Question 1

​On the first day of the fiscal year,Hawthorne Company obtained an $88,000,7-year,5% installment note from Sea Side Bank.The note requires annual payments of $15,208,with the first payment occurring on the last day of the fiscal year.The first payment consists of interest of $4,400 and principal repayment of $10,808.The journal entry Hawthorne would record to make the first annual payment due on the note would include a

Accepted Answer

A)   ​debit to cash for $15,208
B)   ​credit to notes payable for $10,808
C)   ​debit to interest expense for $4,400
D)   ​debit to notes payable for $15,208

Question 2

The Core Company had the following assets and liabilities as of December 31:
​
​
  Calculate the current ratio,working capital,and quick ratio.Round ratios to one decimal place.

Accepted Answer

AnswerCurrent ratio: ($58,000 ...

Question 3

All long-term liabilities eventually become current liabilities.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

A borrower has two alternatives for a loan: (a)issue a $480,000,60-day,8% note or (2)issue a $480,000,60-day note that the creditor discounts at 8%.(Assume a 360-day year is used for interest calculations.)

Accepted Answer

The answer of A borrower has two alternatives for a...

Question 6

The amount of federal income taxes withheld from an employee's gross pay is recorded as a(n)

Accepted Answer

A)   payroll expense
B)   contra account
C)   asset
D)   liability

Question 7

Journalize the following entries on the books of the borrower and creditor.Label accordingly.(Assume a 360-day year is used for interest calculations.)
​
​

Accepted Answer

The answer of Journalize the following entries on the books...

Question 8

Which of the following is the most desirable quick ratio?

Accepted Answer

A)   1.20
B)   1.00
C)   0.95
D)   0.50

Exam 10: Liabilities: Current,installment Notes,and Contingencies

Journalize the following entries on the books of the borrower and creditor.Label accordingly.(Assume a 360-day year is used for interest calculations.)

Correct Answer
verified

The Core Company had the following assets and liabilities as of December 31: Calculate the current ratio,working capital,and quick ratio.Round ratios to one decimal place.

Correct Answer
verified
AnswerCurrent ratio: ($58,000 ...
View Answer

Correct Answer
verified

Which of the following is the most desirable quick ratio?

Correct Answer
verified

The amount of federal income taxes withheld from an employee's gross pay is recorded as a(n)

Correct Answer
verified

All long-term liabilities eventually become current liabilities.

Correct Answer
verified

A borrower has two alternatives for a loan: (a)issue a $480,000,60-day,8% note or (2)issue a $480,000,60-day note that the creditor discounts at 8%.(Assume a 360-day year is used for interest calculations.)

Correct Answer
verified

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

Correct Answer
verified

Exam 10: Liabilities: Current,installment Notes,and Contingencies

Journalize the following entries on the books of the borrower and creditor.Label accordingly.(Assume a 360-day year is used for interest calculations.) ​ ​

Correct AnswerverifiedShow Answer

The Core Company had the following assets and liabilities as of December 31: ​ ​ Calculate the current ratio,working capital,and quick ratio.Round ratios to one decimal place.

Correct AnswerverifiedAnswerCurrent ratio: ($58,000 ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Which of the following is the most desirable quick ratio?

Correct AnswerverifiedShow Answer

The amount of federal income taxes withheld from an employee's gross pay is recorded as a(n)

Correct AnswerverifiedShow Answer

All long-term liabilities eventually become current liabilities.

Correct AnswerverifiedShow Answer

A borrower has two alternatives for a loan: (a)issue a $480,000,60-day,8% note or (2)issue a $480,000,60-day note that the creditor discounts at 8%.(Assume a 360-day year is used for interest calculations.)

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Journalize the following entries on the books of the borrower and creditor.Label accordingly.(Assume a 360-day year is used for interest calculations.)

Correct Answer
verified

The Core Company had the following assets and liabilities as of December 31: Calculate the current ratio,working capital,and quick ratio.Round ratios to one decimal place.

Correct Answer
verified
AnswerCurrent ratio: ($58,000 ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified