1) ______________ bonds are bonds that are scheduled for maturity on one specified
date.
2) Calais Company’s fixed budget for the first quarter of the calendar year appears
below. Prepare flexible budgets that show variable costs per unit, fixed costs and two
different flexible budgets for sales volumes of 22,000 and 24,000.
3) Agro Depot’s income before interest expense and income taxes was $5,909 million,
and interest expense was $37 million. Calculate Agro Depot’s times interest earned.
4)
A company is authorized to issue 50,000 shares of $50 par value, 8%, cumulative, fully
participating preferred stock, and 750,000 shares of $5 par value common stock.
Prepare journal entries to record the following selected transactions that occurred
during the company’s first year of operations:
5) The accountant of Magic Video Games prepared a balance sheet immediately after
each transaction was recorded. During September, the first month of operation, the
following balance sheets were prepared:
Required: Describe the nature of each of these five transactions for the month of
September.
6) Explain the difference between honoring and dishonoring a note receivable.
7) Explain (in detail) how to compute each of the following depreciation methods:
straight-line, units-of-production, and double-declining-balance.
8) What are the journal entries recorded for cash dividends on the declaration date, the
date of record, and the payment date?
9) The third step in accounting for production activity in a period is to compute the
____________________.
10) What is depreciation of plant assets? What are the factors to consider in computing
depreciation?