FMA

: FMA

Introduction

This seeks to answer given questions

Part A

The following are the entries for each transaction , including narrations that would appear in the General Journal of Sydney Metro Manufacturing

1 . Disposal of truck

Cash 1 ,300

Accumulate Depreciation 8 ,000

Truck 9 ,000

Gain on Sale 300

To record disposal of truck

2 . Disposal of building

Cash 15 ,000

Accumulate Depreciation-building 13 ,750

Loss on Sale 1 ,250

Building 30 ,000

To record disposal of building

3 . Disposal of

Printer

Accumulate Depreciation -printer 800

Printer 8000

To record disposal of printer

4 . Disposal of Land

Cash 12 ,000

Land 10 ,000

Gain on Sale 2 ,000

To record disposal of land

5 . Disposal of computer

Cash 3 ,000

Accumulate Depreciation 4 ,400

Computer 7 ,000

Gain on Sale 400

To record disposal of computer Part B

a . Define and describe environmental accounting . In your opinion is environmental accounting a legitimate to be included in the annual report ? Justify your response (500 words

Environmental accounting aims to incorporate both economic and environmental information that identifies measures and communicates costs from a company 's actual or potential impact on the environment (Jasch , C , 2006 Odum , H , 1996 . These costs include costs to clean up or repair and make functioning contaminated sites , environmental fines penalties and taxes , purchase of pollution prevention technologies and waste management costs . As a system , environmental accounting consists of environmentally differentiated conventional accounting - measures impacts of the natural environment on a company in monetary terms ) and ecological accounting (Waddock , 2005 Basu and Waymire , 2006 Smith 1999 ) - measures the impact a company has on the environment , but in physical units which may be expressed on kilograms of waste produced kilojoules of energy consumed more important than in monetary units

To further understand what the possible causes are for the birth of environmental accounting , it is notable to look at prospectively for possible reasons in putting or adopting environmental accounting . Several reasons explain the adoption of environmental accounting as part of their accounting system (Snider and Moody , 1995 Line , 2001 Romm , 2004 . One possible reason is the noteworthy reduction or elimination of environmental costs . Companies just believe to significantly reduce it costs by adopting the proper procedures of accounting for costs . Another reason is possibility of generating revenue which the company may offset against cost from the environment This could taken by analogy with the concept of indirect tax where the company may just past on to the customer these indirect taxes being imposed by the government

Environmental account may also help the company to advance environmental performance which may have an encouraging effect on human health and business success . Companies make this a reason since man no matter how motivated it may be for profit could only understood humanity in broader context by sharing in the social burden of promoting human health

Another possibility that companies may look into is the possibility to have a costing method that is more accurate and more reflective...