Answer:
2nd January
Dr Machinery $178,000
Cr Cash $178,000
( to record the purchase of used machine)
3rd January
Dr Machinery $4,000
Cr Cash $4,000
(to capitalized the cost of wire electricity and installation to put the purchased machine in a ready-to-use stage).
Explanation:
- According to the information, all the expenses relating to the purchase of used machine are in cash. Thus, Cash is credited at the total amount of $182,000, in which $178,000 is credited in 2nd January to record the purchased price and the other $4,000 (2,840 + 1,160) is credited in 3rd January.
- Under GAAP, the recorded costs of a purchased fixed asset should included all the costs incurred which are necessary to bring the fixed asset to a ready-to-use stage. As wire electricity cost & cost for securing the machine in its position are all necessary for the machine's operation, these costs should be capitalized.
Answer:
Pikachu is a Pokémon
Explanation:
The origins are Japanese
pika is the sound of an electric shock
chu is the sound of a mouse (squeak)
The statement, "According to an SEC investigation, Computer Associates, one of the world's largest software companies, backdated contracts to boost the company's reported revenues. This is not prescribed as an ethical business practice." is True
.
Option a
<u>
Explanation:
</u>
To thrive in the competitive world of business one has to have ethics in doing business. By doing ethical practices in the business it will boost the image of the company before the customer and it will be helpful for them to compete in the market.
From the above statement even though it is the world's largest software company it has backdated the projects contracts period to show better performance in the revenues.
Even though the project are genuine but the moral responsibility in reporting revenues to the investors take taken a dent by doing an unethical thing.
Answer:
The answer is given below;
Explanation:
Highlight Construction Company
Summarized Income Statement
For the year December 31, 2014
Amount in $
Sales Revenue 117,000
Expenses (86,200)
Net Income before taxes 30,800
Income Tax Expense (30,800*30%) (9,240)
Net Income <u>21,560</u>
As per requirement of the question, only summarized income statement is prepared.