Assignment
- Accounting equation
- Statement of changes in Retained Earnings
Identify elements; calculate missing amount (e.g., net income, etc.); calculate updated retained earnings amount from a Trial Balance
- Ratios (liquidity, profitability, solvency) o Interpret ratio
o Calculate ratio
o Examples:
• Dividend payout ratio
• Times interest earned
• Asset turnover
• Return on Assets
• Free cash flows
• Working capital
• Profit margin
• Earnings per share
• Debt to asset ratio
- Plant Assets:
o Characteristics
o Examples of plant assets
o Calculate Cost of Plant assets
• Land
• Truck
• Machine
- Depreciation:
o What is it?
o What is depreciable cost?
o Calculate amount of depreciation using straight-line method, double declining method, units of activity
o Change in estimate, calculate revised depreciation
o Disposal of asset, calculate gain or loss on disposal, entry for disposal of plant asset
- Intangible Assets:
o Characteristics
o Identify intangible assets
o Cost of intangible assets
o Research and development costs
- Liabilities
o Current liabilities
• Notes payable (journal entries to record issue and payment of note payable)
• Interest payable (calculate accrued interest, adjusting entry)
• Sales tax
• Payroll related liabilities (salary and wages, payroll (FICA) taxes)
• Unearned revenue
• Bonds payable (issue of bonds at face value, at discount, at premium)
• Calculate amount of annual interest on bonds
• Retirement of bonds
- Equity:
o Corporate form of organization
o Stocks
• Par value
• Authorized share
• Treasury stocks
• Common stock
• Preferred stock
• Outstanding shares o Issue of stocks for cash, non-cash asset (journal entries)
o Dividends
• Dividend in arrears
• Declaration date, date of record, payment date
• Calculate distribution of dividend to preferred and common shareholders o Stock dividend
o Stock split
o Calculate Total paid-in Capital
o Calculate total stockholders equity
- Statement of Cash flows:
o Identify Operating activities, calculate cash flow from operating activities (direct vs. indirect method)
o Identify Investing activities, calculate cash flow from investing activities o Identify Financing activities, calculate cash flow from financing activities.