ACCT3020 midtern JE

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  1. Recognize sale and accrual of assurance warranty liab

    • Dr Cash; Warranty expense
    • Cr Warranty liab; Sales revenue

  2. Payment of service/assurance warranties incurred AND warranty service revenue
    Dr Warranty liab

    Cr Cash, Inventory, Accrued payroll

    Dr Unearned wanrranty revenue

    Cr Warranty revenue
  3. Recognize sale and accrual of service warranty liab

    • Dr Cash(a+b); Warranty expense
    • Cr Warranty liab; Unearned warranty revenue(a); Sales revenue(b)

  4. Purchase of premiums

    • Dr Premium inventory(at cost)
    • Cr Cash

  5. Record sales, premium expense and premium liab

    • Dr Cash; Premium expense
    • Cr Premium liab; Sales revenue
    • Premium expense/ Premium liab = (redeemed + expected to be redeemed) * (net cost of premium less cash receipt)

  6. Record redemption, related cash receipt and delivery of premium

    • Dr Cash(a); Premium liab(b-a)
    • Cr Premium ivt(b; at cost)
    • Cash = #redemption * cash receipt net distribution cost

  7. Environmental provision – record liab

    • Dr Asset
    • Cr Environmental liab

  8. Environmental provision –allocation of asset retirement cost to expense
    Dr Depreciation expense

    Cr AD
  9. Environmental provision –accrual of interest expense
    Dr interest expense*

    • Cr Environmental
    • liab
    • *=carring value*interest rate  
  10. Environmental provision –settlement of liab
    Dr Environmental liab

    Cr cash; gain on settlement of environmental liab
  11. Onerous contract provision
    Dr Loss on lease contract

    Cr Lease contract liab
  12. Issuance of bonds
    Dr Cash

    Cr Bonds payable
  13. Record accrual of interest, issued at premium

    • Dr Interest expense; Bond payable
    • Cr Cash

  14. Record payment of coupon

    • Dr Bond interest payable
    • Cr Cash

  15. Extinguishing note

    • Dr Note payable; (loss on extinguishment of note); (loss on disposal of assets)
    • Cr FV(assets)
    • Gain/loss on extinguishment of note=reacquisition price – FV(assets)
    • Gain/loss on disposal of assets= BV –FV

  16. Sales of treasury share above cost

    • Dr Cash
    • Cr Share premium – treasury; treasury share(at cost)

  17. Cash Dividend declaration

    • Dr RE
    • Cr Dividend payable

  18. Share dividend declaration

    • Dr RE
    • Cr Ordinary share dividend distributable

  19. Share dividend distribution
    Dr Ordinary share dividend distributable

    Cr Share cap - ordinary
  20. warranty liab
    beg. + current year warranty expense(est) - actual expenditure
  21. premium liab
    beg + current year premium expense (est) + handling charges -  actual redemption expenditure
  22. premium ivt
    beg + purchase - redeemed
  23. current year premium expense
    redeemed + expected to be redeemed in the future - redemption related to past years
Card Set
ACCT3020 midtern JE
ACCT3020 midtern JE
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