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!-,
ADJUSTMENTS
I. DEFERRALS - Cash paid before the revenue or expense
ASSETS
Prepaid expenses
supplics
rent
insurance
advertisement
equipment(depreciation)
Paid:
asset xxx
caslr
Adjustment:
LIABILITIES
Unearned revenue
rent
services
Receipt:
cash xxx
II. ACCRUALS - Cash paid after the revenue or expense
ASSETS
Accrued rcvenuc( rcccivablc)
expense
asset
sales
sen'i ce
interest
xxx
xxx
liability
liability )oil
revenue
LIAI}ILITIES
Accrued expenses(payable)
rent
wages
merchandise
ta(es
interest
utilities
lncurred
expense )ooi
liability
rent
fees
F.arned
-
asscl
Received
xxx
re\renue
l
cash
asset xxx
Paid
liability
cash
xxx
)ofi
DEPRECIAT ION/DEPLSTTON/AMORI', IZATION
-
Definitions
Cost
-- total acquisition costs
Life
-- useful life -
estimated period
of planned use
SV
--
salvage value(residual value)
-
estj:nated value at end of life
![et.hods
Stright-Line (SL)
Cost - JV
tife
Peclining Balancg(DB)
Cost
-
Prior depreciation
xt
Life
, : ! -.';1:
S r:m-of
-
the-Year' s -Digits
(
sr*D)
Life as of Besinning of
<rear
UU9L -
JV A
Usage Recap
Item
Tangible
Natural resource timber
Intangible
Units of Production(UP)
A' cost
-
S]t
-
.
- .=
cost
per unit
Tota1 recoverable units.
B. Recovered units X Cost
per unit
Example Method Contra A/C ExPense
equipment Erny yes depreciation
depletion
amortizatio-n
T,P
copyright SL
yes