Exam 2 Flashcards
I Sale
Debit Sale
Credit COGS
I Sale amount
Sales Price in og transaction
I Cogs Deferral
Debit COGS
Credit Inventory
I Cogs amount
Gross Profit (GP * Remaining % in Inv)
I Cogs Undeferral
Debit Equity Investment
Credit COGS
I Pay
Debit Acct Payable
Credit Acct Receivable
I Pay amount
Total amount of accounts receivable used in transaction
I Gain (Acquisition Year for Land)
Debit Gain on Sale
Credit Land
I Gain (Inbetween Year for Land)
Debit Equity Investment
Credit Land
I Gain (Sell Year for Land)
Debit Equity Investment
Credit Gain on Sale
I Gain (PPE)
Debit Gain on Sale
Credit PPE, net
I Dep
Debit PPE, net
Credit Depreciation Expense
I Dep amount
Difference between new Dep Exp and old Dep Exp
I Gain amounts Inbetween years for PPE
Decrease by the amount of I Dep every year
How do we figure out equipment net when we own 100% of Sub
Equipment Net will be whatever it would have been if we hadnt sold
Equipment Purchase JE
Debit Cash
Debit Accumulated Depreciation
Credit Gain on Sale
Credit Equipment
When do we calculate NCI for intercompany transactions?
Only when it is an Upstream Transaction
For all I Entries, how do we change them for NCI?
If they are upstream anytime there is Equity Investment we split it up between the parent Eq Inv and NCI
What type of account is NCI?
An Equity account, so when you’re figuring it out start at the Equity section
For PPE net we always?
Subtract Gain on sale add back Depreciation difference
For NCI when do we not add the % of Stockholders Equity back?
When we have the beginning balance since % of Equity is included in that
