F4 - M1 Payables Flashcards
Interest payable balance
Principle payments reduce the balance. Interest is calced at the principle remaining. If loan is bought at a different month than the January than outstanding months needs to be calced.
Payables & Liabilities
It is what is due for that CY. Liabilities are bal sheet accounts that represent an amount owed as of that CY, which includes CY and PYs.
Interest earned
When there is a fee based on interest earned that interest income has to be debited.
Current/long term liabilities classifications from refinancing.
When CL is expected to be refinanced past bal sheet date it becomes LT if it occurs before issuance of F/S. However, any payment paid prior to the refinance is s CL
Same with prepaids, only 12 months of prepaids is CA and the remainder is long term.
Deferred comp
Cost of the benefit is divided over the amount of service required.
Vacation expense
Days allowed (x) per day = annual expense (prorate)
Decommission of liabilities
Decommission of liabilities represents a retirement. If there is a an adjustment to a liability that was decommissioned than there is a gain in value which is recognized in the P&L whether it decreased or increased.
Accretion expense
Accretion is the increase in liability in ARO due to time. Beg ARO (x) Risk adjusted rate
ARO
When you have to retire the asset
Payables with a debit balance
Payables that have a debit balance means there is a prepaid asset which does not belong there. Debits in payables should be removed and the payable increases for that amount.
Interest earned is a CREDIT to liability
Exit and disposal activities
costs to relocate employees, involuntary termination of employees.
