ACC 221 1st Edition Lecture 28Outline of Previous Lecture- Section 27: Intro to Bonds Long term liabilitieso What are bonds?o Compounding interesto Table Factorso Pay Demando Journal EntriesOutline of Current Lecture - Section 28: Chapter 7 & 8 Review Chapter 7o Value & Depreciation Chapter 8o Removing Assetso Goodwillo Payrollo Sales TaxCurrent Lecture- Section 28: Chapter 7 & 8 Review Chapter 7o Value & Depreciation Book value = original value – accumulated depreciation- When book value = residual, stop depreciation Straight line depreciation- Cost – residual value / estimated life- Dr. depreciation expense, Cr. Accumulated depreciation Activity based depreciation- Reach 100,000 mi; cost – residual / life (mi) Double depreciation method- 1 / life of loan x 2 Chapter 8o Removing assetsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute. No gain / loss- Dr. cash, dr. accumulated depreciation, cr. Equipment Gain on sale- Dr. Cash, dr. accumulated depreciation, cr. Equipment, cr. Gain on disposable fixed assets Loss on sale- Dr. cash, dr. accumulated depreciation, dr. loss on disposable fixed assets, cr. Equipmento Goodwill Total value paid – physical assets- Dr. cash, accounts receivable, inventory, property and equipment, goodwill- Cr. Accounts payable, notes payable, casho Payroll FICA tax: social security & Medicare- Dr. salaries payable, Cr. FICA tax payable- Payoff: dr. FICA tax payable, Cr. Cash Federal/ state income tax- Dr. salaries payable, Cr. federal/ state income tax payable Pay employee- Dr. salaries payable, cr. Cash Unemployment tax- Employer pays a percentage based on how often they lay off employeeso Sales tax $100, 7%, pay total: $107- Dr. cash $107, Cr. Sales revenue $100, Cr sales tax payable $7 Paid $107, 7% tax, what is original price?- 107/1.07 = $100 original
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