Business Administration 2257 Lecture 2: Document2
10 Apr 2016
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Research phase: costs incurred are recorded as an expense. Development phase: asset account development costs for costs that relate to development, costs that don"t relate (adverising) are expensed, development costs are amorized over the useful life. Total % uncollecible: trial balance afda, calculate ending balance in afda of the product. * if a iscal year ends before the maturity date of the note, calculate interest for the ime that has passed. Interest = value of note x annual interest. If it says you are paying of part of your bank loan, subtract from the long- term" bank loan account and not the current. Loan is just telling you how much you are paying of the whole loan each year. Read the whole case before staring, including the footnotes, and highlight the important parts. Re- read aterwards to make sure you didn"t miss anything. Most things have meaning so don"t over look anything.
