Accounting 200 Exam 3 final Study Guide Appendix G Calculate present value of single sum Calculate present value of an annuity Calculate future value of a single sum Calculate future value of an annuity Calculate the present value of a bond with semiannual interest payments Chapter 10 Notes Payable Appendix 10C Calculation of monthly interest expense for a loan with either monthly or annual payments Journal entry for monthly or annual payment of interest and principal Ending Note mortgage payable balance after payment of interest and principal Current liabilities ex Sales Tax Unearned Revenue and Current Portion of Long term Debt associated journal entries Short term Notes Payable Calculation of interest for full or partial year Accrued interest expense journal entry at year end Journal entry for paying N P interest Bonds Types of Bonds Issuance of Bonds at face value premium and discounts journal entries impact on borrowing costs Stated contract coupon rates vs market discount effective rates Journal entry to record accrued annual interest expense for premium discount bonds App 10B Carrying Value or Net realizable value Journal entry to record the payment of annual interest for all bond issuances Contingent liabilities Chapter 11 Characteristics of a Corporation Stockholders equity components Stock Issue Considerations Par vs No Par Value journal entry to issue stock Preferred stock journal entries characteristics Treasury Stock definition journal entry reasons to issue Shares Authorized Issued and Outstanding Dividends cash stock and their effects on financial statements Stock Splits Retained Earnings Deficits Balance sheet presentation Chapter 12 Purpose usefulness of Statement of Cash Flows Classification and summary of Cash Flows by activity Investing Operating and Financing Activities 1 Calculating cash collected paid based on accounts receivable or accounts payable activity Cumulative Material Chapters 1 4 Forms of business organizations characteristics Financial statements components interrelationships Income Statement Statement of Retained Earnings Classified Balance Sheet all subsections Accounting Equation A L SE Expanded Accounting Equation calculating for unknowns Debit Credit rules and normal balances Journal entries adjusting journal entries prepaid expense unearned revenues accrued expenses accrued revenues and impacts on accounts accounting equation and financials impact of failing to record Use of adjusted trial balance Chapter 7 No material from Chapter 7 will be covered on the final exam Chapter 6 Cost Flow Assumptions FIFO LIFO Weighted Average methods Use each method to calculate Ending Inventory and or Cost of Goods Sold Chapter 5 Multiple step income statement all subtotals Using perpetual system of tracking inventory Journal entries to record steps in the purchasing process purchase return payment within discount period Journal entries to record sale of merchandise sale return receipt of payment within discount period Chapter 8 Allowance for doubtful accounts Estimating uncollectible amounts using percent of receivables and recording bad debt expenses Write off of uncollectible account Net or cash realizable value of A R Short Term Notes Receivable Calculation of interest for full or partial year Accrued interest revenue journal entry at year end Journal entry for collecting N R interest Chapter 9 Capitalized cost of long term assets expenses vs capitalized costs Straight line depreciation calculation full year partial year Book value calculation Disposals retirements and sales gains and losses 2 Appendix G 1 Sammy made a deposit of 10 000 at 9 annual interest After 12 years she decided to withdraw the accumulated interest and principal How much did she have when she made the withdrawal 2 At the end of each year John puts 12 000 in an account that pays interest of 5 compounded annually what will be the balance of the account at the end of 15 years 3 Jake needs to know how much to invest today to get 5 000 three years from now to buy a scooter He uses a discount factor of 6 How much should he invest 4 Scott has an investment that pays 20 000 every year for 10 years He wants to liquidate the investment today to start a business The current market interest rate is 8 How much could he sell the investment for 5 What is the sale or issuance price of the following 250 000 bonds 10 year 10 bonds interest paid semi annually Market interest rate for such securities is 8 10 year 10 bonds interest paid semi annually Market interest rate for such securities is 12 3 Chapter 10 Smith Co loans Johnson Co 500 000 on January 1 2014 Terms 6 10 month note all principal and interest is to be paid Oct 31 2014 Johnson Co s JE to Issue the Note Payable Adjusting JE on Johnson Co s fiscal year end of June 30 2014 JE to pay the note with the interest that is due on October 31 2014 On May 31st a store had cash sales of 30 000 and collected related sales taxes of 1 500 What is the journal entry that the store records On Nov 10th a team sold 10 000 season tickets for 600 each for its 10 game home schedule The first game is played on Nov 15th What are the Nov 10th and Nov 15th journal entries Nov 1 0 Nov 15 Bonds Types of Bonds 1 2 3 4 4 Contract Stated or Coupon Rate 10 10 10 Market Discount or Effective Rate 12 8 10 Bond Issued at face value premium or discount JE to issue a 250 000 bond that sells at 103 i e at 103 JE to issue a 250 000 bond sells at 97 i e at 97 Effective Interest Method to amortize premium discount GGG Company sold 2 000 000 of 8 10 year bonds on January 1 2013 for 1 854 800 The current effective interest rate is 9 5 and interest will be paid annually each January 1st The effective interest method of amortization is used What is the journal entry to record the issuance sale of the bond What is the journal entry to accrue interest expense on December 31 2013 What is the journal entry to record the payment of interest on Jan 1 2014 What is the Carrying Value after 1 payment 5 Long Term Notes Payable BBB Enterprises borrows 250 000 from a bank on January 1 2013 and will repay the loan by making monthly payments of 2 100 The annual interest rate charged for this 6year loan is 7 What is the JE for the first monthly payment Feb 1 2013 What is the balance in the mortgage payable after the 2nd payment on March 1 2013 Contingent liabilities Define Events with that may represent ex lawsuit Record if Outcome is AND the amount is Disclose in notes if Outcome is OR the