Journal Entries

Question 1

Bonds to stocks - BV method

Answer 1

Bond payable
Bond premium
Common stock (par)
APIC (plug)

Question 2

Bond issuance on int. Date (issuer)

Answer 2

Cash
Discount/Premium
Bond payable

Question 3

Bond issuance b/t int. Dates (issuer)

Answer 3

Cash
Cash interest
Discount/Premium
          BP
          Int. Payable*

*face x stated rate x int. Accrued since last date

Question 4

Bond int. Pmts

Answer 4

Int. Exp. (effective yield x CV)

Cash (stated rate x face)

Question 5

Open budgetary entry

Answer 5

Est. Rev. Control
Budgetary fund balance (plug - can be dr. or cr.)
Appropriations Control

Closing entry is the reverse of this

Question 6

Admission of a new partner - bonus method

Answer 6

Cash from new partner
New partner capital
Old partners capital (bonus)

Question 7

Lease payments lessee - capital lease

Answer 7

Int. Exp.

Cash/lease payable

Question 8

Capital lease lessor - initial lease

Answer 8

Lease rec.
Asset
Unearned income

Question 9

Capital lease lessor - lease pmts

Answer 9

Cash
Unearned income
Lease rec.
Int. Income

Question 10

Operating lease- lessee lease pmts

Answer 10

Rent exp.

Cash/rent payable

Question 11

Operating lease lessor - lease pmts

Answer 11

Cash/rent rec.

Rent rev.

Question 12

Temp restricted initial entry

Answer 12

Cash - TRA

Contributions

Question 13

Temp restricted terms of restriction are met

Answer 13

Cash-unrestricted

Cash-TRA

Question 14

Temp restricted exp. arises

Answer 14

Exp.

Cash- unrestricted

Question 15

Treasury stock - shares reissued

Answer 15

Cash
APIC (plug)
TS

Question 16

Transfer of non-monetary assets to shareholder initial entry

Answer 16

RE

Div. payable

Question 17

Transfer of non-monetary assets to a shareholder - second entry

Answer 17

Div. payable
Asset, CV
Gain

Question 18

Option granted

Answer 18

Def. comp

APIC

Question 19

Option exercised

Answer 19

Reverse previous entry

Comp exp.
Cash
APIC
        Def. comp
        CS
        APIC (plug)