Final Review for Accounting (Start with Definition)

reports unrealized gains and losses

Accumulated Other Comprehensive Income (Loss)

contra asset, increases with a credit

Allowance for Doubtful accounts is a ________ - ________ account and _________ with a ________________

Operating, Investing, and Financing

Aspects of the Statement of Cash Flows

Assets, Liabilities, Stockholder's equity, snapshot of a report at a time

Balance Sheet

reports the amount of capital, in exchange for the company's common stock and preferred stock.

Contributed Capital

Reports Net Income and how distribution of dividends affected financial position

Define Statement of Retained Earnings

updates to bank, and goes up

Deposits in transit

(Cost-accumulated depreciation) * 2/useful life

Double Declining method

updates to books, goes up

EFTS

Income tax payable, FICA tax payable

Employee Payroll deductions

FICA tax payable, Unemployment tax payable

Employer Payroll deductions

oldest inventory sold first

FIFO

Balance Sheet, Statement of retained earnings, Income Statement, and Statement of Cash flow

Financial Statments

Segregate duties

Goods are received only by warehouse employees

Independently verify

Goods billed by suppliers are compared to purchase orders and receiving reports before being paid

DR Rent Expense 2000 CR Prepaid Rent 2000

Hockey helpers paid $4000 cash on September 30, to rent an arena for the months of October and November. Show rent for October, 31

shows all revenues and all expenses for the end of month

Income Statement

We paid cash for equipment

Investing transaction

DR Cash DR Accumulated Depreciation CR Equipment CR Gain on Disposal

Journal entry for gain on disposal

DR Cash DR Accumulated Depreciation DR loss on disposal CR Equipment

Journal entry for loss on disposal

Newest inventory sold first, and assigned to cogs first, small income taxes

LIFO

Document Procedures

Merchandise orders are recorded on a purchase order form

updates to books, goes down

NSF checks

DR Supplies Expense 350 CR Supplies 350

Of the $600 in supplies previously received, $250 remain at September 30th

Establish Responsibility

One office employee places all merchandise orders

updates to bank, and goes down

Outstanding checks

Credit Sales * Bad debt loss rate= Bad debt expense

Percentage of Credit Sales Method

Document procedures

Receiving reports are completed to indicate goods received

reports cumulative net income earned less the cumulative amount of dividends

Retained Earnings

DR Insurance expense CR Prepaid insurance

Risky ventures paid $3000 on September 30, for insurance coverage for the months of October, November and December. Show journal entry for October 31,

updates to books, goes down

Service charges

identifies and records the cost of each item sold as part of cogs.

Specific Identification

(Cost-residual)*1/useful life

Straight line method

DR Unearned Revenue 8000 CR Service Revenue 8000

Super Stage Shows received $16,000 on September 30, for season tickets that admit patrons to theater event that will be held twice. Show Journal entry for October 31.

Restrict access

The warehouse is locked and activities electronically monitored

We paid off dividends in cash

Transactions for Financing

contra equity account, previously issued shares that are bought back

Treasury Stock

DR Bad Debt expense 69,000 CR Allowance for Doubtful Accounts 69,000

Unadjusted balance of allowance account is $1000, The AR is aged as follows: 200,000 0-30 days (historically 20% uncollectible) and $60,000 +30 days (historically 50% uncollectible)

(Cost-residual)* actual production/estimated production

Units of production method

Taking the COGs and dividing it by the number of units available

Weighted Average

exchanges of cash with stockholders and lenders

define Financing activities

are the cash inflows and outflows related to the purchase and disposal of investments and long-lived assets.

define Investing activities

are the cash inflows and outflows related to revenues and expenses reported on the income statement.

define Operating activities

Summarizing everything that happens to cash

define Statement of Cash flow

updates to books, and goes up

interest earned

We paid cash to our employees

operating transaction