Week 6 Preparation Questions Solutions

Week 6 Preparation Questions Solutions - ACCT 1501 2011S1...

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ACCT 1501 2011S1 Week 6 Preparation Questions Solutions Preparation Questions: Discussion Question 5.1, 5.3; Problems 5.7 (except part 3), 5.8 1 Revenues are inflows of economic resources from customers earned through providing goods and services. It can exist regardless of whether or not the customer pays the cash at the time. A cash receipt is the payment by the customer. 3 Expense: cost of assets used or costs incurred in producing revenue. Recognition of expense may precede, accompany or follow payment of cash (cash disbursement). Problem 5.7 1. Revenue $ Sales 130,000 Interest revenue 9,000 139,000 2. Expense Depreciation (50% x 400,000 x 20%) 40,000 Rent 5,000 Interest (400,000 x 8% x 50%) 16,000 COGS 80,000 Salaries (20,000 + 6,000) 26,000 167,000
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ACCT 1501 2011S1 4. ABCD Balance Sheet as at 31 December 2009 $ Current Assets Cash 818,000 Accounts Receivable 40,000 Inventory 10,000 Prepayments 5,000 Accrued Interest 9,000 Total Current Assets 882,000
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This note was uploaded on 07/30/2011 for the course ACCT 1501 taught by Professor Helen during the Three '09 term at University of New South Wales.

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Week 6 Preparation Questions Solutions - ACCT 1501 2011S1...

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