Term
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Definition
| expects to pay debt from existing current assets and they will pay within a year or the operating cycle |
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Term
| Journalizing a Notes Payable: Issuance |
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Definition
Cash 100,000
Notes payable 100,000 |
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Term
| Adjusting Entry for a note payable |
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Definition
Interest Expense 4,000
Interest Payable 4,000 |
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Term
| Maturity Date for a Note Payable |
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Definition
Note Payable 100,000
Interest Payable 4,000
Cash 104,000 |
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Term
| Journalizing Sales Taxes Payable |
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Definition
Cash 10,600
Sales 10,000
Sales Taxes Payable 600 |
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Term
| Journalizing Payroll and payroll taxes payable |
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Definition
Salaries and wage expense 100,000
Taxes Payable 20,000
Salaries and wages payable 80,000
Salaries and Wages Payable 80,000
Cash 80,000 |
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Term
|
Definition
Cash 500
Unearned Revenue 500
Unearned Revenue 500
Revenue 500 |
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Term
| Current maturies of long term debt (long term debt due within 1 year) |
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Definition
| record the portion of the debt due as a current liability |
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Term
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Definition
| a company's ability to pay maturing obligations and meet unexpected needs for cash |
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Term
|
Definition
| current assets - current liabilities |
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Term
|
Definition
| current assets / current liabilities |
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Term
|
Definition
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Term
|
Definition
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Term
|
Definition
| aka debentured bonds, issued against general credit |
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Term
|
Definition
| are due for payment at a single future date |
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Term
|
Definition
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Term
|
Definition
| issued in the name of the owner |
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Term
|
Definition
bonds issued not in the name of the owner
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Term
|
Definition
| bonds turned into common stock at the holder's option |
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Term
|
Definition
| bonds retired at a sooner date for a stated amount |
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Term
| journalizing bonds issued at face value |
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Definition
1/1 Cash 100,000
Bond payable 100,000
7/1 Bond interest expense 5,000
Cash 5,000 |
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Term
| adjusting entry for a bond |
|
Definition
Bond interest expense 5,000
interest payable 5,000 |
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Term
| 8% market interest rate, bond sells at a |
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Definition
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Term
| 10% market interest rate, bond sells at... |
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Definition
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Term
| 12% market value, bond sells at... |
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Definition
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|
Term
bond contractual interest rate
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Definition
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Term
| journal entry for issuing a bond at a discount |
|
Definition
cash 92639
discount on bonds payable 7361
bonds payable 100,000 |
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Term
| journal entry for a premium |
|
Definition
cash
bond payable
premium on bond payable |
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Term
| balance sheet for a discounted bond |
|
Definition
Long Term Liablities
Bond Payable
Less: Discount |
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|
Term
| balance sheet for a premium bond |
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Definition
Long Term Liablities
Bond Payable
Plus: Premium on bond payable
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Term
| total cost of borrowing a bond with a discount |
|
Definition
total interest payments
add: bond discount |
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Term
| total cost of borrowing a bond issued @ a premium |
|
Definition
total interest payments
less: bond premium |
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Term
redeeming bonds at maturity
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|
Definition
bonds payable
interest payable
cash |
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Term
| redeeming bonds before maturiy |
|
Definition
bonds payable
premium on bonds payable
loss on bond redemption
cash |
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Term
|
Definition
| face value +/- premium or discount |
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Term
|
Definition
| cash paid - carrying value |
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Term
| converting bonds to common stock |
|
Definition
ignore market value
-Bonds Payable
Common Stock
Paid in capital in excess of par value |
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Term
|
Definition
| income before taxes & interest expense/ interest expense |
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|
Term
| characterristics of a corporation |
|
Definition
1. separate legal entity
2. limited liability of stockholders
3. transferable ownership rights
4. ability to aquire capital
5. continuous life
6. corporation management
7, government regulation
8. additional taxes
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Term
|
Definition
| total amount of cash/assets paid to corporation by stockholders in exchange for stock |
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Term
|
Definition
| net income a corporation retains for future use. pay dividends-continud existend growth |
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Term
|
Definition
income summary
retained earnings |
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Term
issuance of common stock at par
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Definition
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|
Term
| issue of 1000 common stock at par of $1 sold at $5 |
|
Definition
cash 5000
common stock 1000
paid in capital in excess of par 4000 |
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|
Term
issuance of common stock with no par
stated value 5$, sold 5000 $8 |
|
Definition
cash 40,000
common stock 25,000
paid in capital in excess of stated value 15,000 |
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Term
| issuing common stock for services/noncash assets |
|
Definition
billed- 5,000 agree for- 4000 shares PV-1
Organization Expense 5000
Common Stock 4,000
Paid in Capital in excess of PV 1,000 |
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Term
| issuance common stock for land |
|
Definition
land- 90,000 pv-5 mv-8 gives 10,000 shares for land
land 80,000
common stock 50,000
paid in cap in excess of pv 30,000 |
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Term
|
Definition
| stock reacquired by the corporation |
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Term
| journal entry of treasury stock |
|
Definition
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Term
|
Definition
| shares issued- treasury stock |
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|
Term
treasury sales above cost
-aquired @8
-sold @10 1000 shares |
|
Definition
Cash 10000
treasury stock 8000
paid in cap from treasury stock 2000 |
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|
Term
sales below cost
aquired @8 and sold @7 800 shares |
|
Definition
cash 5,600
paid in cap from treasury stock 800
tresury stock 6400 |
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Term
| so to get retained earnings and paid in cap from treasury stock |
|
Definition
sell remaining shares
cash (shares x price)
paid in capital from treasury stock
retained earnings
treasury stock (shares x acquired) |
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Term
|
Definition
issues 10,000 PV-10 sold @12
Cash 120,000
preferred stock 100,000
paid in cap in excess of pv- pref stock 20,000 |
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Term
|
Definition
1. preferrd stockholder recevided dividends before common stockholders
2. cumulative: preferred stockholders must be paid both current year dividends and any unpaid prior year dividends before common stockholders get any |
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Term
| stock dividend journal entry |
|
Definition
RE= 300,000, 10% stock div on its 50,000 shares PV- 10 MV-15 issued- 5000
stock dividends 75,000
common stock dividend distrubut 50,000
paid in cap in excess of pv 25,000
issuing those shares:
common stock dividends distributable 50,000
common stock |
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Term
cash dividend journal entry
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|
Definition
declaration date
cash dividends 50000
dividends payable 50,000
payment date
dividends payable 50000
cash 50,000 |
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