The following partial amortization schedule is available for Courtney Company who sold $750,000, five-year, 10% bonds on January 1, 2017 for $780,000 and uses annual straight-line amortization. $\text { BOND AMORTIZATION SCHEDULE }$ $\begin{array}{|l|c|c|c|c|c|} \hline \text { Interest Periods } & \begin{array}{c} \text { Interest } \\ \text { to be paid } \end{array} & \begin{array}{c} \text { Interest } \\ \text { expense } \end{array} & \begin{array}{c} \text { Premium } \\ \text { Amortization } \end{array} & \begin{array}{c} \text { Unamortized } \\ \text { Premium } \end{array} & \begin{array}{c} \text { Bond Carrying } \\ \text { Value } \end{array} \\ \hline \text { January 1,2017 } & & & & \$ 30,000 & \$ 780,000 \\ \hline \text { January } 1,2018 & \text { (i) } & \text { (ii) } & \text { (iii) } & \text { (iv) } & (\mathrm{v}) \\ \hline \end{array}$ Which of the following amounts should be shown in cell (v)?

A) $786,000 B) $783,000 C) $774,000 D) $777,000 A) $786,000 B) $783,000 C) $774,000 D) $777,000

The following partial amortization schedule is available for Courtney Company who sold $750,000, five-year, 10% bonds on January 1, 2017 for $780,000 and uses annual straight-line amortization. $\text { BOND AMORTIZATION SCHEDULE }$ $\begin{array}{|l|c|c|c|c|c|} \hline \text { Interest Periods } & \begin{array}{c} \text { Interest } \\ \text { to be paid } \end{array} & \begin{array}{c} \text { Interest } \\ \text { expense } \end{array} & \begin{array}{c} \text { Premium } \\ \text { Amortization } \end{array} & \begin{array}{c} \text { Unamortized } \\ \text { Premium } \end{array} & \begin{array}{c} \text { Bond Carrying } \\ \text { Value } \end{array} \\ \hline \text { January 1,2017 } & & & & \$ 30,000 & \$ 780,000 \\ \hline \text { January } 1,2018 & \text { (i) } & \text { (ii) } & \text { (iii) } & \text { (iv) } & (\mathrm{v}) \\ \hline \end{array}$ Which of the following amounts should be shown in cell (iii)?

A) $15,000 B) $30,000 C) $6,000 D) $3,000 A) $15,000 B) $30,000 C) $6,000 D) $3,000

The following totals for the month of April were taken from the payroll records of Noll Company. \[\begin{array} { l r } \text { Salaries } & \$ 120,000 \\ \text { FlCA taxes withheld } & 9,180 \\ \text { Income taxes withheld } & 25,000 \\ \text { Medical insurance deductions } & 4,500 \\ \text { Federal unemployment taxes } & 320 \\ \text { State unemployment taxes } & 2,160 \end{array}\] The entry to record accrual of employer's payroll taxes would include a

A) debit to Payroll Tax Expense for $2,480. B) debit to Payroll Tax Expense for $11,660. C) credit to FICA Taxes Payable for $18,360. D) credit to Payroll Tax Expense for $2,480. A) debit to Payroll Tax Expense for $2,480. B) debit to Payroll Tax Expense for $11,660. C) credit to FICA Taxes Payable for $18,360. D) credit to Payroll Tax Expense for $2,480.

The following partial amortization schedule is available for Courtney Company who sold $750,000, five-year, 10% bonds on January 1, 2017 for $780,000 and uses annual straight-line amortization. $\text { BOND AMORTIZATION SCHEDULE }$ $\begin{array}{|l|c|c|c|c|c|} \hline \text { Interest Periods } & \begin{array}{c} \text { Interest } \\ \text { to be paid } \end{array} & \begin{array}{c} \text { Interest } \\ \text { expense } \end{array} & \begin{array}{c} \text { Premium } \\ \text { Amortization } \end{array} & \begin{array}{c} \text { Unamortized } \\ \text { Premium } \end{array} & \begin{array}{c} \text { Bond Carrying } \\ \text { Value } \end{array} \\ \hline \text { January 1,2017 } & & & & \$ 30,000 & \$ 780,000 \\ \hline \text { January } 1,2018 & \text { (i) } & \text { (ii) } & \text { (iii) } & \text { (iv) } & (\mathrm{v}) \\ \hline \end{array}$ Which of the following amounts should be shown in cell (ii)?

A) $81,000 B) $69,000 C) $78,000 D) $60,000 A) $81,000 B) $69,000 C) $78,000 D) $60,000

Exam 9: Reporting and Analyzing Liabilities

The following partial amortization schedule is available for Courtney Company who sold $750,000, five-year, 10% bonds on January 1, 2017 for $780,000 and uses annual straight-line amortization. $\text { BOND AMORTIZATION SCHEDULE }$ Interest Periods Interest to be paid Interest expense Premium Amortization Unamortized Premium Bond Carrying Value January 1,2017 \ 30,000 \ 780,000 January 1,2018 (i) (ii) (iii) (iv) () Which of the following amounts should be shown in cell (v)?

(Multiple Choice)

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Question 201

Sielert Corporation borrowed $1,500,000 from National Bank on May 31, 2016. The three-year, 7% note required annual payments of $571,575 beginning May 31, 2017. Interest expense for the year ended December 31, 2016 was

(Multiple Choice)

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(75)

Question 202

Whitmore Corporation Issues a £1,800,000, 10%, 10-year mortgage on December 31, 2017. The terms call for semi-annual installment payments of £144,435.The entry to record the first installment payment will include

(Multiple Choice)

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(80)

Question 203

The following partial amortization schedule is available for Courtney Company who sold $750,000, five-year, 10% bonds on January 1, 2017 for $780,000 and uses annual straight-line amortization. $\text { BOND AMORTIZATION SCHEDULE }$ Interest Periods Interest to be paid Interest expense Premium Amortization Unamortized Premium Bond Carrying Value January 1,2017 \ 30,000 \ 780,000 January 1,2018 (i) (ii) (iii) (iv) () Which of the following amounts should be shown in cell (iii)?

