Question 1

Sold merchandise on account would have which effect on the following categories?

Accepted Answer

A) Total Accounts Receivable would increase. 
B) Total revenues would be increased. 
C) Total liabilities would not be affected. 
D) A and B would definitely occur. 
A) Total Accounts Receivable would increase. 
B) Total revenues would be increased. 
C) Total liabilities would not be affected. 
D) A and B would definitely occur.

Question 2

The discount period begins with the date of issue and ends with the date of the discount.

Accepted Answer

A) True 
 B)False

Question 3

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement that the account in which the account balance is reported, and in Column 4 the account's nature (temporary/permanent).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 4

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement that the account in which the account balance is reported, and in Column 4 the account's nature (temporary/permanent).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 5

Jeff Company issues a promissory note to David Company to get extended time on an account payable. David records this transaction as follows:

Accepted Answer

A) debit Accounts Receivable; credit Notes Receivable. 
B) debit Notes Receivable; credit Accounts Receivable. 
C) debit Notes Payable; credit Accounts Payable. 
D) debit Accounts Payable; credit Notes Payable. 
A) debit Accounts Receivable; credit Notes Receivable. 
B) debit Notes Receivable; credit Accounts Receivable. 
C) debit Notes Payable; credit Accounts Payable. 
D) debit Accounts Payable; credit Notes Payable.

Question 6

The maturity date for a 66-day note dated June 29 is:

Accepted Answer

A) September 1. 
B) September 2. 
C) September 3. 
D) August 31. 
A) September 1. 
B) September 2. 
C) September 3. 
D) August 31.

Question 7

Using a 360-day year, interest calculated for 180 days on a $7,000, 9% promissory note is:

Accepted Answer

A) $630. 
B) $310. 
C) $315. 
D) some other amount. 
A) $630. 
B) $310. 
C) $315. 
D) some other amount.

Question 8

The accounting department forgot to adjust for interest on the note payable. This error would cause:

Accepted Answer

A) the period end assets to be understated. 
B) the period end liabilities to be understated. 
C) the period's net income to be understated. 
D) None of these answers are correct. 
A) the period end assets to be understated. 
B) the period end liabilities to be understated. 
C) the period's net income to be understated. 
D) None of these answers are correct.

Question 9

Describe (a)the function of a promissory note and (b)explain its various parts and features.

Accepted Answer

a)
A promissory note is a written promis

Question 10

The maturity date for a four-month note dated January 31 is:

Accepted Answer

A) May 1. 
B) April 30. 
C) May 31. 
D) April 29. 
A) May 1. 
B) April 30. 
C) May 31. 
D) April 29.

Question 11

Mountain Site discounts a customer's 12%, $6,000, 90-day note dated July 1, on August The discount period is 45 days, and the bank discount rate is 18%. The maturity value of the note is $6,180. The bank discount is $139. The proceeds of the note are:

Accepted Answer

A) $6,041. 
B) $6,319. 
C) $5,861. 
D) $6,139. 
A) $6,041. 
B) $6,319. 
C) $5,861. 
D) $6,139.

Question 12

Given the following accounts:
   Indicate the account(s)to be debited and credited to record the following transactions.
-A promissory note received in granting a time extension to a charge customer.
Debit ________ & ________ Credit ________ & ________

Accepted Answer

The answer of Given the following accounts:
   Indicate...

Question 13

If your customer does not pay the note at maturity, the journal entry on your books would be:

Accepted Answer

A) debit Notes Payable and credit Accounts Payable. 
B) debit Accounts Payable, credit Interest Income and credit Notes Payable. 
C) debit Accounts Receivable, credit Interest Income and credit Notes Receivable. 
D) debit Notes Receivable, credit Interest Income, and credit Accounts Receivable. 
A) debit Notes Payable and credit Accounts Payable. 
B) debit Accounts Payable, credit Interest Income and credit Notes Payable. 
C) debit Accounts Receivable, credit Interest Income and credit Notes Receivable. 
D) debit Notes Receivable, credit Interest Income, and credit Accounts Receivable.

Question 14

Prepare general journal entries for Huckabee Corporation for the following transactions:
200x
   200x

Accepted Answer

The answer of Prepare general journal entries for Huckabee Corporation...

Question 15

Accrued interest resulting from a trade note receivable would have which effect on the categories?

Accepted Answer

A) Total liabilities would be increased. 
B) Total assets would be increased. 
C) Owner's equity would be decreased. 
D) None of these answers are correct. 
A) Total liabilities would be increased. 
B) Total assets would be increased. 
C) Owner's equity would be decreased. 
D) None of these answers are correct.

