ADMN 2021H Lecture Notes - Lecture 5: Accounts Payable, Fixed Capital, Current Liability
ADMN2021H: Financial Accounting II
Tuesday, February 6th, 2017
Lecture 5 – Review Class
Formula
Definition
Important
Date: Tuesday, February 15th
11 am – 1:50 pm
Multiple choice and true false – 40
Problems
Calculations
a. Depreciation
b. Carrying amount
c. Expenses
d. costs
Three methods of depreciation
a. Three tables to complete
Property, plant and equipment (sale of equipment)
a. Journal entry for disposal of asset
b. Gain or loss – journal entry
Bond price
a. Calculating the price of the bond – do not need to complete schedule of interest
Notes payable (blended or fixed capital)
a. One table to complete, could be blended or fixed principle
Journal entries (payroll, sales taxes, property taxes, interest expenses)
Ratios – chapter 9 and chapter 10
Chapter 9 – Important Topics
Chapter 9 – Long Lived Assets
oCost of long-lived assets and related journal entries
oDepreciation methods (straight-line, diminishing and units of production) and journal entries
oDerecognition of property, plant and equipment and related journal entries (sale of equipment)
oRatios
Chapter 10 – Important Topics
Chapter 10 – Liabilities
oJournal entries related to current liabilities (accounts payable, payroll, sales taxes, property taxes, taxes
payable, etc.)
oNotes payable (blended and fixed capital)
oRatios
oBond price calculations and journal entries related to bonds
Chapter 9 – Reporting and Analyzing Long-Lived Assets
Learning Objectives – Multiple Choice Questions (study what has more stars)
oCost of property, plant and equipment *
oCalculation of depreciation ***
oDerecognition of property, plant and equipment **
oIntangible *
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Document Summary
Calculations: depreciation, carrying amount, expenses, costs. Three methods of depreciation: three tables to complete. Property, plant and equipment (sale of equipment) a. Journal entry for disposal of asset: gain or loss journal entry. Bond price: calculating the price of the bond do not need to complete schedule of interest. Notes payable (blended or fixed capital: one table to complete, could be blended or fixed principle. Journal entries (payroll, sales taxes, property taxes, interest expenses) Ratios chapter 9 and chapter 10. Chapter 10 liabilities: journal entries related to current liabilities (accounts payable, payroll, sales taxes, property taxes, taxes payable, etc. , notes payable (blended and fixed capital, ratios, bond price calculations and journal entries related to bonds. Chapter 9 reporting and analyzing long-lived assets. ** see chapter 9 slides for cost of buildings, equipment, etc. Units-of-production: need to complete table that was on assignment 1. Depreciation is constant for each year of the assets useful life.