Exam 4

• Journalize - Accrued Interest at EOY

  1. Debit - Interest Expense
  2. Credit - Interest Payable
• Journalize - Monthly Mortgage Payment

  1. Debit - Mortgage Payable
  2. Debit - Interest Expense
  3. Credit - Cash
• Journalize - Issuing Bonds Payable

  1. Debit - Cash
  2. Credit - Bonds Payable
• Journalize - Interest Payment on Bonds (Face Value)

  1. Debit - Interest Expense
  2. Credit - Cash
• Journalize - Semiannual Interest and Amortized Discount

  1. Debit - Interest Expense
  2. Credit - Amortized Discount on Bonds Payable
  3. Credit - Amortized Cash
• Journalize - Issued Bonds with Discount (Under 100)

  1. Debit - Cash
  2. Debit - Discount on Bonds Payable
  3. Credit - Bonds Payable
• Journalize - Issued Bonds at Premium (Over 100)

  1. Debit - Cash
  2. Credit - Premium on Bonds Payable
  3. Credit - Bonds Payable
• Journalize - Semiannual Interest and Amortized Premium

  1. Debit - Interest Expense
  2. Debit - Amoritzed Premium on Bonds Payable
  3. Credit - Amortized Cash
• Journalize - Purchase of Asset by issuing Note Payable

  1. Debit - Asset Account (ex. Equipment / Warehouse)
  2. Credit - Notes Payable
• Journalize - First Installment of Note (After 1 Year)

  1. Debit - Notes Payable
  2. Debit - Interest Expense
  3. Debit - Interest Payable (Year Prior)
  4. Credit - Cash
• Journalize - Retired Bonds at Maturity

  1. Debit - Bonds Payable
  2. Credit - Cash
• Journalize - Declared Cash Divided

  • Debit - Cash Dividends
  • Credit - Dividends Payable (Stock)
• Journalize - Payment of Cash Dividend

  • Debit - Dividends Payable (Stock)
  • Credit - Cash
• Journalize - Close Cash Dividends

  • Debit - Retained Earnings
  • Credit - Cash Dividends
• Journalize - Issue common stock for cash (With Par Value)

  • Debit - Cash
  • Credit - Common Stock-$$ Par Value
  • Credit - Paid-in Capital in Excess of Par-Common
• Journalize - Purchase of Treasury Stock

  • Debit - Treasury Stock-TYPE
  • Credit - Cash