guipihhent? 9. Does the composite depreciation method recognize a gain/loss on t
ID: 2577456 • Letter: G
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guipihhent? 9. Does the composite depreciation method recognize a gain/loss on the retirement of specific assets in 10. What method of amortization is normally recommended for intangible assets? 11. For a liability to exist what must have occurred? 12. How is unamortized debt premium reported on the balance sheet? 13. Does the interest expense increase or decrease each period when the effective-interest method of am bond discount is used? 14. What method of depreciation ignores the salvage value in the early years of an asset's life? 15. What method of depreciation applies a uniform depreciation rate each period to an assets's book value 16. What does the par value of stock represent? 17. What is the journal entry to record the issuance for fully paid stock subscriptions? 18. Where are the gains and losses on the purchase and resale of treasury stock recorded? 19. Where are the changes in the fair value of trading, AFS and equity securities reported? now how to apply the different depreciation methods. now how to calculate ending inventory& COGS using the LIFO, FIFO and the average methods for both peric erpetual inventory systems. ow how to allocate cost to the individual assets when you make a lump sum /basket purchaseExplanation / Answer
9. Does composite depreciation method recognize a gain/loss on retirement of specific assets:-
Composite depreciation does not allow recognition of any gains or losses on the sale of assets.
10. What method of amortization is normally recommended for intigible assets:-
Straight-line methods of amortization is normally used for intangible assets.
11. For a lilability to exist what must have occurred:-
For a lilability to exist a past transaction or event must have occurred.
12. How is unamortized debt premium reported on balance sheet?
The unamortized premium on bonds payable and the unamortized discount on bonds payable will be presented with the related bonds as liabilities on the balance sheet. For example, if there is a premium on the bonds that will come due in 13 years, both the bonds payable and the premium on bonds payable will be reported together as a long-term liability. If the premium on bonds is associated with bonds that will be due in 11 months (and the corporation will be using its working capital to pay the bondholders), the premium and the bonds will be reported together as a current liability.
The discount on bonds payable will also cling to the bonds. If the bonds mature more than one year from the date of the balance sheet, both the bonds and the unamortized discount will be reported as a long-term liability. If the bonds are due in less than one year (and will require the use of the corporation's working capital), the discount and the bonds are reported as a current liability.
The premium and discount accounts are viewed as valuation accounts. The unamortized premium on bonds payable will have a credit balance that increases the carrying amount (or the book value) of the bonds payable. The unamortized discount on bonds payable will have a debit balance and that decreases the carrying amount (or book value) of the bonds payable.
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