Recent Posts

Huntington Bank investing $150M to extend affordable housing program in Ohio

0
0
0
0
0
0
0
0
0
or copy the link

Huntington Bank investing $150M to extend affordable housing program in Ohio

Huntington Bancshares Inc. (NASDAQ:HBAN) is investing $150 million to extend its affordable housing program in Ohio. The latest round of funding, following the completion of an initial $100 million investment in 2010, will generate 2,000 new or
See all stories on this topic »

read more

Is Value Investing Dead? Hardly, Says Buffett-Based Strategy

0
0
0
0
0
0
0
0
0
or copy the link

Is Value Investing Dead? Hardly, Says Buffett-Based Strategy

There is talk of a "New Normal", and of new investment paradigms, and we've been told that value investing, long-term investing, and even equities as a whole are all "dead". In short, the old ways of making money through investing just aren't going to
See all stories on this topic »

read more

Investing in Shares – What Are the Options

0
0
0
0
0
0
0
0
0
or copy the link

Maybe what immediately comes to mind when discussing investing is investing in stocks. The stock marketplace fluctuates every day, and because of to this fact, entire fortunes can be made and misplaced in a day. When investing in shares, it is important to be diversified in between higher risk, secure, and moderate businesses so as to maximize revenue whilst reducing risk. There is a fine balance to this, and it can be helpful to secure help in the type of a stock broker.

The safest way to commit in stocks is for the lengthy phrase. Frequently, this kind of investing is chosen as a form of savings. Funds that would or else go into some type of cost savings account are invested in the stock marketplace so they can make optimum curiosity. This is how numerous 401k retirement ideas function. The funds are invested into mutual funds that contain a variety of shares. The amount of money in the retirement strategy rises and falls with the market, but if they ride it out for the long operate, they generally average out to a good savings in the finish. Many banking institutions provide money marketplace accounts as an option other than a regular checking or cost savings. This is an account where the money is invested in stocks, but is easily accessible for withdrawal through check or other indicates at any time, just as with a traditional checking or savings account.

An additional type of investing in shares is day investing. This is a type of investing exactly where the investor spends the day purchasing and promoting shares to make earnings every day. The profits may be small, or they might sometimes be large, but the objective is to internet a revenue at the finish of the day. Frequently these kinds of traders invest the day in front of the pc finishing all purchases and revenue on-line. This can be a very profitable profession, and can be started quite effortlessly. It is, however, extremely dangerous, and requires some degree of monetary stability to start with.

As with any investing, good research is important. If selecting your own shares, study them completely. Are they new? Are they well known? How have they carried out recently? Discover out everything you can about the company. If operating through a broker, study the brokers. Discover a reliable, effective broker that will handle your money nicely. A broker that takes a portion of earnings is not always a poor thing as long as they are reliable, as they will be inspired to improve your profits in buy to improve their own.

read more

Your Questions About Invest In Gold Mines

0
0
0
0
0
0
0
0
0
or copy the link

Chris asks…

I need some advice about investing in a gold fund.?

I have about $10,000 that I’m thinking of investing in the market. I currently have about $6,000 in stocks of Citibank and Bank of America but I’m thinking of a new less volatile long term strategy. While looking around at some funds I noticed that a fund investing in gold, mining, etc had perhaps one of the best 1,3,and 10 year returns. I know that the price of gold has steadily been rising for years but who knows if it could be the next “bubble.” I’d like to get some advice from people about the ups and downs of this option and other opinions about options for me to invest. By the way I’m 22 if that matters.

financi4 answers:

Our idea of “saving” money was hoarding just enough to buy that can’t-live-without toy in between birthdays and Christmas. As a child, the future didn’t go beyond the next holiday or beginning of the next school year. The future I was saving for was never more than a couple of months away.

Now, pay close attention. If just one of these handfuls of coins had been properly invested, it would have grown to over $33,000 when I retire in a few years.

