ACC 291 Week 2 Chapter 10 Practice - Quiz 1 | Documents and Forms | Research Papers

ACC 291 Week 2 Chapter 10 Practice - Quiz 1

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ACC 291 Week 2 Chapter 10 Practice - Quiz 1

Question 1


The time period for classifying a liability as current is one year or the operating cycle, whichever is:

Question 2


To be classified as a current liability, a debt must be expected to be paid:

Question 3


Maggie Sharrer Company borrows $88,500 on September 1, 2011, from Sandwich State Bank by signing an $88,500, 12%, one-year note. What is the accrued interest at December 31, 2011?

Question 4


Becky Sherrick Company has total proceeds from sales of $4,515. If the proceeds include sales taxes of 5%, the amount to be credited to Sales is:

Question 5


Employer payroll taxes do not include:

Question 6


Sensible Insurance Company collected a premium of $18,000 for a 1-year insurance policy on April 1. What amount should Sensible report as a current liability for Unearned Insurance Premiums at December 31?

Question 7



The term used for bonds that are unsecured is:

Question 8


Karson Inc. issues 10-year bonds with a maturity value of $200,000. If the bonds are issued at a premium, this indicates that:

Question 9


Gester Corporation retires its $100,000 face value bonds at 105 on January 1, following the payment of semiannual interest. The carrying value of the bonds at the redemption date is $103,745. The entry to record the redemption will include a:

Question 10


Colson Inc. converts $600,000 of bonds sold at face value into 10,000 shares of common stock, par value $1. Both the bonds and the stock have a market value of $760,000. What amount should be credited to Paid-in Capital in Excess of Par as a result of the conversion?

Question 11


Andrews Inc. issues a $497,000, 10% 3-year mortgage note on January 1. The note will be paid in three annual installments of $200,000, each payable at the end of the year. What is the amount of interest expense that should be recognized by Andrews Inc. in the second year?

Question 12


Howard Corporation issued a 20-year mortgage note payable on January 1, 2011. At December 31, 2011, the unpaid principal balance will be reported as:

Question 13


For 2011, Corn Flake Corporation reported net income of $300,000. Interest expense was $40,000 and income taxes were $100,000. The times interest earned ratio was:

Question 14


The market price of a bond is dependent on:

Question 15


On January 1, Besalius Inc. issued $1,000,000, 9% bonds for $939,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Besalius uses the effective-interest method of amortizing bond discount. At the end of the first year, Besalius should report unamortized bond discount of:

Question 16


On January 1, Dias Corporation issued $1,000,000, 10%, 5-year bonds with interest payable on July 1 and January 1. The bonds sold for $1,081,105. The market rate of interest for these bonds was 8%. On the first interest date, using the effective-interest method, the debit entry to Bond Interest Expense is for (rounded up to the nearest whole dollar):

Question 17


On January 1, Hurley Corporation issues $500,000, 5-year, 12% bonds at 96 with interest payable on July 1 and January 1. The entry on July 1 to record payment of bond interest and the amortization of bond discount using the straight-line method will include a:

Question 18


On January 1, Hurley Corporation issues $500,000, 5-year, 12% bonds at 96 with interest payable on July 1 and January 1. What is the carrying value of the bonds at the end of the third interest period?

ACC 291 Week 2 Chapter 10 Practice - Quiz 1 Question 1 The time period for classifying a liability as current is one year or the operating cycle, whichever is: Question 2 To be classified as a current liability, a debt must be expected to be pa
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