Accounting for end of period adjustments

Worked examples (9)

• 1Name the concept driving each year-end adjustment
• 2Classify the effect of each adjustment on the financial statements
• 3Identify which concept takes precedence in a conflict
• 4Calculate the profit impact of applying each concept
• 5Calculate the asset value under going concern vs forced sale
• 6Apply prudence to inventory line by line
• 7Identify and justify the concept for each of six adjustments
• 8Prepare year-end journal entries with concept names
• 9Explain how applying prudence affects user decisions

Worked examples (9)

• 1State the financial-statement location of each entry
• 2Recommend the depreciation method for each scenario
• 3Identify the entries needed for disposal
• 4Calculate the year-end depreciation charge
• 5Calculate reducing balance depreciation over 4 years
• 6Calculate the gain or loss on disposal
• 7Prepare the Disposal Account
• 8Prepare Asset Account and Provision for Depreciation Account
• 9Prepare the SOFP extract for non-current assets

Worked examples (9)

• 1Classify each year-end situation
• 2State which SOFP line each adjustment appears on
• 3Identify the direction of profit impact
• 4Calculate the rent expense for the year
• 5Calculate insurance expense with a single prepayment
• 6Calculate subscription income with advance receipt
• 7Prepare all year-end adjustment journals
• 8Calculate the corrected profit with multiple adjustments
• 9Prepare the SOFP current sections with all adjustments

Worked examples (9)

• 1Classify each as write-off or provision
• 2Identify income statement and SOFP effects of each adjustment
• 3Identify the concept driving each treatment
• 4Calculate the required Provision for Doubtful Debts
• 5Calculate the adjustment to the existing provision
• 6Calculate the total Irrecoverable Debts expense for the year
• 7Prepare all year-end journal entries for irrecoverable debts
• 8Prepare the Provision for Doubtful Debts account
• 9Prepare the SOFP current-assets extract for receivables