Prepare the journal entries for corrections on the book

Assignment Help Accounting Basics
Reference no: EM133175234

Question - The first audit of the books of swift Inc was recently carried out of the year ended December 31 2021. Swift follows IFRS. In examining the books. The auditor found out that certain items have been overlooked or have been incorrectly entered in the past.

1. At the beginning of 2019, the company purchased a machine for $486,000(residual value of $36,000) that had a useful life of 6 years. The bookkeeper  used straight line method for depreciation but failed to detect the residual value in calculating the depreciation for 3 years.

2. Swift purchased another company in early 2017 and recognized a goodwill of $500,000. Swift amortized $35,000 of goodwill in 2017 and $70,000 in each subsequent year. The tax treatment for goodwill was properly applied.

Assuming the company has tax rate of 35%.

Required -

a. Prepare the journal entries in 2021 for corrections on the book where necessary, assuming that the 2021 book have not been closed.

b. Identify the type of changes for each of the items.

Reference no: EM133175234

Questions Cloud

Is apple facing any threats of new entrants : Is Apple facing any threats of new entrants? What are they and why are they important? How are current managers handling the problems?
Retention policies and practices : Retention Policies and Practices - Review the template you will use to complete this task. If you are using a template from your workplace
Identify and explain three internal control activities : Identify and explain three internal control activities that may be violated in this situation, and provide a recommendation to correct the violation
Prepare bank reconciliation for acme corporation at march : The bank statement included service charges and debit and credit card processing fees of $100. Prepare bank reconciliation for ACME Corporation at March
Prepare the journal entries for corrections on the book : Prepare the journal entries in 2021 for corrections on the book where necessary, assuming that the 2021 book have not been closed
Identify two employees to negotiate : Identify at least two employees to negotiate - Documents relevant to each of the identified employees. This must include at least one of each
Time management training : Time Management Training- To provide skills and tools to assist with organization, productivity, and concentration towards work related goals
What is holly net worth at the end of the year : At the beginning of the year, Holly had a Net Worth of $80,000. What is Holly's Net Worth at the end of the year, December 2022
Access and review the organisational policies and procedures : Develop ER and IR strategies and policies - Access and review the organisational policies and procedures relevant to development of risk management strategies

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

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