Essay About Xrsales Discounts And Present Value.The Interest

Accounting Review for General Accounting and Consolidation Exam
Remarks for the Accounting General Exam:CHAPTER 4:Unearned Revenue is a liabilityDepreciation è una Deferred ExpenseAccumulated Depreciation è un XACHAPTER 6:Allowance for Doubtful Accounts is a XASales returns and allowances is a XRSales discounts is a XRCHAPTER 9: Notes PayableThe notes payable at a future date, are registered at their present value.The interest is calculated on the book value at the date on which the financial year endsDebit Interest Expense (+E, – SE)Credit Notes Payable (+L)Estimate liabilities:Probable: Subject to estimate: Recorded as a liability + disclosure noteNot subject to estimate: Disclosed in NoteReasonably possible:Subject to estimate: Disclosed in NoteNot subject to estimate: disclosed in noteRemote: disclosure is not requiredCHAPTER 10: BondsBonds are recorded at their Present Value, see general rule for liabilities in the chapter aboveDISCOUNT BONDSJournal entry at issue dateCASH(+A)                                 XXXBOND DISCOUNT (+XL, -L)         XBONDS PAYABLE (+L)                         XXXXCash + Bond Discount = Bond PayablePayment of Interest / Amortization of discountSTRAIGHT LINEINTEREST EXP. (+E)                                         XXX                        BOND DISCOUNT (-XL, +L)                         X                        CASH (-A)                                                 XXBond Discount = Total Bond Discount / Y x nY= yearsn= nº of payments per yearCash = (N x c)/nc= stated interest rateN= PrincipalCash + Bond Discount= Interest ExpenseEFFECTIVE INTEREST AMORTIZATIONINTEREST EXPENSE (+E)                                 XXX                        BOND DISCOUNT (-XL, +L)                                X                        CASH (-A)                                                        XXI.E.= U.B. x i/nU.B. = Unpaid Balance = Book Value @ Present Value – Paid Balancei= market rateCash = (N x c)/n