ACCT 301

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Author:
rjfisher
ID:
121291
Filename:
ACCT 301
Updated:
2011-12-06 15:54:08
Tags:
301
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Description:
UW ACCT 301 Study Guide
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  1. Total Cost of Project =
    Total Cost to date / percent complete
  2. Estimated cost to complete =
    Total Cost of Project - Total costs incurred to date
  3. Contract Price =
    Revenue recognized to date / percent complete
  4. NRV =
    Selling Price - Disposal costs - costs to complete
  5. Normal Profit Margin =
    NRV - NPM
  6. If Cost > Market value:
    Write down to market value
  7. If Cost < Market Value
    Record at cost, do not mark-up
  8. When recording Construction costs:

    Dr. CIP ____
    Cr. Cash ______
    Costs incurred during period
  9. When recoriding Construction progress

    Dr. CIP _________
    Cr. Revenue _________
    Total Contract Price * % complete

    Basically the portion of revenue that is matched to expense in that period
  10. When Recording Construction Cost

    Dr. COGS __________
    Cr. CIP _________
    Costs incurred during period

    Leftover CIP should be profit recognized during period
  11. When Recording Construction Billing

    Dr. A/R __________
    Cr. Billings on CIP ________
    Ammount that has been billed.

    Revenue earned in excess is kept in CIP
  12. Under SAB 104, Revenue is is realized or realizable when 4 conditions are met:
    • Persuaive evidence of an arrangement exists
    • Delivery has occured or services have been rendered
    • Sellers price to buyer is fixed or determinable
    • Collectibility is reasonably assured.
  13. Installment Method of A/R
    • Dr. A/R. Cr: inventory reduction and deferred GP
    • Compute avg. GP on sales for the year
    • Recognize a portion of GP based on cash collect (GP% * $): Dr. Cash, Cr. Receivable | Dr. Def GP, Cr. Realized GP
  14. Cost Recovery Method of A/R
    Same as Installment, except don't recognize GP until Cash > COGS
  15. Percentage of sales estimate a ______ statement #
    Income
  16. Percentage of Receivable estimates a _______ statement #
    Balace Sheet
  17. Write-off of uncollectible accounts:
    Dr. _____
    Cr. ______
    • Dr. Allowance for Bad Debt
    • Cr. A/R
  18. FV Equation
    FV = PV (1+i)^n
  19. If Stated Rate > Effective Rate, note given at a ________
    Premium

    PV > Principal
  20. If Stated Rate < Effective Rate, note given at a _______
    Discount

    PV < Principal
  21. Record a note issued at a discount
    • Dr. N/R
    • Cr. Discount on Note
    • Cr. Revenue
  22. Recording Interest:
    Interest Revenue = _________ x _________
    Dr. _______
    Dr.______
    Cr________
    • BB N/R (less Discount) x Effective Rate
    • Dr. Cash (based on stated rate)
    • Dr. Discount (differenct)
    • Cr. Revenue (based on Effective Rate)
  23. Gross Method of Purchase Discounts:
    Record at gross amount, record JE if discount taken
  24. Net Method of Purchase Discounts
    Record at net amount, adjust JE if discount NOT taken
  25. COGS equation =
    BB + Purchases - EB = COGS
  26. IF Prices are Rising

    COGS(LIFO) ___ COGS(FIFO)
    NI(LIFO)_____ NI(FIFO)
    EI(LIFO_____EI(FIFO)
    • COGS(LIFO) > COGS(FIFO)
    • NI(LIFO) < NI(FIFO)
    • EI(LIFO < EI(FIFO)
  27. If Prices are falling:
    COGS(LIFO) ___ COGS(FIFO)
    NI(LIFO)_____ NI(FIFO)
    EI(LIFO_____EI(FIFO)
    • COGS(LIFO) < COGS(FIFO)
    • NI(LIFO) > NI(FIFO)
    • \EI(LIFO > EI(FIFO)

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