Exam 10: Reporting and Analyzing Long-Lived Assets

Killarney Exhibits Inc.received its annual property tax bill for $21,500 in January.It was paid when due on March 31.Killarney Exhibits year end is Dec 31.The Dec 31 balances should be

The carrying amount of bonds issued at a discount will initially be higher than the face value.

If the market interest rate is 4.5%, a $100,000, 5.6%, 10-year bond that pays interest semi-annually would sell at an amount

Unearned revenue is a financial liability.

A bond with a face value of $100,000 and a quoted price of 102.25 would have a selling price of

Long term notes payable can only have floating interest rates.

A measure of a company's solvency is the

With fixed principal payments on a long-term note payable, the principal portion increases each period.

With blended principal and interest payments, the equal periodic payments result in the principal portion increasing each period.

Instalments are always paid monthly.

Fixed principal payments and interest are repayable in

Use the following information for questions On January 1 of this year, Gertoni Lenders agrees to lend Ester Corp.$150,000.Ester Corp.signs a $150,000, 6%, 9-month loan.Interest is due at maturity. -The entry made by Ester Corp.on January 1 to record the receipt of the loan is

With fixed principal payments, the interest ___ each period as the principal ___.

If the market interest rate at the date of a bond issue is greater than the coupon interest rate, the bond will be issued at a premium.

On March 2, Conroy and Conrad Inc.obtained a loan for $120,000 for 5 years at 7%.Payments are $2,000.What type of loan is this considered to be?

Current liabilities are listed in order of descending dollar value.

Interest (finance) expenses are separately reported in the "other gain and revenues" section of the income statement.

$8 million, 6%, 10-year bonds are issued at less than face value.Interest will be paid semi-annually.When calculating the market price of the bond, the present value of

Long term notes payable are a common form of debt financing.

Payroll liabilities include the employer's share of CPP contributions and EI premiums.