...Reflection Jamie Shuster XACC 291 July 19, 2015 Carmela Hicks Reflection During the normal operation of a business there will always be cost incurred for running an organization. During the useful life of a plant asset, a company may incur costs for ordinary repairs, additions, or improvements (Stormo, 2009 p 409). Every day we have ordinary repairs and then we have additions and improvements. Costs incurred for ordinary repairs are considered as revenue expenditures. Ordinary repairs are expenditures that are used to maintain the operating efficiency and productive life of the unit costs acquired for additions and improvements are considered capital expenditures. Companies require revenue expenditures to maintain the operating efficiency and productive life of an asset. Usually these small costs occur frequently. Examples of revenue expenditures are, oil changes and tune-ups, maintenance charges, repairs costs, renewal expenses, and repainting costs. Companies record the entry of revenue expenditures as a debit to Repair or Maintenance Expense as they are obtained, and a credit to cash or accounts payable (Stormo, 2009). Companies acquire capital expenditures to increase the operating efficiency, productive capacity, or useful life of an asset. Usually these rather big costs occur infrequently. Capital expenditure is money is being spent on assets that will increase the company’s ability to pull in profit or operate at a higher work level (Accounting-Simplified...
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...customers for credit sales. Accounts Receivable occur from credit sales to customers. For sales on credit, they are recorded by increasing, or debiting, Accounts Receivable. A supplementary record, called the accounts receivable ledger, is created to maintain a separate account for each customer. A supplementary record, called the accounts receivable ledger, is created to maintain a separate account for each customer. To record a credit sale, one must debit Accounts Receivable—Customer Name, and credit Sales. The debit is posted to the Accounts Receivable account in the general ledger and to the customer account in the accounts receivable ledger. Many larger retailers maintain their own credit cards to grant credit to preapproved customers and to earn interest on unpaid balances. For credit card sales, sellers allow customers to use third-party credit and debit cards for several reasons: the seller does not have to make decisions about who gets credit and how much the seller avoids the risk of extending credit to customers who do not pay, the seller typically receives cash from the credit card company sooner than had it granted credit directly to customers, and a variety of credit options for customers offers a potential increase in sales volume. To make an entry for credit card sales when cash is received upon deposit of sales receipt, one must debit Cash (for the amount of sale less the credit card company charge), debit Credit Card Expense (for the fee), and credit to Sales (for...
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...Week 2 CheckPoint Reflection During the useful life of a plant asset, a company may incur costs for ordinary repairs, additions, or improvements (Weygandt, Kimmel, & Kieso, 2010, p. 409). Costs incurred for ordinary repairs are considered revenue expenditures. Costs incurred for additions and improvements are considered capital expenditures. Companies incur revenue expenditures to maintain the operating efficiency and productive life of an asset. Usually these are fairly small costs that occur frequently. Examples of revenue expenditures are: Oil changes and tune-ups, maintenance charges, repair costs, renewal expenses, and repainting costs. Companies record the entry of revenue expenditures as a debit to Repair or Maintenance Expense as they are incurred, and a credit to cash or accounts payable (Weygandt, Kimmel, & Kieso, 2010). Companies incur capital expenditures to increase the operating efficiency, productive capacity, or useful life of an asset. Usually these are rather big costs that occur infrequently. Examples of capital expenditures are: Purchase costs, delivery costs, legal charges, installation costs, replacement costs, construction costs, and demolition cost. Companies generally record the entry of a capital expenditure as a debit to the Plant Asset affected, and a credit to cash or accounts payable. Land Improvements, Building, and Equipment all depreciate over the useful life of the asset; land is the exception and it does not depreciate. To review; revenue...