So what is “properly invested”? Well, it certainly isn’t a savings account. It isn’t savings bonds or T-Bills or bank certificates of deposit. Yes, it does have something to do with the stock market. You’ll learn everything you need to know about simple stock market investing in another chapter.

But isn’t investing risky? Sure it can be. Can investing be safe, secure and a sure thing? It all depends on how you go about it. There are a few smart ways to invest, and many, many ways that guarantee that you will lose a lot of money.

A smart investor chooses a method of investing, follows through on the investment plan, and then over the years watches it happen.

A smart investor understands that the ultimate risk actually is not investing. A smart investor understands that investing is not a luxury, it is a necessity.

We all should have investment goals. We all want to be rich. The idea of building wealth may be appealing, but sounds unrealistic for the average family that is struggling just to pay the bills.

Even if we can accept the possibility that some magic investment tricks may be available to us, how do we save money when there is no extra money to save? And even if we save some each month, the small amount of interest a bank pays won’t turn us into millionaires. But smart investing, not saving, is the key to building wealth.

Few of us understand the fundamentals of successful investing. We’ve learned that financial security comes from putting money in an account in our local bank or credit union. This is all right, of course, but limits our financial future to saving a few dollars. But through properly selected safe investments, your dream of wealth will come true.

Ken asks…

Is now a good time to invest in real estate?

My great uncle passed away and I will be comming into money. (He owned the tropico gold mine in lancaster CA) Should I invest in Land, or Real Estate? I was looking at a condo in Florida that looked like it would be a good investment.

financi4 answers:

NO!!!!

Thomas asks…

1-2 year investment in Gold ETF…still a good idea?

I am considering investing in GLD or GDX. These are both ETF’s that invest 100% in gold mining and exploration.

Is this still a good idea for a 1-2 year investment?

financi4 answers:

Gold will always be a great hedge against inflation. As long as the dollar continues to weaken gold should go up.

However you can never tell for certain what will happen. That is why I don’t like long term trading myself.

Powered by Yahoo! Answers

read more

Your Questions About In Which Journal Is The Return Of Supplies Purchased On Account Recorded

0
0
0
0
0
0
0
0
0
or copy the link

William asks…

Anyone good at journal entries, and want to help?

February 1Paid $3,750 accounts payable balance due to a supplier.
March 15Received $2,500 partial payment on a $5,000 accounts receivable balance. Wrote off the rest of the account as uncollectible.
April 1
April 15Purchased on account 2,500 units merchandise for resale at $21.50 per unit, with 2/10, n/30 terms.Paid the invoice for April 1 purchase

October 10Sold 700 units of merchandise for a cash price of $40/unit.

November 1Borrowed $20,000 at 6% interest for 5 years with annual payments of principal and interest on October 31. Used the loan proceeds plus cash to purchase a $25,000 delivery truck.

December 1Bought back 500 shares of outstanding stock, paying $15/share.

December 5Sold 2,400 units of merchandise on account for $41/unit. Paymen
t terms on the invoice were 1/10, n/30.

December 7Of the merchandise sold on December 5, 50 units were returned.

December 15Paid $3,000 for rent of a warehouse facility. The payment covers rent for December and January.

December 15Declared a $1/share cash dividend, payable January 14 to shareholders of record on January 3.

December 18Purchased office supplies of $1,600 on account.

December 31Recorded depreciation for the year
Buildings have a 30-year life, a $6,000 residual value and use straight-line depreciation
Equipment has a 5-year life, no residual value and use double-declining balance depreciation
NOTE: Equipment was all purchased January 1, 2011
Vehicles have a 5-year life, no residual value and use straight-line depreciation

December 31The allowance for doubtful accounts balance is estimated as follows:
2% of current balances are estimated as uncollectible
20% of past-due balances are estimated as uncollectible.

