Answer:
Debit to bad debts expense in the amount of $5,000
Explanation:
The computation of the bad debt expense is shown below:
= Credit sales × estimated percentage given
= $500,000 × 1%
= $5,000
The journal entries are also shown below; for better understanding
Bad debt expense A/c Dr $5,000
To Allowance for doubtful debts $5,000
(Being bad debt expense is recorded)
The other information which is given in the question is not relevant. Hence, ignored it
Answer:
Activity rate = $176 per hour
Explanation:
<em>Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers. </em>
<em>Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers. </em>
<em>Activity rate per driver is calculated as: </em>
Activity overhead for the period / Total cost drivers for the period Designing products activity cost pool= designing cost /product design hours
= $1372,448/7,798 hours
= $176 per hour
Both codes incorporate the conceptual framework approach for evaluating threats when specific rules on a matter do not exist.
Explanation:
IFAC has enacted a Code of Ethics for Professional Accountants (IESBA Code), the International Ethics Standards Committee for Competent. The latest IESBA Code edition was upgraded and modified in July 2009 and comes into force on 1 January 2011. The adjustments clarified and considerably strengthened the independence specifications for all competent accountants.
IESBA and AICPA are more comparable than they are, but there are substantial differences. In many instances it will produce similar effects if codes are added to the same pattern of truth.
The IESBA Code deals with a number of possible independence issues which are covered by the AICPA Conceptual Structure but not AICPA. Examples include the Long Senior Human Resources Group (including Team Rotation).
Certain independence restrictions are enforced by the IESBA Code representing the "extent of public interest in certain companies" (i.e. entities listed on an accepted stock exchange for whose shares are listed), and institutions whose auditors are legally or administrative authorities required to comply with the same requirements for independence as the listings).
The IESBA splits the conditions for freedom into two regions. Section 290 offers the toughest prohibitions and includes accounting reports and audits. Section 291 generally provides less stringent requirements of freedom for all other insurance obligations. The AICPA does not change the principles of equality.
Answer: See explanation
Explanation:
1. Dr Deferred revenue 2,000
Cr. Rent revenue 2,000
2 Dr. Insurance expense 6,600
Cr. Prepaid insurance 6,600
3 Dr Salaries expense 3,000
Cr Salaries payable 3,000
4 Dr Interest expense 250
Cr Interest payable 250
5 Dr Supplies expense 3,900
Cr Supplies. 3900
N. B:
Rent revenue for December was calculated as:
= $4,000 x 1/2
= $2,000
Insurance expense for the current year was calculated as:
= $13,200 x 6/12
= $6,600
Interest expense:
= $15,000 x 10% x 2/12
= $15000 × 0.1 × 2/12
= $250
Supplies expense:
= $1,000 + $3,400 - $500
= $3,900
Answer:
Yes of course,the statement is true as the cheque that Mr. MLS gave him was not accepted in written format and when the written agreement was faxed , then also it was not signed by the required authorities. thus there is no authentication that it was agreed upon or not.
