Accounting Final

Front 1

Commons Stock at Par

Back 1

Cash----------500,000
Common Stock----------500,000

Front 2

Common Stock above Par

Back 2

Cash----------7,500,000
Common Stock----------500,000
Paid in Capital in Excess of Par-Common-700,000,000

Front 3

No Par, Common Stock

Back 3

Cash----------7,500,000
Common Stock----------7.500,000

Front 4

Preferred Stock

Back 4

Cash----------250,000
Preferred Stock----------200,000
Paid in capital in excess of par-preferred--50,000

Front 5

Declaration Date (definition)

Back 5

announces the intention to pay the dividend

Front 6

date of record (definition)

Back 6

will receive the dividend check

Front 7

Declaration Date (journal entry)

Back 7

Retained Earnings----------20,000
Dividends Payable-----------20,000

Front 8

Date of Record (journal entry)

Back 8

No journal entry required

Front 9

Payment Date (journal entry)

Back 9

Dividends Payable----------20,000
Cash----------20,000

Front 10

Stock Dividend

Back 10

a distribution of a corporations own stock to its stockholders

Front 11

Stock Dividend (journal entry)

Back 11

Retained Earnings---------1,000,000
Common Stock----------25,000
Paid In Capital in excess-----975,000

Front 12

Stock Split (definition)

Back 12

an increase in the number of authorized, issued, and outstanding shares of stock coupled with a proportionate reduction in the par value per share of the stock

Front 13

Effects of stock split

Back 13

-cuts par value per share in half
-doubles the number of shares of stock authorized, issued, and outstanding
-leaves all account balances and total equity unchanged

Front 14

Treasury stock

Back 14

a corporations own stock that it has issued and later reacquired

Front 15

Treasury Stock (journal entry for purchase)

Back 15

Treasury Stock----------125,000
Cash----------125,000

Front 16

Treasury Stock (journal entry for sale at cost)

Back 16

Cash----------12,500
Treasury Stock----------12,500

Front 17

Treasury Stock (journal entry for sale above cost)

Back 17

Cash----------14,000
Treasury stock----------12,500
Paid in capital, treasury stock----------1,500

Front 18

Treasury Stock (journal entry for sale below cost)

Back 18

Cash----------24,000
Paid in capital, treasury stock----------500
Retained Earnings----------4,000
Treasury Stock----------37,500

Front 19

Cash Basis

Back 19

Cash----------10,000
Notes Payable---------10,000

NP---------10,000
Interest Expense---------600
Cash---------10,600

Front 20

Accrual Basis

Back 20

Cash----------10,000
Notes Payable----------10,000

Interest Expense----------200
Interest Payable---------200

Notes Payable----------10,000
Interest Expense----------400
Interest Payable----------200
Cash----------10,600

Front 21

Operating activities

Back 21

day to day activities that create revenues or expenses

Front 22

Investing activities

Back 22

activities that increase or decrease long term assets

Front 23

Financing activities

Back 23

activities related to the issuance of, and repayment of, long term debt, the issuance of stock, and the payment of dividends

Front 24

Current Ratio

Back 24

Current Assets
-------------------------
Current Liabilities

Front 25

Working Capital

Back 25

Currents Assets - Current Liabilities

Front 26

Quick Ratio

Back 26

(Cash+Net Current Receivables)
-------------------------------------------
Current Liabilities

Front 27

Horizontal Analysis (% Change)

Back 27

Current Amount-Prior Amount
----------------------------------------- X 100
Prior Amount

Always go to the right, never down

Front 28

Vertical Analysis

Back 28

Current Assets
-------------------- = %
Total Assets

Then add %'s, subtract from 100 to get property, plant and equipment

Always go down