December 31A count of office supplies shows $550 still on hand on December 31.
January 2, 2013Paid salaries of $24,500 for the pay period December 31 through January 4. Salaries are earned evenly during the pay period.

financi4 answers:

I doubt if you will get a good answer to this since the question doesn’t seem complete. Here’re a couple of reasons why:

April 1 – no transaction details were given

April 15 Paid the invoice for April 1 purchase – this cannot be answered since no details for Apr 1 were given

April 15 Purchased on account 2,500 units merchandise
October 10 Sold 700 units of merchandise
December 5 Sold 2,400 units of merchandise
Huh? How can you sell more than you purchased?

December 31 Recorded depreciation for the year
How can this be done when we don’t know the cost of the company assets?

And so on.

David asks…

Accounting help 10 pts!?

1.Which of the following transactions is recorded in the purchases journal?
a.purchase of store supplies on account
b.return of damaged office equipment
c.purchase of store supplies for cash
d.purchase of office equipment for cash

2.Which of the following transactions is recorded in the revenue journal?
a.sale of excess office equipment for cash
b.rendering services for cash
c.rendering services on account
d.sale of excess office equipment on account

3.The objectives of internal control are to
a.control the internal organization of the accounting department personnel and equipment
b.provide reasonable assurance that operations are managed to achieve goals, financial reports are accurate, and laws and regulations are complied with
c.prevent fraud, and promote the social interest of the company
d.provide control over “internal-use only” reports and employee internal conduct

financi4 answers:

1.Which of the following transactions is recorded in the purchases journal?
A.purchase of store supplies on account

2.Which of the following transactions is recorded in the revenue journal?
C.rendering services on account

3.The objectives of internal control are to
b.provide reasonable assurance that operations are managed to achieve goals, financial reports are accurate, and laws and regulations are complied with

Robert asks…

Accounting help 10 pts!?

1.Which of the following transactions is recorded in the purchases journal?
a.purchase of store supplies on account
b.return of damaged office equipment
c.purchase of store supplies for cash
d.purchase of office equipment for cash

2.Which of the following transactions is recorded in the revenue journal?
a.sale of excess office equipment for cash
b.rendering services for cash
c.rendering services on account
d.sale of excess office equipment on account

3.The objectives of internal control are to
a.control the internal organization of the accounting department personnel and equipment
b.provide reasonable assurance that operations are managed to achieve goals, financial reports are accurate, and laws and regulations are complied with
c.prevent fraud, and promote the social interest of the company
d.provide control over “internal-use only” reports and employee internal conduct

financi4 answers:

1.Which of the following transactions is recorded in the purchases journal?
A.purchase of store supplies on account

2.Which of the following transactions is recorded in the revenue journal?
C.rendering services on account

3.The objectives of internal control are to
b.provide reasonable assurance that operations are managed to achieve goals, financial reports are accurate, and laws and regulations are complied with

John asks…

Need help with some Jurnal entries for the month of march?

Mar 1Joan also invests her used vehicle into the business. She estimates that its fair value is $15,000. Joan estimates that the vehicle will be useful to the business for four years, at which time its residual value will be $3,000. It will only be used for business purposes.
Mar 1Joan signs a two year lease with Dungaree Property Management for the use of a space for her show room and warehouse storage. The show room represents half the leased area. The lease is effective March 1, 2009. Occupancy will begin immediately, and the amount paid for the lease is $48,000.

Mar 1Joan needs to acquire general liability insurance and protect her inventory. She purchases an insurance policy for the business from RPC Insurance Brokers for $6,000. The term of coverage is March 1, 2009 to February 28, 2010. She hires a security company to monitor the premises after-hours. They will invoice quarterly.

Mar 2Joan purchases a computer system and software for her business. The system costs $12,000, which Joan financed with a two year note payable. Interest on the note will be paid every three months at an annualized interest rate of 9%. Joan estimates that the computer equipment will be useful to the business for five years, at which time its residual value will be $0.

Mar 2Joan purchases used shelving and racks costing $5,000 from BGH Library Services. BGH offers credit terms of 1/15, net 30. Joan estimates this store equipment will be useful to the business for four years, at which time its residual value will be $1000.

Mar 2Joan purchases on account from Grand & Toy $500 of office supplies.

