ACC 200 Exam 3 Stussy Questions And Answers With
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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? ANS 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? ANS Bonds that have specific assets pledged as collateral.
What are unsecured bonds? ANS Bonds that are issued against the general credit of the borrower.
What are convertible bonds? ANS Bonds that can be converted into common stock at the option of
the bondholder.
What are callable bonds? ANS 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? ANS 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? ANS Stated or Coupon
What else is the market rate called? ANS Effective or discount
Issued bonds at a premium JE accounts ANS Dr. Cash
Verified Tests
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? ANS 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? ANS Bonds that have specific assets pledged as collateral.
What are unsecured bonds? ANS Bonds that are issued against the general credit of the borrower.
What are convertible bonds? ANS Bonds that can be converted into common stock at the option of
the bondholder.
What are callable bonds? ANS 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? ANS 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? ANS Stated or Coupon
What else is the market rate called? ANS Effective or discount
Issued bonds at a premium JE accounts ANS Dr. Cash
