ARBUS102 Study Guide - Midterm Guide: Dividend, Financial Statement, Frivolous Litigation

• School: University of Waterloo
• Department: Arts and Business
• Course: ARBUS102
• Professor: David Lin

Document Summary

I = 100mill x 10% x 6/12 = 5 million. We record interest expense 5m, interest payable +5m. Loan for 100million on july 1, interest for loan is due in a year. In 6 months (dec 1), we have to calculate the interest and include it in the sheets. Ratio formula sheet is provided, amortization formula are not provided. Be able to apply the three amortization methods to calculate the amortization of any long-lived tangible assets. Asset cost: includes the purchase cost, sales tax, legal fees, and other costs needed to acquire and prepare the asset for use. Residual (salvage) value: is an estimate of the amount the company will receive when it disposes of the asset. Useful life: is the expected service life of an asset to the present owner. Land is the only tangible asset that has an unlimited useful life. At acquisition (27k-15k) x 1/3 (27k-15k) x 1/3 (27k-15k) x 1/3 (27k-15k)x (27k-15k)x (27k-15k)x.