Reference no: EM133074880
Questions -
Q1. What is the difference between a balance sheet of a nonprofit organization and a for-profit business?
Q2.MS. Perfect Printer Co., Ltd. operates the printing machine. In November 2019, the plant was in full operation. The material and labor costs for job # 101 and all other jobs completed in November are as follows:
|
|
Job No. 101
|
Other jobs
|
Total
|
|
Materials
|
10,000
|
70,000
|
80,000
|
|
Direct labor
|
12,000
|
28,000
|
40,000
|
|
Overtime Premium
|
4,000
|
-
|
4,000
|
In addition to these costs, the operational overhead incurred in November was $ 44,000. Overhead is allocated to production based on direct labor costs.
a) View factory profits or losses for job No.101 using two different methods of accounting for overtime bonuses. Suppose the job is priced at $ 40,000.
b) Indicate the situations in which you need to use each method.
c) Indicate whether your choice of method will affect your company's November profit or loss.
3. Give three well explained example of negative amounts in the Equity section.
4. If a company issues shares or bonds to repay its outstanding debt, does the non-cash transaction need to be included in the cash flow statement?
5. What is the rationale for not reporting plant assets at their liquidation value?