User Account

All Pages

How to disclose the items in the financial statements

Assignment Help Financial Accounting
Reference no: EM132938806

Question - DisclosureUse the following information concerning Australia Ltd for the year ending 31 December 2020

Sales $1,000,000

Cost of Goods Sold $400,000

Depreciation $300,000

Other Expenses $100,000

Profit $200,000

Required - Advice the accountant of Australia Ltd how to disclose the following items in the financial statements. In your answer, you should classify the item (change in accounting policy, change in accounting estimate or prior period error) and then outline the appropriate accounting treatment.

A) The accountant discovered that a batch of sales invoices totaling $20,000 was not processed in December 2020.

B) The company previously valued inventory using the FIFO method. During 2020 it decided to adopt the Weighted Average Costing (WACC). As a result, Cost of Goods Sold for the year increased by $50,000.

C) After reviewing the depreciation records, the company decided to revise the residual value of a building from $100,000 to $250,000. As a result, annual depreciation decreased by $15,000.

Reference no: EM132938806

Questions Cloud

Discuss the impact of policy or legislation for stakeholders : Analyze at least one strength and one weakness of the policy or legislation. Discuss the impact of the policy or legislation for all stakeholders
Make the entries with respect to the transactions : The following transactions occurred for the month of May in the business of Henry Hofstra: Make the entries with respect to the transactions
Should individual rights be compromised to control : Should individual rights (e.g., parents' rights to decide whether to vaccinate their children) be compromised to control the spread of communicable diseases
Identify a changing cultural dynamic in community : Identify a changing cultural dynamic in your community and discuss how this dynamic is influencing the way healthcare is and will be delivered
How to disclose the items in the financial statements : Advice the accountant of Australia Ltd how to disclose the following items in the financial statements
How each of the acts applies in the coffee shops : To address these questions, you have decided to prepare a presentation for the managers that clarifies how each of the Acts applies in their coffee shops.
What role does social security play in employee retirement : What role does Social Security play in employee retirement? What is the relationship between FICA, ERISA, and Social Security?
Find the implied forward rate : The current spot rates for 6 months and 1 year are 4% and 5% respectively. Find the implied forward rate (f1) from six months to one year and annualize it
What type of water and electrolyte imbalance does : Based on Ms. Brown admission's laboratory values, could you determine what type of water and electrolyte imbalance does she has?

Reviews

Write a Review

Financial Accounting Questions & Answers

  How much could receive every month for five years

What monthly rate would you need to earn if you only have $200,000 to deposit? How much could you receive every month for 5 years?

  Prepare a multiple-step income statement for jain corp

Prepare a multiple-step income statement for Jain Corp. The company has a tax rate of 30%.

  Costs assigned to the ending work in process inventory

Taco Ranch uses a process cost system and the weighted average cost flow assumption. Production begins in the crafting department where materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the pro..

  Calculate the terminal cash flow of the machine

WQ Limited has to evaluate whether it should invest in a machine that costs $100,000. Calculate the terminal cash flow of the machine

  Record the transactions in the cash payments journal

Record these transactions in the cash payments journal. Paid amount owing $600 (Invoice #1343) to JR Depot (Cheque #195).

  When will matterhorn receive a margin call

When will Matterhorn receive a margin call? Matterhorn Co. entered a short position in one British pound futures contract at $1.25.

  Analyze statement of accounts and indicate possible entries

Analyze the "Statement of Accounts" and indicate possible adjusting entries that might be necessary before an accurate set of financial statements could be prepared.

  Explain the companys md and a as well as financial statement

Review the company's MD&A as well as financial statements and the accompanying footnotes. Use this information to prepare your "analytic" results.

  Examine how corporation address non-liquidating distribution

Examine how corporations address non-liquidating distributions are addressed, determine the mistake most difficult to avoid, and make at least one recommendation for how to avoid the mistake you identified.

  Should kimball make or buy the parts

The required volume of output to produce the parts will not require any incremental fixed overhead. Incremental variable overhead cost is $2.00 per unit. Should Kimball make or buy the parts?

  Five traditional financial indicatorsthere are five

five traditional financial indicators.there are five traditional financial indicators identified below for lipscomb

  Calculate the firms cash conversion cycle

Calculate the firms cash conversion cycle, its daily cash operation expenditure and the amount of resources needed to support its cash conversion cycle.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd