Exam 10: Reporting and Interpreting Liabilities

Travis County Bank agrees to lend Brickyard Corporation $200,000 on January 1.Brickyard signs a $200,000, 4%, 9-month note.Interest is due at maturity on September 30.The company's fiscal year ends June 30 and adjusting entries are recorded at that time only. -Use the information above to answer the following question.What journal entry will Brickyard make when paying the note at maturity?

(Multiple Choice)

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Question 221

Which of the following is not used to calculate the times interest earned ratio?

(Multiple Choice)

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Question 222

Sales tax collected by a company is normally reported as:

(Multiple Choice)

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Question 223

Which of the following statements about bond terminology is correct?

(Multiple Choice)

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Question 224

Your company sells $50,000 of bonds for an issue price of $52,000.Which of the following statements is correct?

(Multiple Choice)

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Question 225

Amortizing a bond premium will the premium balance and the carrying value of the bond so that when the bond matures the carrying value will __ the face value.

(Multiple Choice)

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Question 226

Which of the following circumstances would require a contingent liability to be recorded under generally accepted accounting principles?

(Multiple Choice)

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Question 227

The discount on a bond is and the discount each period.

(Multiple Choice)

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Question 228

The annual interest payment on bonds:

(Multiple Choice)

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Question 229

When a bond is issued at more than its face value,it is issued at:

(Multiple Choice)

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Question 230

If the likelihood of a loss is reasonably possible,a contingent liability is recorded by making an appropriate journal entry.

(True/False)

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Question 231

Which of the following statements about the issuance of bonds at a premium is not correct?

(Multiple Choice)

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Question 232

Your company issues a 5-year bond with a face value of $10,000 and a stated interest rate of 7%.The market interest rate is 5%.The issue price of the bond is calculated as the:

(Multiple Choice)

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Question 233

On September 1, 2016, a company issued a $50,000, 6-month, 9% note payable to purchase equipment.At December 31, 2016, the company records an adjusting entry to accrue interest incurred by not paid.The company pays the note with interest at the maturity date. -Use the information above to answer the following question.What is the entry to record the payment of interest at the maturity date of the note?

(Multiple Choice)

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Question 234

Worthington Co.issues $500,000 of 5-year,6% bonds on January 1,2016. Required: Prepare the journal entry to record the issuance of the bonds under each of the following assumptions: Part a.The bonds are sold at 100. Part b.The bonds are sold at 102. Part c.The bonds are sold at 96.

(Essay)

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Question 235

Showing 221 - 235 of 235

Which of the following is not used to calculate the times interest earned ratio?

Sales tax collected by a company is normally reported as:

Which of the following statements about bond terminology is correct?

Your company sells $50,000 of bonds for an issue price of $52,000.Which of the following statements is correct?

Amortizing a bond premium will the premium balance and the carrying value of the bond so that when the bond matures the carrying value will __ the face value.

Which of the following circumstances would require a contingent liability to be recorded under generally accepted accounting principles?

The discount on a bond is and the discount each period.

The annual interest payment on bonds:

When a bond is issued at more than its face value,it is issued at:

If the likelihood of a loss is reasonably possible,a contingent liability is recorded by making an appropriate journal entry.

Which of the following statements about the issuance of bonds at a premium is not correct?

Your company issues a 5-year bond with a face value of $10,000 and a stated interest rate of 7%.The market interest rate is 5%.The issue price of the bond is calculated as the:

Worthington Co.issues $500,000 of 5-year,6% bonds on January 1,2016. Required: Prepare the journal entry to record the issuance of the bonds under each of the following assumptions: Part a.The bonds are sold at 100. Part b.The bonds are sold at 102. Part c.The bonds are sold at 96.

Business Decisions and Financial Accounting

Reporting Investing and Financing Results on the Balance Sheet

Reporting Operating Results on the Income Statement

Adjustments,financial Statements,and Financial Results

Fraud, Internal Control, and Cash

Internal Control and Financial Reporting for Cash and Merchandising Operations

Reporting and Interpreting Inventories and Cost of Goods Sold

Reporting and Interpreting Receivables,bad Debt Expense,and Interest Revenue

Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Reporting and Interpreting Stockholders Equity

Reporting and Interpreting the Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

Exam 10: Reporting and Interpreting Liabilities

Which of the following is not used to calculate the times interest earned ratio?

Sales tax collected by a company is normally reported as:

Which of the following statements about bond terminology is correct?

Your company sells $50,000 of bonds for an issue price of $52,000.Which of the following statements is correct?

Amortizing a bond premium will ______ the premium balance and ______ the carrying value of the bond so that when the bond matures the carrying value will ______ the face value.

Which of the following circumstances would require a contingent liability to be recorded under generally accepted accounting principles?

The discount on a bond is ______ and ______ the discount each period.

The annual interest payment on bonds:

When a bond is issued at more than its face value,it is issued at:

If the likelihood of a loss is reasonably possible,a contingent liability is recorded by making an appropriate journal entry.

Which of the following statements about the issuance of bonds at a premium is not correct?

Your company issues a 5-year bond with a face value of $10,000 and a stated interest rate of 7%.The market interest rate is 5%.The issue price of the bond is calculated as the:

Worthington Co.issues $500,000 of 5-year,6% bonds on January 1,2016. Required: Prepare the journal entry to record the issuance of the bonds under each of the following assumptions: Part a.The bonds are sold at 100. Part b.The bonds are sold at 102. Part c.The bonds are sold at 96.

Business Decisions and Financial Accounting

Reporting Investing and Financing Results on the Balance Sheet

Reporting Operating Results on the Income Statement

Adjustments,financial Statements,and Financial Results

Fraud, Internal Control, and Cash

Internal Control and Financial Reporting for Cash and Merchandising Operations

Reporting and Interpreting Inventories and Cost of Goods Sold

Reporting and Interpreting Receivables,bad Debt Expense,and Interest Revenue

Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Reporting and Interpreting Stockholders Equity

Reporting and Interpreting the Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

Amortizing a bond premium will the premium balance and the carrying value of the bond so that when the bond matures the carrying value will __ the face value.

The discount on a bond is and the discount each period.