Wgu D104 Intermediate Accounting Ii Units 4-6 Study Guide Graded A+

Sale of treasury stock above cost {Ans: Debit cash, credit treasury stock (cost), credit paid in capital from treasury stock.}Journal entry to record a sale when sales tax is not segregated {Ans: Debit cash, credit sales revenue}Contingencies not accrued {Ans: Risk of loss or damage of enterprise property by fire, explosion or other hazards, general or unspecified business risks, or risk of loss from catastrophes assumed by property and casualty insurance companies including reinsurance.}The generally accepted method of accounting for gains or losses from the early extinguishment of debt treats any gain or loss as {Ans: a difference between the reacquisition price and the net carrying value of the debt which should be recognized in the period of redemption.}Journal entry to record interest on a note {Ans: Debit interest expense, credit cash.}Journal entry to record bond interest payment end of the year with a discount {Ans: Debit Interest expense, credit discount on bonds payable, credit interest payable}