Debate the necessity of preparing formal financial
Debate the necessity of preparing formal financial statement if all of the data are in the statement columns of the worksheet. Speculate as to the reasons why this has become common practice.
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On October 29, 2010, Lue Co. began operations by purchasing razors for resale. Lue uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor.
You are the accountant for a division of a company that is constructing a building for its own use. It is January 2011, and you are working on closing the books for 2010.
Prepare a general fund journal entry to record the holiday and vacation compensation. Indicate the amount of any other liability that would be recorded on both the government-wide statements and schedule of long-term obligations.
On March 1, 2011, Navy Corporation used excess cash to purchase U.S. Treasury bonds for $103,000 plus accrued interest. The appropriate interest rate is 6%.
Invoice price of goods is $3500. Purchase terms are 3/10,n/30 and the invoice is paid in the week of reciept. The shipping terms are FOB shipping point ,and the shipping cost amount to $330.00.
Kile Company borrows $63,359 on July 1 from the bank by signing a $63,359, 8%, 1-year note payable. Prepare the journal entries to record (a) the proceeds of the note.
Assuming that a company has $365 million in annual sales, and a gross margin of 20%, how much investment will each additional day ofsales in inventory require?
Discuss the evolution of the income statement found in the annual report of a firm, to the forms that can be used in managerial decision making. INclude the organizing principle in each case (cost element)
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