ind AS and Revised Schedule VI to Companies Act, 2013.
As per the said requirement, any liability or asset which is payable or receivable in coming 12 months of preparing the financial statements is to be recorded as Current Liability. And any portion which is due and payable after 12 months should be classified into Non-Current.
Where there is a breach in the said requirement, it is a mis-representation and would accordingly attract requisite legal enforceable action. The Auditor, will qualify the same in his Audit report as well.
Since, the loan is repayable within 12 months, the book-keeper should not move it to non-current. He should inform about the consequences to the owner that the loan will be considered as a part of current liability only. The bank whenever will check, will get to know about the default and accordingly necessary penal action may be taken against the company by bank.
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It is standard accounting procedure, or a generally accepted
accounting principle (GAAP), to make a journal...
It is standard accounting procedure, or a generally accepted accounting principle (GAAP), to make a journal...
It is standard accounting procedure, or a generally accepted accounting principle (GAAP), to make a journal entry to remove the current year's principle from the long-term liabilities. This entry reduces the long-term liabilities and increases the current liabilities. Your company has a bank loan that requires a current ratio of 1.5 times. The owner has asked you, the bookkeeper, not to make the adjusting entry that would take the current portion from the long-term liabilities. If you make the adjusting...
It is standard accounting procedure, or a generally accepted accounting principle (GAAP), to make a journal...
It is standard accounting procedure, or a generally accepted accounting principle (GAAP), to make a journal entry to remove the current year's principle from the long-term liabilities. This entry reduces the long-term liabilities and increases the current liabilities. Your company has a bank loan that requires a current ratio of 1.5 times. The owner has asked you, the bookkeeper, not to make the adjusting entry that would take the current portion from the long-term liabilities. If you make the adjusting...
-Full disclosure principle - present the provisions of this concept provided by GAAP (GENERALLY ACCEPTED ACCOUNTING...
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respond to this discussion 2 parapgraph Week #2 Discussion Subscribe Generally Accepted Accounting Principles (GAAP) require...
respond to this discussion 2 parapgraph
Week #2 Discussion Subscribe Generally Accepted Accounting Principles (GAAP) require that R&D costs be treated as an expense as the R&D is incurred. In the pharmaceutical industry, this is generally over a period of many years in which no revenue from a drug is earned. When the drug is finally commercialized and revenues are earned, most of the R&D has been completed. This doesn't seem to comply with the matching principle of accounting which...
PROY B MARTIN ACC 114 CHAPTER 1 AND 2 Din chen 1. Generally accepted accounting principles...
PROY B MARTIN ACC 114 CHAPTER 1 AND 2 Din chen 1. Generally accepted accounting principles are a.standards that indicate how to report economie events. b. prineiples that have been proven correct by academie researchers e. theories that are based on physical laws of the universe. d. income tax regulations of the Internal Revenue Service. 2. The SEC and PAD Are two organizations that are primarily responsible for establishing generally accepted accounting principles. It is true that a. the EC...
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Who creates generally accepted accounting principles in the United States? What is the difference between current and long-term assets on the balance sheet? Create the journal entry for purchasing $100 of office supplies with cash. New computer equipment with a 5-year life was purchased January 2nd for $2,500. Using the straight-line method, record the entry for depreciation for year1.
The December 31, 2014 balance sheet of Myers and Myers, prepared under generally accepted accounting principles,...
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ACCOUNTING 1. Adjusting entries: A. Affect only income statement accounts. B. Affect only balance sheet accounts....
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Create financial statements by properly employing prescribed methods in accordance with generally accepted accounting principles: A....
Create financial statements by properly employing prescribed
methods in accordance with generally accepted accounting
principles: A. Step Eight: Prepare the financial statements. Note
that you must use your adjusted trial balance to prepare the income
statement, statement of owner’s equity, and balance sheet. You must
complete these statements in this order, as there are
interdependencies among them.
Adjusting entries Debit Credit Peyton Approved Trial Balance 2018 Unadjusted trial balance Debit Credit 32,236.75 18,500.00 175.65 1,500.00 2,400.00 6,000.00 17,400.00 400.00 250.00...
respond to this discussion 2 parapgraph
Week #2 Discussion Subscribe Generally Accepted Accounting Principles (GAAP) require that R&D costs be treated as an expense as the R&D is incurred. In the pharmaceutical industry, this is generally over a period of many years in which no revenue from a drug is earned. When the drug is finally commercialized and revenues are earned, most of the R&D has been completed. This doesn't seem to comply with the matching principle of accounting which...
PROY B MARTIN ACC 114 CHAPTER 1 AND 2 Din chen 1. Generally accepted accounting principles are a.standards that indicate how to report economie events. b. prineiples that have been proven correct by academie researchers e. theories that are based on physical laws of the universe. d. income tax regulations of the Internal Revenue Service. 2. The SEC and PAD Are two organizations that are primarily responsible for establishing generally accepted accounting principles. It is true that a. the EC...
The December 31, 2014 balance sheet of Myers and Myers, prepared under generally accepted accounting principles, follows (This problem requires knowledge of present value calculations. Refer to Appendix A.) P3-8 The differences between present value, book value, and liquidation value Liabilities and Shareholders' Equity Assets Cash Short-term investments Land Buildings and machinery Total assets $ 8,000 20,000 80,000 16,000 $124,000 $10,000 Current liabilities 14,000Long-term liabilities 20,000 Common stock 80,000 Retained earnings $124,000 Total liabilities and shareholders' equity
M. In accordance with Generally Accepted Accounting Principles, Bust-a-Move Snowboard must record their inventory in accordance with the Lower Cost or Market concept. Use the indirect method when recording your proposed entry. Inventory is inclusive of the following: Replacement Profit Inventory Item # of Items Cost Cost Selling Price Costs to Sell Margin Bindings T 585 52.00 5 55.00 65.00 5 5,00 23% Snowboards 345 S 131.00 $ 127.50 $ 250.00 $ 15.00 4 Boots 144 S 41.00 $ 55.00...
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Create financial statements by properly employing prescribed
methods in accordance with generally accepted accounting
principles: A. Step Eight: Prepare the financial statements. Note
that you must use your adjusted trial balance to prepare the income
statement, statement of owner’s equity, and balance sheet. You must
complete these statements in this order, as there are
interdependencies among them.
Adjusting entries Debit Credit Peyton Approved Trial Balance 2018 Unadjusted trial balance Debit Credit 32,236.75 18,500.00 175.65 1,500.00 2,400.00 6,000.00 17,400.00 400.00 250.00...
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