Corporation K makes a $50,000 payment to J and in return, J offers K’s employees free admission, a t-shirt with J’s logo that costs J $4.50, and a 25% gift shop discount. Because the free admission is a privilege that can be exercised frequently and is offered in both benefit packages, and the value of the t-shirts is insubstantial, Museum J’s disclosure statement need not […]

Like in the first year calculation, we will use a time factor for the number of months the asset was in use but multiply it by its carrying value at the start of the period instead of its cost. Since the assets will be used throughout the year, there is no need to reduce the depreciation expense, which is why we use a time factor […]

A dangling debit is a debit balance with no offsetting credit balance that would allow it to be written off. It occurs in financial accounting and reflects discrepancies in a company’s balance sheet, as well as when a company purchases goodwill or services to create a debit. Within IU’s KFS, debits and credits can sometimes be referred to as “to” and “from” accounts. Does it matter that […]