Who creates generally accepted accounting principles in the United States? What is the difference between current...
- 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.
Homework Answers
Answers
1)
The Financial Accounting Standards Board (FASB) creates and improve Generally Accepted Accounting Principles (GAAP) within the United States in the public's interest.
2)
Current Assets is normally considered which is more liquid in nature and whose amount is recoverable within the period of 1 year.
Long Term Assets is considered whose mainly capital in nature or whose amount may be recovered or used for the period of more than 1 year.
3) Journal Entry
Office Supplies A/c Dr. $100
To Cash A/c Cr. $ 100
(Being office supplies purchased in Cash)
4) Journal Entry
Depreciation A/c Dr $500 (2500/5 year=$500)
To Accumulated Depreciation on Computer Cr. $500
(Being Depreciation for year 1 provided on computer)
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B:
Income Statement
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