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71 the difference between the amount received from issuing a note payable and the am 4299696

 

71. The difference between the amount received from issuing a note payable and the amount repaid is referred to as: 

A. Interest.

B. Principle.

C. Face Value.

D. Cash.

E. Accounts Payable.

72. A short-term note payable: 

A. Is a written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer.

B. Is a contingent liability.

C. Is an estimated liability.

D. Is not a liability until the due date.

E. Cannot be used to extend the payment period for an account payable.

73. Short-term notes payable: 

A. Can replace an account payable.

B. Can be issued in return for money borrowed from a bank.

C. Are negotiable.

D. Are an unconditional promise to pay.

E. All of these.

74. On December 1, Martin Company signed a 90-day, 6% note payable, with a face value of $5,000. What amount of interest expense is accrued at December 31 on the note? 

A. $0

B. $25

C. $50

D. $75

E. $300

75. On November 1, Carter Company signed a 120-day, 10% note payable, with a face value of $9,000. What is the adjusting entry for the accrued interest at December 31 on the note? 

A. Debit interest expense, $0; credit interest payable, $0.

B. Debit interest expense, $100; credit interest payable, $100.

C. Debit interest expense, $150; credit interest payable, $150.

D. Debit interest expense, $200; credit interest payable, $200.

E. Debit interest expense, $300; credit interest payable, $300.

76. On November 1, Carter Company signed a 120-day, 10% note payable, with a face value of $9,000. What is the maturity value of the note on March 1? 

A. $9,000

B. $9,100

C. $9,150

D. $9,200

E. $9,300

77. On November 1, Carter Company signed a 120-day, 10% note payable, with a face value of $9,000. Carter made the appropriate year-end accrual. What is the journal entry as of March 1 to record the payment of the note assuming no reversing entry was made? 

A. Debit Notes Payable $9,000; debit Interest Payable $150; credit Cash $9,150.

B. Debit Cash $9,300; credit Notes Payable $9,300.

C. Debit Notes Payable $9,300; credit Interest Payable $150; credit Interest Expense $150; credit Cash $9,000.

D. Debit Notes Payable $9,000; debit Interest Payable $150; debit Interest Expense $150; credit Cash $9,300.

E. Debit Notes Payable $9,000; debit Interest Expense $300; credit Cash $9,300.

F. Interest accrued: $9,000 x .10 x 60/360 = $150

G. Interest earned during next year: $9,000 x .10 x 60/360 =$150

78. Employers' responsibilities for payroll include: 

A. Providing each employee with an annual report of his or her wages subject to FICA and federal income taxes along with the amount of these taxes withheld.

B. Filing Form 941, the Employer's Quarterly Federal Tax Return.

C. Filing Form 940, the Annual Federal Unemployment Tax Return.

D. Maintaining individual earnings records for each employee.

E. All of these.

79. Gross pay is: 

A. Take-home pay.

B. Total compensation earned by an employee before any deductions.

C. Salaries after taxes are deducted.

D. Deductions withheld by an employer.

E. The amount of the paycheck.

80. The employer should record payroll deductions as: 

A. Employee receivables.

B. Payroll taxes.

C. Current liabilities.

D. Wages payable.

E. Employee payables.

 

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