User Account

All Pages

Determine the corrected net earnings

Assignment Help Accounting Basics
Reference no: EM131819417

Question - Harman Inc. purchased machine on January 1, 2012, at a cost of $48,000. The machine is expected to have an estimated salvage value of $3,000 at the end of its 5 year life. The company capitalized the machine and depreciated it in 2012 using the double declining-balance method of amortization. The company has a policy of using the straight-line method to amortize equipment but the company accountant neglected to follow company policy when he used the double declining-balance method. Net earnings for the year ended December 31, 2012 were $55,000 as the result of amortizing the machine incorrectly.

Using the method of amortization that the company normally follows, prepare the correcting entry and determine the corrected net earnings. (Show calculations.)

Reference no: EM131819417

Questions Cloud

Journalize knoll write-off of the uncollectible receivables : Applying the direct write-off method to account for uncollectibles Susan Knoll is an attorney in Los Angeles. Knoll uses the direct write-off method to account.
What are the pros and the cons of venture : Company XYZ has a large cash reserve and produces biodegradable diapers. The company is interested in developing a product line of biodegradable utensils
How will the total dividend be divided : If the dividends on preferred stock are 1 year in arrears, how will the total dividend be divided between the common and preferred stock
Develop a procedure for identifying people : Develop a procedure for identifying people for inclusion in an anticipated layoff. This must use some process other than straight institutional seniority
Determine the corrected net earnings : Using the method of amortization that the company normally follows, prepare the correcting entry and determine the corrected net earnings
Journalize the entries required for Gate City Cycles : Collecting a receivable previously written off-direct write-off method Gate City Cycles had trouble collecting its account receivable from Shawna Brown.
Create graphic organizer - instructional strategies for ells : Create a graphic organizer or use the "Instructional Strategies for ELLs" to identify and describe oral, reading, and writing strategies appropriate
Discuss the concept of online patient care : Discuss the concept of online patient care with stakeholders such as administrators, physicians, nurses, or payers in your area.
Determine the ending balance of each account : Post the transactions to the Accounts Receivable, Allowance for Bad Debts, and Bad Debts Expense T-accounts, and determine the ending balance of each account.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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