Week 11 Accounting Tutorial

Week 11 Accounting Tutorial - 450 (dep’n exp decrease,...

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Week 11 Accounting Tutorial Exercise 24.1 (a) Dr Sales revenue (the sales as a group didn’t happen) 50,000 Cr Cost of sales 47,500 Cr Inventory (10000x25%) 2,500 Dr DTA 750 (=2,500 x 30%) Cr ITE 750 (b) Dr Retained earnings 12,600 (=18,000 x 70%) Dr DTA 5,400 (=18,000 x 30%) Cr Warehouse (in the group’s view it’s only 82K not 100K) 18,000 Dr Accumulated depreciation 1,350 (=18,000 x 5% x 1.5 years) Cr Depreciation expense (this period) 900 Cr Retained earnings (half of last period – reversing)
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Unformatted text preview: 450 (dep’n exp decrease, profit increase, tax increases) Dr ITE 270 Dr Retained earnings (adjustment for last period) 135 Cr DTA (this period) 405 (c) Dr Sales revenue 18,000 Cr Cost of sales 16,000 (12K+18*2/3- 12k*2/3) Cr Inventory 2,000 Dr DTA 600 Cr ITE 600 (d) Dr Retained earnings 1,400 Dr ITE 600 Cr Cost of sales 2,000 Dr Sales revenue 3,000 Cr Cost of sales 2,500 Cr Inventory 500 (=1/4 x 2000) Dr DTA 150 (=500 x 30%) Cr ITE 150...
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This note was uploaded on 09/19/2011 for the course FINS 3650 taught by Professor Arnold during the Three '11 term at University of New South Wales.

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Week 11 Accounting Tutorial - 450 (dep’n exp decrease,...

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