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3 years ago

Adjustments help to ensure that all revenues are recorded in the period in which they are:______

Business

1 answer:

Andrew [12]3 years ago

5 0

Answer: made

Explanation: In simple words, adjustment in accounting refers to the transactions that are not recorded in the accounts yet but actually belongs to it with respect to the time period of their occurrence.

There are generally five types adjusting entries accrued revues, accrued expenses, deferred revenues, deferred expenses and deprecation expenses. Such entries are usually made at the end of the year in their respective accounts.

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Campbell Corp. exchanged delivery trucks with Highway, Inc. Campbell's truck originally cost $23,000, its accumulated depreciati

iragen [17]

Answer:

equipment 3,700

Explanation:

First we calcualte the values of the machine given up:

traded-out assets

purchased 23000

depreciation 20,000

book value 3,000

fair value 5,000

gain on disposal 2,000

This gain would be recognzie if there was commercial substance. In this case we don't have commercial substance. So it is deffered.

Value given up forthe new equipment:

cash 700

traded-out 5,000

total value 5,700

We subtract the deffered gain on disposal to get the accounting value for the new equipment:

deferred gain (2,000)

accounting value 3,700

The machine will enter the accounting with 3,700

journal entry

equipment 3,700

acc del 20,000

equipment 23,000

cash 700

3 0

3 years ago

A company is considering the purchase of a new machine for $48,000. Management expects that the machine can produce sales of $16

Diano4ka-milaya [45]

Answer:

False

Explanation:

Annual cash inflow = Sales revenue - Cash expenses

Annual cash inflow = $16,000 - $8,000

Annual cash inflow = $8,000

Cost of machine = $48,000

Payback period = Cost of machine/Annual cash inflows

Payback period = $48,000/$8,000

Payback period = 6 years

So, the payback period for the machine is 6 years.

7 0

3 years ago

Northern Company has bonds with an amortized cost of $600,000. At the end of the first reporting period, the bonds had a fair va

Helen [10]

Answer:

we are not given any options, so I will show you the adjusting journal entry:

Dr Investment in bonds 75,000

Cr Unrealized holding gains 75,000

Northern actually made a profit by simply holding these bonds since they appreciated from $600,000 to $675,000, but it cannot record the gains immediately until they are sold. That is why unrealized holding gains is credited.

6 0

3 years ago

Hopefully you can help me out thank you

Svetllana [295]

Answer:

Explanation:

You must first understand what you are benchmarking against in order to have an effective control system

6 0

3 years ago

You are working as accounting information system(AIS) expert in H and H, a multinational entity(MNE) for couple of years inSpain

Reika [66]

Answer:

stakeholders for the project, documented goal and objective of the assignment, discuss SMART(specific, measurable, agreed, reaganlistic, timeframe) for the assignment, resources for the assignment, GANTT chart of the assignment, risk assessment for the project.

Explanation:

Before starting any major assignment, one must set its goals and objectives very clearly. A list of milestone and progress measuring report must be prepared so that tracking is easy. Also, all the associated risks must be analyze and catered for

6 0

3 years ago