Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
31 Cards in this Set
- Front
- Back
Declaring Notes Payable Entry
|
Debit Cash
Credit Notes Payable |
|
Interest Accrual Entry
|
Debit Interest Expense
Credit Interest Payable |
|
Note Payable Maturity Entry
|
Debit Notes Payable
Debit Interest Payable Credit Cash |
|
Sales Tax Payable Entry
|
Debit Cash
Credit Sales Credit Sales Tax Payable |
|
Payroll Payable Entry
|
Debit Salaries Expense
Credit FICA Taxes Payable Credit ETC Taxes Payable Credit Salaries/Wages Payable |
|
Payroll Payment Entry
|
Debit Salaries and Wages Payable
Credit Cash |
|
Payroll Taxes Payable Entry
|
Debit Payroll Tax Expense
Credit FICA Taxes Payable Credit Unemployment Taxes Payable |
|
Unearned Revenue Entry
|
Debit Cash
Credit Unearned Revenue |
|
Earned Unearned Revenue Entry
|
Debit Unearned Revenue
Credit Revenue |
|
Types of Bonds
|
Secured- asset pledged as collateral
unsecured- issued against general credit of borrower Convertible- can be converted to common stock Callable- can be retired prior to maturity |
|
Issued Bond Entry
|
Debit Cash
Credit Bonds Payable |
|
Interest Expense Accrual Entry
|
Debit Bond Interest Expense
Credit Bond Interest Payable |
|
Paying Bond Interest Entry
|
Debit Bond Interest Payable
Credit Cash |
|
Bonds sell at a premium when...
|
The contractual rate is less than the market interest rate
|
|
Bonds sell at a discount when
|
the contractual rate is greater than the market interest rate
|
|
Issuing a bond at a discount entry
|
Debit Cash
Debit Discount on bonds payable (difference) Credit Bonds Payable (Face Value) |
|
Issuing a bond at a premium entry
|
Debit Cash
Credit premium on bonds payable (difference) Credit Bonds Payable (face value) |
|
Redeeming a bond at maturity entry
|
Debit Bond Payable
Credit Cash |
|
Debt to total asset ratio (Formula)
|
Total Liabilities/Total Assets
|
|
Characteristics of a corporation
|
Separate Legal existence
Limited liability of stockholders transferrable ownership ability to acquire capital continuous life corporation management government regulations double taxed |
|
Issuance of stock entry
|
Debit Cash
Credit Common Stock (Shares*Par) Credit PIC in excess of par (difference*shares) |
|
Purchase of treasury stock entry
|
Debit Treasury Stock
Credit Cash |
|
Issuance of preferred stock entry
|
Debit Cash
Credit Preferred Stock (Shares*par) Credit PIC in excess- preferred (difference*shares) |
|
Advantage of Preferred Stock
|
Right to corporate income before common shareholders
cumulative dividend liquidation preference |
|
Cash Dividend Declaration Date Entry
|
Debit Dividends
Credit Dividends Payable |
|
Cash Dividend Payment Date Entry
|
Debit Dividends Payable
Credit Cash common stock= declared*shares preferred stock= %*par*shares |
|
Stock Dividend Declaration Date Entry
|
Debit Retained Earnings
Credit Common Stock Dividend Distributable (par*new shares) Credit PIC-Common (difference*new shares) |
|
Stock Dividend Distribution Date Entry
|
Debit Common Stock Dividend Distributable
Credit Common Stock |
|
Stock Splits
|
No journal entry
Stock account still has the same dollar amount Inc. shares, Dec par value |
|
Payout Ratio (Formula)
|
Cash dividends on common/net income
|
|
Return on common stockholders equity ratio (formula)
|
net income - preferred stock dividends/ avg. common stockholders equity
|