# Shared Flashcard Set

## Details

Exam #3
Journal Entries
25
Accounting
11/30/2011

Term
 Issuance of Bonds
Definition
 Dr. CashCr. Bands Payable
Term
 Record issuance of Bond at a Discount
Definition
 Dr. CashDr. Discount on Bond PayableCr. Bond Payable
Term
 Record issuance of Bond at a Premium
Definition
 Dr. CashCr. Premium on Bond PayableCr. Bonds Payable
Term
 Record accrued intrest expense for a Par Bond
Definition
 Dr. Interest ExpenseCr. Intrest Payable
Term
 Record accrued interest expense for a Premium
Definition
 Dr. Interest Expense Cr.Premium on Bond Payable Cr. Interest Payable
Term
 Record accrued interest expense for a Discount
Definition
 Dr. Interest ExpenseCr. Discount on BondCr. Interest Payable
Term
 Record payment of interest for all Bonds
Definition
 Dr. Bonds PayableDr. Interest PayableCr. Cash
Term
 Issuing stock above Par
Definition
 Dr. CashCr. Additional Paid-In Capital Cr. Common Stock
Term
 Record payment of Note Payable and Interest Expense
Definition
 Dr. Interest ExpenseDr. Note PayableCr. Cash
Term
 Unearned Revenue (Unearned and Earned)
Definition
 Dr. CashCr. Unearned RevenueDr. Unearned RevenueCr. Service Revenue
Term
 Record issuance of Treasury Stock
Definition
 Dr. Treasury Stock (conta equity)Cr. Cash
Term
 Preferred Stock Issued
Definition
 Dr. CashCr. Preferred StockCr. Paid-In Capital in excess of Par Value
Term
 Issue Dividends (Declaration & Payment)
Definition
 Dr. DividendsCr. Dividends PayableDr. Dividends PayableCr. Cash
Term
 Calculate the present value fo a single sum
Definition
 P x PVof1
Term
 Calculate the present value of an Annuity
Definition
 P x PVofA
Term
 Calculate the future value of an Annuity
Definition
 P x FVofA
Term
 Calculate the future value of a single sum
Definition
 P x PVof1
Term
 Calculate the present value of a Bond
Definition
 1. P x PVof12. Interest rate (contract) x PVofA
Term
 Calculation of monthly interest rate
Definition
 P x %(contract) x n/12
Term
 Calculate for monthly payment of a note payable and interest expense
Definition
 1. P x % x n/12 = interest expense2. Monthly payment - interest expense = note payable3. P - note payable = Ending Note Payable
Term
 Record payment of a note payable and interest expense
Definition
 Dr. Interest Expense Dr. Note Payable Cr. Cash
Term
 if the outcome has a possible liability
Definition
 disclose the contingency in the footnotes
Term
 if the outcome has a probable liability
Definition
 accrue for the loss
Term
 Effects of stock split
Definition
 1. Reduction int he par or stated value2. Increase the number of sharesNO EFFECT: Retained Earnings, Stockholders Equity, Total Paid-In Capital
Term
 Shares Outstanding
Definition
 Shares Issued - Treasury Shares
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