chapter 9
1. Land
2. Building
3. Goodwill
4. Equipment
goodwill
What is the debt to asset ratio equation?
total liabilities/ total assets
What are issued shared that have been reacquired by a company?
Treasury Stock
operating
gain on disposal
When might you debit deferred revenue?
When the service is preformed
Tiger Town Graphics has 125 authorized shares. They have issued 113. They have 21 shares of treasury stock. How many stocks are outstanding?
92
What are the three types of cash flow operations?
Financing
Operating
Investing
CocaCola bought a machine for $235,000. The estimated residual value was $22,000. It is expected to last 3 years, or 20,000 hours. In year one, it was used for 7,000 hours. In year two, it was used for 8,000 hours, and in year three it was used for 5,000 hours. What is the book value of the machine after year three using the straight line method of depreciation?
22,000
When should you write a journal entry for a contingent liability?
probable and can be estimated
The cosmetic company Benefit issued 123,000 shares of its $0.01 par value stock for $18 per share. Record the journal entry for this.
Debit Cash 2,214,000
Credit Common stock 1230
Credit Additional paid in capital 2,212,77
Paid back principle loan amount from bank.
financing outflow
Coca Cola bought a machine at a cost of $235,000. The estimated residual value was $22,000. It is expected to last 3 years, or 20,000 hours. In year one, it was used for 7,000 hours. In year two, it was used for 8,000 hours, and in year three it was used for 5,000 hours. What is the depreciation expense for year 2 using units of production?
85,200
Free People signed a 12 month loan for 10,000 cash on November 1st with an interest rate of 7%. Record the journal entry at December 31st. Round to the nearest whole number.
Debit Interest Expense 117
Credit Interest Payable 117
On a declaration date, a company's board of directors approved a dividend of $12,000,000. Record the journal entry on this date.
Debit Dividends 12,000,000
Credit Dividends Payable 12,000,000
What order are the financial statements typically prepared?
Income statement, statement of retained earnings, balance sheet, statement of cash flows
CocaCola bought a machine at a cost of $235,000. The estimated residual value was $22,000. It is expected to last 3 years, or 20,000 hours. In year one, it was used for 7,000 hours. In year two, it was used for 8,000 hours, and in year three it was used for 5,000 hours. What is the accumulated depreciation for year 3 using the double declining method?
213,000
Grace Coffee Company issues 100 of their $1,000 bonds at the price of 111. Record the journal entry for this sale.
Debit Cash 111,000
Credit Bonds Payable 100,000
Credit Premium on Bonds Payable 11,000
Target reissued 1,000 of treasury stock they had bought for $20 dollars per share for $23 each. Record the journal entry.
Debit Cash 23,000
Credit Treasury Stock 20,000
Credit Additional Paid In Capital 3,000
What are the characteristics of a healthy company according to the statement of cash flows?
positive operating inflow, negative investing outflow