Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

On June 8, Alton Co. issued an $90,000, 6%, 120-day note payable to Seller Co. Assuming a 360-day year for your calculations, what is the maturity value of the note?

Accepted Answer

A)   $90,450
B)   $90,000
C)   $91,800
D)   $95,400E) C) and D)
F) A) and B)

Question 3

If, prior to the last weekly payroll period of the calendar year, the cumulative earnings for an employee are $98,800, earnings subject to social security tax are $100,000, and the tax rate is 6.0%, the employer's social security tax on the $2,000 gross earnings paid on the last day of the year is $120.

Accepted Answer

A) True 
 B)False

Question 4

Grayson Bank agrees to lend the Trust Company $100,000 on January 1. Trust Company signs a $100,000, 8%, 9-month note. The entry made by Trust Company on January 1 to record the proceeds and issuance of the note is:

Accepted Answer

A)   Interest Expense 8,000 Cash 92,000Notes Payable 100,000
B)   Cash 100,000 Notes Payable 100,000
C)   Cash 108,000 Interest Expense 8,000Notes Payable 108,000
D)   Notes Payable 100,000 Interest Payable 6,000Cash 100,000Interest Expense 6,000E) B) and C)
F) A) and C)

Question 5

Employers are required to compute and report payroll taxes on a calendar-year basis, even if a different fiscal year is used for financial reporting and income tax purposes.

Accepted Answer

A) True 
 B)False

Question 6

FICA tax is a payroll tax that is paid only by employers.

Accepted Answer

A) True 
 B)False

Question 7

On January 5, 2012, Garrett Company, a calendar-year company, issued $500,000 of notes payable, of which $100,000 is due on January 1 for each of the next five years. The proper balance sheet presentation on December 31, 2012, is

Accepted Answer

A)   Current Liabilities, $500,000.
B)   Current Liabilities, $100,000; Long-term Debt, $400,000.
C)   Long-term Debt, $500,000
D)   Current Liabilities, $400,000; Long-term Debt, $100,000.E) A) and D)
F) None of the above

Question 8

Notes payable may be issued to creditors to satisfy accounts payable created earlier.

Accepted Answer

A) True 
 B)False

Question 9

Journalize the following transactions:

Accepted Answer

The answer of Journalize the following transactions:
 ...

Question 10

The payroll register of Seaside Architecture Company indicates $970 of Social Security and $257 of Medicare tax withheld on total salaries of $16,500 for the period. Federal withholding for the period totaled $3,245. Provide the journal entry for the period's payroll.

Accepted Answer

The answer of The payroll register of Seaside Architecture Company...

Question 11

The borrower is the one who issues a note payable to a creditor.

Accepted Answer

A) True 
 B)False

Question 12

All long-term liabilities eventually become current liabilities.

Accepted Answer

A) True 
 B)False

Exam 10: Current Liabilities and Payroll

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

Correct Answer
verified

Correct Answer
verified

On January 5, 2012, Garrett Company, a calendar-year company, issued $500,000 of notes payable, of which $100,000 is due on January 1 for each of the next five years. The proper balance sheet presentation on December 31, 2012, is

Correct Answer
verified

The payroll register of Seaside Architecture Company indicates $970 of Social Security and $257 of Medicare tax withheld on total salaries of $16,500 for the period. Federal withholding for the period totaled $3,245. Provide the journal entry for the period's payroll.

Correct Answer
verified

All long-term liabilities eventually become current liabilities.

Correct Answer
verified

The borrower is the one who issues a note payable to a creditor.

Correct Answer
verified

FICA tax is a payroll tax that is paid only by employers.

Correct Answer
verified

Grayson Bank agrees to lend the Trust Company $100,000 on January 1. Trust Company signs a $100,000, 8%, 9-month note. The entry made by Trust Company on January 1 to record the proceeds and issuance of the note is:

Correct Answer
verified

On June 8, Alton Co. issued an $90,000, 6%, 120-day note payable to Seller Co. Assuming a 360-day year for your calculations, what is the maturity value of the note?

Correct Answer
verified

Employers are required to compute and report payroll taxes on a calendar-year basis, even if a different fiscal year is used for financial reporting and income tax purposes.

Correct Answer
verified

Notes payable may be issued to creditors to satisfy accounts payable created earlier.

Correct Answer
verified

Journalize the following transactions:

Correct Answer
verified

Exam 10: Current Liabilities and Payroll

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

On January 5, 2012, Garrett Company, a calendar-year company, issued $500,000 of notes payable, of which $100,000 is due on January 1 for each of the next five years. The proper balance sheet presentation on December 31, 2012, is

Correct AnswerverifiedShow Answer

The payroll register of Seaside Architecture Company indicates $970 of Social Security and $257 of Medicare tax withheld on total salaries of $16,500 for the period. Federal withholding for the period totaled $3,245. Provide the journal entry for the period's payroll.

Correct AnswerverifiedShow Answer

All long-term liabilities eventually become current liabilities.

Correct AnswerverifiedShow Answer

The borrower is the one who issues a note payable to a creditor.

Correct AnswerverifiedShow Answer

FICA tax is a payroll tax that is paid only by employers.

Correct AnswerverifiedShow Answer

Grayson Bank agrees to lend the Trust Company $100,000 on January 1. Trust Company signs a $100,000, 8%, 9-month note. The entry made by Trust Company on January 1 to record the proceeds and issuance of the note is:

Correct AnswerverifiedShow Answer

On June 8, Alton Co. issued an $90,000, 6%, 120-day note payable to Seller Co. Assuming a 360-day year for your calculations, what is the maturity value of the note?

Correct AnswerverifiedShow Answer

Employers are required to compute and report payroll taxes on a calendar-year basis, even if a different fiscal year is used for financial reporting and income tax purposes.

Correct AnswerverifiedShow Answer

Notes payable may be issued to creditors to satisfy accounts payable created earlier.

Correct AnswerverifiedShow Answer

Journalize the following transactions:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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