Accounting Chapter 10

a bond certificate.

A legal document that indicates the name of the issuer, the face value of the bond and such other data is called

due date.

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

Notes Payable 300,000 Interest Payable 13,500 Cash 313,500

Moss County Bank agrees to lend the Sadowski Brick Company $300,000 on January 1. Sadowski Brick Company signs a $300,000, 6%, 9-month note. What entry will Sadowski Brick Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30?

Current liabilities, $175,000; Long-term debt, $525,000.

On January 1, 2014, Keisler Company, a calendar-year company, issued $700,000 of notes payable, of which $175,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2014, is

have specific assets of the issuer pledged as collateral.

Secured bonds are bonds that

2,500

The interest charged on a $250,000 note payable, at the rate of 6%, on a 60-day note would be

Cash 200,000 Notes Payable 200,000

West County Bank agrees to lend Drake Builders Company $200,000 on January 1. Drake Builders Company signs a $200,000, 6%, 6-month note. The entry made by Drake Builders Company on January 1 to record the proceeds and issuance of the note is

Interest Expense 3,000 Interest Payable 3,000

West County Bank agrees to lend Drake Builders Company $200,000 on January 1. Drake Builders Company signs a $200,000, 6%, 6-month note. What is the adjusting entry required if Drake Builders Company prepares financial statements on March 30?