acquisition of any plant asset

plant asset (debit), cash (credit)

capital expenditures

plant asset (debit), cash/ AP (credit)

depreciation

depreciation expense (debit), accumulated depreciation (credit)

depreciation expense formula (straight line)

acquisition cost-salvage value/ useful life

depreciable cost per unit (units of activity)

acquisition cost-salvage value/ total units of activity

depreciation expense (units of activity)

depreciable cost per unit x units of activity during year

depreciation expense (declining balance)

1/ useful life in years x beginning book value

double-declining balance method

2/ useful life in years x beginning book value

depreciation for partial assets

depreciation expense (debit), accumulated depreciation (credit)

unit depletion rate

total cost-salvage value/ units estimated to be in the resource

depletion cost

unit depletion rate x # of units extracted

depletion expense

inventory (debit), accumulated depletion (credit)

asset impairment

impairment loss (debit), asset (credit)

disposal of plant assets (gain)

cash (debit), accumulated depreciation (debit), PPE (credit), gain on disposal income statement (credit)

disposal of plant assets (loss)

cash (debit), accumulated depreciation (debit), loss on disposal (debit), PPE (credit)

research costs

R&D expense (debit), cash (credit)

development costs

development costs (debit), cash (credit)

definite life intangibles: acquisition costs

intangible asset (debit), cash (credit)

amortization expense formula

acquisition cost - salvage value/ useful of legal life

amortization expense

amortization expense (debit), accumulated amortization (credit)go

goodwill formula

purchase price - fair value of net identifiable assets

impairement

impairment loss (debit), asset (credit)

issuing common shares

asset/ expense (debit), common shares (credit)

closing retained earning formula

opening RE + net income - dividends declared

closing retained earnings

income summary (debit), retained earnings (credit)

cash dividends

dividends declared (debit), dividends payable (credit)

cash dividends: declaration date

retained earning (debit), dividends declared (credit)

cash dividends: payment date

dividends payable (debit), cash (credit)

stock dividends: declaration date

stock dividends declared (debit), stock dividends distributable (credit)

stock dividends: payment date

stock dividends distributable (debit), common shares (credit)

stock dividends

retained earnings (debit), stock dividends declared (credit)

issuance of preferred shares

cash (debit), preferred shares (credit)

declaration of preferred dividends

preferred dividends declared (debit), preferred dividends payable (credit)

payment of preferred dividends

preferred dividends payable (debit), cash (credit)

average issuance price

balance of common share account / # common shares outstanding

comprehensive income

net income + other comprehensive income (OCI)

AOCI (end)

AOCI (beg) + OCI (period)

closing OCI

OCI (debit), AOCI (credit)

income tax is accrued

income tax expense (debit), income tax payable (credit)

income tax is paid

income tax payable (debit), cash (credit)

salary is accrued

compensation expense (debit), income tax payable, CPP payable, EI payable, salaries payable (credit)

employer matches CPP and EI

compensation expense (debit), CPP, EI payable (credit)

employer pays employees and remits to the government

salaries payable, CPP payable, EI payable, income tax payable (debit), cash (credit)

warranty provisions

waranty expense (debit), provisions for warranties (credit)

warranty claims get fulfilled

provisions for warranties (debit), credit/ inventory (credit)

bonds issuance date

cash (debit), bonds payable (credit)

bonds repay face value on maturity date

bonds payable (debit), cash (credit)

bonds pay interest at the end of the year

interest expense (debit), cash (credit)

bond issuance (discount)

cash, discounts on bonds payable (debit), bonds payable (credit)

amortization of discount every year

interest expense - interest paid/ payable

interest expense (bond discount)

interest expense (debit), discounts on bonds payable, cash (credit)

bond repayment (bond discount)

bonds payable (debit), cash (credit)

bond issuance (premium)

cash (debit), premium on bonds payable (credit), bonds payable (credit)

interest expense (bond premium)

interest expenses, premium on bonds payable (debit), cash (credit)

bond repayment (bond premium)

bonds payable (debit), cash (credit)

ending retained earning

beg RE + net income - dividend declared

ending dividends payable

big dividend payable + dividends declared - dividends paid