Flashcards in Deck 17 Deck (30):
Journal entry to record costs incurred for percentage of completion method?
Debit Construction in progress and credit cash
Journal entry to record billings related to percentage of completion method?
Debit Contracts receivables and credit Progress billings
Gross profit under cost recovery method
Cash collected - cost of sales
Dividends in arrears =
Accumulated dividends - dividends paid (Disclose this amount, not a liability until declared)
Bond issuance costs
Direct reduction to the carrying amount of the bond; Amortized over the life of the bond
Journal entry to record loss on inventory
Debit inventory loss and credit inventory
What happens to carrying value of bond when market rates decrease?
Higher carrying value but lower amortization discount
Cash basis income of the company
Not shown on the statement of cash flows
Bonds payable is always shown at what amount
Journal entry to record the conversion of bonds into common stock (under book value method)
Debit bonds payable (face); Credit C/S and APIC; either debit a premium or credit a discount for the CV of bond
Accumulated benefit obligation vs. PBO
ABO includes both current and past compensation levels while PBO doesn't
Journal entry to record compensation expense
Debit comp. expense and credit APIC
conditional promises (dependent on future event) recorded as
Bonds are reported on the balance sheet equal to
Face amount - discount - bond issuance costs
Periodic amortization for bonds =
Premium/discount divided by number of periods outstanding
Journal entry for bond extinguishment
Debit Bonds payable; credit discount on BP, gain, and cash
When is a deferred gain recognized?
When PV of payments is more than 10% of the FV
Common stock is always recorded at what amount for bonds payable?
How does the sinking fund increase?
Increases by revenue earned on the investments
How to account for temporary market declines?
Not recognized at interim when a turn-around is expected
APIC has a normal credit or debit balance?
Increase on the credit side
Property in the governmental funds should be capitalized at what amount?
Lower of cost or FV
What situation would increase the unassigned fund balance?
Appropriations exceed expenditures
Deferred tax assets and liabilities are classified as current or non current based on
Their related asset or liability and the expected reversal date
If unrecognized gain/loss balance is less than corridor balance...
No amortization recorded for the gain/loss
Gains/losses on disposals of governmental operations are displayed as
Gasoline taxes to finance road repairs is recorded in what kind of fund?
Special revenue fund
The term "other financing source/use" is recorded in what category of funds
Governmental funds only
Exercise price greater than average market price