Ch 14 Class examples - stock issue, employee stock options, stock warrants
1. Issuing stock for cash
A company issued 2,500 shares of stock with a par value of $8 for a cash price of $14
each. Required: Show journal entry for this transaction
Ch 10 Lease example
Criteria for a capital lease (must meet 1)
1. Transfer of ownership to lessee at end of lease?
2. Transfer at bargain purchase option?
3. Lease extends for 75% of the assets life?
4. PV of lease payments is 90% of fair market value?
Ch 10 Notes Payable examples
1. Note payable example
Equipment purchased with a note Jan 1 yr 1
Data for a note payable:
Semi-annual interest payments
3 yr term
Required: Find the present value and then provide the jou
Ch 11 In class examples
1. Off balance sheet financing example
Using accounts receivable to achieve off-balance-sheet financing, an Appliance Store has
$490,500 of accounts receivable on its books on January 2, 2009. These receivables are
due on December
Ch 14 Class examples - Dividends and treasury stock examples
1. Dividend problem
Prepare journal entries for the following transactions of Divi Corp. The company has 30,000
shares of $8 par value stock outstanding on Jan 1, 2008. The balance in the additi
Ch 7 study guide Revenue recognition methods
REVENUE RECOGNITION AT POINT OF SALE/DELIVERY
Normal journal entry at time of sale:
A/R or cash
Accounting for uncollectibles
2 methods: Direct write-off, allowance method