Question 1

Compute the maturity value of a 30-day,8 percent note with a face value of $6,000.

Accepted Answer

The answer of Compute the maturity value of a 30-day,8...

Question 2

Compute the maturity value of a 180-day,6 percent note with a face value of $1,000.

Accepted Answer

The answer of Compute the maturity value of a 180-day,6...

Question 3

Compute the maturity value of a 60-day,7 percent note with a face value of $6,000.

Accepted Answer

The answer of Compute the maturity value of a 60-day,7...

Question 4

Compute the amount of interest owed on a 60-day,8 percent note for $9,000.

Accepted Answer

The answer of Compute the amount of interest owed on...

Question 5

A(n)____________________ is a written order that requires the person or business addressed to pay a stated sum of money to another person or firm.

Accepted Answer

The answer of A(n)____________________ is a written order that requires...

Question 6

The Martinez Company,had the following transactions involving notes payable during 2013.Record the transactions on page 11 of a general journal.Omit descriptions.

Accepted Answer

The answer of The Martinez Company,had the following transactions involving...

Question 7

If a note payable overlaps financial reporting periods (years),Interest Expense is recorded only in the year the note is paid.

Accepted Answer

A) True 
 B)False

Question 8

The entry to record the issuance of a promissory note will include a ____________________ to Notes Payable.

Accepted Answer

The answer of The entry to record the issuance of...

Question 9

Sight drafts may be used to collect past-due accounts receivables or to obtain cash on delivery when shipments are made to new customers or customers with poor credit.

Accepted Answer

A) True 
 B)False

Question 10

If the amount due on a note receivable is not collected at maturity,

Accepted Answer

A)  Allowance for Doubtful Accounts should immediately be credited. 
B)  Accounts Receivable is debited for the maturity value. 
C)  the face value of the note should continue to be carried in the Notes Receivable account until all possible means of collecting the note have been exhausted. 
D)  Uncollectible Accounts Expense should be debited. 
A)  Allowance for Doubtful Accounts should immediately be credited. 
B)  Accounts Receivable is debited for the maturity value. 
C)  the face value of the note should continue to be carried in the Notes Receivable account until all possible means of collecting the note have been exhausted. 
D)  Uncollectible Accounts Expense should be debited.

Question 11

The Notes Receivable Discounted account

Accepted Answer

A)  is shown as a deduction from Notes Receivable on the balance sheet. 
B)  has a debit balance. 
C)  is used to record the amounts due on dishonored notes. 
D)  is used to record the amount of interest deducted by the bank when a note is discounted. 
A)  is shown as a deduction from Notes Receivable on the balance sheet. 
B)  has a debit balance. 
C)  is used to record the amounts due on dishonored notes. 
D)  is used to record the amount of interest deducted by the bank when a note is discounted.

Question 12

Find the due date of a 90-day note issued on June 6,2013.

Accepted Answer

The answer of Find the due date of a 90-day...

Question 13

A dishonored note is converted to Accounts Receivable at its face value.

Accepted Answer

A) True 
 B)False

Question 14

The Woo Corporation had the following transactions involving notes payable during 2013.Record the transactions on page 8 of a general journal.Omit descriptions.

Accepted Answer

The answer of The Woo Corporation had the following transactions...

Question 15

The Interest Expense account usually has a credit balance.

Accepted Answer

A) True 
 B)False

Question 16

If the proceeds of a note discounted at a bank are greater than the face value of the note,the difference is recognized as

Accepted Answer

A)  interest receivable. 
B)  interest expense. 
C)  notes receivable discounted. 
D)  interest income. 
A)  interest receivable. 
B)  interest expense. 
C)  notes receivable discounted. 
D)  interest income.

Question 17

Which of the following statements is not correct?

Accepted Answer

A)  When a note receivable is discounted,the proceeds are computed by subtracting the discount from the maturity value of the note. 
B)  The entry to record the discounting of a note receivable may result in the recognition of interest expense. 
C)  When a note is discounted at a bank,the proceeds are always less than the maturity value of the note. 
D)  When a note receivable is discounted at a bank,the entry to record the transaction includes a debit to cash. 
A)  When a note receivable is discounted,the proceeds are computed by subtracting the discount from the maturity value of the note. 
B)  The entry to record the discounting of a note receivable may result in the recognition of interest expense. 
C)  When a note is discounted at a bank,the proceeds are always less than the maturity value of the note. 
D)  When a note receivable is discounted at a bank,the entry to record the transaction includes a debit to cash.

Question 18

The maturity value of a 60-day note for $6,000 that bears interest at 6 percent a year is

Accepted Answer

A)  $6,060. 
B)  $6,600. 
C)  $6,000. 
D)  $5,940. 
A)  $6,060. 
B)  $6,600. 
C)  $6,000. 
D)  $5,940.

Question 19

The amount of cash paid at the maturity date on a $12,000 face value,90-day note bearing interest at 10 percent is

Accepted Answer

A)  $1,200. 
B)  $12,000. 
C)  $300. 
D)  $12,300. 
A)  $1,200. 
B)  $12,000. 
C)  $300. 
D)  $12,300.

Question 20

To obtain cash on delivery,goods may be shipped with a sight draft attached to a(n)___________________.

Accepted Answer

The answer of To obtain cash on delivery,goods may be...

Exam 16: Notes Payable and Notes Receivable

Compute the maturity value of a 30-day,8 percent note with a face value of $6,000.

Compute the maturity value of a 180-day,6 percent note with a face value of $1,000.

Compute the maturity value of a 60-day,7 percent note with a face value of $6,000.

Compute the amount of interest owed on a 60-day,8 percent note for $9,000.

A(n)____________________ is a written order that requires the person or business addressed to pay a stated sum of money to another person or firm.

The Martinez Company,had the following transactions involving notes payable during 2013.Record the transactions on page 11 of a general journal.Omit descriptions.

If a note payable overlaps financial reporting periods (years),Interest Expense is recorded only in the year the note is paid.

The entry to record the issuance of a promissory note will include a ____________________ to Notes Payable.

Sight drafts may be used to collect past-due accounts receivables or to obtain cash on delivery when shipments are made to new customers or customers with poor credit.

If the amount due on a note receivable is not collected at maturity,

The Notes Receivable Discounted account

Find the due date of a 90-day note issued on June 6,2013.

A dishonored note is converted to Accounts Receivable at its face value.

The Woo Corporation had the following transactions involving notes payable during 2013.Record the transactions on page 8 of a general journal.Omit descriptions.

The Interest Expense account usually has a credit balance.

If the proceeds of a note discounted at a bank are greater than the face value of the note,the difference is recognized as

Which of the following statements is not correct?

The maturity value of a 60-day note for $6,000 that bears interest at 6 percent a year is

The amount of cash paid at the maturity date on a $12,000 face value,90-day note bearing interest at 10 percent is

To obtain cash on delivery,goods may be shipped with a sight draft attached to a(n)___________________.

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analyses

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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