Exam 10: Reporting and Interpreting Liabilities

On January 1,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 was $10,866.Your company used the effective-interest method of amortization.At the end of the first year,your company should:

(Multiple Choice)

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Question 141

The gross earnings for all employees is credited to Salaries and Salaries and Wages Payable.

(True/False)

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Question 142

On January 1,2016,a company issues 3-year bonds with a face value of $50,000 and a stated interest rate of 7%.Because the market interest rate is 5%,the company receives $52,723 for the bonds. Required: Fill in the table assuming the company uses effective-interest bond amortization.

(Essay)

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Question 143

Bonds that are backed by collateral are referred to as:

(Multiple Choice)

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Question 144

Sales taxes are recorded by the retailer as:

(Multiple Choice)

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Question 145

When a company has a contingent liability that is remote in likelihood,the company should:

(Multiple Choice)

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Question 146

Employees' gross earnings differ from their net pay because of:

(Multiple Choice)

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Question 147

When the times interest earned ratio increases,the likelihood of default on liabilities decreases.

(True/False)

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Question 148

Engstrom Company makes a sale and collects a total of $378,which includes an 8% sales tax.What is the amount that will be credited to the Sales Revenue account?

(Multiple Choice)

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Question 149

Bonds that are backed with a pledge of the company's assets are called:

(Multiple Choice)

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Question 150

Accruing a liability always involves expenses and liabilities.

(Multiple Choice)

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Question 151

ABC Company received $9,631 for its 5-year,10% bonds with a total face value of $10,000.The market rate of interest was 11%.The bonds pay interest annually on December 31.Approximately how much interest expense will ABC Corporation record on the first annual interest payment date using the effective-interest method?

(Multiple Choice)

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Question 152

If a company's gross salaries and wages are $12,000,and it withholds $1,800 for income taxes and $800 for FICA taxes,the journal entry to record the employees' pay should include a:

(Multiple Choice)

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Question 153

A 10-year bond that pays interest annually was issued at a $5,000 premium.The entry to record the payment of interest using straight-line amortization will include a to Premium on Bonds Payable for each period.

(Multiple Choice)

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Question 154

The entry to record the initial borrowing of cash by issuing a promissory note causes a(n):

(Multiple Choice)

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Question 155

John Smith works 40 hours for ABC Corp.for $15 per hour.Required payroll deductions are: Social Security $37.20; Medicare $8.70; Federal income tax $58; and State income tax $10.The entry to record his net pay would cause which of the following to change as described?

(Multiple Choice)

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Question 156

An entertainment company received $6 million in cash for advance season ticket sales.Prior to the beginning of the season,these sales should be recorded as a liability.

(True/False)

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Question 157

Use the information above to answer the following question.The journal entry to record this transaction would include the receipt of cash on November 1 a credit to:

(Multiple Choice)

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Question 158

Which of the following statements about a 10-year bond issued at a discount is not correct?

(Multiple Choice)

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Question 159

On October 1,2015,Bill Burns borrowed $170,000 from the New National Bank on a 6-month,6% note.Assuming no interest has been recorded yet,what is the amount of accrued interest as of December 31,2015?

(Multiple Choice)

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Question 160

Showing 141 - 160 of 235

On January 1,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 was $10,866.Your company used the effective-interest method of amortization.At the end of the first year,your company should:

The gross earnings for all employees is credited to Salaries and Salaries and Wages Payable.

On January 1,2016,a company issues 3-year bonds with a face value of $50,000 and a stated interest rate of 7%.Because the market interest rate is 5%,the company receives $52,723 for the bonds. Required: Fill in the table assuming the company uses effective-interest bond amortization.

Bonds that are backed by collateral are referred to as:

Sales taxes are recorded by the retailer as:

When a company has a contingent liability that is remote in likelihood,the company should:

Employees' gross earnings differ from their net pay because of:

When the times interest earned ratio increases,the likelihood of default on liabilities decreases.

Engstrom Company makes a sale and collects a total of $378,which includes an 8% sales tax.What is the amount that will be credited to the Sales Revenue account?

Bonds that are backed with a pledge of the company's assets are called:

Accruing a liability always involves expenses and liabilities.

If a company's gross salaries and wages are $12,000,and it withholds $1,800 for income taxes and $800 for FICA taxes,the journal entry to record the employees' pay should include a:

A 10-year bond that pays interest annually was issued at a $5,000 premium.The entry to record the payment of interest using straight-line amortization will include a to Premium on Bonds Payable for each period.

The entry to record the initial borrowing of cash by issuing a promissory note causes a(n):

John Smith works 40 hours for ABC Corp.for $15 per hour.Required payroll deductions are: Social Security $37.20; Medicare $8.70; Federal income tax $58; and State income tax $10.The entry to record his net pay would cause which of the following to change as described?

An entertainment company received $6 million in cash for advance season ticket sales.Prior to the beginning of the season,these sales should be recorded as a liability.

Use the information above to answer the following question.The journal entry to record this transaction would include the receipt of cash on November 1 a credit to:

Which of the following statements about a 10-year bond issued at a discount is not correct?

On October 1,2015,Bill Burns borrowed $170,000 from the New National Bank on a 6-month,6% note.Assuming no interest has been recorded yet,what is the amount of accrued interest as of December 31,2015?

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

On January 1,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 was $10,866.Your company used the effective-interest method of amortization.At the end of the first year,your company should:

The gross earnings for all employees is credited to Salaries and Salaries and Wages Payable.

On January 1,2016,a company issues 3-year bonds with a face value of $50,000 and a stated interest rate of 7%.Because the market interest rate is 5%,the company receives $52,723 for the bonds. Required: Fill in the table assuming the company uses effective-interest bond amortization.

Bonds that are backed by collateral are referred to as:

Sales taxes are recorded by the retailer as:

When a company has a contingent liability that is remote in likelihood,the company should:

Employees' gross earnings differ from their net pay because of:

When the times interest earned ratio increases,the likelihood of default on liabilities decreases.

Engstrom Company makes a sale and collects a total of $378,which includes an 8% sales tax.What is the amount that will be credited to the Sales Revenue account?

Bonds that are backed with a pledge of the company's assets are called:

Accruing a liability always involves ______ expenses and ______ liabilities.

If a company's gross salaries and wages are $12,000,and it withholds $1,800 for income taxes and $800 for FICA taxes,the journal entry to record the employees' pay should include a:

A 10-year bond that pays interest annually was issued at a $5,000 premium.The entry to record the payment of interest using straight-line amortization will include a ______ to Premium on Bonds Payable for ______ each period.

The entry to record the initial borrowing of cash by issuing a promissory note causes a(n):

John Smith works 40 hours for ABC Corp.for $15 per hour.Required payroll deductions are: Social Security $37.20; Medicare $8.70; Federal income tax $58; and State income tax $10.The entry to record his net pay would cause which of the following to change as described?

An entertainment company received $6 million in cash for advance season ticket sales.Prior to the beginning of the season,these sales should be recorded as a liability.

Use the information above to answer the following question.The journal entry to record this transaction would include the receipt of cash on November 1 a credit to:

Which of the following statements about a 10-year bond issued at a discount is not correct?

On October 1,2015,Bill Burns borrowed $170,000 from the New National Bank on a 6-month,6% note.Assuming no interest has been recorded yet,what is the amount of accrued interest as of December 31,2015?

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

Accruing a liability always involves expenses and liabilities.

A 10-year bond that pays interest annually was issued at a $5,000 premium.The entry to record the payment of interest using straight-line amortization will include a to Premium on Bonds Payable for each period.