Mar 3Joan purchases on account from a manufacturer 20 desks with hutch bookcases at a cost of $1000 each, 20 oak credenzas at a cost of $400 each, and 40 art prints at $200 each. The manufacturer offers credit terms of 2/10, net 30 to its customers. Joan picks up the inventory from their warehouse in north east Calgary, and transports it to her show
room.

Mar 5Joan purchases on account from another wholesaler 100 sets of the latest anti-glare monitor covers and document stands. These items of inventory had a total cost of $10,000. The wholesaler offers credit terms of 3/5, net 30 to its customers. Joan picks up the inventory from the wholesaler’s warehouse in south east Calgary, and transports it to her show room.
Mar 10Joan records one journal entry for the sales from the first week of business. All of the sales were cash sales, except for a large sale on Mar 9 to Spaces Direct Co. on credit. Cash sales totalled $10,000. The list price of the sale to Spaces Direct Co. is $4,800, but they are given a 10% trade discount. The cost of the inventory sold was $12,000.

Mar 12Joan interviews and hires a salesperson, Cheech Marin, to provide in-store sales. Tim will begin working on Thursday Mar 12, and will work three days a week (Thursday through Saturday) at a salary of $150/day (assume no source deductions). Pay day will be every second Saturday beginning Saturday Mar 21, and will include all days worked up to and including the day of pay.

Mar 14Spaces Direct Co. returns some pieces from the purchase on Mar 9 (wrong colour). Joan issues a credit memo to them for the $1,400 price of the furniture (original cost of $800). They are then placed back on display for resale.

Mar 17Joan records one journal entry for the sales from the second week of business. All of the $18,000 sales were for cash. The cost of the inventory sold was $10,000.

Mar 19Payment is received from Spaces Direct Co. for the final amount owing for the Mar 9 credit sale.

Mar 22Payments are made to Grand & Toy and BGH for the Mar 2 purchases.

Mar 24Joan records one journal entry for the sales from the third week of business. All of the $4,200 sales were for cash. The cost of the inventory sold was $2,400.

Mar 21Cheech is paid his wages for his first two weeks of employment.

Mar 28Joan receives a payment of $2,000 from a local medical centre for wall hangings to be supplied in early May.

Mar 31Joan records one journal entry for the sales from the fourth week of business. All of the sales were cash sales, except for a large sale on Mar 29 to Spaces Direct Co. on credit. Cash sales totalled $5,600. The list price of the sale to Spaces Direct Co. is $2,800, but they are given a 10% trade discount. The cost of the inventory sold was $4,800.

Mar 31Joan withdraws $1,000 cash for her personal use

Additional March 31 adjusting entry information

1.A count of office supplies reveals that $410 of supplies remain in stock.
2.Joan estimates that the security service bill for March will be approximately $350.

financi4 answers:

Can u make your sentence smaller so i can understand it?

Michael asks…

where do i go for a tax id #?

financi4 answers:

Hi La Red,

I assume you want the tax id for business, because normally you can use yur social security.

Here are some info about what you need to know when getting tax id for starting a business.

Starting a business? As a new business owner; it is essential to learn federal tax responsibilities and keeping records to assist in basic start-up business decisions and in how to conduct business.

Basic federal tax responsibilities to consider before starting a business:

Determine the business structure-sole proprietor, corporation, LLC, Partnership. Register the business. If hiring employees; contact Social Security Administration-Form SS-4 to issue an Employer Identification Number -EIN#. Corporations, LLCs, partnerships will need an EIN# . E IN# is used to identify tax accounts of employers. Sole proprietors may use the social security number.
Business transactions require collecting payee’s information using form W-9 and report payments to non-employees on an “information return”.

Adopt a tax year: when you file the first income tax return you adopt a tax year. Changes to the adopted tax year can only be done with IRS approval by filing Form 1128. There may be a fee.
Calendar -January 1 through December 31 due by April 15th
Fiscal – 12 consecutive months ending in any month other than December due the 15th day of the 4th month after the end of the fiscal year.

