Answer:
Cause of a "Prior Period Adjustment in 2025 Statement of Retained Earnings:"
A. Failure to Accrue Revenue at 12/31/24, but not 12/31/21 Depreciation Overstatement.
Explanation:
A company's failure to accrue revenue in accordance with the accrual concept and revenue recognition principle means that there is a "Prior Period Error" which must be corrected retrospectively in the financial statements (Retained Earnings). Retrospective restatement involves the correction of the error arising from the recognition, measurement, and disclosure of amounts of elements of financial statements. The restatement is done as if a prior period error had never occurred.
Answer:
(a) Issued $50,000 par value common stock for cash = Financing Activities
b) Purchased a machine for $30,000, giving a long-term note in exchange. Financing Activities = Non-cash Investing and Financing Activity
(c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000 = Non-cash Investing and Financing Activities
(d) Declared and paid a cash dividend of $18,000 = Financing Activities
(e) Sold a long-term investment with a cost of $15,000 for $15,000 cash = Investing Activities
(f) Collected $16,000 from sale of goods = Operating Activities
Explanation:
The Cash flows related to raising of capital is known as Cash flow from Financing Activities.
The Cash flows related to growing and selling of Assets of the business is known as Cash flow from Investing Activities.
The Cash flow related to trade in Ordinary course business of the Company is known as Cash flow from Operating Activities.
Answer:
Explanation:
1. Calculate Straight-line depreciation
= Cost - salvage value/useful life
= $52,000 - $7,000/5
= $45,000/5
= $9,000 per year for 5 years
2. Double-declining-balance depreciation.
= 2 X Cost of the asset/Useful Life
= 2 x $52,000/5
= $104,000/5
= $20,800 year 1
= 2 X Cost of the asset/Useful Life
= 2 x (52,000-20,800)/4
= 2 x 31,200/4
=$62,400/4
= $15,600 year 2
= 2 X Cost of the asset/Useful Life
= 2 x (52,000-20,800-15,600)/3
= 2 x 15,600/3
= $31,200/3
= $10,400 year 3
= 2 X Cost of the asset/Useful Life
= 2 x (52,000-20,800-15,600- 10,400)/2
= 2 x 5,200/2
Since the cost bal is less than the salvage value, we have to stop here.
If $500 is borrowed and in two (2) weeks it attracted the interest percentage of $90
It therefore means, borrowing $500 for a month
= $90×2 = $180 ==== 1 Month
Therefore $180 × 12 (A year)
=$2,160 + $6000
= $8,160
1. They participate in the Federal Open Market Committee.
2. A new law allows consumers to choose between electricity providers.