Acct problem 1-3

Acct problem 1-3 - 2007 5 Budgetary compliance Recognize the amount of cash paid in 2007 for the building $400,000 Interperiod equity Recognize the

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Bryan Whalen Problem 1-3 1.) Budgetary compliance: Recognize the salaries and wages costs when they were paid. $0 in 2007 and $128,000 in 2008. Interperiod equity: Recognize the salaries and wages costs when they were earned. $128,000 in 2007. 2.) Budgetary compliance: Recognize only the amount that was paid during 2007. $170,000 Interperiod equity: Recognize the amount that was earned in 2007. $225,000 3.) Budgetary compliance: Recognize the vehicle cost when the cars were paid for, $105,000 in 2007. Interperiod equity: Recognize the vehicle cost over the three year period in which the vehicle will be used , $35,000 per year. 4.) Budgetary compliance: Recognize $0 in interest revenue for 2007 because it was not paid until 2008 Interperiod equity: Recognize $1000 in interest revenue for 2007 because it was earned in
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Unformatted text preview: 2007. 5.) Budgetary compliance: Recognize the amount of cash paid in 2007 for the building: $400,000 Interperiod equity: Recognize the building cost over the 25 year period in which the building will be used, $400,000 per year. 6.) Budgetary compliance: Recognize the amount of cash paid in 2007 for the building: $0 since all will be paid at the end of 25 years. Interperiod equity: Recognize the building cost over the 25 year period in which the building will be used, $400,000 per year. 7.) Budgetary compliance: Recognize the amount collected in 2007, $120,000. Interperiod equity: Recognize the amount earned in 2007, $60,000. 8.) Budgetary compliance: Recognize the amount repaid in 2007, $0 Interperiod equity: Recognize the $300,000 expenditure in 2007, the period it was borrowed....
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This note was uploaded on 09/25/2008 for the course ACCT 4421 taught by Professor Walker during the Fall '08 term at LSU.

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Acct problem 1-3 - 2007 5 Budgetary compliance Recognize the amount of cash paid in 2007 for the building $400,000 Interperiod equity Recognize the

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