Amounts which leads to the residual values of all

  • No School
  • AA 1
  • ahkuoid80
  • 11

This preview shows page 11 out of 11 pages.

amounts which leads to the residual values of all depreciated assets are nil; 2. Depreciation rates are straight-line Account Receivable 1. Accounts receivable are recorded at original transaction values, adjusted down to current fair values by an allowance for doubtful debts 2. The bad debts are reflecting 1.25% of average of accounts receivable; Goodwill 1. Goodwill has been reduced by 50,000 for two consecutive years, from $300,000 (2016) to $200,000 (2017) Bad Debts 1. The amount of bad debt provision is based on 1.23% of the average revenue of the account; 2. The estimated bad debt for the year was $15,500; 3. In fact, the average of account receivable was 1,295,200 which gives us bad debts was 16,190 Income Tax 1. The taxation is 28%, however; 2. due to the world economic downturn, the company haven’t made any profit from 31 March 2015 and consequently no tax was payable, nor dividend declared. Contingency NZIAS 10 1. The company was sued for violating the Labor Contract Law in the course of production and operation. The two parties are negotiating an out-of-court settlement on March 31, 2017 and reached an agreement on May 9, 2017 to pay 50,000 US dollars to compensate the injured employees. 2. Inventories were destroyed by fire on 10 May 2017 which costed $50,000, insurance company have stated that only $40,000 of the resulting claim can be met. 2192146 Donnavaye Fiame
Image of page 11
  • Fall '19
  • Balance Sheet, Generally Accepted Accounting Principles, Donnavaye Fiame

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes