AFM391 Final: AFM 391 Final Exam Journal Entries

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM391
• Professor: Robert Ducharme

Document Summary

Je 1: recognize the note: dr. cash/asset cr. Je 2: interest expense (if discount/premium - include it here). Je 1: recognize the dividends on declaration dr. Je 1: recognize the liability dr. cash cr. Je 1: recognize the aro dr. asset cr. Je 2: recognize accretion (ifrs)/interest (aspe) expense dr. interest/accretion expense cr. Je 3: recognize increase in aro as a result of the production cost dr. asset (aspe)/inventory (ifrs) cr. Je 4: record settlement of aro: dr. aro liability/ cr/dr gain/loss on settlement cr. Je 1: recognize the warranty expenses for that year: dr. warranty expense cr. Je 2: adjust the liability for residual warranty liability dr. warranty expense cr. Je 1: record the initial sale of the warranty as a separate deliverable: dr. cash cr. Je 2: recognize the warranty revenue: dr. unearned warranty revenue cr. Je 3: recognize warranty costs as incurred: dr. warranty expense cr. Customer loyalty programs accounted for using expense/revenue approach: