Need aid next to the following Accounting Question?(Serious answers please)?
The Rock" is an outdoor stir military camp aimed at children.
Transaction1:
The owners of the military camp in a minute craving to appropriate out insurance. He presently enjoy a little quotes, the cheapest individual $2000. This is within the form of an invoice from "Insure Your Camp Pty Ltd".
Transaction 2:
"The Rock" donated some feeble equipment (which be said to be worth $4000) to the local charity.
Transaction 3:The father of a child attending "The Rock" is a doctor. It allows the child to attend military camp contained by return for the father's serving proletarian contained by the military camp sick sound for 1 week. The standard tax is $1000. The doctor's stipend for the element time work would be $1000.
Transaction 1: The owners hold record $2000 as a debit to Insurance and a credit to "Insure Your Camp Pty Ltd" Explain whether or not this is correct, and why.
Transaction 2:
Explain how (or if) the military camp should description for this situation and why.
Transaction 3:
Explain how (or if) Camp Ormond should commentary for this arrangement and why
Answers:
Transaction 1: The method they record it is incorrect. It should be record as prepaid insurance and expensed over the occupancy of the policy. For example, if the $2000 covers 12 months, they should expense $166.67 per month (with some rounding error at the end). They should initially debit prepaid insurance for $2000 and credit accounts payable (for the invoice) for $2000. When the bill is paid debit accounts payable $2000 and credit brass $2000. Each month (assuming a 12 month policy) they would debit insurance expense $166.67 and credit prepaid insurance $166.67.
Transaction 2: They should story for this transaction as if they sold the equipment for $4000 and donated the proceeds. Since no bread is varying hand, brass is unbothered, so you would debit charitable contributions expense for $4000, Credit equipment for it's artistic cost, debit accumulate depreciation for the depreciation taken on it to date, and the remainder would be a gain or loss on disposal.
Transaction 3: This transaction should be accounted for by debit expense for the doctor's services for $1,000 and crediting revenue for impossible to tell apart amount. They are still acceptance a levy for the child attending the military camp, but it's contained by the form of services instead of dosh. It's as if they charged the doctor $1,000 for his child to attend military camp, and after rewarded him the $1,000 fund for his services.
I hope this help.
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Transaction1:
The owners of the military camp in a minute craving to appropriate out insurance. He presently enjoy a little quotes, the cheapest individual $2000. This is within the form of an invoice from "Insure Your Camp Pty Ltd".
Transaction 2:
"The Rock" donated some feeble equipment (which be said to be worth $4000) to the local charity.
Transaction 3:The father of a child attending "The Rock" is a doctor. It allows the child to attend military camp contained by return for the father's serving proletarian contained by the military camp sick sound for 1 week. The standard tax is $1000. The doctor's stipend for the element time work would be $1000.
Transaction 1: The owners hold record $2000 as a debit to Insurance and a credit to "Insure Your Camp Pty Ltd" Explain whether or not this is correct, and why.
Transaction 2:
Explain how (or if) the military camp should description for this situation and why.
Transaction 3:
Explain how (or if) Camp Ormond should commentary for this arrangement and why
Answers:
Transaction 1: The method they record it is incorrect. It should be record as prepaid insurance and expensed over the occupancy of the policy. For example, if the $2000 covers 12 months, they should expense $166.67 per month (with some rounding error at the end). They should initially debit prepaid insurance for $2000 and credit accounts payable (for the invoice) for $2000. When the bill is paid debit accounts payable $2000 and credit brass $2000. Each month (assuming a 12 month policy) they would debit insurance expense $166.67 and credit prepaid insurance $166.67.
Transaction 2: They should story for this transaction as if they sold the equipment for $4000 and donated the proceeds. Since no bread is varying hand, brass is unbothered, so you would debit charitable contributions expense for $4000, Credit equipment for it's artistic cost, debit accumulate depreciation for the depreciation taken on it to date, and the remainder would be a gain or loss on disposal.
Transaction 3: This transaction should be accounted for by debit expense for the doctor's services for $1,000 and crediting revenue for impossible to tell apart amount. They are still acceptance a levy for the child attending the military camp, but it's contained by the form of services instead of dosh. It's as if they charged the doctor $1,000 for his child to attend military camp, and after rewarded him the $1,000 fund for his services.
I hope this help.