F1 Flashcards
How are sales of fixed assets reported
By Net amount
Single-step income statements have purchase discounts in?
COGS
Formula for Comprehensive Income
Net Income
+/- Other Comprehensive Income
= Comprehensive Income
What affects does the amortization of an actuarial pension loss have?
Increases Other comprehensive income
Decreases Net Income
No effect on Comprehensive Income.
Gain and Loss on treasury stock transactions never hit?
Income Statement
Prior service costs not recognized in net periodic pension costs hit?
Decrease to Other Comprehensive Income
APIC (TS) under the Cost method occurs
Reissue above cost
Remember in the Par value method we get rid of the APIC as we buy back our stock
APIC (TS) under the Par Value Method occurs
Buyback below the issue price
When does the cost method use APIC?
When you distribute the stock and when you retire it.
When does the par value method use APIC?
When you distribute the stock and every transaction after that but not for retirement.
JE to retire Stocks using the Cost method
DR CS (at Par)
DR APIC (Previously received for that stock)
DR (Retained earnings)
Cr Treasury Stock (at cost to require)
JE to retire stocks using the par value method
Dr Common stock (Par)
Cr Treasury stock (Par)
Property dividends
The property will be brought to FV and that is the Dr to Retained earnings
Any difference between FV and book value will result in a gain or loss in the income statement
If a stock does not have par value what do we use?
Stated value
