accting 301 study guide 3 min shen

accting 301 study guide 3 min shen - ACCT 301 Fall 2010...

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1 ACCT 301 – Fall 2010 Study Guide for Ch 8, 9, and 12 1. Present and future value concepts: h Single amount (Table 1 & 3) h Annuities (Table 2 & 4) 2. Current liabilities h A/P h Short-term notes payable h Sales tax payable h Accrued liabilities h Unearned revenues h Current portion of L-T debt 3. Contingencies 1) Definition 2) Warranty 4. Bonds 1) Components of bonds: face value, stated rate of interest, interest periods, maturity date, and market rate of interest 2) Calculation of Bond price: PV of principal + PV of all interest payments 3) Issuance and interest payment h Issue at par Issuing bonds Cash (proceeds) XX B/P (face value) XX Paying Interest Interest expense (face value × face interest rate) XX Cash (face value × face interest rate) XX h Issue at discount Issuing bonds Cash (proceeds) XX Bond discount (face value – proceeds) XX B/P (face value) XX Paying Interest Interest expense (book value × market interest rate) XX Bond discount XX Cash (face value × face interest rate) XX
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This note was uploaded on 02/16/2011 for the course ACCOUNTING 301 taught by Professor Chen during the Spring '10 term at George Mason.

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accting 301 study guide 3 min shen - ACCT 301 Fall 2010...

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