Business Administration 2257 Study Guide - Midterm Guide: Retained Earnings, List Of The Shield Episodes, Petty Cash
23 Oct 2016
School
Department
Professor
Document Summary
*start by looking at last year(cid:495)s balance sheet see if any (cid:494)hints(cid:495) (ap from last year = potentially inventory in transit) Make cogs expense when posting entries for cogs plug. Depreciation methods: units of production ((hc-rv) / est. units of output) x units used, diminishing balance. Step 3: calculate bad debt expense (same formula as bde) Increase/decrease amount: end-of-period adjustment when some of petty cash is used, dr. Check balance sheet to make sure that any other assets listed that may not have been used in the case are depreciated accordingly. Trademarks are checked for impairment once a year. Sales, retirements, trade-ins: depreciate to the day, find bv of the asset on the day of trade-in, compare bv to money received, loss or gain on retirement, record the gain or loss. Shipping point: you pay shipping, disc period starts when goods are shipped. Destination: seller pays shipping, disc period starts when you receive goods.
