Refer to the following list of liability balances at December 31,2019. \[\begin{array} { | l | r | } \hline \text { Accounts Payable } & \$ 15,000 \\ \hline \text { Employee Health Insurance Payable } & 1150 \\ \hline \text { Employee Income Tax Payable } & 600 \\ \hline \text { Estimated Warranty Payable (Due 2020) } & 1400 \\ \hline \text { Long-Term Notes Payable (Due 2022) } & 40,000 \\ \hline \text { FICA-OASDI Taxes Payable } & 1060 \\ \hline \text { Sales Tax Payable } & 670 \\ \hline \text { Mortgage Payable (Due 2023) } & 15,000 \\ \hline \text { Bonds Payable (Due 2024) } & 54,000 \\ \hline \text { Current Portion of Long-Term Notes Payable } & 10,500 \\ \hline \end{array}\] What is the total amount of long-term liabilities?

A) $55,000 B) $109,000 C) $94,000 D) $40,000 A) $55,000 B) $109,000 C) $94,000 D) $40,000

Exam 14: Long-Term Liabilities

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On January 1,2018,Wonderland Sales issued $30,000 in bonds for $22,300.These are eight-year bonds with a stated interest rate of 12% and pay semiannual interest.Wonderland Sales uses the straight-line method to amortize the bond discount.What is the bond carrying amount after the first interest payment on June 30,2018? (Round your intermediate answers to the nearest dollar.)

(Multiple Choice)

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Question 201

When a bond is issued,the issue price is the present value of the interest payments the bondholder will receive while holding the bond,plus the present value of the bond principal that will be received at maturity.

(True/False)

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Question 202

Which of the following statements is TRUE if a bond's stated interest rate is higher than the market rate?

(Multiple Choice)

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Question 203

Debt is a less expensive source of capital than stock.

(True/False)

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Question 204

The Current Portion of Long-Term Notes Payable would normally be shown on the balance sheet under current liabilities.

(True/False)

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Question 205

Which of the following statements is TRUE of the debt to equity ratio?

(Multiple Choice)

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Question 206

Refer to the following list of liability balances at December 31,2019. Accounts Payable \ 15,000 Employee Health Insurance Payable 1150 Employee Income Tax Payable 600 Estimated Warranty Payable (Due 2020) 1400 Long-Term Notes Payable (Due 2022) 40,000 FICA-OASDI Taxes Payable 1060 Sales Tax Payable 670 Mortgage Payable (Due 2023) 15,000 Bonds Payable (Due 2024) 54,000 Current Portion of Long-Term Notes Payable 10,500 What is the total amount of long-term liabilities?

(Multiple Choice)

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Question 207

Showing 201 - 207 of 207

When a bond is issued,the issue price is the present value of the interest payments the bondholder will receive while holding the bond,plus the present value of the bond principal that will be received at maturity.

Which of the following statements is TRUE if a bond's stated interest rate is higher than the market rate?

Debt is a less expensive source of capital than stock.

The Current Portion of Long-Term Notes Payable would normally be shown on the balance sheet under current liabilities.

Which of the following statements is TRUE of the debt to equity ratio?

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