Either normally recurring or extraordinary

Assignment Help Financial Accounting

Reference no: EM131211124

Extraordinary Item

Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or extraordinary (E).

a. Gain on sale of land condemned by the local government for a public works project.

b. Uninsured flood loss. (Flood insurance is unavailable because of periodic flooding in the area.)

c. Loss on the disposal of equipment considered to be obsolete because of the development of new technology.

d. Uncollectible accounts expense.

e. Loss on sale of investments in stocks and bonds.

f. Uninsured loss on building due to hurricane damage. The building was purchased by the company in 1910 and had not previously incurred hurricane damage.

g. Interest revenue on notes receivable.

Reference no: EM131211124

Questions Cloud

Reflects organizations variable and fixed cost relationship : The measure that reflects an organization’s variable and fixed cost relationship and indicates how a percentage change in sale from the current level will impact from the current level will impact profits is called the

Accomplish managements objective : Reliable Furniture manufactures recliners selling for $500 each. Variable costs per unit are $175 for direct material, $125 for direct labor, and $50 for variable overhead. Fixed costs are $300,000 for selling and administrative costs. The company wa..

Owner withdrew supplies and sale made on account : Read each transaction and identify the appropriate journal that it should be recorded in ;1. Owner withdrew supplies 2. Sale made on account 3. Payment to vendor on account 4. Payment received from customer on account 5. Purchases on account 6. Adjus..

Prepare the journal entry for the third installment payment : American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2016. Prepare an amortization schedule for the four-year term of the installment note..

Either normally recurring or extraordinary : Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or extraordinary (E). Gain on sale of land condemned by the local government for a public works projec..

Distinguish in temporary differences-permanent differences : One of the longest debates in accounting history is the issue of deferred taxes. The controversy began in the 1940s and has continued, even after the FASB issued Statement of Financial Accounting Standards No. 109 in 1992. Distinguish between tempora..

The link labeled time value of money table factors : Charlie deposied $10,000 in a three-year, certificate of deposit that pays 12% interest compounded quarterly. What is the maturity value of the certificate of deposit? Use the time value of money factors posted in carmen to answer this question. To a..

Calculate the amount betty must deposit today : Betty wants to have $15,000 in six years. Betty can earn 12% interest, compounded semi-annually on funds she deposits in the bank. Calculate the amount Betty must deposit today in order to have $15,000 in six years. Do not use decimlas in your answer..

Calculate the amount of the lease liability : On January 1, 2004, Digital, Inc. leased heavy machinery from Young Leasing Company. The terms of the lease require annual payments of $100,000 for nine years beginning on December 31, 2004. The interest rate on the lease is 10%. Assume the lease qua..

User Account

All Pages