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J/E and Formulas Flashcards

1
Q

Impairment Loss

A

CV - FV

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2
Q

J/E to adjust to accrual basis sales revenue

A

DR: AR
CR: SALES

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3
Q

J/E to adj purchases made on a cash basis of accounting not recorded until invoice is paid

And COGS that haven’t been paid for

A

DR: Inventory
CR: AP
DR: Cost of Sales
CR: AP

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4
Q

J/E for equipment purchased in a cash basis to capitalized under accrual basis

A

DR: Factory Equipment
CR: Small Tools Expense
DR: Dep Exp
CR: Accum Depreciation

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5
Q

J/E for prepaid insurance policy that was included as an expense under cash basis - to accrual basis

A

DR: Prepaid Insurance
CR: Admin Expense

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6
Q

J/E for bad debt expense

A

DR: BDE
CR: Allowance for uncollectible accounts

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7
Q

J/E for Payroll from cash to accrual

A

DR: Payroll Exp
CR: Accrued Payroll

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8
Q

J/E for Income tax from Cash to accrual

A

DR: Income Tax Expense
CR: Income tax payable

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9
Q

GP Formula

A

Sales - Cost of Sales

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10
Q

GP Rate Formula

A

GP/Sales

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11
Q

Earned GP Formula

A

Cash Collections X GP%

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12
Q

Deferred GP =

A

Receivable X GP%

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13
Q

J/E for purchasing a patent

A

DR: Patents
CR: Cash

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14
Q

J/E for Capitalized R&D equipment

A

DR: Equipment
CR: Cash

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15
Q

J/E for legal fees for unsuccessful defense of trademark

A

DR: Legal Expense
CR: Cash

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16
Q

J/E Amortization of patent

A

DR: Amort Exp
CR: Accumulated amort- patent

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17
Q

J/E for Depreciation of Equipment used currently in R&D

A

DR: R&D expense
CR: Accum Depreciation

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18
Q

J/E for Trading Securities Unrealized Gain and Loss

A

Gain:
DR: Valuation acct
CR: Unrealized gain on trading securities

Loss:
DR: Unrealized loss on trading securities
CR: Valuation Account

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19
Q

J/E for AFS Unrealized gain and loss

A

Gain:
DR: Valuation Acct
CR: Unrealized Gain on AFS

Loss:
DR: Unrealized loss on AFS
CR: Valuation Account

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20
Q

J/E for sale of Security AFS

A 
DR: Cash 
DR: Valuation Account
DR: Realized loss on AFS
CR:          Unrealized loss on AFS sec
CR:          AFS sec
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21
Q

J/E for purchase of HTM sec

A

DR: HTM Sec
CR: Cash

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22
Q

J/E for impairment of HTM sec

A

DR: Impairment loss
CR: HTM sec

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23
Q

GAAP:

Full Goodwill Calculation

NCI

A

Full Goodwill Method = FV of sub - FV of subs net assets

NCI = FV of sub X NCI%

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24
Q

IFRS: Partial Goodwill Method:

