Flashcards in Deck 28 Deck (20):
Journal entry for purchasing a fixed asset?
Debit the asset and credit an expense
Journal entry to record costs incurred to date:
Dr. Construction in progress and Cr. Cash
Progress billings in excess of cost and estimated earnings:
Current liability account
Costs and estimated earnings in excess of progress billings:
Current asset account
Rule for leasehold improvements/renovations:
Capitalize and amortize the shorter of the different lives
Employee's compensation for future absences (vacation) should be accrued if:
1) services have been rendered; 2) obligation relates to vested or accumulated rights; 3)Amount can be reasonably estimated; and 4) payment is probable
What characteristic is the most difficult to report for a governmental entity?
Net bond liability is equal to
Face amount of bond - bond issuance costs
An enterprise fund receives interest on long-term investments; where is this located in Statements of cash flows?
Any change in ARO after it has been depreciated will be recognized in:
Profit or loss
Amount to expense related to software costs (two things)
1) amortization expense and 2) any impairment loss
How does purchasing/issuing/reissuing shares affect outstanding shares?
Purchase: decrease; issue: increase: reissue: increase
Lease began on 12/31 and first payment was made on 12/31, is there any interest during the first year?
NO (accrue interest if lease began earlier in the year)
Acquisition costs associated with a business transaction must be:
Expensed as incurred
Difference between internal service/enterprise funds
Internal service: service internal users (one department services another); Enterprise: services the public ex: utilities
Life insurance policies are recorded at what amount?
Cash surrender value (FMV) less any loans against the policy
Amortization of prior service cost =
Unrecognized prior service cost/remaining service life
Gain amortization for defined benefit pension plan =
(Excess of unrecognized gain over he greater of 10% of beg PBO or 10% of beg. FV plan assets)/ average remaining service life
How does the purchase of treasury stock affect equity and EPS?
Decrease equity and increase EPS