Adopt an “accounting method”: when you file the first income tax return you adopt an accounting method and thereafter changes need IRS approval. Choose an accounting method with a set of rules to determine when and how income and expenses are reported.
*Cash method = income is reported in the tax year is received and deduct or capitalize expenses in the tax year paid.
*Accrual method = generally income is reported in the tax year is earned though paid in a later year. Deductions and capitalization of expenses are accrued in the year incurred whether or not payment is received.

TIP: An accounting method must treat income and expenses consistently year after year. It is important to establish consistency and suitable accounting principles. When running more than one business you may use a different accounting method and different tax year for each entity. Keep separate and complete set of books for each business.

Business Taxes: The business structure determines which taxes apply. There are four kind of general business taxes: income, self-employment, employ and excise taxes. The law provides penalties for failure to file tax returns, failure to pay taxes, for tax evasion, making a false statement, failure to supply tax id numbers of payees.

Business Expenses: necessary and ordinary expenses incurred in business transactions are deductible. There are rules to follow in certain allowable deductions. Business Start-Up cost could be deducted or capitalizedamortized. Please see Publication 535 for details.

Depreciation: an allowable deduction for property acquired with a substantial life of 1+ year. Sec 179 is a provision to declare a one-time total deduction of property purchased.

Business Use of Home: the business part of your home must be the exclusive principal place of business. The exclusive use exception does not apply if you use the part of the home for the storage of inventory or product samples and for a daycare facility. The purpose and the time spend in the part of home is important for some businesses.

Car-Truck Expenses or the Standard Mileage rate: make an election upon filing the first income tax return. Thereafter the law was amended and taxpayer may use interchangeably. Good recordkeeping of mileage logs is essential to be able to make this determination at the end of the year.

Recordkeeping: capable of summary accounts such as ledgers and journals. Choose any recordkeeping system suited to the business as long as it clearly shows income and expenses. For some, a “business checkbook” is the main source for entries in the business book. It is important to keep receipts as supporting document for the entries.

TIP: establish an accounting system that will grow with the business. Set up Chart of Accounts, Recordkeeping system that follows retention guidelines as provided by federal law with accounting principles. Reconciliation of checkingcash accounts. Double-Entry bookkeeping system.

Good records allow monitoring progress of the business with accurate income and expenses and a balance sheet contrasting assets liabilities and equity on a given date. It allows you to identify source of receipts, separate business and non-business, taxable from non-taxable income. Keep track of deductible expenses. Good records facilitate the filing of the return in tax season.

IRS publication 583 pg 11 states: ‘Good records can increase the likelihood of business success”.

Source: IRS.gov
Publication 538 -Accounting Periods and Methods including “Inventories”
Publication 15 (Circular E) — Employer Tax

Paul asks…

Accounting: Sales and Purchasing help!!!!?

OH please do so help me. and i’ll be deeply grateful by your help. thank you so much in advance :)))
Actually the given transactions are to be posted in a special journal too and i think if i have the correct records i might manage to do the aftermaths special journal, i’m just not sure of my answers though. plus! ofcourse there’re Value added tax included 12% for the sales and purchases made. so please add that too! and less the discounts if necessary

SALES TRANSACTIONS:

all credit sales have terms of 3/10, n/30
June

1 sold merchandise on account to R. Ben, $32,000

7 received payment from R. Ben less discounts

13 sold merchandise on account to B. Ceballus $62,000

15 borrowed $30,000 from ABC Bank by issuing a 10% note payable due in 3months

15 B. Ceballus returned $11,000 of merchandise

16 Collected amount due from B. Ceballus less returns and discounts

PURCHASE TRANSACTIONS:
merchandise purachased on account has a 2/10,n/30 credit terms

oct

1 purchased merchandise on account from Dubb Supply Company $54,000

4 paid Dubb Supply Company amount due less discounts

6 purchased merchandise on account from Campos Company $92,000

7 paid freight charges on the merchandise purchase from Campos Company $3,000

9 returned $5,000 of merchandise purchased from Campos company

10 paid Campos company amount due less returns and discount

your an angel if you’ve helped me! thanks :D

financi4 answers:

.

