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Home sewing business
Lana Priest set up a home sewing business on 1 July 2016. Usually, Lana collects $20 per hour for sewing on the completion of each day's work and pays for the maintenance of her machine with cash. Lana did an accounting subject at secondary school and so has kept her own accrual-based accounting records. At the end of the first year, Lana produced the following unadjusted trial balance:
Unadjusted Trial Balanceas at 30 June 2017
The following adjustments were required at the year-end.
Required
(Hoggett 180)
Hoggett, John, Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxf.Accounting 9E, 9th Edition. John Wiley & Sons Australia,. VitalBook file.
Evaluate the reasons for the selection of the cost drivers in the discussion above and the potential impact the cost drivers will have on accurately reflecting costs and overall performance of the business.
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Equity method of accounting for Investments
total01 to 3031 to 6061 to 90over 90accs reveivable57000039600090000360001800030000 uncollectible125710aestimate the
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