I was once a single mother, full-time employee, and part-time student, all at the same time. I understand the struggles and how the pressures of school and not comprehending a specific topic can make you want to give up. My goal is to be the person who helps students realize they do not have to give up on their academic dreams and help them however possible.
Suppose your firm receives a $$\$ 4.1$$ million order on the last day of the year. You fill the order with $$\$ 2.9$$ million worth of inventory. The customer picks up the entire order the same day and pays $$\$ 1.5$$ million upfront in cash; you also issue a bill for the customer to pay the remaining balance of $$\$ 2.6$$ million in 30 days. Suppose your firm's tax rate is $0 \%$ (i.e., ignore taxes). Determine the consequences of this transaction for each of the following:a. Revenuesb. Earningsc. Receivablesd. Inventorye. Cash
Rosco Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 150,000 miles. Taxi no. 10 cost $39,500 and is expected to have a salvage value of $500. Taxi no. 10 is driven 30,000 miles in year 1 and 20,000 miles in year 2.
Part (a1) Calculate depreciation cost per mile using the unit-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)
Depreciation cost
Cash sales paid directly into the bank - is it a contra entry? And do we also debit this transaction?
Question 8You have just been assigned as the manager of an engagement with an audit client. Before you start working on the engagement, what steps must you take with your investments to ensure independence? Select all that apply:
- Transfer your investments to your spouse so that you can continue holding them.- Review your investment portfolio to make sure you do not hold any restricted investments in the client.- Dispose of any restricted investments before starting work on the engagement and update your KICS account to reflect the disposals.- You do not need to do anything with your investments since you had them before the company became a client of KPMG.
