FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 10: Current Liabilities and Payroll

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

The journal entry used to record the payment of a discounted note is

A) debit Notes Payable and Interest Expense; credit Cash
B) debit Notes Payable; credit Cash
C) debit Cash; credit Notes Payable
D) debit Accounts Payable; credit Cash

E) A) and D)
F) A) and C)

Correct Answer

verified

Show Answer

Question 22

Essay

Review LaterAdd Note

Review Later

The current assets and current liabilities for Kolbie Company and Newton Company are as follows: *These represent prepaid expenses and other non-quick current assets. a) Determine the quick ratio for both companies. Round to two decimal places. b) Interpret the quick ratio difference between the two companies.

Correct Answer

verified

a) Quick ratio = Quick assets/Current li...

View Answer

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

Which of the following forms is typically given to employees at the end of the calendar year so that employees can file their individual income tax forms?

On June 8, Williams Company issued an $80,000, 5%, 120-day note payable to Brown Industries. Assuming a 360- day year, what is the maturity value of the note?

Assuming that all wages are subject to federal and state unemployment taxes, the employer's payroll tax expense would be

Based on the following data, what is the quick ratio, rounded to one decimal point? $\begin{array}{lr}\text { Accounts payable } & 30,000 \\\text { Accounts receivable } & 60,000 \\\text { Accrued liabilities } & 5,000 \\\text { Cash } & 30,000 \\\text { Intangible assets } & 50,000\\\text { Inventory } & 69,000 \\\text { Long-term investments } & 80,000 \\\text { Long-term liabilities } & 100,000 \\\text { Marketable securities } & 30,000 \\\text { Fixed assets } & 670,000 \\\text { Prepaid expenses } & 1,000\end{array}$

The proceeds of a discounted note are equal to the face value of the note.

The journal entry to record the conversion of a $6,300 accounts payable to a notes payable would be

The current portion of long-term debt should

Payroll taxes levied against employers become an employer liability at the time the employee wages are incurred.

The journal entry a company uses to record the estimated product warranty liability expense is

Notes may be issued

The cost of a product warranty should be included as an expense in the

On June 1, Davis Inc. issued an $84,000, 5%, 120-day note payable to Garcia Company. Assume that the fiscal year of Garcia ends June 30. Using the 360-day year, what is the amount of interest revenue recognized by Garcia in the following year?

Taylor Bank lends Guarantee Company $150,000 on January 1. Guarantee Company signs a $150,000, 8%, 9- month note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is

An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $5,500; Social security tax rate, 6%; and Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, 0.8% on the first $7,000. Prepare the journal entries to record the salaries expense and the employer payroll tax expense.

The amount borrowed is equal to the face amount of the note on an interest bearing note payable.

Federal income taxes are subject to a maximum amount per employee per year.

Hadley Industries warrants its products for one year. The estimated product warranty expense is 4% of sales. Assume that sales were $210,000 for June. In July, a customer received warranty repairs requiring $205 of parts and $75 of labor. a) Journalize the adjusting entry required at June 30, the end of the first month of the current year, to record the estimated product warranty expense. b) Journalize the entry to record the warranty work provided in July.

Journalize the following entries on the books of Winston Co. for August 1, September 1, and November 30. Assume a 360-day year is used for interest calculations.)Aug. 1 Winston Co. purchased merchandise for $75,000 on account from Bagley Co., terms n/30. Sept. 1 Winston Co. issued a 90-day, 6% note for $75,000 on account. Nov. 30 Winston Co. paid the amount due.