21 Flashcards
deck 21
how do we get sales revenue from a sales revenue account that has accrued for sales tax?
credit sales rev/ (1+ tax%)) = sales rev
*advance payments are netted against sales tax collected
when is real estate taxes payable accrued?
from the beginning of the closing statement to the payment date or YE
*if it is to payment date, debit real estate taxes payable and any excess to a PPD exp account
are periodic payment of interests and “secured by collateral” classified as A/P?
no:
- periodic payment of int. = accrued L / debt
- secured by collateral = loan payable
what is the classification of a DTL?
all DTL’s are non-current
what is the classification of a note payable that was prepaid before refinancing?
it should be included in CL’s
what is the classification for a balloon note?
the full note is due at maturity, so it is either all a CL or a non-CL
what is the ARO final year JE with addition of increased demolition and dismantling costs?
Dr: ARO Liability
Dr: Demo. exp.
Cr: cash or A/P
how is accretion exp. calc’d?
BB ARO * risk-adj’d rate = accretion exp.
what is a decommissioning liability and how is it recog’d?
- IFRS term for ARO
* change in value of liability after being fully dep’d is recog’d in P/L (IS)
what is the action for initial recog. of an ARO?
*record an ARC which increases CV of the LT asset as well as ARO
**amt of both = FV of ARO (det’d by disc. FCF)
how are interest earned and maintenance fees based on int. earned treated in regards to escrow L accounts?
int. earned increases the escrow account, and % of maint. fee decreases the account
when should you accrue vacation days and sick pay for compensated absence liability?
- vacation pay is accrued if vested/accu’d
* sick pay is accrued only if it vests
req’s for employee comp. for future absences to be accrued:
(1) svc’s already been rendered
(2) obl. relates to vested/accu’d rights
(3) amt can be reas. est’d
(4) pmt is probable
if a N/R is sold with recourse, is there a contingent liability?
- yes, seller is contingently liable
* note is not disc’d for footnote liability purp’s
when should warranty costs be recog’d?
at the date of sale when costs are probable and estimable
