31 stardust company issued a five year interest bearing note payable for 50 000 on j 4300887

 

 

31) Stardust Company issued a five-year, interest-bearing note payable for $50,000 on January 1, 2013. Each January, Stardust is required to pay $10,000 principal on the note. What is the amount that will be reported on the current portion of long-term notes payable on the December 31, 2014 balance sheet?

A) $10,000

B) $40,000

C) $30,000

D) $20,000

 

32) Camrey Company issued a five-year, interest-bearing note payable for $50,000 on January 1, 2013. Each January Camrey is required to pay $10,000 principal on the note. What is the amount that will be reported on the long-term portion of long-term notes payable on the December 31, 2014 balance sheet?

A) $10,000

B) $40,000

C) $30,000

D) $20,000

Table 11-2

 

A $6,000, 120-day, 8% note payable is signed at the bank on October 2, 2013  to borrow cash for the purchase of a car.

 

33) Referring to Table 11-2, what is the amount of cash that is payable at the maturity of the note?

A) $6,157.81

B) $5,921.16

C) $5,842.19

D) $6,000.00

 

34) Referring to Table 11-2, the adjusting entry on December 31, 2013, would include a:

A) debit to Interest Expense for $147.81.

B) credit to Interest Expense for $118.36.

C) debit to Note Payable for $118.36.

D) credit to Interest Payable for $118.36.

 

35) The entry to accrue sales tax expense includes a:

A) debit to Sales Tax Expense.

B) credit to Sales Tax Payable.

C) debit to Sales Tax Payable.

D) There is no accrual of sales tax expense.

 

36) Lippman Company Ltd. collects 5% GST on sales. If  sales are $963,000, the proper accounting includes:

A) $101,115 credit to Sales.

B) $48,150 credit to GST Payable.

C) $48,150 debit to GST Recoverable.

D) $963,000 debit to Accounts Receivable.

37) The journal entry to remit GST to the Receiver General includes:

A) credit to GST Payable.

B) debit to GST Recoverable.

C) credit to GST Recoverable and debit to GST Payable.

D) debit to GST Recoverable and credit to GST Payable.

 

38) A company borrows $5,000 on November 1, 2013, giving a 10%, 180-day note payable. The adjusting entry on December 31, 2013, would include a:

A) credit to Interest Payable for $82.19.

B) credit to Interest Payable for $123.29.

C) debit to Interest Expense for $82.19.

D) credit to Cash for $82.19.

 

39) A company borrows $15,000 on November 1, 2013, giving a 6%, 90-day note payable. The adjusting entry on December 31, 2013, would include a:

A) credit to Interest Payable for $73.97.

B) credit to Interest Payable for $147.95.

C) debit to Interest Expense for $221.92.

D) credit to Cash for $147.95.

 

40) A company gives a $100,000, 120-day note at the bank at 9%. How much will the company pay the bank at maturity?

A) $102,958.90

B) $97,041.10

C) $98,520.55

D) $101,479.45