Accounting Final 2

Assuming a 360-day year, the interest charged by the bank, at the rate of 9%, on a 90-day, discounted note payable of $100,000 is:

$2,250

Assuming a 360-day year, when a $30,000, 90-day, 5% interest-bearing note payable matures, total payment will amount to:

$30,375

On July 8, Alton Co. issued an $80,000, 6%, 120-day note payable to Seller Co. Assume that the fiscal year of Alton Co. ends July 31. Using the 360-day year in your calculations, what is the amount of interest expense recognized by Alton in the current fiscal year?

$306.67

Assuming a 360-day year, when a $40,000, 90-day, 9% interest-bearing note payable matures, total payment will amount to:

$40,900

The maturity value of a $58,645, 90-day, 6% note payable is (Assuming a 360-day year for your calculations.)

$59,525

On July 1, Alton Co. issued an $81,800, 11%, 120-day note payable to Seller Co. Assume that the fiscal year of Alton Co. ends July 31. Using the 360-day year in your calculations, what is the amount of interest expense recognized by Alton in the current fiscal year?

$750

On June 8, Alton Co. issued an $83,906, 6%, 120-day note payable to Seller Co. Assuming a 360-day year for your calculations, what is the maturity value of the note? Select the correct answer.

$85,584

On June 8, Alton Co. issued an $90,000, 6%, 120-day note payable to Seller Co. Assuming a 360-day year for your calculations, what is the maturity value of the note?

$91,800

During May, Blast sold 650 portable CD players for $50 each. Each CD player cost Blast $25 to purchase and carried a one-year warranty. If 10 percent of the goods sold typically need to be replaced over the warranty period, what amount should Blast debit Product Warranty Expense for in May?

1625

The current portion of long-term debt should

Be reclassified as a current liability.

Current liabilities are

Due and payable within one year.

Current liabilities are:

Due and to be paid out of current assets within one year.

The total earnings of an employee for a payroll period is referred to as

Gross pay

The amount of federal income taxes withheld from an employee's gross pay is recorded as a(n)

Liability

Which of the following would most likely be classified as a current liability?

Unearned Rent

A current liability is a debt that is reasonably expected to be paid

Within one year.

Assuming a 360-day year, the interest charged by the bank, at the rate of 5%, on a 90-day, discounted note payable of $112,161 is

$1,402

Assuming a 360-day year, when a $14,558, 90-day, 8% interest-bearing note payable matures, total payment will amount to:

$14,849

Power Company sells merchandise with a one year warranty. In 2012, sales consisted of 1,600 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2012 and 70% in 2013. In the 2012 income statement, Power should show warranty expense of:

$16,000