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