unit 3 review

Copy and paste the following questions into a Microsoft Word document. Answer each question with a minimum of two to three (2–3) sentences. Some prompts will require substantially more than that to fully respond. Be thorough when addressing each item and be sure to answer each part of the prompt. You should use only your textbook to support this activity. Please do not use an Internet search engine.

1. Why do corporations purchase and issue treasury stock?
2. What is the Journal entry for recording the purchase of treasury stock? 
3. How would you record the reissuance of treasury stock if the proceeds obtained are:  at cost of the treasury stock?  Less than the cost of the treasury stock?  More than the cost of the treasury stock?
4. What is the main difference between notes payable and bonds payable?
5. What is the main difference between a bond and a share of stock?
6. What does it mean to issue bonds at:  Par? At a Discount?  At a Premium?
7. What is the difference between the contract (coupon) rate and the market rate for bonds?
8. What is the journal entry for recording the issue of a discount bond? What is the entry for recording interest and amortization? 
9. What is the journal entry for recording the issue of a premium bond? What is the entry for recording interest and amortization? 
10. What is the Journal entry for recording the bond maturity? 

Save and name your file using the following file naming convention: U3_Review_YourFirst_LastName. Submit your assignment using the instructions below.