Accounting 302-Chapters 13-15
Exam Hints
= 1) 12 multiple-choice questions @ 2 pts each =3D 24 points
a= ) All are completion statements; no calculations are necessary on these
b= ) There are four (4) questions from each of the chapters covered
c= ) Be able to distinguish between current and non-current (long-term) liabilities=
d= ) Know the difference between the effective interest and straight-line methods for amortizing bond premium or discount
e= ) Know how to calculate the issue price of bonds
f= ) = Know the difference between common stockholder and preferred stockholder interes= ts
g= ) Know the difference between capital accounts in the stockholders equity section (contributed capital and retained earnings (earned capital))
h= ) Treasury stock and dividends paid when there is treasury stock
= 2) Short problems:
a= ) (16 points) You will be required = to prepare a payroll and payroll tax journal entry. Be sure that you know how to incor= porate the maximum calendar year earnings for both employee and employer payroll t= ax liability
b= ) (11 points) Journal entries invol= ving warranty expense recording under both the expense warranty method and the c= ash basis method
c= ) (16 points) Journal entries to re= cord issuance, interest payments and accruals for bonds issued. The bonds are issued on a regular interest payment date. Also, = be able to calculate interest expense and premium (discount) amortization for first few periods
d= ) (14 points) Journal entries to retire bonds prior to maturity
e= ) (11 points) Journal entries to is= sue preferred stock and common stock
f= ) = (8 points) Journal entries to record the purchase and subsequent re-issuance of Treasury Stock