Long-term notes may have. a) fixed rates of interest only. b) floating interest rates only. c) fixed or floating interest rates. d) no interest rates.
Long-term notes may have.
a) fixed rates of interest only.
b) floating interest rates only.
c) fixed or floating interest rates.
d) no interest rates.
Marigold Inc. received its annual property tax bill for $29700 in January. It was paid when due on March 31. Marigold year end is Dec 31. The Dec 31 balances should be
a) $7425 for Prepaid Property Tax; $22275 for Property Tax Expense.
b) $7425 for Prepaid Property Tax; $7425 for Property Tax Payable.
c) $0 for Prepaid Property Tax; $0 for Property Tax Payable.
d) $2475 for Prepaid Property Tax; $27225 for Property Tax Expense.
On March 2, Crane Inc. obtained a loan for $124000 for 5 years at 3%. Payments are $2228 per month. How much interest expense is recorded with the first instalment payment?
a)$1860
b)$310
c)$3720
d)$2228
One example of a liability that is not a financial liability is
a) notes payable.
b) financial lease.
c) deferred revenue.
d) bonds payable.
If interest is due at maturity, a $52000, 5%, 9-month note payable requires an interest payment of
a) 2600.
b) 433.
c) 1950.
d) 217.
On January 1, 2022, Junction Limited, a calendar-year company, issued $171000 of notes payable, of which $68000 is due on January 1 for each of the next four years. The proper
a) Current Liabilities, $103000; Non-current Liabilities, $68000.
b) Current Liabilities, $68000; Non-current Liabilities, $103000.
c) Current Liabilities, $171000.
d) Non-current Liabilities, $171000.
A five-year, 6%, $101300 note payable is issued on January 1. Terms include equal annual instalment payments of $24048. The entry to record the first instalment payment will include a
a) debit to Notes Payable of $17970.
b) credit to Interest Expense of $6078.
c) debit to Cash of $24048.
d) credit to Notes Payable of $24048.
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