Exam 12: Non-Current Liabilities,debentures Payable and Classification of Liabilities on the Balance Sheet

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The Amazing Widget Company issues $508,000 of 8%,10-year debentures at 105 on 30 April 2017.The debentures pay interest on 30 April and 31 October.Assume that the company uses the straight-line method for amortisation.Calculate the net balance that will be reported for the debentures on the balance sheet on 31 October 2017.

(Multiple Choice)

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Question 81

On 1 January 2017,Bratios Company purchases equipment and signs a 6-year mortgage payable for $93,000 at 15%.The mortgage will be paid in equal annual instalments of $24,574,beginning 1 January 2018.Calculate the portion of principal amount paid on the third instalment.(Round to the nearest dollar.)

(Multiple Choice)

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Question 82

Which of the following is the amount the borrower must pay back to the debenture holders?

(Multiple Choice)

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Question 83

Once a debenture has been sold to a debenture holder,it may not be re-sold to other investors,but must be held by the first buyer until maturity.

(True/False)

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Question 84

Cases Company issues $802,000 of 8%,10-year debentures on 31 March 2017.The debentures pay interest on 31 March and 30 September.Which of the following statements is true?

(Multiple Choice)

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Question 85

On 1 January 2017,Bratios Company purchases equipment and signs a 6-year mortgage payable for $110,000 at 15%.The mortgage will be paid in equal annual instalments of $29,066,beginning 1 January 2018.Calculate the balance of the Mortgage payable account after the payment of the first instalment.

(Multiple Choice)

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Question 86

The debenture carrying amount is the balance in the debenture payable account subtracted from or added to the balance in either the discount or premium account.

(True/False)

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Question 87

Showing 81 - 87 of 87

On 1 January 2017,Bratios Company purchases equipment and signs a 6-year mortgage payable for $93,000 at 15%.The mortgage will be paid in equal annual instalments of $24,574,beginning 1 January 2018.Calculate the portion of principal amount paid on the third instalment.(Round to the nearest dollar.)

Which of the following is the amount the borrower must pay back to the debenture holders?

Once a debenture has been sold to a debenture holder,it may not be re-sold to other investors,but must be held by the first buyer until maturity.

Cases Company issues $802,000 of 8%,10-year debentures on 31 March 2017.The debentures pay interest on 31 March and 30 September.Which of the following statements is true?

On 1 January 2017,Bratios Company purchases equipment and signs a 6-year mortgage payable for $110,000 at 15%.The mortgage will be paid in equal annual instalments of $29,066,beginning 1 January 2018.Calculate the balance of the Mortgage payable account after the payment of the first instalment.

The debenture carrying amount is the balance in the debenture payable account subtracted from or added to the balance in either the discount or premium account.

The Role of Accounting in Decision Making

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Retailing Operations

Retail Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Non-Current Assets: Property, plant and Equipment, and Intangibles

Current Liabilities and Payroll

Partnerships

Companies: Formation and Shareholders Equity

Companies: Capital Management and the Income Statement

The Cash Flow Statement

The Framework of Accounting

Financial Statement Analysis

Introduction to Managerial Accounting and the Master Budget

Job Costing

Cost-Volume-Profit Analysis

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

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