ACTG 2011 Lecture Notes - Lecture 6: Gift Card, Finance Lease, Retained Earnings
Document Summary
Compare to inventory: contributes to earning revenues over more than one fiscal period. Intangible: tangible, goodwill, what"s included in cost, all costs associated with asset being acquired and ready for use, ex. Impairment recoverable amount falls below nbv: what happens on sale, dr. cash. 8000: dr. loss on sale 500, cr. Chapter 9: current liabilities: definition, valuation, classification, things that an entity owes to others, valuation, current liabilities at face value. Long term at their present value: lender, ex. Bank, short term loans (may be secured by a/r or inventory: current portion of long-term debt. Lecture 6: suppliers, generally called a/p or trades payable, often must be paid within 30/60 days, based on terms, customers, unearned rev, funds collected but goods/services not provided, original entry, dr. cash, cr. Revenue: gift card liability, funds collected in exchange for a card, not provided till gift card is used, original entry, dr. cash, cr. Unearned revenue: once rendered, dr. unearned revenue cr.
