Accy 201 Ole Miss Final Exam Questions And Answers Rated A+

How are bonds payable reported on the balance sheet? - How are business transactions recorded in the accounting cycle? - first in the journal, then transferred to the ledger How do we determine what items to count in inventory? - determining cost of inventory requires cost of expenditures necessary, directly or indirectly, to bring into a salable condition and location How do you calculate bed debts expense using the allowance method? - How do you calculate COGS for a merchandiser? - using a perpetual system OR periodic inventory system How do you calculate earnings per share? - net income - preferred dividends / the weightedaverage common shares outstanding How do you calculate semiannual interest paid to bondholders? - if a company issues a $1,000, 8% bond paying interest semiannually it pays annual interest of $80 (8% x $1,000) in 2 semiannual payments, they payments would equal $40 (80/2) How do you interpret credit terms? - How do you record a depreciation adjustment? - debit depreciation expense credit accumulated depreciation How do you record adjustments for prepaid expenses? - debit insurance expense credit prepaid insuranceHow do you record adjustments for supplies? - debit supplies expense credit supplies How does a merchandiser record the sale of merchandise? - debit accounts receivable credit sales debit COGS credit merchandise inventory How would you calculate interest on a note receivable? - principal of the note x annual interest rate x time expressed in fraction of the year; Example: $1,000 x 90/360 = $1,000 x 0.12 x 0.25 = $30 What adjusting entries are required for a merchandiser at year-end? - debit COGS credit merchandise inventory What are assets? - resources a company owns or controls that are expected to yield future benefits and promises a future inflow of resources