Got some practice questions before finals Which of the following


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24.99

Got some practice questions before finals Which of the following items does not qualify as a contingent liability? Loaning money to another party who may not be able to repay Unresolved environmental damage claims brought by the government None of these Being named as a defendant in a lawsuit On July 1, 20X1, a company borrows $100,000 on a 5% note, due in one year. Assume accrued interest was recorded on December 31. What accounts would be impacted at the time of repayment of the note and interest on June 30 20X2? Interest expense by 5,000 Interest payable, by 2,500 Notes payable by 105,000 Cash by 100,000 The beginning warranty liability was $25,000. Sales of $5,000000 were made, and 2% of sales is the estimated warranty cost. The ending balance of warranty liability was $35,000(credit). How much warrant work was performed? 110,000 10,000 90,000 100,000 None Leonard recorded gross pay of $250,000. This is subject to employee’s portion of social security and Medicare taxes of $16,750. Unemployment taxes of $3,000, and federal tax withholding of $46,000. How much is payroll tax expense? 16,750 19,750 36,500 0 Leonard recorded gross pay of $250,000. This is subject to employee’s portion of social security and Medicare taxes of $16,750. Unemployment taxes of $3,000, and federal tax withholding of $46,000. How much is salaries payable? None 266,750 315,750 250,000 253,000 Sylvan company had sales of $1,500,000. Estimated warranty costs are 1% of sales. Work performed under warranties during the period actually cost $8,750. The entry to record the warranty liability includes: A debit to warranty expense for $15,000 A debit to warranty expense for 6,250 A debit to warranty expense A debit to warranty expense None of these Walban department store records all sales at amounts the includes 8% sales tax. During November total recorded sales were $706,320. What portion of these sales should be recorded as a tax liability? None of these 0 56,505.60 52,320 654,000 Federal income taxes should not be withheld from Overtime wages Wages in excess of the social security base A retiring employee’s last paycheck Amounts paid to independent contractors none Leonard recorded gross pay of $250,000. This is subject to employee’s portion of social security and Medicare taxes of $16,750. Unemployment taxes of $3,000, and federal tax withholding of $46,000. How much is the employer’s total liability for this payroll? 269,750 223,750 266,750 250,000 On April 1, 20X6, Owen issued $100,000 of 12%, 10-year bonds. The bonds were issued at par + accrued interest, are dated January 1, 20X6, and pay interest on July and January 1. The entry to record the issuance of the bonds will include: A debit to cash of 103,000 A credit to bonds payable of 103,000 A credit to interest income of 3,000 None of these A credit to cash of 100,000 Ace retired a $10,000 bond by paying $11,000 cash. The payment included accrued interest of $250. At the date of retirement, the unamortized discount on the bonds was $400. How much is the loss on retirement? None of these 0 350 1,150 750 On June 1, Sao corporation issued $300,000 of 9%, 5-year bonds. The bonds were issued at 97, pay interest on January 1 and June1. The entry to record issuance of the bonds includes: A credit to bonds payable of $291,000 A credit to cash of 300,000 A debit to discount on notes payable of 9,000 A credit to interest payable of 9,000 On January 1, 20X1, Perkins issued $100,000 face, 8%, 5-year bonds at $92,278. The bonds pay interest annually and were priced to yield 10%. Using the effective interest method, how much is interest expense for 20X1? 8,000 9,227.80 9,544.40 9,258.50 None of the above Which of the following statements about bonds is true? Once outstanding, bonds may not be bought or sold Bonds must be issued at face value Interest is not accrued on bonds outstanding at year end All bonds have a face value None of these Hutton Corporation issued $100,000 of 7%, 15-year bonds on June 1, 20X6(da

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24.99