Donald asks…

I need help with something if some one does not mind?

8-1A

For each of these five separate cases, identify the principle of internal control that is violated.
Recommend what the business should do to ensure adherence to principles of internal control.
1. Heather Flatt records all incoming customer cash receipts for her employer and posts the customer payments to their respective accounts.
2. At Netco Company, Jeff and Jose alternate lunch hours. Jeff is the petty cash custodian, but if someone needs petty cash when he is at lunch, Jose fills in as custodian.
3. Nadine Cox posts all patient charges and payments at the P-Town Medical Clinic. Each night
Nadine backs up the computerized accounting system to a tape and stores the tape in a locked file at her desk.
4. Barto Sayles prides himself on hiring quality workers who require little supervision. As office manager, Barto gives his employees full discretion over their tasks and for years has seen no reason to perform independent reviews of their work.
5. Desi West’s manager has told her to reduce costs. Desi decides to raise the deductible on the plant’s property insurance from $5,000 to $10,000. This cuts the property insurance premium in half. In a related move, she decides that bonding the plant’s employees is a waste of money since the company has not experienced any losses due to employee theft. Desi saves the entire amount of the bonding insurance premium by dropping the bonding insurance.

8-3A

Inoke Gallery had the following petty cash transactions in February of the current year:

Feb. 2 wrote a $300 check, cashed it, and gave the proceeds and the petty cashbox to Bo Brown, the petty cashier.
5 Purchased bond paper for the copier for $10.13 that is immediately used.
9 Paid $22.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Metro uses the perpetual system to account for merchandise inventory.
12 Paid $9.95 postage to express mail a contract to a client.
14 Reimbursed Alli Buck, the manager, $58 for business mileage on her car.
20 Purchased stationery for $77.76 that is immediately used.
23 Paid a courier $18 to deliver merchandise sold to a customer, terms FOB destination.
25 Paid $15.10 COD shipping charges on merchandise purchased for resale, terms FOB shipping point.
27 Paid $64 for postage expenses.
28 The fund had $21.23 remaining in the petty cash box. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures.
The fund amount is also increased to $400.
Required
1. Prepare the journal entry to establish the petty cash fund.
2. Prepare a petty cash payments report for February with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense.
Sort the payments into the appropriate categories and total the expenditures in each category.
3. Prepare the journal entries for part 2 to both (a) reimburse and (b) increase the fund amount.

8-4A

The following information is available to reconcile Clark Company’s book balance of cash with its bank statement cash balance as of July 31, 2005:
a. After all posting is complete on July 31, the company’s Cash account has a $26,193 debit balance, but its July bank statement shows a $28,020 cash balance.
b. Check No. 3031 for $1,380 and Check No. 3040 for $552 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $336 and Check No. 3069 for $2,148, both written in July, are not among the canceled checks on the July 31 statement.
c. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,250 but was erroneously entered in the accounting records as $1,230.
d. A credit memorandum enclosed with the July bank statement indicates the bank collected $9,000 cash on a noninterest-bearing note for Clark, deducted a $45 collection fee, and credited the remainder to its account. Clark had not recorded this event before receiving the statement.
e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Jim Shaw. Clark has not yet recorded this check as NSF.
f. Enclosed with the July statement is a $15 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received.
g. Clark’s July 31 daily cash receipts of $10,152 were placed in the bank’s night depository on that date, but do not appear on the July 31 bank statement.
Required
1. Prepare the bank reconciliation for this company as of July 31, 2005.
2. Prepare the journal entries necessary to bring the company’s book balance of cash into conformity with the reconciled cash balance as of July 31, 2005.
Analysis Component
3. Assume that the July 31, 2005,

financi4 answers:

1. Heather Flatt records all incoming customer cash receipts for her employer and posts the customer payments to their respective accounts.
Principle violated (PV) : Separate recordkeeping from custody of assets
If Heather handles receipts from customers, someone else should do the recording.

