Study Guide for Exam 2 ACC322
Chapter 13 * The differences between current liabilities and long-term liabilities. * Journal entries related to accounts payable (at the time of purchase and at the time of payment). * Journal entries related to interest-bearing notes: the issuance, interest expense, interest payment, and on the maturity date. * Journal entries related to zero-interest-bearing notes: the issuance, interest expense, and on the maturity date. * What is the revenue principle? * How do we account for unearned revenues? (Cash collection and revenue recognition) * How do we account for gift card revenues? (Cash collection, revenue recognition and gift card expiration). * What is the matching principle? * How do we account for paid future absence? * How do we account for warranty? (Estimated warranty and actual warranty expenditures) * The accounting treatments for gain contingencies: disclose or ignore. * The accounting treatments for loss contingencies: report (accrual), disclose (footnote), or ignore.

Chapter 14 * What is the bond price at the time of issuance? Prepare journal entry for bond issuance. * What are the interest expense and interest payment for a specific period? Prepare journal entry for interest expense and payment. * At the time of early retirement of bond, what is the book value of the bond? What is the new market value? Is there any gains or losses? Prepare related journal entry.

Chapter 18 * Understand the following concepts and the connections between them: authorized shares, issued shares, outstanding shares and treasury stocks. * How do we account for stock issuance and repurchase of stock? * What is stock split? * How does stock