Accounting ch 8 -9,13

Question 1

Journalize entries for the receivable and allowance for bad debt

Answer 1

Debit: accounts receivable
Credit: sales revenue

Debit:cash
Credit: accounts receivable

Debit: allowance for bad debit
Credit: accounts receivable

Question 2

Net relizable value =

Answer 2

Accounts recivable- allowance for bad debt

Question 3

Bad debts expense =

Answer 3

Net credit sales x %
or
Target balance + unadjusted debit balance

Question 4

Journalize the bad debts expense

Answer 4

debit: bad debts expense
Credit: allowance for bad debts

Question 5

Collected the note at maturity

Answer 5

Debit: Cash ( notes receivable + interest revenue)
Credit: notes receivable
Credit: interest revenue

Question 6

accured interest revenue on note

Answer 6

Debit: Interest receivable:
Credit: interest revenue:

Question 7

collected the note at maturity

Answer 7

debit: cash
credit: notes recevable
credit: interest receivable:
credit: interest revenue

Question 8

straight line depreciation method equation

Answer 8

( cost - salvage value) / useful life

Question 9

double declining balance depreciation equation

Answer 9

(cost - salvage value) x2 / useful life

Question 10

depreciation per unit equation

Answer 10

(cost - salvage value) / units produced

Question 11

insurance of common stock ( and preferred stock) at par value

Answer 11

debit: cash: par value
credit: common stock - $1 par value: par value

Question 12

insurance of common stock ( and preferred stock) and a premium

Answer 12

debit: cash: issurace price
credit: common stock $1 par - common: par value
credit: paid-in capital in excess of par - common: difference

Question 13

treasury stock is accounted for

Answer 13

debit: treasury stock -common: cost
credit: cash: cost

Question 14

earnings per share equation

Answer 14

(net income - preferred dividends) / average number of common shares outstanding

Question 15

price / earnings ratio formula

Answer 15

market price per share of common stock / earnings per share

Question 16

small dividend uses

Answer 16

market value

Question 17

large dividend uses

Answer 17

par value

Question 18

20% > dividend is

Answer 18

small

Question 19

25% < dividend is

Answer 19

large