Inventory Recording Systems Periodic inventory system Perpetual inventory system © AccountingInfo.com
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Inventory Turnover Ratios 1. Inventory turnover ratio = Cost of goods sold / Average inventory 2. Days in inventory = 365 days / Inventory turnover
STOCKHOLDERS’ EQUITY Accounting for Equity Transactions 1. Issuance of common stock: Par value portion is recorded in common stock. Price over the par value is
Gain or Loss on Disposal 1. If disposal price is higher than the carrying amount of the asset, gain on disposal is recognized. 2. If
Depreciation is the process of allocating the cost of property, plant and equipment over the life of the asset. Depreciation method should be rational and
Goods in Transit Entity A sold $25,000 merchandise to Entity B with the terms of FOB destination on December 22, 20×1. Merchandise arrived at destination