Exam 10: Reporting and Analyzing Liabilities

The following totals for the month of March were taken from the payroll records of Kern Company. Salaries $54,000 FICA taxes withheld 4,131 Income taxes withheld 11,880 Medical insurance deductions 783 Federal unemployment taxes 432 State unemployment taxes 2,700 The journal entry to record the monthly payroll on March 30 would include a

(Multiple Choice)

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Question 241

When the effective-interest method of amortization is used, the amount of interest expense for a given period is calculated by multiplying the face rate of interest by the bond's carrying value at the beginning of the given period.

(True/False)

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Question 242

(a)Identify three taxes commonly paid by employers on employees' salaries and wages. (b) Where in the financial statements does the employer report taxes withheld from employees' pay?

(Essay)

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Question 243

The carrying value of bonds will equal the market price

(Multiple Choice)

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Question 244

In a recent year Garvey Corporation had net income of $100,000, interest expense of $20,000, and tax expense of $30,000. What was Garvey Corporation's times interest earned for the year?

(Multiple Choice)

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Question 245

Sparks Company received proceeds of $423,000 on 10-year, 8% bonds issued on January 1, 2013. The bonds had a face value of $400,000, pay interest annually on December 31st, and have a call price of 102. Sparks uses the straight-line method of amortization. What is the amount of interest expense Sparks will show with relation to these bonds for the year ended December 31, 2014?

(Multiple Choice)

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Question 246

A company receives $261, of which $21 is for sales tax. The journal entry to record the sale would include a

(Multiple Choice)

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Question 247

Sparks Company received proceeds of $423,000 on 10-year, 8% bonds issued on January 1, 2013. The bonds had a face value of $400,000, pay interest annually on December 31st, and have a call price of 102. Sparks uses the straight-line method of amortization. What is the carrying value of the bonds on January 1, 2015?

(Multiple Choice)

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Question 248

The debt to assets ratio measures the percentage of the total assets provided by creditors.

(True/False)

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Question 249

Winrow Company received proceeds of $565,500 on 10-year, 8% bonds issued on January 1, 2013. The bonds had a face value of $600,000, pay interest annually on December 31st, and have a call price of 101. Winrow uses the straight-line method of amortization. Winrow Company decided to redeem the bonds on January 1, 2015. What amount of gain or loss would Winrow report on its 2015 income statement?

(Multiple Choice)

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Question 250

Payroll taxes include the employer's share of taxes and both state and federal taxes.

(Short Answer)

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Question 251

If bonds are issued at a discount, the issuing corporation will pay a principal amount less than the face amount of the bonds on the maturity date.

(True/False)

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Question 252

The following partial amortization schedule is available for Courtney Company who sold $500,000, five-year, 10% bonds on January 1, 2014 for $520,000 and uses annual straight-line amortization. Which of the following amounts should be shown in cell (iii)?

(Multiple Choice)

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Question 253

The face value is the amount of principal and interest due at the maturity date.

(True/False)

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Question 254

When the effective-interest method of amortization is used for a bond premium, the amount of interest expense for an interest period is calculated multiplying the

(Multiple Choice)

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Question 255

Ervay Company has $875,000 of bonds outstanding. The unamortized premium is $12,600. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption?

(Multiple Choice)

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Question 256

Renfro Company issued $300,000 of 8%, 10-year bonds at 102. Interest is paid annually, and the straight-line method is used for amortization. Assume that the market rate for similar investments is 7%. The bonds are issued on the date of the bonds. a. What amount was received for the bonds? b. How much interest is paid each interest period? c. What is the premium amortization for the first interest period? d. How much interest expense is recorded on the first interest date? e. What is the carrying value of the bonds after the first interest date?

(Essay)

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Question 257

Peterson Company billed its customers a total of $840,000 for the month of November. The total includes a 5% state sales tax. Instructions (a) Determine the proper amount of revenue to report for the month. (b) Prepare the general journal entry to record the revenue and related liabilities for the month.

(Essay)

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Question 258

A $750,000 bond was retired at 103 when the carrying value of the bond was $777,500. The entry to record the retirement would include a

(Multiple Choice)

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Question 259

If $150,000 face value bonds are issued at 102, the proceeds received will be $102,000.

(True/False)

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Question 260

Showing 241 - 260 of 310

When the effective-interest method of amortization is used, the amount of interest expense for a given period is calculated by multiplying the face rate of interest by the bond's carrying value at the beginning of the given period.

(a)Identify three taxes commonly paid by employers on employees' salaries and wages. (b) Where in the financial statements does the employer report taxes withheld from employees' pay?

The carrying value of bonds will equal the market price

In a recent year Garvey Corporation had net income of $100,000, interest expense of $20,000, and tax expense of $30,000. What was Garvey Corporation's times interest earned for the year?

A company receives $261, of which $21 is for sales tax. The journal entry to record the sale would include a

The debt to assets ratio measures the percentage of the total assets provided by creditors.

Payroll taxes include the employer's share of taxes and both state and federal taxes.

If bonds are issued at a discount, the issuing corporation will pay a principal amount less than the face amount of the bonds on the maturity date.

The following partial amortization schedule is available for Courtney Company who sold $500,000, five-year, 10% bonds on January 1, 2014 for $520,000 and uses annual straight-line amortization. Which of the following amounts should be shown in cell (iii)?

The face value is the amount of principal and interest due at the maturity date.

When the effective-interest method of amortization is used for a bond premium, the amount of interest expense for an interest period is calculated multiplying the

Ervay Company has $875,000 of bonds outstanding. The unamortized premium is $12,600. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption?

A $750,000 bond was retired at 103 when the carrying value of the bond was $777,500. The entry to record the retirement would include a

If $150,000 face value bonds are issued at 102, the proceeds received will be $102,000.

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments and Acquisitions in Accounting

Filters

Exam 10: Reporting and Analyzing Liabilities

When the effective-interest method of amortization is used, the amount of interest expense for a given period is calculated by multiplying the face rate of interest by the bond's carrying value at the beginning of the given period.

(a)Identify three taxes commonly paid by employers on employees' salaries and wages. (b) Where in the financial statements does the employer report taxes withheld from employees' pay?

The carrying value of bonds will equal the market price

In a recent year Garvey Corporation had net income of $100,000, interest expense of $20,000, and tax expense of $30,000. What was Garvey Corporation's times interest earned for the year?

A company receives $261, of which $21 is for sales tax. The journal entry to record the sale would include a

The debt to assets ratio measures the percentage of the total assets provided by creditors.

Payroll taxes include the employer's share of ________________ taxes and both state and federal ________________ taxes.

If bonds are issued at a discount, the issuing corporation will pay a principal amount less than the face amount of the bonds on the maturity date.

The following partial amortization schedule is available for Courtney Company who sold $500,000, five-year, 10% bonds on January 1, 2014 for $520,000 and uses annual straight-line amortization. Which of the following amounts should be shown in cell (iii)?

The face value is the amount of principal and interest due at the maturity date.

When the effective-interest method of amortization is used for a bond premium, the amount of interest expense for an interest period is calculated multiplying the

Ervay Company has $875,000 of bonds outstanding. The unamortized premium is $12,600. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption?

A $750,000 bond was retired at 103 when the carrying value of the bond was $777,500. The entry to record the retirement would include a

If $150,000 face value bonds are issued at 102, the proceeds received will be $102,000.

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments and Acquisitions in Accounting

Filters

Payroll taxes include the employer's share of taxes and both state and federal taxes.