Solution :
We calculate the advances form the customer to be reported as the current liability as on Dec. 31, 2009 in the balance sheet as follows :
<u> Particulars </u> <u> Amount ($)</u>
Customer advances the balance Dec 31, 2008 110
Add : advances that is received with 2009 orders is 195
Less : advances applicable to the orders in 2009 -180
Less : advances from orders that are canceled in 2009 <u> -45 </u>
Advances from the customers liability Dec. 31, 2009 80
Therefore, the advance from the customer to be reported in the balance sheet as the current liability is $80.
Answer:
Explanation:
Amount realized on sale:
Cash $75,000
Purchaser’s note 675,000
$750,000
Adjusted basis (535,000)
Gain realized on sale $215,000
b. $215,000 gain realized ÷ $750,000 contract price = 28.67% gross profit percentage.
Cash received in year of sale:
Cash at closing $75,000
August principal payment 33,750
$108,750
Gain recognized (108750*28.67%) $31,179
A. Book gain $215,000
Tax gain (31,179)
Book/tax difference $183,821
B. $183,821 × 35% = $64,338 deferred tax liability
The excess of book gain over tax gain is a favorable difference.
Answer:
The length of time = 12 years
Explanation:
<em>The number of years the case would be determines the length time it takes the present value of annuity of 17,000 to equate the initial cost </em>
Initial cost = A× (1- (1+r)^(-n)/r =
A- 17,000, r- 13%, n - ?
So we will need to work out the value of " n"
100,000 = 17,000 × 1- 1.13^(-n)/0.133
100,000/17,000 =1- 1.13^(-n)/0.13
5.88235 ×0.13 = 1- 1.13^(-n)
n = 12
The number of years is approximately 12 years
The length of time = 12 years
Answer:
$37,100
Explanation:
Calculation for what Vaughn should report as cash and cash equivalents
Cash in bank $36,200
Petty cash 300
Short-term paper with maturity of 2 months 600
Cash and cash equivalents $37,100
Therefore Vaughn should report cash and cash equivalents of:$37,100
