Term
| Maturity on Current Liabilities |
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Definition
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Term
| Maturity on Noncurrent Liabilities |
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Definition
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Term
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Definition
| Short-term obligations to suppliers for purchases of merchandise and to others for goods and services. |
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Term
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Definition
Merchandise Inventory Invoices
Office Supplies Invoices
Shipping Charges
Utility and Phone Bills |
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Term
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Definition
| Cash that is collected from a customer before revenue is actually earned. |
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Term
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Definition
| Liabilities that will have future benefits over 1 year |
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Term
| Examples of Longterm Liabilites |
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Definition
| Notes payable that are longer than 1 year |
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Term
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Definition
| The issuer pledges specific assets as collateral. |
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Term
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Definition
| Backed by the issuers credit outstanding |
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Term
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Definition
| can be exchanged for a fixed number of common shares of the issuing corportation |
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Term
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Definition
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Term
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Definition
| Able to redeem a bond before its maturity date |
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Term
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Definition
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Term
| Compute: Cash Interest Payments |
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Definition
Principle X Rate X Time = Interest
I = PRT |
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Term
| Compute: Bond issued at a discount |
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Definition
Principle - Cash Proceeds = Discount
P - C = D |
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Term
| Record Bonds Issued at a Discount |
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Definition
Debit Cash
Debit Discounts on Bonds Payable
Credit bonds Payable |
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Term
| Bonds issued at a premium` |
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Definition
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Term
| Bonds issued at a discount |
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Definition
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Term
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Definition
Discount Subtracted from principle amount.
Carrying value increases to its face value on the maturity date. |
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Term
| What are the effects of a stock split? |
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Definition
Outstanding shares increase
par value decreases
stockholders equity DOES NOT change
market price will decrease |
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Term
| Compute: Earnings Per Share |
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Definition
EPS = Net Income - Preferred Dividends
______________________________________
average number of common shares |
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Term
| Computer: Retained Earnings |
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Definition
| Net Income - Dividends = RA |
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Term
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Definition
| Debit - increase in assets as result from normal operations of business |
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Term
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Definition
| Debit - Decrease in assets from normal operation of business |
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Term
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Definition
| Debit - Increase in assets NOT related to normal operation of business |
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Term
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Definition
| Credit - Decrease in assets NOT related to normal operations of business |
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Term
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Definition
| Dividends to cumulative preferred shareholders that have not been paid. They are NOT a liability and are disclosed in the notes to financial statements. |
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Term
| Noncumulative Preferred Stock |
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Definition
| If dividends to preferred shareholders are not paid for any given year, the dividends are foregone. |
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Term
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Definition
| a value that isn't par value (face value) |
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Term
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Definition
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Term
| Cumulative Preferred Stock |
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Definition
| If dividends are not paid for one or more years, the dividends accumulate. When distributed the dividends have to go to the preferred shareholders. |
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Term
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Definition
| Issued shares - Treasury Shares |
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Term
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Definition
| Shares that were initially issued to shareholders but the company later repurchased |
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Term
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Definition
| Max shares the company can sell to the public |
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Term
| Characteristics of Preferred Stock |
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Definition
Preferred holders have preference over common stock holders in payment of dividends
Preferred stock holders do not vote to elect members of the BoD. |
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Term
| How to record declaration of a small stock dividend |
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Definition
Debit Retained Earnings
Credit Common Stock to be Distributed
Credit Addition Paid-in Capital Stock Dividend |
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Term
| Journal Entry for "Stock issuance for organication expense and assets or buildings" |
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Definition
Debit: Organization expense
Credit: Common Stock
Credit: Additional paid in capital |
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Term
| Journal Entry for "Stock issuance for cash" |
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Definition
Debit: Cash
Credit: Common Stock |
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Term
| Discontinued Operations(net of tax) |
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Definition
| When a company is getting rid of a section of business |
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Term
| Extraordinary items (net of tax) |
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Definition
Unusual in nature
Infrequent in occurance |
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Term
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Definition
| Income from operations before income taxes - Income Tax expense = Net Income |
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Term
| Journal Entry for Declaration of Cash Dividend |
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Definition
Debit: Dividends
Credit: Dividends Payable |
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Term
| Journal Entry to record payment of cash dividend |
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Definition
Debit: Dividends Payable
Credit: Cash |
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Term
| To record declaration of small stock dividend |
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Definition
Debit: Retained EArnings
Credit: Common stock to be distri.
Credit: Additional paid in capital |
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Term
| To record payment of small stock dividend |
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Definition
Debit: Stock to be distributed
Credit: Common Stock |
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Term
| Two dates that are important when recording dividends. |
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Definition
The date the stock dividend is declared.
The date the stocks are distributed to shareholders. |
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Term
| Journal Entry for reissuing treasury stock. |
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Definition
Debit: Cash
Debit: Add. paid in capital
Credit: Treasury Shares |
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Term
| Journal Entry for reissuing treasury stock above cost. |
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Definition
Debit: Cash
Credit: Treasury Stock
Credit: Add. paid in capital |
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Term
| Issuance of common stock to acquire land. |
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Definition
Debit: Land
Credit: Common Stock
Credit: Additional paid in capital |
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Term
| What are the board of directors? |
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Definition
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Term
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Definition
| Sales Revenue - Sales Discounts - Sales REturns and Allowances |
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Term
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Definition
| Net sales - Costs of goods sold |
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