Liabilities
True or False
Notes Payable is always a long-term liability.
False
"Current portion of long-term debt" is the portion of notes payable due within 1 year.
What is the Time Value of Money?
The principle that a dollar today is worth more than a dollar in the future becasue of the ability to invest the dollar and earn interest.
What are the 4 dates related to paying dividends, and which dates have journal entries? Additionally, what are the journal entries?
Declaration Date - JE
Ex-Dividend Date - NO JE
Record Date - NO JE
Payment Date - JE
On April 1, 20X2, the University of Iowa received $600,000 cash for football season tickets. The first of six home games is to be played on August 25, 20X2.
How much revenue does the University of Iowa recognize on April 1, 20X2, and August 25, 20X2
April 1: $0
August 25: $100,000
What is the present value of $50,000 in 5 years at a 10% interest rate? Round your answer to two cents.
$31,046.07
50,000/(1+0.1)^5
On July 6, Apple issued 100,000 shares of $0.001 par value common stock for $80 per share. What is the journal entry for recording this transaction?
DR Cash 8,000,000
CR Common Stock 100
CR APIC 7,999,900
ABC Co. sells widgets for $30. Sales tax is 10% and is an additional amount paid by the customer. What is the journal entry associated with this transaction?
DR Cash 33
CR Sales Revenue 30
CR Sales Tax Payable 3
Fil in the blank:
Interest rates and present values are _____ related.
Time Horizon and future values are _____ related.
Inversely
Exponentially
XYZ Inc. had authorized shares of 4,000,000 and unissued shares of 1,250,000. They also had 1,000,000 treasury shares. XYZ Inc. paid a $20,000,000 dividend. What are dividends per share? Round to the nearest two cents.
$11.43
20,000,000/1,750,000
On July 1st 20X1, Texas Instruments signed a 3-year note payable for $50,000, bearing 10% interest annually. How much interest should be recorded on December 31st, year-end?
$2500
$50,000*0.1*6/12
Fill in the blank:
If the market rate is greater than the coupon rate a bond is issued at a (premium/discount) _____ and the bond issuer will receive (more/less) ____ cash.
If the market rate is less than the coupon rate a bond is issued at a (premium/discount) ____ and the bond issuer will receive (more/less) ____ cash.
Discount, Less
Premium, More
Apple had beginning inventory of $500,000 and ending inventory of $620,000. During the period they purchased $250,000 of inventory. Additionally, Apple's beginning and ending accounts payable balances were $85,000 and $87,500 respectively. What is Apple's accounts payable turnover ratio? Round your answer to 2 decimal places.
1.51
COGS = 130,000
Average A/P = 86,250
130,000/86,250 = ~1.51
ABC Co. issued a bond with a face value of $250,000. They received cash of $220,000. What is the applicable debit or credit to make the corresponding journal entry balance?
DR Cash 220,000
DR Discount on Bonds Payable 30,000
CR Bonds Payable 250,000
XYZ Inc. had beginning and ending retained earnings of $330,000 and $450,000 respectively. They also paid a dividend of $35,000. XYZ Inc. had issued 800,000 shares and held 140,000 in treasury stock. What is XYZ Co.'s earnings per share?
Earnings Per Share
Net Income = $155,000
Outstanding Shares = 660,000
EPS = $0.23