Interm Acc 1 Final

Cash Rec’d equation (when bank collects)

Principle

+Interest

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Total

-return

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Cash Rec’d

Return Equation

Total Cash x rate of return x (#months/12)

NRV equation (LCNRV)

Selling Price - Selling Costs

Market (what is ceiling and floor) (LCM)

Ceiling = NRV

Floor = NRV-Gross profit

Bad dept exp equation

%est uncollectible/est uncollectible

Interest calculation

Market * CV

Sale of A/R with recourse

DR Cash

DR Loss on Sale

DR Allowance

…….CR A/R

…….CR Recourse Liab (not here w/no recourse)

Amort table for LT N/R

1. Cash Rec’d

2. Int income (mkt*cv)

3. reduction to CV

4. CV

How to calculate COGS

Beginning + purchases=AFS-COGS=end inv

OR

Beginning + purchases=AFS-end inv=COGS

YE adj entry for Periodic JE

COGS (plug)

Inventory (end balance)

Purch Return and Allow

Purch disc

….Inventory (beginning)

….Purchases

….Freight IN

How to calc LIFO on bal sheet

Internal Inventory + LIFO Reserve = LIFO inv on bal sheet

LIFO liquidation calculation

# units from base layer

x current replacement costs

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COGS (would have been before tax)

- COGS @ base layer - actual

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COGS should be

Dollar value LIFO calculation/table

1. year

2. Current inv FIFO

3. /Price Index

4. = Inventory @ Base

5. Layers @ base

6. *price index

7. =end Inv @ LIFO

When to use LCM?

For LIFO and the Retail Method

When to use LCNRV?

For all other inventory methods

JE to write down for LCNRV or LCM

COGS

….Allowance for doubtful accounts

Gross profit method (calculation)

Sales - COGS = Gross Profit

Retail Method (table)

………………………Cost…………Retail…..

beginning

purchases

(purch disc)

freight in

abnormal loss

(purch return)

Net markups Cost/Retail=%

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AFS

Sales

Sales returns. (+)

Employee disc (-)

Spoilage (-)

(Net Markdowns) (if conventional include before AFS)

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# ——> *% = End COGS

Partial gain calculation

cash recieved/total value recieved * gain

Depr basis

cost-sv

Book Value

Cost-accum depr

Straight line Depr

cost-sv/useful life

Sum-of-years digits

Cost-sv/fraction

fraction=(#years remain/sum of yrs digits)

Sum of yrs digits = (n(n+1))/2

DDB depr

annual depr= BV*DDB rate

DDB rate = 1/useful life *2

Units of Production

cost-sv/estimated total measure

composite annual depr rate

Annual group SL depr/total group acqu cost

Composite group useful life

Group depr cost/annual group SL depr

Composite annual depr exp

comp. annual depr rate * total group acquisition cost

goodwill calc

Purchase price - FV of identifiable net assetsG

goodwill JE

Goodwill

A/R

Inv

PPE

Intangible

….A/P

….Accrued Exp

….N/P

….Cash

*all assets/liab at fair value