Solution-Explain which accounting standard has g armstrong

Explain which accounting standard has g armstrong violated

Assignment Help Accounting Basics

Reference no: EM132474030

G. Armstrong is the new owner of Armstrong Hardware Store. He believes that he knows enough about accounting to prepare his first balance sheet, as illustrated below, before starting business on May 1, 20

Assets					Liabdties
Accounts Receivable					Bank Loan	$ 8	000
-W. Mitchel				500	Accounts Payable
Btilcing	$ 80	000			J. Mahoney	$ 3	000
Less: Mortgage	$ 30	000	$ 50	000		$ 11	000
Supplies			$ 10	000
Office Equipment			$ 5	000	Armstrong Hardware Store Equity	$ 65	500
Household Furnlure			$ 4	000		$ 76	500
Bank Balance			$ 7	000
			$ 76	500

Question A. List the errors found on Armstrong's balance sheet. (Note: If you discover that a total is wrong, it is probable that other totals are wrong as well. Explain your discovery, but be aware that incorrect totals count only as one error.)

Question B. Which accounting standard has G. Armstrong violated? Explain.

Reference no: EM132474030

Questions Cloud

What amount will darren report as net income for tax : Darren ltd. has a December 31 year end. For the current year, what amount will Darren report as net income for tax purposes and taxable income?

What is the balance of the loan at the end of year one : You borrow $50,000. This loan will be paid back over 6 years, with payments made at the end of each year. The interest rate charged on the loan is 9%.

What would be the amount of goodwill : XYZ Limited purchased 75 per cent of ABC Limited for $45 000. According to AASB 10, what would be the amount of goodwill allocated to non-controlling interests

What would be ssc estimated cost of equity : What would be SSC's estimated cost of equity if it changed its capital structure to 50% debt and 50% equity? Do not round intermediate calculations

Explain which accounting standard has g armstrong violated : List the errors found on Armstrong's balance sheet. (Note: If you discover that a total is wrong, it is probable that other totals are wrong as well

What is the partnership''s basis in each partner contribution : Real property with a basis of $300,000.00 and a fair market value of $350,000.00. What is the partnership's basis in each partner's contribution

Decision based on current prevailing interest rates : What issues should be considered when making a huge financial decision based on current prevailing interest rates.

What is the cost of equity for abc and xyz : a. What is the cost of equity for ABC and XYZ? b. What is the WACC for ABC and XYZ?

Calculate the indirect service costs : Question - Analyzing Customer Profitability. Calculate the indirect service costs related to the job performed for Orvieto Industries

User Account

All Pages

Explain which accounting standard has g armstrong violated

Reference no: EM132474030

Reference no: EM132474030

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT