Exam Four - Exam Four begins Tuesday May 8 and will be...

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Unformatted text preview: Exam Four begins Tuesday, May 8) and will be available through Saturday, May 12. Please be sure to plan properly to allow sufficient time to complete the exam during this time period. I will be unavailable from Thursday evening, May 10, through Tuesday evening, May 16. Below is some information regarding Exam Four that may be helpful. • Students may use a calculator and a sheet of notes (one-sided, 8.5" x 11", word processed or written). • Exam Four has two focuses: chapters 10-12 and comprehensive review key concepts of chapters 1-9 • The chapters 10-12 assessment portion contains 40 MC questions and 4 problems. The problems cover the following topics: o 1) Series of questions regarding various bond computations and analysis, o 2) Series of questions regarding computations and analysis of stockholders' equity section of Balance Sheet, o 3) Classification of transactions for Statement of Cash Flows and o 4) Categorization of activities for Statement of Cash Flows. • Comprehensive assessment of chapters 1-9 contains 50 MC questions, most similar to those in chapter quizzes. CHAPTER 10 OBJECTIVES Reporting and Analyzing Liabilities 1.Explain a current liability and identify the major types of current liabilities. 2.Describe the accounting for notes payable 3.Explain the accounting for other current liabilities. 4.Identify the types of bonds. 5.Prepare the entries for the issuance of bonds and interest expense. Cash 100,000 Stockholders’ equity P aid-in Capital C apital stock 9% preferred stock, $100 par value, cumulative, 10,000 authorized, 6,000 issued & outstanding $ 600,000 C ommon stock, no par, $5 stated value, 5 00,000 authorized, 400,000 issued, 390,000 outstanding 2,000,000 T otal capital stock 2,600,000 A dditional paid-in capital I n excess of par value-preferred stock $ 30,000 I n excess of stated value-common stock 1,050,000 T otal additional paid-in capital 1,080,000 T otal paid-in capital 3,680,000 Retained earnings (see note R) 1,160,000 T otal paid-in capital and retained earnings 4,840,000 L ess: Treasury stock-common (10,000 shares) (80,000) T otal stockholders’ equity $4,760,000 N ote R: Retained earnings are restricted for the cost of treasury stock, $80,000. Operating activities : the cash effects of transactions that create revenues and expenses. Income stmnt. Items, part of net income. Investing activities: acquiring and disposing of investments and property, plant, and equipment, lending money and collecting the loans. Financing activities : obtaining cash from issuing debt, repaying the amounts borrowed, obtaining cash from stockholders, repurchasing shares, and paying dividends. Bonds Payable 100,000 (Issue 100 5yr 1000 10% Bonds @100%) Bond Interest Expense 10,000 Bond Interest Payable 10,000 (Annual- Accrued Bond Interest 100,000*10%*12/12) Bond Interest Payable 10,000 Cash 10,000 ( Payment of Bond Interest ) Cash 98,000 Discount on Bonds Payable 2,000 Bonds Payable 100,000 (100,000 [email protected] ) Cash 102,000 Bonds Payable...
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This note was uploaded on 04/12/2011 for the course ACCT 1310 taught by Professor Vickivorrell during the Spring '07 term at Cuyahoga CC.

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Exam Four - Exam Four begins Tuesday May 8 and will be...

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