Title | Midterm 1 cheat sheet |
---|---|
Author | Brittany Levy |
Course | Principles of Accounting I |
Institution | University of Pennsylvania |
Pages | 1 |
File Size | 64.1 KB |
File Type | |
Total Downloads | 69 |
Total Views | 139 |
Download Midterm 1 cheat sheet PDF
Ac c t s .r e c e i v a bl e
Dr .Ac c t sr e c e i v a bl e( +A) Cr .Re v e n ue( +R)
Ac c t s . / Sa l a r i e s Pa y a bl e
Dr .Exp e n s e( +E) Cr .Ac c t / Sa lPa y a bl e( +L)
Pa i di nc a pi t a l
Dr .Ca s h( +A) Cr .PI C( +SE)
Re t a i n e de a r n i n g s
Dr .Ca s h( +A) Cr .RE( +SE)
Di vi de nd s( r e d uc e Dr .RE( SE) r e t a i ne de a r n i ng s ) Cr .Ca s h( A) De fe xp:b e f or e
Dr .As s e t( +A) Cr .Ca s h( A)
De fe xp:a d je nt r y
Dr .Ex pe ns e( +E) Cr .As s e t( A)
De fr e v :be f or e
Dr .Ca s h( +A) Cr .Une a r n e dr e v( +L)
De fr e v :a d je nt r y
Dr .Une a r ne dr e vl i a bi l i t y( L) Cr .Re v( +R,+SE)
Ac c r ue de xp : b e f or e
Dr .Exp( +E) Cr .Ac c t sp a y a bl e( +L)
Ac c r ue de xp :a d j e nt r y
Dr .Ac c t sp a y a b l e( L) Cr .Ca s h( A)
Ac c r ue dr e v : b e f or e
Dr .Ac c t sr e c e i v a b l e( +A) Cr .Re v( +R)
Ac c r ue dr e v :a d j e nt r y
Dr .Ca s h( +A) Cr .Ac c t sr e c e i v a bl e( A)
De p r e c i a t i o n( de f e xp)
Dr .De pExpe ns e( +E,SE) Cr .Ac c u md e p( +XA,A)
St r a i g ht l i ne d e p r e c i a t i on
De p .Ex p.=( or i g .c o s t s a l v . v a l ue )/ u s e f ull i f e
Amo r t i z a t i on( De f Dr . Amo r t i z a t i on( +E) e xp) Cr . ( e x :pa t e n t )( A) I n c omet a x ( a c c r u e de x p)
Dr . Ta xExp e n s e( +E) Cr . Ta x e sPa y a bl e( +L)
I n t e r e s t Expe ns e ( a c c r u e de x p)
Dr . I nt e r e s tExp( +E) Cr . I ntPa y a bl e( +L)
I n t e r e s t Re c e i v a bl e Dr . I nt e r e s tRe c e i v a bl e( +A) Cr . I nt e r e s tRe v( +R,+SE) WI PI n v e nt or y
Dr . WI PI n v e nt or y( +A) Cr . Ma t e r i a l sI n v e n t or y( A)
Fi ni s he dg oo ds i n v e n t or y
Dr . Fi ni s he dGoodsI n v e n t o r y( +A) Cr . WI PI n v e nt or y( A)
Co s tofg oo dss ol d Dr . Cos to fGood sSol d( +E) Cr . Fi ni s he dGo odsI n v( A)
Deriving SCF: 1. Subtract cash to see number we want to end up with 2. Make adjustments from additional info a. Dividend decreases R.E. b. Writing off assets reduces equipment and accumulated depreciation (but subtract from positive value for accum dep) c. Equipment that was acquired and financed will increase asset and increase long-term note payable (or however it was paid for) d. If bonds were paid back, need to write repayment of bonds payable and issuance of bonds payable in CFF 3. Figure out current assets (CFO), long-term assets (CFI), current liabilities (CFO), long-term liabilities (CFF), and equity 4. Find net income (EB=BB+NI-Div) 5. Find change in appreciated depreciation and add it to CFO 6. Find change in current assets and +/- to CFO a. + asset = – cash; – asset = + cash 7. Find change in current liabilities and +/- to CFO a. + liability = + cash; – liability = – cash 8. Add changes in long-term assets and cash flows from investing to CFI 9. Add long-term liabilities, PIC, and dividends to CFF 10. Add CFO, CFI, and CFF and compare to change in cash generated in #1 Long-term assets: Current assets: Equipment Cash Patent Accts receivable (interest rec, notes rec) PPE (plants, property, Inventory (raw materials, WIP, finished goods) equipment) Prepaid expenses (insurance, rent, etc.) Accumulated depreciation Advance payments on future purchases Goodwill Office supplies Office furniture Marketable securities Vehicles Parts and supplies
Long-term liabilities Bonds payable Loans Deferred revenues Deferred income taxes Income tax liability
Current liabilities Accts payable (int pay, income taxes pay) Accrued expenses (accrued salaries) Deferred taxes Adjustments for Net Income to CFO 1. Net income of depreciation/amortization Dr. Depreciation (+E) Cr. Accumulated Depreciation (-A) 2. Change in operating assets Dr. Accounts Receivable (+A) Cr. Revenue (+R)
3.
4.
Change in operating liabilities Dr. Inventory/COGS (+A/+E) Cr. Accounts Payable (+L) Gains/losses from sales of assets Gain on sale: subtract it Loss on sale: add it back
What stage is firm in? Startup: CFF greatest, CFO negative, CFI negative Remember! Growth: CFI negative Read additional info first Mature: CFO greatest Check which year is listed first Decline: CFI least
Check months that have gone by for depr. Exp. Definitions: For permanent accts, don’t count it On account = liability just because cash is involved (ex: Reserve = liability advertising expense is an expense Net book value = cost of asset – accum depreciation Dr . WI PI n v e n t o r y( +A)( NOTDEP De p r e c i a t i o nf o r and temporary account) 2 kinds of equity: common stock and PIC EXPENSE) ma nu f a c t ur i n g When it asks effect on SCF, first o Common stock = # of shares * par value Cr . Ac c u m De p( A) e q ui pme nt consider whether cash was involved o PIC = the rest Required disclosures (often at bottom of SCF or in If it sasys previous year, then it was Accrual/provision = expense footnotes) accounted for last year Expenditures = amount paid Cash paid for income taxes Expenditures vs. expenses Cash paid for interest o Expense = in income statement and was used up in order to generate revenues Non-cash investing and financing o Expenditure = payment (ex: purchase of asset, reduction of liability), but it can be an expense activities o Ex: make an expenditure for equipment when you buy it, but expense for equipment when it’s Tr e a s ur ys t oc k Dr . Tr e a s ur ys t oc k( SE) ( s t o c kt h a t ’ sb ou gh t Cr . Ca s h( A) b a c kb yi s s ui n g c o mpa n y )...