assignment ch 5-6

assignment ch 5-6 - th . The criteria for revenue...

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Syed Abdullah Mannan Introduction to Financial Accounting Date: 09-20-2011 Chapter 5 5-16 Direct and Indirect method 5-37 Sales 800,000 less increase in Account receivable (30,000) cash received from the customers 770,000 5-44 1. Sales 880,000 nondepreciation expenses 570,000 – 90,000 (480,000) depreciation (90,000) Net Income 310,000 Add back depreciation 90,000 Net cash provided by operating activities 400,000 2. Sales 880,000 nondepreciation expenses 570,000 – 90,000 (480,000) depreciation (triple) (270,000) Net Income 130,000 Add back depreciation 270,000 Net cash provided by operating activities 400,000 Chapter 6 6-16 NO, I don’t agree. Internal controls do guard against dishonest actions, they also help ensure accurate accounting records. 6-39 1. a. There would be no entry on july 17
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Unformatted text preview: th . The criteria for revenue recognition were not yet met. b. 8-12 Delivery Account receivable 50,000 Sales Revenue 50,000 c. 9-10 payment The cash discount was 2% 2% x 50,000=1000 Cash 49,000 Cash discount on Sales 1,000 Accounts Receivable 50,000 Total record cash payment received d. 12-18 Returns instead of decreasing account receivable for the merchandise returned, a cash refund equal to the amount actually paid for the books, 3,000 (2% x 3,000) = 2,940 is made. Sales returns and allowances 2,940 Cash 2,940 to record the cash refund on the books 2. Gross Sales 50,000 Deduct: Sales returns and allowances 2,940 Cash discount on Sales 1,000 3,940 Net Sales 46,060...
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assignment ch 5-6 - th . The criteria for revenue...

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