Exam 1 Entries Flashcards
Date of Issuance: Bonds
Dr Cash
Cr Bonds Payable
Date of Issuance: Bonds Between Interest Dates
Dr Cash
Dr Discount on Bonds Payable
Cr Bonds Payable
Cr Interest Payable
Date of Issuance: Bonds Issued with Stock Warrants (Nondetachable)
Dr Cash
Cr Bonds Payable
Cr Premium on Bonds Payable
Date of Issuance: Bonds Issued with Stock Warrants (Detachable–Proportional Method)
Dr Cash
Dr Discount on Bonds Payable
Cr Bonds Payable
Cr APIC-Stock Warrants
Date of Issuance: Bonds Issued with Stock Warrants (Detachable–Incremental Method)
Dr Cash
Cr Bonds Payable
Cr Premium on Bonds Payable
Cr APIC-Stock Warrants
Interest Payment Date: First Interest Period (Accrual Included)
Dr Interest Expense
Dr Interest Payable
Cr Cash
Cr Discount on Bonds Payable
Interest Payment Date: Interest Paid
Dr Interest Expense
Cr Cash
Cr Discount on Bonds Payable
Dr Interest Expense
Dr Premium on Bonds Payable
Cr Cash
Early Retirement Entry
***Carrying Value-Retirement Price=Gain/Loss Received
Dr Bonds Payable
Cr Discount on Bonds Payable
Cr Gain on Early Retirement of Debt
Cr Cash
Conversion Entry
Dr Bonds Payable
Dr Premium on Bonds Payable
Cr Common Stock-Par Value
Cr APIC in Excess of Par-Common Stock
Short-term Debt Reclassification Entry
Dr Short-term Notes Payable
Cr Long-term Notes Payable
Current Maturity of Long-term Debt
Dr Cash
Cr Bonds Payable (Long-term)
Dr Bonds Payable (Long-term)
Cr Current Maturities of Bonds Payable
Entries for Issuance: Issued for Noncash Consideration
Dr Expense Account
Cr Common Stock
Cr APIC in Excess of Par-Common Stock
***Value goods/services @ Fair Value of stock issues in exchange
Entries for Issuance: Stock Issue Costs
REDUCE the issue price
Entries for Issuance: Conversion of Common Stock to Preferred Stock
Dr Convertible Preferred Stock
Dr APIC in Excess of Par-Preferred Stock
Cr Common Stock-Par
Cr APIC in Excess of Par-Common Stock
Entries for Issuance: Mandatorily Redeemable Preferred Stock
Dr Cash
Cr Obligation Related to Mandatorily Redeemable Preferred Shares
***Redemption is certain @ specific price and specific date
Treasury Stock: Purchase
Dr Treasury Stock
Cr Cash
Treasury Stock: Reissuance (Above Cost)
Dr Cash
Cr Treasury Stock
Cr APIC from Treasury Stock Transactions
Treasury Stock: Reissuance (Below Cost)
Dr Cash
Dr APIC from Treasury Stock Transactions
Dr Retained Earnings
Cr Treasury Stock
Dividend Entry: Cash (Cumulative Preferred)
Dr Dividends-Preferred
Cr Dividends Payable-Preferred
Dr Dividends Payable-Preferred
Cr Cash
Dividend Entry: Cash (Common Stock)
Dr Dividends-Common
Cr Dividends Payable-Common
Dr Dividends Payable-Common
Cr Cash
Dividend Entry: Small Stock Dividends (FMV)
Dr Dividends
Cr Common Stock Dividends Distributable
Cr APIC in Excess of Par-Common
Dr Common Stock Dividends Distributable
Cr Common Stock-Par
Dividend Entry: Large Stock Dividends (Par)
Dr Dividends
Cr Common Stock Dividends Distributable
Dr Common Stock Dividends Distributable
Cr Common Stock-Par
Prior Period Adjustment Entry
Dr Account Receivable
Cr Retained Earnings
Cr Payable Account
Accounting for Debt Investments at Each Classification: HTM
Dr HTM-Cost
Cr Cash
***No discount/premium accounts—Issued at Acquisition Cost
