spring 2012401ch4handout

spring 2012401ch4handout - Chapter 4 Notes Single Step...

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Chapter 4 Notes Single Step Income Statement – see page164 Know the Multi- Step Income Statement – see page 166 Other revenues and gains : Gain on ______ Investment Income Interest Income Dividend Income Rental Income Other expenses and losses : Loss on __________ Investment Losses Interest Expense Condensed Income Statements – See page 167 Irregular Items Changes in Accounting Principle – use a retrospective approach Ex: Change from FIFO to Average Cost or different construction Methods Changes in Estimates – not retrospective, not an error, not extraordinary Corrections of errors If they involve revenues or expenses from a prior period, then you have a prior period adjustment. That requires an adjustment to retained earnings, net of tax. For a revenue: A/R Income Tax Payable
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Retained Earnings For an expense: Retained Earnings Income Tax Receivable A/P Show net-of-tax I D E Discontinued Operations – show net-of-tax Occurs when: A company eliminates the results of operations and
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This note was uploaded on 03/20/2012 for the course ACCT 401 taught by Professor Winchel during the Spring '10 term at South Carolina.

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spring 2012401ch4handout - Chapter 4 Notes Single Step...

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