The amount of the outstanding checks is included on the bank reconciliation as a(n)
a. deduction from the balance per company's records
b. addition to the balance per bank statement
c. deduction from the balance per bank statement
d. addition to the balance per company's records
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Q. 2) Junque Bondz, Inc. issued 15-year bonds with a face value of 50,000. The bonds carry a 7 stated interest rate and pay interest once a year. They were issued when the market interest rate was 8 and sold for 45,720.18.
Required:
a. Complete the amortization schedule for the first two years of the bond issue using the effective interest method.
Beginning carrying value Cash payment Interest expense Amortization of discount Ending carrying value
Year 1 45,720.18
Year 2
b. Put an X in the appropriate box to describe how each of these items will behave with each additional interest payment:
Increase Decrease Remain the same
1 Cash payment for interest
2 Interest expense
3 Bond carrying value
c. Fill in the correct dollar amounts:
At maturity, after the last interest payment has been made, the unamortized discount on the bonds will be ______________ and the carrying value of the bonds will be _______________.
(
Q. 3) The process whereby lost data is restored and operations are continued is called _____________________________
_.
Fill in the blank(s) with correct word
(
Q. 4) If a company uses the indirect method of calculating cash from operating activities, net income is adjusted for non-cash transactions.
Indicate whether the statement is true or false
(
Q. 5) A common approach to keeping a record of each customer's accounts receivable is to use a
a. sales journal.
b. subsidiary accounts receivable ledger.
c. controlling account.
d. general journal.
(
Q. 6) Common stock's par value is usually ________.
A) equal to the market price of the common stock
B) greater than the market price of the common stock
C) less than the market price of the common stock
D) zero
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