(Multiple Choice)

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Question 204

If the market rate of interest at the date of issuance of a bond is greater than the stated interest rate, the bond will be issued at a premium.

(True/False)

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Question 205

Bonds with a face value of $600,000 and a quoted price of 104¼ have a selling price of

(Multiple Choice)

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(70)

Question 206

The following totals for the month of April were taken from the payroll records of Noll Company. Salaries \ 120,000 FlCA taxes withheld 9,180 Income taxes withheld 25,000 Medical insurance deductions 4,500 Federal unemployment taxes 320 State unemployment taxes 2,160 The entry to record accrual of employer's payroll taxes would include a

(Multiple Choice)

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(86)

Question 207

Norlan Company does not ring up sales taxes separately on the cash register. Total receipts for October amounted to $36,750. If the sales tax rate is 5%, what amount must be remitted to the state for October's sales taxes?

(Multiple Choice)

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Question 208

The interest charged on a $350,000 note payable, at the rate of 6%, on a 60-day note would be

(Multiple Choice)

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Question 209

If the market rate of interest is greater than the contractual rate of interest, bonds will sell at a discount.

(True/False)

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Question 210

From an accounting standpoint, all of the following are contingencies that must be evaluated for off-balance sheet purposes except

(Multiple Choice)

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Question 211

The current carrying value of Pierce's $1,800,000 face value bonds is $1,793,200. If the bonds are retired at 102, what would be the amount Pierce would pay its bondholders?

(Multiple Choice)

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Question 212

A cash register tape shows cash sales of $8,000 and sales taxes of $400. The journal entry to record this information is

(Short Answer)

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Question 213

Molina Corporation issues 5,000, 10-year, 8%, $1,000 bonds dated January 1, 2017, at 103. The journal entry to record the issuance will show a

(Multiple Choice)

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Question 214

When the effective-interest method of amortization is used for a bond premium, the amount of interest expense for an interest period is calculated multiplying the

(Multiple Choice)

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Question 215

Neufeld Company issued $2,000,000 of 6%, 5-year bonds at 98, which pay interest annually. Assuming straight-line amortization, what is the carrying value of the bonds after one year?

(Multiple Choice)

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Question 216

The following partial amortization schedule is available for Courtney Company who sold $750,000, five-year, 10% bonds on January 1, 2017 for $780,000 and uses annual straight-line amortization. $\text { BOND AMORTIZATION SCHEDULE }$ Interest Periods Interest to be paid Interest expense Premium Amortization Unamortized Premium Bond Carrying Value January 1,2017 \ 30,000 \ 780,000 January 1,2018 (i) (ii) (iii) (iv) () Which of the following amounts should be shown in cell (ii)?

(Multiple Choice)

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Question 217

A retailer that collects sales taxes is acting as an agent for the

(Multiple Choice)

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(70)

Question 218

Finney Company borrowed €1,600,000 from BankTwo on January 1, 2016 in order to expand its mining capabilities. The five-year note required annual payments of €416,698 and carried an annual interest rate of 9.5%. What is the balance in the notes payable account at December 31, 2017 after the annual payment?

(Multiple Choice)

4.8/5

(81)

Question 219

Hogan Company has $2,000,000 of bonds outstanding. The unamortized premium is $28,800. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption?

(Multiple Choice)

4.7/5

(89)

Question 220

Sielert Corporation borrowed $1,500,000 from National Bank on May 31, 2016. The three-year, 7% note required annual payments of $571,575 beginning May 31, 2017. Interest expense for the year ended December 31, 2016 was

Whitmore Corporation Issues a £1,800,000, 10%, 10-year mortgage on December 31, 2017. The terms call for semi-annual installment payments of £144,435.The entry to record the first installment payment will include

If the market rate of interest at the date of issuance of a bond is greater than the stated interest rate, the bond will be issued at a premium.

Bonds with a face value of $600,000 and a quoted price of 104¼ have a selling price of

Norlan Company does not ring up sales taxes separately on the cash register. Total receipts for October amounted to $36,750. If the sales tax rate is 5%, what amount must be remitted to the state for October's sales taxes?

The interest charged on a $350,000 note payable, at the rate of 6%, on a 60-day note would be

If the market rate of interest is greater than the contractual rate of interest, bonds will sell at a discount.

From an accounting standpoint, all of the following are contingencies that must be evaluated for off-balance sheet purposes except

The current carrying value of Pierce's $1,800,000 face value bonds is $1,793,200. If the bonds are retired at 102, what would be the amount Pierce would pay its bondholders?

A cash register tape shows cash sales of $8,000 and sales taxes of $400. The journal entry to record this information is

Molina Corporation issues 5,000, 10-year, 8%, $1,000 bonds dated January 1, 2017, at 103. The journal entry to record the issuance will show a

When the effective-interest method of amortization is used for a bond premium, the amount of interest expense for an interest period is calculated multiplying the

Neufeld Company issued $2,000,000 of 6%, 5-year bonds at 98, which pay interest annually. Assuming straight-line amortization, what is the carrying value of the bonds after one year?

A retailer that collects sales taxes is acting as an agent for the

Hogan Company has $2,000,000 of bonds outstanding. The unamortized premium is $28,800. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption?

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

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