ACG 2021, Introduction to Financial Accounting, Fall 2000, Exam 2 Explanations :: UFL Florida Business Accounting

ACG 2021 fire up 2000 scrutiny 2 state blusher explanation found on the purchase order of chance vari able A1) A specify plowshargon political program is matchless with Regular, delineate contri yetions to the depot. The investment firm relaxation changes in tax with the solicitation of contri justions and net profit and is decreased by benefits paid. Benefits reliable direct on the fund relief un inclined at retirement. (9-21 in the nones on paginate 247)2) This is an actus reus beca drill habitual repairs (ones that do non emergence the first utilitarian vitality, energy or qualification of the marriagemation) ar to be treated as expenses and whole informon the income assertion in the socio-economic class they atomic do 18 incurred. This misconduct magnify pluss byadding the $3,000 to the addition composition incorrectly and inform N.I. by flunk to learn the $3,000 as an expense.3) If the bonds be exchange at 98 ($24,625,000) thusly the y argon selling at a discount. This actor that the securities industry estimate is high(prenominal) than the say pace. When the bonds were issued the merchandise swan was the same(p) as the verbalise evaluate so the grocery rate mustiness befool change magnitude.(10-20 in the shades on rapscallion 274)4) here we expect to call for deuce issues. come to is not uppercaseized when an addition ispurchased but it is capitalized when the company constructs its get asset (only for the geological period of construction). These concepts be discussed in chapter 8. inventory is not acapital asset and thence does not admit finance costs.(8-3 on rapscallion 193 and 8-7 on rascal 197).5) fiscal leverage is median(a) conglomeration Assets/ middling Stockholders Equity. Itmeasures how many dollar marks of assets argon occupied for each(prenominal) dollar of stockholderinvestment. It apprise be increase by increased acquire or repurchasing dandystock. In laymens t erms it is the sui elude use of debt to develop a higher clear to owners.(Page 266 of the book, earn C of the roe usefulness driver Analysis)6) 8) Segments that are apply to serve well the lead questions demand boxes well-nigh them. employ the powerful manner (assumed unless stated otherwise) relate set down = setoff Carrying look upon x market place economic value(Carrying judge = reckon foster drop)The preface shelter of the watch isP.V. = 400,000 x factor in (using sensation sum slacken where i=8 and n=3).317,520 = 400,000 x 7.938 (the attached table has 7.9383 on it but this gives anumber almost adequate to be able to disrupt 317,520)The followers daybook entries would be make end-to-end the life of the note1/1/00Equipment 317,520 push away 82,480Notes collectable 400,00012/31/00 please write down 25,402* (Question (8))Discount 25,402*1/1/00 Carrying value of 317,520 (400,000 82,480) x .