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...BusinessIQ gives access to tools that can be used in all phases of the credit life cycle SM Case study: Snap-on Credit LLC Snap-on Credit LLC has been an Experian user for more than 10 years and relies on Experian data when making credit decisions within its leasing program. “I have seen a steady improvement in the quality of Experian data and products. Their customer service is excellent, and with access to their BusinessIQ platform, we can be more confident with our decisions.” — Steve Spinozza, Vice President of Credit Client Snap-on Credit LLC operates as a subsidiary of Snap-on Incorporated and provides various financing activities that include financing programs for franchise customers and Snap-on’s industrial and other customers for the purchase or lease of tools, equipment and diagnostic products. Snap-on Credit utilizes Experian’s BusinessIQ product to administer its leasing program, which is offered primarily to small-business owners in the auto repair industry. The equipment product category supported by Snap-on Credit includes solutions for the diagnosis and service of vehicles and industrial equipment. Products include wheel alignment equipment, wheel balancers, tire changers, vehicle lift and other service equipment. aviation and aerospace, mining, natural resources and power generation. The company sells its products and services through its franchisee, company-direct, distributor and Internet channels. Founded...
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...monies for expanding our training/workshop and simulation room and replacing the old and outdating office equipment and furniture. We would purchase a new All-in-one printer, copier, scanner and fax machine that is needed for marketing and training. We will also purchase tables, chairs, dry eraser boards, a projector and ten (10) new computers, which will all be using during training classes. The training and workshops are for our volunteers and selected Lake County families. We will conduct classes on home repair, budgeting, banking, credit, savings, home maintenance, community involvement, energy efficiency, homeownership, and children’s success in school program for low-income homeowners in Lake County. The volunteers will also be trained on basic wiring, plumbing, masonry work and drying walling by professionals. Habitat for Humanity has utilized the non-profit’s existing construction and support services staff to grow the program, by adding an efficient process for home repair to the ongoing mission of building new affordable, energy-efficient homes for low and moderate income families. 8. What is the specific geographical area that will be served by this project? And what are the demographics of the population you expect to serve? (Be sure to include, Race, Age, Gender, etc.) The monies from the grant will service all low income families of Lake County Indiana. We will service all...
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...AAA Strategic Marketing Plan Karolyn Scheib, Aurelia Okafor-Smith, Angie Boyd, April Blood, Kirsten Fayette-Ryan MKT/421 March 3, 2014 Theodore Framan Intro……………. Organizational Overview (1) AAA is a non-profit organization that founded in 1902 and serves 53 million members across the United States and Canada (AAA MountainWest, 2013). Since 1925, AAA offers insurance, traveling plans, and roadside assistance (AAA MountainWest, 2013). AAA offers a club membership that distributes automotive and travel needs to its members. In addition to AAA member services, AAA promotes itself through product and service improvements and community outreach (AAA MountainWest, 2013). AAA fights for better roads, participate in traffic and pedestrian safety endeavors, energy issues, geographic information systems, environmental concerns, and other automotive issues (AAA MountainWest, 2013). These components allow AAA the opportunity to market themselves beyond their current membership. For example, on Earth Day 2000, AAA clubs collected 7,500 used batteries and properly disposed of them to keep landfills clean (AAA MountainWest, 2013). AAA has a long-standing history of automotive and travel products and services for its members. Despite the history of consumer satisfaction, AAA has also shown a community commitment in its outreach programs. Importance of Marketing for Organizational Success Marketing is a very important part of any organizations success. Marketing allows...
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...Rent or Buy? Milli Drexler XECO/212 April 7, 2013 Rent or Buy? The birth of a child means new responsibilities for the parents. One of the biggest responsibilities is providing a safe place for the child to live. This means the parents need to make a decision on whether to rent or buy a larger home for the growing family. If I were personally presented with this decision right now, I would make the choice to rent rather than buy. As I considered this decision I took into consideration many the economic principles that I have learned in this course and how they affect my ability to buy a house. The first principle I thought about was how much I could afford to pay for a house. This was the major factor affecting my decision. My income right now is very limited so at this time I do not have the means to save toward a down payment. Without a guarantee that my financial situation will increase, it is not wise for me to make a commitment like this at this time. I need to finish my education and find a more secure, better paying job first. I also considered other economic related factors when I made this decision. I thought about the type of neighborhood that I would want to live in, the additional financial responsibilities of owning a home, the total monthly and yearly cost of homeownership, the risks that come with owning rather than renting, my lifestyle...
