User Account

All Pages

What is the proper accounting treatment for these situations

Assignment Help Accounting Basics
Reference no: EM132028460

Case - Accounting Changes and Errors

Background: You are a newly certified public accountant recently hired by Harrison Certified Public Accountants, LLP. Several clients, who after the year-end 12/31/2014 but before their books were closed, contacted the firm regarding transactions involving accounting changes and errors. Each of these clients is an SEC registrant and needs guidance on the application of the correct FASB pronouncement related to their situation. Your direct supervisor wants you to research the authoritative guidance related to these independent situations and determine the proper course of action before meeting with the clients.

Cook Corporation discovered the following two situations:

  • A $6,000 insurance premium paid on October 1, 2013, for a policy that expires on September 30, 2015, was originally charged to insurance expense.
  • A patent was acquired at the beginning of 2013 for $210,000. No amortization has been recorded since its acquisition. The original life of the patent was 12 years.

1. What is the proper accounting treatment for these situations? Cite the authoritative guidance.

2. What journal entries would be appropriate at 12/31/2014? Ignore tax implications.

3. What information must be disclosed in the notes to the financial statements? Cite the authoritative guidance.

Reference no: EM132028460

Questions Cloud

Compute net sales for the two months ended december : Assume that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are treated as contra-revenues; compute net sales
Prepare journal entries to record the sale of merchandise : Prepare journal entries to record the sale of merchandise, the December 31, 2016 interest accrual, and the March 31, 2017 collection
How much sales revenue must be earned to produce profits : How much sales revenue must be earned to produce profits equal to 20 percent of sales revenue? Prepare a contribution profit and loss statement
Grappling in personal or professional life : Describe a time when you used grappling in your personal or professional life, and discuss the effect it had on the outcome of the situation.
What is the proper accounting treatment for these situations : Case - Accounting Changes and Errors. What is the proper accounting treatment for these situations? Cite the authoritative guidance
Find between the subject and life : What are some connections you can find between the subject and your life? please be specific
Severity of workplace harassment : Should the severity of workplace harassment be determined solely from the point of view of the victim? Is this fair to the accused harasser?
Need for professional liability insurance coverage : Could you help me understand how does the existing U.S. legal system, as well as the need for professional liability insurance coverage, impact patient care
Experiences frequent equipment or process failures : Think of an organization that experiences frequent equipment or process failures. (a photo company or newspaper for example)

Reviews

Write a Review

Accounting Basics Questions & Answers

  Gardenia company has the following projected account

gardenia company has the following projected account balances for june 30 20x9accounts payable 60000sales

  Explain the difference between risk and uncertainty

Explain the difference between risk and uncertainty in the context of investment appraisal, and suggest how Warden can quantify the risk in change in selling price and comment on our findings

  What is the return on equity

Oscar's Dog House has a profit margin of 5.6 percent, a return on assets of 12.5 percent, and an equity multiplier of 1.49. What is the return on equity?

  List the possible benefits from harmonizing

The process by which accounting standards has evolved over time worldwide differs significantly from country to country based on many factors.

  In what significant ways do the fasb standards differ

In a recent month a CPA provided ten hours of volunteer time to the Society for the Visually Impaired. He devoted seven hours to maintaining the organization's financial records and three to recording tapes of newspapers and magazine articles.

  Discuss treatment for new types of long-term contracts

A client is determining its accounting treatment for new types of long-term contracts

  The suta rate in yengling company state

Yengling Company's payroll for the year is $593,150. Of this amount, $211,630 is for wages paid in excess of $7,000 to each individual employee.

  Depreciation for the year is estimated

At the end of its first year, the trial balance of Denton Company shows Equipment $30,000 and zero balances in Accumulated Depreciation-Equipment and Depreciation Expense. Depreciation for the year is estimated to be $5,000.

  Harlow co. has arranged to sell the goods for harris

Harris Company has shipped $20,000 of goods to Harlow Co., and Harlow Co. has arranged to sell the goods for Harris.

  Differences between financial and managerial accounting

What are the principal differences between financial and managerial accounting? There are many so please try to cover and discuss as many as possible

  What is the noncontrolling interest share of rockne income

Sales to Doone amounted to $340,000 in 2012 and $440,000 in 2013. What is the noncontrolling interest's share of Rockne's 2013 income

  Mcool corporation wholesales repair products to equipment

mccool corporation wholesales repair products to equipment manufacturers. on april 1 2012 mccool corporation issued

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd