ACC 200 Exam 3 Stussie UofA Questions With 100% Correct Answers

ACC 200 Exam 3 Stussie UofA
Questions With 100% Correct Answers




On May 31st a store had cash sales of $30,000 and collected related sales taxes of
$1,500. What is the journal entry that the store records and what is the impact on
the accounting equation?
May 31 Dr. Cash 31,500
Cr. Sales Revenue 30,000
Cr. Sales Taxes Payable 1,500


A + 31,500 = L +1,500 + SE +30,000




What are secured bonds?
Bonds that have specific assets pledged as collateral.




What are unsecured bonds?
Bonds that are issued against the general credit of the borrower.

, What are convertible bonds?
Bonds that can be converted into common stock at the option of the bondholder.




What are callable bonds?
Bonds that can be redeemed (bought back) prior to maturity at the option of the
bond issuer.




Smith Co. loans Johnson Co. $500,000 on Jan 1, 2014. Terms: 6%, 10-month note,
all principal and interest paid Oct. 31, 2014.
What is the journal entry for June 30th?
Dr. Interest Expense (500k X 6% X 6/12)
Cr. Interest Payable (500k X 6% X 6/12)




What else is the contract rate called?
Stated or Coupon




What else is the market rate called?
Effective or discount