3 Accounting Cycle & the Preparation of Financial Statements Flashcards
1
Q
What is non-controlling interest & treasury shares?
A/L/E?
A
NCI - Equity
Treasury shares - Contra-Equity
2
Q
Where does deferred tax go in balance sheet?
A
Non-current liability
3
Q
Sold Inventory for $5,000 for $7,000
A
Dr acc receivables 7,000
Cr sales revenue 7,000
Dr COGS 5,000
Cr inventory 5,000
4
Q
Paid $1,500 dividend
A
Dr dividend 1,500
Cr cash 1,500
5
Q
Depreciation formula and journal entry
A
Depreciation = [(cost - residual value)/ useful life] / 12
Dr Depreciation
Cr Acc depreciation
6
Q
Journal entry for unearned revenue
A
Dr unearned revenue
Cr sales revenue
Dr COGS
Cr inventory
7
Q
Calculate
Treasury shares
Non-controlling interest (NCI)
A
Treasury shares = Total equity - Share capital - retained earnings - other reserves
NCI = Total equity - equity attributable to owner’s company
