If there had not been a credit balance in this account, the difference would have been debited to Retained Earnings. In this case, Paid-in Capital From Sale of Treasury Stock Above Cost is debited for only $3,000 (i.e., the balance in this account that resulted from the previous resale). Finally, no treasury stock held by…
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The other variance computes whether or not actual production was above or below the expected production level. As an example of an unfavorable fixed overhead spending variance, a passing tornado delivers a glancing blow to the production facility of Hodgson Industrial Design, resulting in several hundred roofing tiles being blown off. This cost is part…
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On January 1, 2018, Waterways purchased merchandise in the amount of $250,000. BWW agreed to lend the $250,000 purchase cost (sales price) to Waterways under the following conditions. The conditions of the note are that the principal amount is $250,000, the maturity date on the note is 24 months, and the annual interest rate is…
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Because the double-entry system is more complete and transparent, anyone considering giving your business money will be a lot more likely to do so if you use this system. A bakery purchases a fleet of refrigerated delivery trucks on credit; the total credit purchase was $250,000. The new set of trucks will be used in…
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The balances in the Supplies and Supplies Expense accounts show as follows. At the end of an accounting period during which an asset is depreciated, the total accumulated depreciation amount changes on your balance sheet. And each time you pay depreciation, it shows up as an expense on your income statement. According to the accrual…
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When comparing QuickBooks Online and QuickBooks Desktop, each version has its own advantages, helping specific businesses with certain financial management needs. QuickBooks Online is popular for businesses that want flexibility — both in terms of where and how they can access their finances as well as what plan they can choose as they grow. On…
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If your work is project-based or you often work remotely, it’s also a good solution. All Gold features, plus advanced inventory, advanced pricing rules and workflow approvals. Standard accounting tools, including invoicing and payments, income and expense tracking, bill management and basic reporting. We believe everyone should be able to make financial decisions with confidence.…
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Content Control account definition Types of Control Accounts Words Nearby control account Advantages & Disadvantages of Controlling Accounts Detailed understanding of the control accounts If the trial balance does not actually balance, only the accounts whose control account does not reconcile need to be checked for errors. The details of a control account will be…
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If they exceed the initial relevant range, the fixed costs would increase to \(\$400\) for nine to sixteen passengers. A low margin typically means cash management definition that the company, product line, or department isn’t that profitable. An increase like this will have rippling effects as production increases. Operating Assumptions Thus, you will need to…
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For Kappa Co, if the only variance calculated was the favourable usage variance, then it would be assumed that the production manager had demonstrated a good performance and obtained more efficient production. When the mix and yield variances are considered, it is clear that the positive usage variance is caused by a change in the…
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