Business Administration 2257 Study Guide - Midterm Guide: Deferral, Retained Earnings, Accounts Payable

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Prof

Document Summary

Mortgage : dr mortgage payable, intrest | cr cash. Amortize asses up to repair date 2. dr asset cr cash (for repair) 3. calculate new hc nhc = (hc-amort) +repair cost 4. calc life. Amoetize asset up to point of trade, sale, etc. Calculate gain/loss (if tradein trd in allowance) 4. Dr loss (if applicable) dr new asset cr cash, cr old asset, cr gain. Disposal/sale:dr a/a asset to zero, dr loss (if applicable), dr cash (if sale) cr asset (to zero), cr gain (if applicable ) cr cash (if need to pay to dispose of asset) Bad debt expense: dr bad debt expense cr a4da. Balance sheet: % of ar uncollectable) caculate ending balance of a4da, then plug to find bad debt expense (ending balance trial balance) Income statement: (% of gross/net credit sales) calculate bad debt ex directly. Freight situations: returns; accounts payable | merchandise inventory. Conversion to note payable; interest payable, note payable | cash.