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14 Cards in this Set
- Front
- Back
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A company receives $198, $13 of which is for sales tax. The journal entry to record the sale would include a? |
Credit to sales payable for $13 |
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Liabilities are classified on the balance sheet as current or? |
Long term |
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What is a note payable |
A written promissory note |
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From a liquidity stand point, which is more desirable for a company to have? |
Current assetsexceed current liabilities |
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By computing the present value of the principal paid asst maturity and all interest payments to be made over the term of the bond, you can obtain the________of bonds. |
Market price |
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False |
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The time period for classifying a liability as current is one year or the operating cycle, which ever is? |
Longer |
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Which one of the following is not a typical current liability? |
Mortgage payable |
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Butter company borrows 88500 on September 1, 2017, from harrington state bank by singing an 88500, 12%one-year note. How much is accrued interest at December 31, 2017? |
$88500×12%×4/12= 3540 |
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The Jacksonville jaguars sell season tickets to NFL football games. There are 10 home games during the season, which runs from August through December. During February, 65000 season tickets were sold for 12,000,000 cash. Which account will be credited by the Jacksonville jaguars upon receipt of the 12,000,000? |
Unearned tickets revenue |
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How is the Market value of a bond issuance determined? |
By adding the present value of the principal amount to the present value of the interest payments. |
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If the contractual rate of interest is lower than the market rate of interest,bonds will sell at a premium? |
False |
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What is the effect of amortizing a bond discount? |
It increases the carrying value of the bonds? |
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Kant corporation retires its $100000 face value bonds at 105on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $103745. Which of the following is part of the entry to record the bond redemption? |
A debit of $3745 to premium on bonds payable. |