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...to be of use to the company for a number of years -Historical Cost Principle requires that companies record plant assets at cost. *Cost consists of all expenditures necessary to acquire an asset and make it ready for its intended use Determining the Cost of Plant Asset -Land: All necessary costs incurred in making the land ready for its intended use increase (debit) the Land Account (cash of purchase price, closing cost such as title and attorney’s fees, real estate broker’s commissions, and accrued property taxes and other liens on land by the purchaser) *Examples on slide 8* -Land Improvements: Structural additions made to land. Costs include all expenditures necessary to make the improvements ready for their intended use.(Driveways, parking lots, fences, landscaping, and underground sprinklers) *Limited useful lives *Expenses (depreciate) the cost of land improvements over their useful lives -Buildings: Includes all costs related directly to purchase or construction. Purchase costs: *Purchase price, closing costs, (attorney’s fees, title insurance, etc.) and real estate broker’s commission. *Remodeling and replacing or repairing the roof, floors, electrical wiring, and plumbing. Construction Costs: *Contract price plus payments for architects’ fees, building permits, and excavation costs. -Equipment: Include all costs incurred in acquiring the equipment and preparing it for use. *Costs typically include: Cash purchase price/ Sales Taxes/ Freight...
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...Altman Z-Score and Ohlson O-Score. The role of the above models is to focus on the use of financial ratios, earnings measures, market values and cash flow. Models that predict the financial stress of companies can be used as early warning tools meant to direct a company’s management to take necessary corrective action before the company goes into financial difficulty and eventual bankruptcy proceedings. This paper specifically will discuss and analyze the three main financial stress prediction models, the Altman Z-Score, Ohlson’s O-Score and Merton’s Distance to Default. The two selected companies that will be analyzed are Home Depot and Lowes’ Company. The Home Depot, Inc. operates as a home improvement retailer. The Home Depot stores sell various building materials, home improvement products, and lawn and garden products as well as provide installation, home maintenance, and professional service programs to do-it-yourself, do-it-for-me, and professional customers. The company offers installation programs that include flooring, cabinets, countertops, water heaters, and sheds, as well as act as a contractor to provide installation services to its do-it-for-me customers through third-party installers. It primarily serves professional remodelers, general contractors, repairmen, small business owners, and tradesmen. The company also sells its products through online. As of March 13, 2014, it operated 2,263 retail stores in the United States, the District of Columbia, Puerto Rico...
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...| | | | | | | | | | | | | | | | |North Country Auto | | | | | | | | | | | | | | | | | ...
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...09-4 Needs Space: Accounting for Lease Agreements Background NeedsSpace have entered into a leasing agreement with WeHaveIt to rent space for its corporate offices. Certain provisions have been included within the lease that Needs Space must take into consideration. ASC 840 has defined this lease as an operating lease. Key Facts The lease agreed upon is a 10-year term lease with no option to renew. Furthermore, there is no ability to negotiate for renewal. The following provisions are included in the lease agreement: • “Lessor may require the lessee to perform general repairs and maintenance on the leased premises.” • “Lessor may require the lessee to remove all leasehold improvements such that the premise is reinstated to original condition.” Consequentially, NeedsSpace has placed into service improvements with useful lives of 10 years. These improvements include temporary walls, HVAC system, and carpeting, among others. This lease agreement falls under the ASC 840 rules and subsections and will be referenced as the solution is analyzed. Relevant Issue The case has us utilize accounting literature and financial authority to research the accounting methodology for the two obligations presented in the leasing agreement. Given the economic effect the obligations may have on the counterparty, it is essential to account for these correctly and efficiently. Each obligation presents a unique obligation to the counterparty. These obligations will be examined throughout the...
