when somebody borrows a note from you journal entry Debit: Notes Receivables Credit: Cash adjusting entry to record bad debt expense debit: bad debt expense

when somebody borrows a note from you journal entry

Debit: Notes Receivables
Credit: Cash

adjusting entry to record bad debt expense

debit: bad debt expense
credit: allowance for doubtful accounts

Financial accounting provides information primarily for

external decision makers

One disadvantage of the corporate form of business is

double taxation

when a stockholder gets common stock, the stockholder gets

voting rights

journal entry for issuing preferred stock

cash
preferred stock
additional paid-in capital

journal entry for buying treasury stock

treasury stock
cash

journal entry for when a company declares a dividend

dividends
dividends payable

for the indirect method in operating activities, what do you add/subtract?

(+) depreciation expense
(+) amortization expense
(+) losses
(-) gains
(+) decrease in CA
(-) increase in CA
(-) decrease in CL
(+) increase in CL

what ratios, when calculated, show that a lower number is better?

1. average collection period
2. average days in inventory
3. debt to equity

how do you calculate cash in a journal entry with bonds?

face value x stated rate (cash amount will always stay the same)

journal entry for when a premium bond is issued

cash
premium and bonds payable