Exam 10: Liabilities

Thirty $1,000 bonds with a carrying value of $39,600 are converted into 4,000 shares of $5 par value common stock. The common stock had a market value of $9 per share on the date of conversion. The entry to record the conversion is d

On September 1, Joe's Painting Service borrows $150,000 from National Bank on a 4-month, $150,000, 6% note. What entry must Joe's Painting Service make on December 31 before financial statements are prepared?

Working capital is current assets divided by current liabilities.

A $1,000 face value bond with a quoted price of 98 is selling for

Most notes are not interest bearing.

223. On January 1, Dade Corporation issued $3,000,000, 7%, 5-year bonds with interest payable on December 31. The bonds sold for $3,216,288. The market rate of interest for these bonds was 6%. On the first interest date, using the effective-interest method, the debit entry to Interest Expense is for

Lark Corporation retires its $800,000 face value bonds at 104 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is $829,960. The entry to record the redemption will include a

If there is a loss on bonds redeemed early, it is

Kingery Sales Company has the following selected accounts after posting adjusting entries: Instructions Prepare the current liability section of Kingery Sales Company's balance sheet, assuming $16,000 of the mortgage is payable next year.

Current maturities of long-term debt refers to the amount of interest on a note payable that must be paid in the current year.

A current liability is a debt that can be expected to be paid within ______________ year or the ______________, whichever is longer.

Admire County Bank agrees to lend Givens Brick Company $600,000 on January 1. Givens Brick Company signs a $600,000, 8%, 9-month note. What entry will Givens Brick Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30?

When current liabilities are presented under IFRS, they are generally shown

194. On January 1, Gage Corporation issues $1,000,000, 10-year, 12% bonds at 95 with interest payable on January 1. The carrying value of the bonds, using straight-line amortization, at the end of the third interest period is:

A legal document which summarizes the rights and privileges of bondholders as well as the obligations and commitments of the issuing company is called

When bonds are converted into common stock and the conversion is recorded, the ________________ of the bonds is transferred to paid-in capital accounts.

Premium on Bonds Payable is a contra account to Bonds Payable.

Each of the following accounts is reported as long-term liabilities except

The amount of sales tax collected by a retail store when making sales is

All of the following are reported as current liabilities except