Journal Entries PDF

Preview

Summary

HELPFUL JOURNAL ENTRIES ...

Description

WEEK 5 – ACCOUNTING FOR IMPAIRMENT

DR – Impairment Loss CR – Land CR – Goodwill CR – Accumulated Deprecation + Impairment Losses

WEEK 6 – ACCOUNTING FOR LEASES

Lease Payment Schedule: Date 1: DR – Right of Use of Asset CR – Lease Liability DR – Lease Liability DR – Prepaid Executory Costs CR – Cash Date 2: DR – Executory Costs CR – Prepaid Executory Costs DR – Lease Liability DR – Interest Expense DR – Prepaid Executory Costs CR – Cash DR – Deprecation Expense CR – Accumulated Deprecation

Lease Payment Schedule: Date 1: DR – Machine CR – Cash DR – Lease Receivable CR – Machine CR – Indirect Cost Date 2: DR – Cash CR – Lease Receivable CR – Interest Revenue CR – Reimbursement in Advance DR – Executory Costs CR – Cash

Lease Payment

Interest Expense

Reduction in Liability Balance of Liability

Lease Receipts

Interest Receivable

Reduction Receivable Balance of Receivable

WEEK 7 – REVENUE RECOGNITION

DR – Expense CR – Cash (Incurred costs) DR – Deferred Expenses CR – Expense (Not used) DR – Accounts Receivable (A/R) CR – Service Revenue (Total revenue) DR – Cash CR – Accounts Receivable (A/R) (Recorded payment) – last line

Calculation: Incurred Costs – Not Used = $

Incurred Costs−Not Used X 100=% ExpectedCosts % X Total Consideration = Total Revenue

WEEK 8 – STATEMENT OF CHANGES IN EQUITY

Sales Revenue – (Cost of Goods Sold) Gross Profit Other Income – (Selling and Distribution Expense) – (Administration Expense) – (Finance Costs) Profit Before Tax – (Income Tax Expense) Total Profit (Retained Earnings) + Other Comprehensive Income: Revaluation of Asset Net of Tax (Asset Revaluation Surplus) Total Comprehensive Income

Share Capital, Retained Earnings, Asset Revaluation Reserve, General Reserve & Total Balance at dd/mm/yyyy Comprehensive Income for the year ended dd/mm/yyyy Issue of Share Capital Dividends Transfer to General Reserve Balance at dd/mm/yyyy Share were issued – Share Capital Dividend declared & paid – (Retained Earnings) Transfer from retained earnings to general reserve – (Retained Earnings) + General Reserve Further Notes -

Total Profit = Retained Earnings (SOCE)

-

Other Comprehensive Income (total) = Asset Revaluation Surplus (SOCE)

WEEK 9 & 10 – STATEMENT OF CASH FLOWS

OPERATING

Receipts from Customers: ACCOUNTS RECEIVABLE DR – O/B & Sales Revenue CR – C/B & (Bad Debts Written Off) ALLOWANCE FOR DOUBTFUL DEBTS DR – C/B & Bad Debts Written Off CR – O/B & Doubtful Debts Expense Payments to Suppliers & Employees: ACCOUNTS PAYABLE DR – C/B CR – O/B & (Purchases) INVENTORY DR – O/B & Purchases CR – C/B & Cost of Goods Sold Cash Paid Accrued Expenses Other Expenses – (Doubtful Debts Expense) – (Loss on Sale of Plant) – (Deprecation – Building) – (Depreciation Plant) Interest Paid: INTEREST PAYABLE DR – C/B CR – O/B & Interest Expense Income Tax Paid: CURRENT TAX LIABILITY DR – C/B &

in DTL

CR – O/B & Income Tax Expense &

in DTA

INVESTING

Interest Received: INTEREST INCOME

Proceeds on Sale of Plant + Equipment: Carrying Amount of Plant + Equipment – (Accumulated Deprecation) – (Loss on Sale of Plant) Purchase of Plant: PLANT + EQUIPMENT AT COST DR – O/B CR – C/B & Plant Sold Purchase of Building: BUILDING AT COST C/B – O/B = Purchase of Building + Deprecation

FINANCING Proceeds from Borrowing: BANK LOAN C/B – O/B = Proceeds from Borrowing Proceeds from Share Issue: SHARE CAPITAL C/B – O/B = Proceeds from Share Issue Dividends Paid: RETAINED EARNINGS DR – C/B & (Dividends Declared) CR – O/B & Profit After Tax

DIVIDENDS PAYABLE DR – C/B & (Dividends Paid) CR – O/B & (Dividends Declared)

Ltd Statement of Cash Flows For the year ended 30 June CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Customers

$

– (Payments to Suppliers + Employees)

–$

Cash Generated from Operations – (Interest Paid)

–$

– (Income Tax Paid)

–$

NET CASH FROM OPERATING ACTIVITIES

$

CASH FLOWS FROM INVESTING ACTIVITIES Interest Received

$

Proceeds on Sale of Plant + Equipment

$

– (Purchase of Plant)

–$

– (Purchase of Building)

–$

NET CASH FROM INVESTING ACTIVITIES

$

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Borrowing

$

Proceeds from Share Issue

$

– (Dividends Paid) NET CASH FROM FINANCING ACTIVITIES

–$ $

NET INCREASE IN CASH + CASH EQUIVALENTS

$

Cash + Cash Equivalents at Beginning of Year

$

Cash + Cash Equivalents at End of Year

$

Reconciliation Notes: Profit for the Year Deprecation Interest Income Trade Receivables Allowance for Doubtful Debts Inventories Deferred Tax Asset Accounts Payable Accrued Expenses Interest Payable Current Tax Liability Deferred Tax Liability Other Expense Doubtful Debts Expense Interest Expense

Loss/Gain on Sale of Plant

WEEK 12 – COMPANY ACCOUNTING

1. DR – Cash Trust CR – Application 2. DR – Application DR – Allotment CR – Share Capital DR – Application

(1st Application – 2nd Application)

CR – Cash Trust DR – Cash

(Cash Trust – 2nd Application/above application)

CR – Cash Trust 3. DR – Cash CR – Allotment DR – Share Issue Cost CR – Cash

(1st Allotment – 2nd Allotment)

4. DR – Call

(Total Shares X Further Call Price)

CR – Share Capital

5. DR – Cash

(Forfeited Shares X Further Call Price – Above calculation)

CR – Call 6. DR – Share Capital (Forfeited Shares X Original Price) CR – Call (Forfeited Shares X Further Call Price) CR – Forfeited Share Liability DR – Cash (Forfeited Shares X Consideration Price) DR – Forfeited Share Liability CR – Share Capital (Forfeited Shares X Original Price) DR – Forfeited Share Liability

(Cost of Issue)

CR – Cash 7. DR – Forfeited Share Liability (Cash – Call – Cost of Issue) CR – Cash...