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Hi, I received offer letter from jpmc and accepted it. Today, HR told me that my offer was not processed since i had attended an interview and got offer from Mphasis for a JPMC client one year ago( which i declined later) . Could you please let me know, will it affect my current offer from JPMorgan Chase
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Hey!! I just passed the CPA on my first shot. I would recommend watching Farhat Accounting on YouTube. He goes over all this in detail. Becker isn’t always detailed.
Think of it as the great parking lot in the sky - as in if it’s in AOCI it eventually has to leave the parking lot through OCI JE. It is debited when a loss (think of as an expense) and credited as a gain (think of revenue gain)
Yup, park it in AOCI
It just has a natural credit balance?
OCI is on the income statement and is like an “other income (expense)” account line item, but presented after net income instead. AOCI is like retained earnings for OCI, and is a component of equity.
For example, say in Period 1, available for sale debt securities with a cost of $100 have an unrealized fair value gain of $500. In period 1, the unrealized gain would be recorded as a debit of $500 to mark up the investment to its $600 fair value and a credit of $500 to OCI. OCI is then closed to AOCI, just like net income is closed out to retained earnings.
In Period 2, the securities are sold for $800 (realized gain of $700). To record the transaction, you’d make a debit of $800 to cash, credit of $600 to investments (to remove the $100 cost and $500 valuation adjustment from period 1), credit of $200 to realized gain (a component of net income), and a debit to AOCI/credit to retained earnings of $500 to reclassify the Period 1 unrealized gains that have now been realized.
I’ll check it out for OCI
How is crediting a gain leaving OCI then?
It’s not leaving OCI. OCI is a part of comprehensive income, and has a credit balance (like revenue). OCI is basically income/gains unrelated to operations/net income and related to pensions, foreign translations, revaluation (the PUFIER mnemonic).
Just think of it as a secondary bucket of income that isn't really income. Still has a natural credit balance