Business Administration 2257 Final: Cheat Sheet
11 Dec 2015
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Debit revenue accounts with credit balances, credit income summary [c1a] or credit revenue accounts with debit balances, debit income summary [c1b] Credit expense accounts with debit balances, debit income summary [c2a] or debit expense accounts with credit balances, credit income summary [c2b] Subtotal income summary, and record taxes to income tax expense and payable [c3] tax rate = 1 (net income after tax/net income before tax) from last year"s income statement. Credit income tax expense, debit income summary [c4] Close income summary, credit to retained earnings [c5] Skip 3 and 4 if there is a net loss. Straight line method = same depreciation expense each year; look at a/d on last year"s statement of financial position and divide by number of years since asset was purchased (not including current fiscal year) If given useful life and residual value, find depreciation using that. Allocate depreciation expense to wip (same allocation as last year)