Goodwill

NCI

A

Partial Goodwill Method = FV of the sub - FV of subs net assets X ownership %

NCI = FV of subs net assets X NCI%

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25
J/E to eliminate entry in period of the sale estimates the intercompany g/l and adjusts the assets and accum dep to their original balance on date of sale:
DR: Gain on Sale CR: Accum Dep CR: Dep Expense CR: Equipment
26
J/E intercompany inventory sale elimination
DR: Sales CR: Inventory CR: COGS
27
J/E for to Eliminate Investment in Sub
``` DR: Common Stock DR: APIC DR: RE CR: Investment in Sub CR: NCI DR: BS adjust to FV DR: Identifiable assets recorded at FV DR: Goodwill or CR: Gain ```
28
J/E to record incremental increase in dep
DR: Dep Exp CR: Accum Dep
29
J/E to adjustment in goodwill with acquistion
D:R Impairment Expense CR: Goodwill
30
J/E to eliminate intercompany transactions associated with IS
The only IS related to intercompany is the payment of dividends by the sub DR: Dividend income from sub CR: Dividends paid
31
J/E for intercompany transactions associated with BS
DR: Intercompany payable CR: Intercompany receivable
32
J/E for Nonmonetary Exchanges
DR: New Asset (FV of consideration given) DR: Accum Depreciation of Asset given up DR: Cash received DR: Loss (if any) CR: Old asset at historical cost CR: Cash Given CR: Gain(if any)
33
SL Depreciation
= (Cost - SV) / N
34
Double Declining
= 2 X (1/N) X (Cost - Accum Dep)
35
SYD
= (Cost - SV) X (Remaining life of asset / SYD)
36
Units of Production
Rate per unit = (Cost - SV) / Est units Dep Expense = Rate per unit X # of units produced
37
Formula for BDE and J/E
``` Beg Allowance - Write offs + Recoverables = Allowance b4 adju + BDE = Ending Allowance ``` DR: BDE CR: Allowance for doubtful accounts
38
When Calculating Bonds---PV Factor to use Interest Principal
Interest = PV of $1 Principal = PV of annuity due or ordinary annuity
39
Amortization Table: Interest Payment = Interest Expense = Decrease in CV of Bond = Unamortized Prem = CV of Bonds =
Interest Payment = Face amount X Stated Rate (If Semi annual Stated Rate/2) Interest Expense = Beg CV X Mkt Int Rate Decrease in CV of Bonds (Amortization)= Interest payment - Interest Exp Umamortized Prem = Previous unamoritzed prem + Decrease in carrying amount CV of Bonds = Beg CV - Decrease in CV (Amort)
40
Bond Payable CV of Debt = Payment due on call date Amount of Gain or Loss
CV of debt = FACE + Unamortized prem Payment due on Call date = Face X Percentage G/L = CV - Payment due on Call date
41
Bond issued at a discount
= Stated Rate < Effective Interest Rate
42
Bond Issued at a premium
= Stated Rate > Effective Interest Rate
43
J/E for Borrower when the bond is issued at a discount
DR: Cash DR: Discount on BP CR: BP
44
J/E for Borrower when bond is issued at a prem
DR: Cash CR: Prem CR: BP
45
J/E for Common stock when the convertible bonds submitted to conversion
DR: BP DR: Prem CR: CS CR; APIC
46
J/E Issued bonds with detachable warrants
DR: Cash DR: Discount CR: BP CR: APIC (Stock Warrants)
47
J/E for Stock Dividend
DR: RE CR: CS CR: APIC
48
J/E for Convertible Bonds
DR: Cash DR: Bond issue cost CR: BP CR: Prem on BP
49
J/E for Interest Expense on Bonds J/E for Amort of Bond issue costs
DR: Interest Expense DR: Prem on BP CR: Cash DR: Bond issuance Expense Cr: Bond Issue Cost
50
J/E for Conversion of Bonds into CS
``` DR: BP (Face) DR: Prem on BP CR: CS (# of bonds X # of shares/bond X Par) CR: Bond Issue Cost CR: APIC ```
51
PP Funded Status
FV of plan assets - projected benefit obligation
52
Net Periodic Pension Cost
SIRAGE Service Cost Interest Cost (Beg PBO X Disc Rate) - Return on Plan Assets ( Beg FV of Plan Assets X Epected rate) +Amort of Prior Service Cost - Gain or +Loss +Amortization of Existing Net Obligation or Net Asset =Pension Expense
53
PP J/E 1. Contribution to plan 2. Service/Interest Cost 3. Return on Plan Assets 4. Amort of Prior Service cost 5. Gain (in current period)
1. DR: Pension Benefit Asset CR: Cash 2. DR: Net Periodic pension cost CR: Pension benefit asset DR: Deferred Tax Asset CR: Deferred Tax Benefit - IS 3. DR: Pension benefit asset CR: Net periodic pension cost DR: Deferred Tax Expense CR: Def Tax Liability 4. DR: Net Periodic Pension Cost CR: OCI DR: Deferred Tax Benefit -OCI CR: Deferred tax benefit - IS 5. DR: Pension Benefit Asset CR: OCI DR: Deferred Tax Expense -- OCI CR: Def Tax Liability
54
TAX: | What are Installment Sales, Contractors Accounting (% vs. completed) and Equity Method (undistributed dividends)?
FS Income First = Tax Return Income Later Tax Income Later = Future Tax Liability
55
TAX: | What are prepaid rent, prepaid interest, prepaid royalties?
Tax Return Income First = FS Income Later Tax Income First = Prepaid Tax Benefit (asset)
56
TAX: What are BDE (allowance vs. Direct write off), Est. Liability/Warranty Expense, Start-up expenses?
FS Expense First = Tax REturn Expense Later Tax Deductible Later = Future Tax Benefit (asset)
57
TAX: What are Depreciation Expense, Amort of Franchise, and prepaid expenses (cash basis for tax)?
Tax Return expense first = FS expense later Tax deductible first = Tax liability
58
DTL
Future tax accounting income > Future Fin accounting income
59
DTL
Future tax accounting income < future Fin accounting income
60
J/E to record the taxes (Tax Liability)
DR: Income tax Expense -- Current DR: Income Tax Expense -- deferred CR: Def Tax Liability CR: Income tax payable
61
J/E to record taxes (Asset)
DR: Deferred Tax Asset DR: Income Tax Expense - Current CR: Income Tax Payable CR: Income Tax Benefit - Deferred
62
J/E To record taxes (Asset and Valuation)
DR: Deferred Tax Asset DR: Income Tax Expense - Current CR: Deferred tax exp valuation allowance CR: Income Tax Benefit - Deferred CR: Income Tax Payable
63
J/E for Issuance of shares for property
DR: Land CR: CS CR: APIC
64
J/E to purchase TS
DR: TS CR: Cash
65
J/E for Property Dividends Distributed (ie inventory)
DR: RE (FV of property) DR: Loss on Inventory CR: Inventory
66
J/E Stock Dividend Issued
DR: RE CR: CS
67
J/E for Cash Dividend
DR: RE CR: Dividend Payable
68
Unrealized G/L on Marketable Sec classified as AFS
DR: AFS CR: OCI
69
Cost Method J/E 1. Issue 2. Buy Back above issue price 3. Reissue above cost 4. Reissue below cost
1. DR: Cash CR: CS (#Xpar) CR: APIC (plug) 2. DR: TS CR: Cash 3. DR: Cash (# X Cost) CR: TS CR: APIC 4. DR: Cash DR: APIC - TS DR: RE CR: TS
70
Operating Investing Financing
Operating = Cash effects of the line items that make up the calculation of NI Investing = Cash effects of non-current assets transactions, such as purchases and sales of fixed assets and investments and lending activities Financing = Cash effects of borrowing, or paying back debt, and buying and selling equity of the company
71
J/E to recognize Compensation expense of stock options
DR: Compensation Expense - stock options CR: APIC - Stock options
72
J/E to recognize exercise of stock options
DR: Cash DR: APIC - Stock options CR: CS CR: APIC
73
J/E to record expiration of stock options
DR: APIC - Stock options CR: APIC - Expired stock options
74
J/E for Other Financing Sources (credit)
DR: Cash CR: Other Financing Sources
75
J/E to record PO
DR: Encumbrance Control CR: Budgetary control
76
J/E Supplies received for govt units
DR: Budgetary Control CR: Encumbrance Control DR: Expenditures CR: Vouchers payable
77
J/E to record general fund sal and wages
DR: Expenditure control CR: Vouchers Payable
78
J/E for Interfund Reves
DR: Due from other funds CR: Interfund Revs
79
J/E for inflows from a grant
DR: Deferred inflows CR: Grant Revenues
80
J/E for property taxes collected in advance of the fiscal period
DR: Cash CR: Deferred Inflows of resources

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