Question 1 On July 1, 200X you enter into a note payable of $200,000 with a 5% annual interest rate. Your interest expense

profilerubyCpaMba
 (Not rated)
 (Not rated)
Chat

Question 1

On July 1, 200X you enter into a note payable of $200,000 with a 5% annual interest rate.  Your interest expense for 200X will be:

$10,000.

$2,500

$2,000

$5,000   

 

Question 2

Post Company issues a 6 year, 6%, $200,000 bond at par on July 31. The journal entry would be:

A debit to cash of $200,000 and a credit to bonds payable of $200,000.

A debit to bonds payable of $200,000 and a credit to cash of $200,000.

A debit to cash of $200,000 and a credit to bonds receivable of $200,000.

A debit to bonds receivable of $200,000 and a credit to cash of $200,000.

 

 

Question 3

Post Company issues a 6 year, 6%, $200,000 bond at par on July 31.  How much interest will be paid over the life of the bond?

$4,000

$6,000

$12,000

$72,000   

 

Question 4

A company has current assets of $500,000, net income of $10,000, current liabilities of 250,000 and equity of $250,000.  What is the current ratio?

0.5

7.5

0.3

2.0   

 

Question 5

If a company has gross salaries of $12,000 and it withholds $1,800 for income taxes and $800 for FICA taxes, the journal entry to record the employee’s pay should include:

Debit to salary expense for $9,400

Debit to salary payable for $9,400

Credit to salary payable for $9,400   

Credit to cash for $12,000

 

    • 10 years ago
    Correct w/ Solutions! Use it as a GUIDE !!
    NOT RATED

    Purchase the answer to view it

    blurred-text
    • attachment
      accounting_finance_basic.docx