chapter 10 AC210

which of the following are not required payroll deductions from an employees' gross earnings?

SUTA, FUTA, charitable contributions

bond carrying value equals bonds payable ?

minus discount of bonds payable, plus premium on bonds payable

a liability is first recorded at the amount of cash a creditor would accept to immediately settle the liability, which ______ interest?

exludes

the debit-to-asset ratio indicates ______?

higher ratio means greater financing risk, the percentage of assets financed by debt

assets are financed with ______ and stockholders equity?

liabilites

when the times interest earned ratio is less than 1.0, a company is ?

not generating enough income to cover its interest expense

employees' gross earning differ from their net pay because of _____?

payroll deductions

the end-of-period adjusting entry that debits unearned revenue most likely will credit a ____ account.

revenue

T/F: companies issue bonds at a discount when the bond's stated interest rate is lower than the market interest rate?

true

borrowed 50,000, 6%, 9 month note payable. maturity when the note is repaid. adjusting entrys = ?

debit to interest expense of 1250, notes payable of 50,000, interest payable 1,000; credit to cash of 52250

the early retirement of a bond includes ?

1. payment of cash 2. record gain or loss 3. elimination of liability

ace electronics signed a 10yr, 100,000 ; 4% note payable on jan 1st. when the note is signed ace should record a liability of ?

100,000

owing suppliers= 3,000, sold half of merch for 5,000 on account, paid suppliers 1000 and bought another 4000 on account. accounts payable balance of ?

6000= 3000-1000+4000

the discount on a bond is ____ and a____ the discount each period.

amortized; decreases

which accounts are credited when the journal entry to pay employees is recorded?

cash, FICA, withheld income tax payable

discount on bonds payable are recorded with a debit and are _____?

contra- liabilities

a companys debt-to-assets ratio is .7 or 70%. if the company issues common stock for cash, then the debt to assets ratio will

decrease

under GAAP, contingent liability should _____?

-not be reported if the loss is remote and unable to be estimated - be reported on the B/S if the loss will probably occur and be reasonably estimated -be in the notes to the financial statement if the loss may possibly occur and can be reasonably estimated

the journal entry to record the payment of salaries and wages for work performed in the current accounting period causes ________?

assets and stockholders equity to decrease, liabilities to increase

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.

decrease; decrease; equal