Ted Roderiguez is very excited about starting his part-time gardening service senior high school student, he...

 

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Ted Roderiguez is very excited about starting his part-time gardening service senior high school student, he has studied some accounting and has incude following two assets on his beginning balance sheet: $ 160 $I 000 Lawn mowers Pick-up truck Ted purchased the two lawn mowers at a local flea market for $20 each hu. that he got a very good deal and that they are worth at least $80 each. The pick truck was a gift from his uncle. Ted thinks he has seen similar trucks advertised the local newspapers for about $2 000. Ted would like his balance sheet to be a rate and to follow Generally Accepted Accounting Principles (GAAPS). Questions 1. Has Ted violated any GAAPS on his balance sheet? Explain. 2. If he has made mistakes, how should he correct them? 3. How can an accurate balance sheet value for the truck be determined? 4. How would an overstatement of Ted's assets affect his capital on the balan sheet? Ted Roderiguez is very excited about starting his part-time gardening service senior high school student, he has studied some accounting and has incude following two assets on his beginning balance sheet: $ 160 $I 000 Lawn mowers Pick-up truck Ted purchased the two lawn mowers at a local flea market for $20 each hu. that he got a very good deal and that they are worth at least $80 each. The pick truck was a gift from his uncle. Ted thinks he has seen similar trucks advertised the local newspapers for about $2 000. Ted would like his balance sheet to be a rate and to follow Generally Accepted Accounting Principles (GAAPS). Questions 1. Has Ted violated any GAAPS on his balance sheet? Explain. 2. If he has made mistakes, how should he correct them? 3. How can an accurate balance sheet value for the truck be determined? 4. How would an overstatement of Ted's assets affect his capital on the balan sheet?

Answer rating: 100% (QA)

1For law mowers purchased IAS 16 Property Plant and Equipment at Procurement Cost can be applied Thi... View the full answer