Chapter 5 Journal Entries Flashcards
Lessee Rent Expense in Operating Lease
DR: Rent Expense
CR: Cash/Rent Payable
Lessor Rental Income From Operating Lease
DR: Cash/Rent Receivable
CR: Rental Income
Lessor Refundable Deposit
DR: Cash
CR: Refundable Deposit
Lessee Capital Lease
DR: Fixed Asset - Leased Property
CR: Liability - Obligation Under Capital Lease
Lessee: IFRS Capital Lease with Direct Costs
DR: Leased Equipment Under Capital Lease
CR: Obligation Under Capital Lease
CR: Cash [direct cost]
Lessee Payment on Capital Lease
DR: Obligation Under Capital Lease
DR: Interest Payable
CR: Cash
Lessee Year End Accrual of Interest and Record Depreciation
DR: Interest Expense
CR: Interest Payable
DR: Depreciation Expense
CR: Accumulated Depreciation - Leased Asset
Lessor Record Sales-Type Lease
DR: Lease Payments Receivable CR: Unearned Interest Income CR: Sales Revenue DR: COGS CR: Inventory
Lessor Record Direct Financing Lease
DR: Lease Payments Receivable
CR: Unearned Interest
CR: Asset
Borrower: Issuance of Bonds
DR: Cash
DR: Discount on Bond Payable (if any)
CR: Bond Payable
CR: Premium on Bond Payable (if any)
Investor: Issuance of Bonds
DR: Investment in Bonds
CR: Cash
Never any discount or premium
Borrower: Issuance of Bond with Bond Issue Cost
DR: Cash
DR: Discount
DR: Bond Issue Cost (asset)
CR: Bonds Payable
Borrower: Bond Payment
DR: Bond Interest Expense
CR: Discount on Bond Payable
CR: Cash
Investor: Receipt of Bond Payment
DR: Cash
DR: Investment in Bonds
CR: Bonds Interest Revenue
Borrower: Issuance with Accrued Interest
DR: Cash
DR: Discount on Bonds Payable
CR: Bonds Payable
CR: Bond Interest Expense/Payable
Borrower: Year End Bond Interest Accrual and Discount Amortization
DR: Interest Expense
CR: Interest Payable
DR: Interest Expense
CR: Discount on Bonds Payable
Record Bond Sinking Fund
DR: Bond Sinking Fund (asset)
CR: Cash
Record Interest Payment on Bond Sinking Fund
DR: Bond Sinking Fund
CR: Interest Revenue
Borrower: Convert Convertible Bonds with Book Value Method
DR: Bond Payable [eliminate]
DR: Premium on Bond Payable [eliminate]
CR: Common Stock [par]
CR: APIC
Borrower: Convert Convertible Bonds with Market Value Method
DR: Bond Payable [eliminate] DR: Premium on Bond Payable [eliminate] DR: Loss on Conversion [plug] CR: Common Stock [par} CR: APIC [FV-Par]
Bonds Sold with Detachable Stock Purchase Warrants
DR: Cash
CR: Bonds Payable
CR: APIC - Warrants [FV]
Exercise of Detachable Warrants
DR: Cash DR: APIC - Warrants [reverse] CR: Common Stock [par] CR: APIC **no bond impact**
Expiration of Unexercised Detachable Warrants
DR: APIC - warrants
CR: APIC
Bond Extinguishment at Maturity (Debtor Paid)
DR: Bonds Payable
CR: Cash
Loss on Extinguishment of Bonds
DR: Bonds Payable
DR: Loss on Extinguishment of Bonds (extraordinary?)
CR: Discount on Bonds Payable
CR: Unamortized Bond Issue Costs
CR: Cash
Gain on Extinguishment of Bonds
DR: Bonds Payable
DR: Premium on Bonds Payable
CR: Cash
CR: Unamortized Bond Issue Costs
CR: Gain on Exting. of Bonds (extraordinary?)
