User Account

All Pages

What is the proper accounting treatment for these situations

Assignment Help Accounting Basics
Reference no: EM132028460

Case - Accounting Changes and Errors

Background: You are a newly certified public accountant recently hired by Harrison Certified Public Accountants, LLP. Several clients, who after the year-end 12/31/2014 but before their books were closed, contacted the firm regarding transactions involving accounting changes and errors. Each of these clients is an SEC registrant and needs guidance on the application of the correct FASB pronouncement related to their situation. Your direct supervisor wants you to research the authoritative guidance related to these independent situations and determine the proper course of action before meeting with the clients.

Cook Corporation discovered the following two situations:

  • A $6,000 insurance premium paid on October 1, 2013, for a policy that expires on September 30, 2015, was originally charged to insurance expense.
  • A patent was acquired at the beginning of 2013 for $210,000. No amortization has been recorded since its acquisition. The original life of the patent was 12 years.

1. What is the proper accounting treatment for these situations? Cite the authoritative guidance.

2. What journal entries would be appropriate at 12/31/2014? Ignore tax implications.

3. What information must be disclosed in the notes to the financial statements? Cite the authoritative guidance.

Reference no: EM132028460

Questions Cloud

Compute net sales for the two months ended december : Assume that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are treated as contra-revenues; compute net sales
Prepare journal entries to record the sale of merchandise : Prepare journal entries to record the sale of merchandise, the December 31, 2016 interest accrual, and the March 31, 2017 collection
How much sales revenue must be earned to produce profits : How much sales revenue must be earned to produce profits equal to 20 percent of sales revenue? Prepare a contribution profit and loss statement
Grappling in personal or professional life : Describe a time when you used grappling in your personal or professional life, and discuss the effect it had on the outcome of the situation.
What is the proper accounting treatment for these situations : Case - Accounting Changes and Errors. What is the proper accounting treatment for these situations? Cite the authoritative guidance
Find between the subject and life : What are some connections you can find between the subject and your life? please be specific
Severity of workplace harassment : Should the severity of workplace harassment be determined solely from the point of view of the victim? Is this fair to the accused harasser?
Need for professional liability insurance coverage : Could you help me understand how does the existing U.S. legal system, as well as the need for professional liability insurance coverage, impact patient care
Experiences frequent equipment or process failures : Think of an organization that experiences frequent equipment or process failures. (a photo company or newspaper for example)

Reviews

Write a Review

Accounting Basics Questions & Answers

  Jodi horton president of the retailer crestline products

jodi horton president of the retailer crestline products has just approached the companys bank with a request for a

  What distinguishes a merchandising from a service business

What distinguishes a merchandising business from a service business?

  Annuity with change in interest rate

Jan Green established a savings account for her son's college education by making annual deposits of $6,000 at the beginning of each of six years to a savings account paying 8%.

  Prepare a depreciation schedule for the asset showing

clary jensen farms purchased power equipment with an expecteduseful life of four years or 1000 hours of usage. the

  Loss on comprehensive income

Hardy Inc. has an investment in available for sale securities of $50,000. This investment experienced an unrealized loss of $3,000 during the current year. Assuming a 35% tax rate, the effect of this loss on comprehensive income will be:

  Prepare the entry for the prior period adjustment

Prepare the entry for the prior period adjustment. Prepare the retained earnings statement for 2019. Journalize the transactions for Gypsy Corporation.

  Income tax return shows taxes currently payable for 2010 of

income tax return shows taxes currently payable for 2010 of 75000. the company reported deferred tax assets of 30000 at

  What are the requirements for a computer to exhibit human

What are the requirements for a computer to exhibit human level intelligence? How long will it be before we have the technology to design suchcomputers? Do you think we should push to accelerate such a development? Why or why not?

  Tropical tours reported revenue of 414000 for its year

tropical tours reported revenue of 414000 for its year ended december 31 2013. accounts receivable at december 31 2012

  What kind of accounts are affected with adjustments

What is the difference between cash and accrual basis of accounting? What kind of accounts are affected with adjustments? How to determine if an account or transaction is for a prepaid expense, accrued expense, unearned revenue, or accrued revenue?

  Carter development company purchased for cash a large tract

carter development company purchased for cash a large tract of land that was immediately platted and deeded?carter

  Corporation with customers in several foreign countries

Datamix, a U. S. corporation with customers in several foreign countries, had the following selected trans actions for 2013 and 2014.2013

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