2. At Netco Company, Jeff and Jose alternate lunch hours. Jeff is the petty cash custodian, but if someone needs petty cash when he is at lunch, Jose fills in as custodian.
PV : Establish responsibilities.
Set a rule that there will be no petty cash payments when Jeff is at lunch. If this is not possible, Jeff and Jose should count the cash together when Jeff goes for lunch and when he returns, so that it can be established who paid what out and if the books balance properly during Jose’s shift.

3. Nadine Cox posts all patient charges and payments at the P-Town Medical Clinic. Each night
Nadine backs up the computerized accounting system to a tape and stores the tape in a locked file at her desk.
PV : Apply technological controls
The back up should be in the form of something more advanced than a tape and it defeats the purpose if the computer and back-up are in the same room. In the case of a fire, both would get caught. The back-up should preferable be in another location.

4. Barto Sayles prides himself on hiring quality workers who require little supervision. As office manager, Barto gives his employees full discretion over their tasks and for years has seen no reason to perform independent reviews of their work.
PV : Perform regular and independent reviews.
Barto should perform regular and unannounced reviews to ensure that his instructions are being followed and controls are being adhered to. He should also bond employees.

5. Desi West’s manager has told her to reduce costs. Desi decides to raise the deductible on the plant’s property insurance from $5,000 to $10,000. This cuts the property insurance premium in half. In a related move, she decides that bonding the plant’s employees is a waste of money since the company has not experienced any losses due to employee theft. Desi saves the entire amount of the bonding insurance premium by dropping the bonding insurance.
PV : Insure Assets and Bond Key Employees.
Desi should not decide by herself to raise the deductible. She should just submit the proposal to do so to her manager and let management decide. In addition, she should reinstate the bond on the employees.

George asks…

Need help on accounting questions. Please Help?

I have a few big problems that I need help on.

1. On March 1, a business paid $3,600 for a twelve moth liability insurance policy. On April 1 the same business entered into a two-year rental contract for equipment at a total cost of $18,000. Determine the following amounts
A) Insurance expense for the moth of March
B) Prepaid insurance as of March 31
C) Equipment rent expense for the moth of April
D) Prepaid equipment rental as of April 30

2. On January 1st, Great Designs Company had a debit balance of $1450 in the Office Supplies account. During the month, Great Designs purchased $115 and $160 of office supplies and journalized them to the Office Supplies asset account upon purchasing. On January 31st, an inspection of the office supplies cabinet shows that only $350 of Office Supplies remains in the locker. Prepare the January 31st adjusting entry for Office Supplies.

3. Based on the information below, journalize the entries for the Seller and the Buyer. Both use perpetual inventory system.

A) Seller sells Buyer on account merchandise costing $245 for $645, terms 2/10, net 30, FOB destinations. The freight charge is $45

B) Buyer returns as defective $145 worth of the $645 merchandise received. The seller’s cost is $70

C) Buyer pays within the discount period.

4. The bank statement for Gatlin Co. indicates a balance of $7,735.00 on June 30, 2010. After the journals for June had been posted, the cash account had a balance of $4,098.00. Prepare a bank reconciliation on the basis of the following:

A) Cash sales of $742 had been erroneously recorded in the cash receipts journal as $724

B) Deposits in transit not recorded by bank, $425.00

C) Bank debit memo for service charges, $35.00

D) Bank credit memo for not collected by bank, $2,475 including $75 interest

E) Bank debit memo for $256.00 NSF check from Janice Smith, a customer

F) Checks outstanding, $1,860.00

5. At the end of the current year, Accounts receivable has a balance of $900,00; Allowance for Doubtful Accounts has a debit balance of $3500; and net sales for the year total $4,000,000. Bad debt expense is estimated at 1/2 of 1% of net sales. Determine:

A) The amount of the adjusting entry for bad debt expense

B) The adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense

C) The net realizable value of accounts receivable

6. Journalize the following transactions for Solley Company that occurred during 2011 and 2012:

November 14, 2011 received a $4800.00, 90-day, 9% note from Alan Hibbetts in payment of his account.

December 31, 2011 accrued interest on the Hibbetts note.

February 12, 2012 received the amount due from Hibbetts on his note.

If anybody can answer these that would be wonderful! Please help!! Thanks!!

financi4 answers:

1.a. 300
b. 3300
c. 750
d. 17250

2.(dr) Office supplies expense 1375
. (cr) Office supplies 1375

5.a. 20000
b. 900000, 3500, 20000
c. 896500

Richard asks…

You have just taken over the accounting for Choi Enterprises, whose annual accounting period ends?

Dec. 16 Sold merchandise on credit to Hanna Seppa, Invoice No. 916, for $7,700 (cost is $4,600).
17 Received a $1,040 credit memorandum from Funk Company for the return of merchandise
received on December 15.
17 Purchased $615 of office supplies on credit from KK’s Supply Company, invoice dated
December 16, terms n10 EOM.
18 Received a $40 credit memorandum from KK’s Supply Company for the return of office
supplies received on December 17.
20 Issued a $500 credit memorandum to Bo Brown for defective (worthless) merchandise sold
on December 15 and returned for credit.
21 Purchased $6,700 of store equipment on credit from KK’s Supply Company, invoice dated
December 21, terms n10 EOM.
22 Received payment from Hanna Seppa for the December 12 sale less the discount.
23 Issued Check No. 623 to Crossland Company in payment of its December 15 invoice less
the discount.
24 Sold merchandise on credit to Shilo Jones, Invoice No. 917, for $1,200 (cost is $600).
24 Issued Check No. 624 to Funk Company in payment of its December 15 invoice less the
return and the discount.
25 Received payment from Bo Brown for the December 15 sale less the return and the discount.
26 Purchased $8,100 of merchandise from Crossland Company, invoice dated December 25,
terms 210, n60.
29 Sold a neighboring merchant five boxes of file folders (office supplies) at their cost of $50
cash.
30 Ken Choi, the sole owner of Choi Enterprises, used Check No. 625 to withdraw $2,500 in
cash from the business for personal use.
31 Issued Check No. 626 to Jamie Inman, the company’s only sales employee, in payment of
her $2,020 salary for the last half of December.
31 Issued Check No. 627 to Access Electric Company in payment of its $710 December electric
bill.
31 Cash sales for the last half of the month are $29,600 (cost is $11,200). (Cash sales are
recorded daily but are recorded only twice in this problem to reduce repetitive entries.)
Required
1. Record these transactions in the journals provided in the working papers.
2. Verify that amounts that should be posted as individual amounts to the general ledger accounts
have been posted, including posting to the customer and creditor accounts. (Such items are immediately
posted.) Foot and crossfoot the journals and make the month-end postings.
3. Prepare a December 31 trial balance and prove the accuracy of the subsidiary ledgers by preparing
schedules of both accounts receivable and accounts payable.

financi4 answers:

If I have taken over the above account, I will engage a book keeper or an account assistant to tidy up the above when the accounting period ended.

I think you should do the same my dear friend.

Powered by Yahoo! Answers

read more

Investing Strategy: ETFs more appealing as alternative to mutual funds

0
0
0
0
0
0
0
0
0
or copy the link

Investing Strategy: ETFs more appealing as alternative to mutual funds

MONTREAL – It started as a ripple. Now it's becoming a wave. Exchange-traded funds (ETFs) are one of the fastest-growing segments of the Canadian investing landscape, representing about $60 billion in assets today, up from $18 billion five years ago.
See all stories on this topic »

read more

Investing Takeaways From Williams-Sonoma Holiday Sales

0
0
0
0
0
0
0
0
0
or copy the link

Investing Takeaways From Williams-Sonoma Holiday Sales

The balance between internal expectations and Wall Street's desires has been front and center recently. Due to the presentations being given at the ICR XChange conference this week, companies are releasing revised forecasts ahead of time, and many are
See all stories on this topic »

read more