Chapter 10

crediting sales taxes payable

sales taxes collected by a retrailer are recorded by

$10,200

the amount of cash receivable on issuance of a 9%, %10,000 bond dated febuary 1 at 102 is

a current liability

the amount of sales tax collected by a retail store when making sales is

annual rate

the contractual rate of interest is usually stated as a(n)

credit to sales taxes payable for $24

a company receives $264, of which $24 is for sales tax. the journal entry to record the sale would include a

within one year, or the operating cycle, whichever is longer

a current liability is a debt that can reasonably br expected to be paid

increased; the interest payable account it increased

as interest is recorded on an interest-bearing note, the interest expense account is

debenture bonds

bonds that are issued against the general credit of the borrower are called

and payable within one year

current liabilities are due to

cash unearned service revenue service revenue

julie has a large consulting practice. new clients are required to pay one-half of the consulting fees up front. the balance is paid at the conclusion of the consultation. how does julie account for the cash received at the end of the engagement?

due date

liabilities are classified as current or long-term based on their

long-term

liabilities are classified on the balance sheet as current or

out of current assets

most companies pay current liabilities

cash 900,000 unearned subscription revenue 900,000

madson company typically sells subscriptions on an annual basis, and publishes six times a year. the magazine sells 90,000 subscriptions in january at $10 each. what entry is made in january to record the sale if the subscriptions?

interest expense 15,000 interest payable 15,000

moss company bank agrees to lend the sadowski brick company $500,000 on january 1. Sadowski brick company signs a $500,000, 6%, 9-month note. what is the adjusting entry required if Sadowski Brick company prepares financial statements on june 30?

cash 500,000 notes payable 500,000

moss county bank agrees to lend the sadowski brick company $500,000 on january 1. sadowski brick company signs a $500,000, 6%, 9-month note. the entry made by sadowski brick company on january 1 to record the proceeds and issuance of the note is

$4,500

the interest charged on a $300,000 not payable, at the rate of 6%, on a 90-day note would be

reported as a current liability

unearned rent revenue is

a lawsuit judgement to be decided on january 10, 2018

which of the following is not a current liability on december 31, 2017?

dividends payable

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

equal to the note's face value

with an interest-bearing note, the amount of assets received upon issuance of the note is generally