Question 16

Bill's Bikes discounts a 90-day, 8%, $4,000 note at a bank at 12%. The discount period is 50 days. It records the proceeds as:

Accepted Answer

A) debit Cash $4,012; credit Notes Receivable $4,000; credit Interest Income $12. 
B) debit Cash $4,160; credit Notes Receivable $4,080; credit Interest Income $80. 
C) debit Cash $4,068, credit Notes Receivable $4,000; credit Interest Income $68. 
D) debit Cash $4,012; credit Notes Receivable $4,000, credit Interest Expense $12. 
A) debit Cash $4,012; credit Notes Receivable $4,000; credit Interest Income $12. 
B) debit Cash $4,160; credit Notes Receivable $4,080; credit Interest Income $80. 
C) debit Cash $4,068, credit Notes Receivable $4,000; credit Interest Income $68. 
D) debit Cash $4,012; credit Notes Receivable $4,000, credit Interest Expense $12.

Question 17

Paying the principal plus interest would have which effect on the categories?

Accepted Answer

A) Total liabilities would be increased. 
B) Total assets would be decreased. 
C) Owner's equity would be decreased. 
D) B and C could be correct. 
A) Total liabilities would be increased. 
B) Total assets would be decreased. 
C) Owner's equity would be decreased. 
D) B and C could be correct.

Question 18

A promissory note from the sales of merchandise would have which effect on the categories?

Accepted Answer

A) Total assets would be increased. 
B) Total liabilities would be increased. 
C) Owner's equity would be decreased. 
D) None of these answers are correct. 
A) Total assets would be increased. 
B) Total liabilities would be increased. 
C) Owner's equity would be decreased. 
D) None of these answers are correct.

Question 19

The entry to record the cash received on a note discounted at less than face value is to:

Accepted Answer

A) debit Cash, credit Interest Income, and credit Notes Receivable. 
B) debit Cash, debit Interest Expense, and credit Notes Receivable. 
C) debit Cash and credit Interest Expense. 
D) debit Notes Receivable and credit Cash. 
A) debit Cash, credit Interest Income, and credit Notes Receivable. 
B) debit Cash, debit Interest Expense, and credit Notes Receivable. 
C) debit Cash and credit Interest Expense. 
D) debit Notes Receivable and credit Cash.

Question 20

The maturity date for a 60-day note dated February 10, 2012, a leap year is:

Accepted Answer

A) February 10. 
B) April 10. 
C) April 11. 
D) April 9. 
A) February 10. 
B) April 10. 
C) April 11. 
D) April 9.

Exam 14: Notes Receivable and Notes Payable

Sold merchandise on account would have which effect on the following categories?

The discount period begins with the date of issue and ends with the date of the discount.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement that the account in which the account balance is reported, and in Column 4 the account's nature (temporary/permanent). -

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement that the account in which the account balance is reported, and in Column 4 the account's nature (temporary/permanent). -

Jeff Company issues a promissory note to David Company to get extended time on an account payable. David records this transaction as follows:

The maturity date for a 66-day note dated June 29 is:

Using a 360-day year, interest calculated for 180 days on a $7,000, 9% promissory note is:

The accounting department forgot to adjust for interest on the note payable. This error would cause:

Describe (a)the function of a promissory note and (b)explain its various parts and features.

The maturity date for a four-month note dated January 31 is:

Mountain Site discounts a customer's 12%, $6,000, 90-day note dated July 1, on August The discount period is 45 days, and the bank discount rate is 18%. The maturity value of the note is $6,180. The bank discount is $139. The proceeds of the note are:

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -A promissory note received in granting a time extension to a charge customer. Debit ________ & ________ Credit ________ & ________

If your customer does not pay the note at maturity, the journal entry on your books would be:

Prepare general journal entries for Huckabee Corporation for the following transactions: 200x 200x

Accrued interest resulting from a trade note receivable would have which effect on the categories?

Bill's Bikes discounts a 90-day, 8%, $4,000 note at a bank at 12%. The discount period is 50 days. It records the proceeds as:

Paying the principal plus interest would have which effect on the categories?

A promissory note from the sales of merchandise would have which effect on the categories?

The entry to record the cash received on a note discounted at less than face value is to:

The maturity date for a 60-day note dated February 10, 2012, a leap year is:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: The Beginning of the Payroll Process

Paying, Recording, and Reporting Payroll and Payroll Taxes: the Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Accounting for Merchandise Inventory

Accounting for Property, Plant, Equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, Dividends, Treasury Stocks, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -A promissory note received in granting a time extension to a charge customer. Debit & Credit &