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...Widower with dependent child. Since the couple is married and both are still alive they will have to file as Married Filing Separately or Married Filing Jointly. The couple has 3 children which will allow for 3 dependency exemptions and they qualify for 2 personal exemptions. The children are all under the age of 19 so they are able to claim all 3 children. They do take care of Spouse B’s mother but are not able to claim her as a dependent because Spouse B’s mother pays the couple $7,920 per year from her social security income. The couple only pays $7,000 a year for her food, rent and other expenses. A1: Recommendation Explained It is recommended that they file as Married Filing Jointly because this allows for more exclusions, credits and deductions which are not allowed if they would file separately. The couple would have only been able to deduct $250,000 of the income from selling their home if they would have filed separately. If the couple would have filed separately the tax rates are higher as well. A2a. Taxable and Non-Taxable Income The IRS says that most income that you receive is taxable and that income has to be reported on your federal income tax return. The IRS does have a list of items that are not taxable, which are * Adoption expense reimbursements for qualifying expenses * Child Support Payments * Gifts, bequests and inheritance * Workers’ Compensation benefits (with some exceptions) * Meals and lodging for the convenience of...
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...2009 Compensation & Benefits Survey Questionnaire Any systematic approach to sound salary and benefits administration requires complete, accurate and reliable survey data. It is your reporting that counts. Please complete this compensation and benefits questionnaire and return it by July 31, 2009, so that we may in turn provide you with the most reliable data possible. This survey is also offered online here: http://www.hrsource.org/olstart/olsite/index.cfm. Your userID/password are supplied on the cover letter included with this mailing, or call or email us to have it sent again. Please Print: (This information will remain confidential and will not be re-distributed to any third parties.) Completed by: __________________________________________________ Organization: _____________________________________________________ Phone: ______________________________________________ Email: _________________________________________________________ INSTRUCTIONS To make this survey the greatest value to you and to all other participants, please follow these instructions carefully: QUESTIONS 2 & 3: Please provide information for these two questions based on your location. This information is used to present data in different formats in the results. PAY PERIOD: Report salaries for the pay period nearest to July 1, 2009. REPORTING PAY: Base rates are defined as actual straight time pay. Do not include overtime premiums, shift differentials, bonuses or any other incentives or variable...
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... |AI = 16640 | |= 87727 | | | |Borrowing Cost = 2940/5 | |RTO (PAYG) = 15519 |= 588 680 | | |Repainting = 6000 (If assume it’s a repair not capital | |FB = 8978 |improvement) | | |Security Screens = Capital Improvement | |Item 2 | | |AI = 3142 |AD = 6050 + 376 + 2890 + 1617 + 171 + 2496 + 424 + 110 + 588 + | | |6000...
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...PPE defined Property, plant and equipment are “tangible assets which are held by an entity for use in production or supply of goods and services, for rental to others, or for administrative purposes, and are expected to be used during more than one period. Major characteristics of PPE a. They are intangible assets, meaning with “physical substance”. b. Are use in business, meaning used in production or supply of goods and services, for rental purposes and for administrative purposes. Note: assets that are held for sale, including land, or held for investment are not included in PPE. c. Are expected to be used over a period of more than one year. ACCOUNTING FOR PROPERTY, PLANT & EQUIPMENT Initial Measurement of PPE – at Costs Elements of cost 1. Purchase price, including import duties and nonrefundable purchase taxes, after deducting trade discounts and rebates. 2. Cost directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management Examples: a. Costs of employee benefits arising directly from the construction or acquisition of the item of PPE. b. Cost of site preparation c. Initial delivery and handling cost d. Installation and assembly cost e. Professional fees f. Costs of testing whether the asset is functioning properly after deducting the net proceeds from selling any items produced...
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