Accounting+30S

June 1 [|Income Tax Unit] [|Income tax Outcomes]

[|Payroll Deductions Schedule] [|Federal Payroll Deductions Sched]
 * May 17**

April 16 Go over GST review questions. Complete exercises 1-4 pg 190-193


 * April 15**
 * Ch 5 test-Tuesday April 20**


 * Mar 9**
 * 30S**
 * Hand in q 1-4 income statements**
 * 1.Account classification w/s**
 * 2.Journal entries**
 * 3.question 1 pg 161**


 * 40S**
 * Adjusting journal entry assignment**
 * get familiar with simply accounting.**


 * March 3**
 * Income Statement notes, revenue recognition, drawings**
 * Exercise 1 A & B pg 124**


 * Feb 25**
 * 30s & 40s**
 * McGinty Testing**


 * Feb 24**
 * 30's**
 * Read pages 79-91**
 * Review Questions 1-9 pg 90**
 * Exercises 1-4 pg 91-93**


 * 40's**
 * Amortization **
 * Contra Account -an account that decreases the value of an asset**


 * Accumulated Amortization -a contra account where the amortization is accumulated during the useful life of an asset. This account appears on the balance sheet in the Fixed Asset section, directly beneath the related fixed asset.**


 * Amortization expense account - an account where the allocation of the cost of the asset is recorded for each fiscal period. Amortization is an expense of operating a business.**


 * The difference between the original cost and the accumulated amortization balance is referred to as the book value .**


 * __Methods of Calculating Amortization__ **


 * __Straight-Line Method__ -Amortization expense is based on the estimated life of the asset. For example if a truck has an estimated life of five years and a salvage value of $3000 and cost $45000 to purchase, the amortization expense for each year is $8400 (45000-3000/5yr). At the end of three years the book value of the truck is**
 * 45000-8400(yr 1)-8400(yr 2)-8400(yr 3)=19800**


 * __original cost-salvage value__**
 * estimated life of the asset**


 * Dec 31 Amortization Expense 8400**
 * Accumulated Amortization-Vehicle 8400**
 * Year end adjustment**


 * __ Declining Balance Method __**
 * This method allocates a greater amount of amortization to the early years of an assets life and is used for income tax purposes. The rate at which an asset can be depreciated are controlled by the Income Tax Act. Assets are grouped into classes with a maximum percentage allocated to each group.**


 * book value*appropriate percentage**


 * The amortization expense amount will differ each year with the largest amount allowed in the first year. //The amortization is calculated on the declining book value of the asset// .**


 * The 50% rule is in effect for the declining balance method of amortization. In the year the asset was purchased, only half (50%) of the rate assigned by the government can be used. For example, vehicles amortize at a rate of 30%. If a vehicle is purchased in 2010, the adjusting journal entry for amortization will be calculated on half of the 30%.**


 * yr 1 30000 (purchase price) * 15%=4500**
 * yr 2 25500 * 30%=8500**

price || Accum Amort || Current Amort || Total Amort || book Value ||  || 30000 || 4500 || 7650 || 12150 || 17850 ||  || 30000 || 12150 || 5355 || 17505 || 12495 ||   || yr 1 Dec 31 Amortization Expense 4500 Accumulated Amortization-Vehicle 4500 Year end adjustment
 * purchase
 * yr 1 30000 || 0 || 4500 || 4500 || 25500 ||  ||
 * yr 2
 * yr 3

yr 2 Dec 31 Amortization Expense 7650 Accumulated Amortization-Vehicle 7650 Year end adjustment

yr 3 Dec 31 Amortization Expense 5355 Accumulated Amortization-Vehicle 5355 year end adjustment

Read pages 336-348 Exercises 1-7 pg 348

Feb 22 30's-account analysis
 * 1) 7 pg 72, Set up using t accounts, make sure to enter beginning balances

40's-adjusting journal entries read pg 304-307 in textbook, review questions 1-17 pg 307-on google docs exercises 1-6 pg 308 - on google docs

Feb 18 T accounts, source documents and the objectivity principle

Feb 17 30s & 40s Go over Balance Sheet Formatting 30-Analyzing Changes in the accounting equation 30-Hand out

40s-finish up review booklet and hand in Account classification and Normal balances w/s-complete and go over

Feb 12 30s&40S Review questions pg 24, 1-17 google docs or hand written.Due today. Finish 1.4 exercise from yesterday.

30S & 40S Learning activity 1.4 using google docs-handout
 * Feb 11**

30S & 40S Go over exercise questions 1-6 pg 17 Classify balance sheet items according to liquidity Preparing a balance sheet Exercise 1-3 pg 24
 * Feb 10**

30S & 40S Review accounting equation Balance sheet items Exercise questions 1-6 pg 17 (to be done on google docs)-share with me at ffbomber22@gmail.com
 * Feb 9**