accounting help!
-
-done-
-
1)
Dr Cash 30,000
Cr temp rec / deposit 30,000
2)
Dr Adv exp 12,500
Cr Prepaid ad 12,500
-
Originally posted by I-like-flings(m):
1)
Dr Cash 30,000
Cr temp rec / deposit 30,000
2)
Dr Adv exp 12,500
Cr Prepaid ad 12,500
hey thanks for the reply!
im curious. for question 1, you stated to debit cash. we still need to do this even though no downpayment was made yet?
-
oh never see the word NO .... then maybe ur answer is correct already
-
Originally posted by I-like-flings(m):-done
-
but since it never say 1 or 2 yr.. then it's not so correct to write it off 1 shoot right? anyway.. it's up to u lah... depend on what level u are in now u can guess the answer better than mi maybe.... maybe i'm just thinking too much hahahaa
-
-
1) Y/E is 31 Dec 2010, the goods are delivered Jan 2011. Should you recognize the sales in 31 Dec 2010 P&L?
http://www.asc.gov.sg/frs/attachments/2004/FRS_18.pdf
2) "they expect benefits of advertising to continue and sustain thru next year."
-
Originally posted by βÎτά:
-
-
1) My understanding would be that Revenue should be recognised during the YE 31/12/2010 on the basis that the ownership of the goods has already been transferred upon the date of transaction. Delivery date and date of payment do not equate to date of transaction. In this regard, I believe that the CEO's journal entries are correct. In addition, I would think that inventory would have to be credited and COGS to be debited accordingly.
2) From the question, it seems to be saying that the advertising expense is to last for 1 year. Since, it was paid in July 2010, so for the YE 31/12/2010, the half of the expense should be recognised. The other half is to be recognised for the 2011 year end.
-
Originally posted by dinky1409:
-