Business Administration 2257 Study Guide - Midterm Guide: Stock Split, Preferred Stock, No Entry

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Jeremiah De Sousa

Document Summary

If they give you an inventory account break this up into raw materials, wip, finished. Cash receipts = dr. cash, cash disbursements = cr. Calculate total sales (either # units x $/unit or will say i. e. 15% growth, take last year"s sale from i/s and multiple by 1. 15) Look what they did usually they will only record cash sales. So calculate credit sales (total sales cash sales or total sales x % credit sales) and record as dr. a/r, cr. Normally they"ll buy an asset and they"ll lump it into one account (i. e. they"ll buy land and building and put it all in land). So: calculate % building (purchase price x %) cr. If they buy asset with % cash and % stock. Stock value is always purchase price cash paid. Ignore share price x # shares they"ll give you this. Common stock/preferred stock (for purchase price cash) Depreciate: straight line method = (hc rv)/useful life x n/12.