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42 Cards in this Set
- Front
- Back
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Plant Assests
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tangible assets
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Straight Line Depreciation
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Cost - Salvage value / useful life
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Units of Production method of Depreciation
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Cost - Salvage Value / total units to be produced
x # of units produced |
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Book Value
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Asset's cost - accumulated depreciation
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Disposal of Plant Assests
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can be discarded, sold or exchanged
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Selling a Plant Asset @ Book Value
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Debit Cash
Debit Accum. Depreciation Credit- Plant Asset |
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Selling a Plant Asset ABOVE book value
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Debit Cash
Debit Accumulated Depreciation C- Plant Asset C- Gain on Disposal |
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Selling a Plant Asset BELOW book value
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Debit Cash
Debit Accumulated Depreciation Debit Loss on Disposal Credit Plant Asset |
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Patent
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an exclusive right to manufacture and sell a patented machine or device for 20years
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Copy Right
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the excluseive right given to sell of publish a musical, literary or artistic work during the life of the creator + 70 years
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Leasehold
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lessee is granted the right to use propert by the lessor
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Franchies and Licenses
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Rights that a company or government grants an enitity to deliver a product or service under specified conditions
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trademarks and trade names
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symbols, names, phrases, or jingles identified wiht a company, product or service.
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goodwill
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the amount by which the value of a company exceeds the value of its individual assets adn liabilites
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Total Asset Turn over
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Net sales/ Average Total Sales
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Short Term note payable
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D-Cash
C-Note payable |
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Payment of Short term note payable
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D-Interest Expense
D-Interest Payable D-Note Payable C- Cash |
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Times Interest Ratio
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Income before Interst and Tax / Interest Expense
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Bonds @ par
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On ISSUE DATE
Debit Cash Credit Bonds Payable ON MATURITY Debit Bonds Payable Credit Cash |
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Issuing Bonds at a Discount
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Debit Cash
Debit Discount on Bonds Payable Credit Bonds Payable |
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Issuing Bonds at a Premium
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Debit Cash
Credit Premium on Bonds Payable Credit Bonds Payable |
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Retirement of Bond at Maturity
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Debit Bonds Payable
Credit Cash |
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Retirement of Bond Before Maturity
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Difference between the purchase price and bonds cararying value is recorded as a gain or loss on retirement of bonds
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Debt to Equity Ratio
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Total Liablilities / Total Assets
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Issuing Common Stock
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Debit Cash
Credit Common Stock |
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Issuing stock at Premium
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Debit Cash
Credit Common Stock Credit Paid in capital excess of par |
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Issued stock at discount
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Debit Cash
Credit Discount on Common Stock Credit Common Stock |
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Issuing Stated Value Stock
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Debit Cash
Credit Common Stock Credit Contributed capital iin excess of stated value |
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Cash Dividend Entry at Declaration Date
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Debit Retained Earnings
Credit Dividend Payable |
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Cash Dividend Entry at distribution Date
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Debit Div. Payable
Credit Cash |
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Retained Earnings
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1. Restricted and Appropraitons
2. Prior Period Adjustments 3. Changes in Accounting Estimates |
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Operating Activities
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transactions and events that determine net income
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Investing Activities Cash Inflow
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selling lonterm assets and short term investments
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Investing Activities Cash Outflow
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purchasing longterm assets and short term investments and lending money
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Financing Activities Cash Inflow
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Issuing debt and obtaining cash from owners
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Financing Activities Cash Out Flow
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paying cash owed
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Format of Statement of Cash Flow
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Operating-Net Inflow/Outflow
Financing -Net Inflow/Outflow Investing- Net Inflow/Outflow Net Change +Beginning Cash =Ending Cash note non cash activites at the bottom |
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Direct Method of Operating Cash Flow
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separately lists each item
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Indirect Method of Operating Cash Flow
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reports Net Income then adjusts
*most commonly used |
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Cash Flow on total Assets
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Cash Flow / Average Total Assets
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Adjustment Using the Indirect Method (Add)
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depreciation
decreases in current assets increasses in current liabilities and losses |
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Adjustment Using the Indirect Method (Subtract)
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icreases in current assets
decreases in current liabilities and gain |
