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.) ​ ​

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

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.)

​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

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

Which of the following is the most desirable quick ratio?

All long-term liabilities eventually become current liabilities.

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.