Topic: Notes Payable
55.
On September 1, 2018, Daylight Donuts signed a $100,000, 9%, six-month note payable
with the amount borrowed plus accrued interest due six months later on March 1, 2019.
Daylight Donuts records the appropriate adjusting entry for the note on December 31,
2018. In recording the payment of the note plus accrued interest at maturity on March 1,
2019, Daylight Donuts would
56.
On December 1, 2018, Old World Deli signed a $300,000, 5%, six–month note payable with
the amount borrowed plus accrued interest due six months later on June 1, 2019. Old
World Deli should record which of the following adjusting entries at December 31, 2018?
57.
On December 1, 2018, Old World Deli signed a $300,000, 5%, six–month note payable with
the amount borrowed plus accrued interest due six months later on June 1, 2019. Old
World Deli records the appropriate adjusting entry for the note on December 31, 2018.
What amount of cash will be needed to pay back the note payable plus any accrued
interest on June 1, 2019?
58.
On November 1, 2018, New Morning Bakery signed a $200,000, 6%, six-month note
payable with the amount borrowed plus accrued interest due six months later on May 1,
2019. New Morning Bakery should record which of the following adjusting entries at
December 31, 2018?
59.
On November 1, 2018, New Morning Bakery signed a $200,000, 6%, six-month note
payable with the amount borrowed plus accrued interest due six months later on May 1,
2019. New Morning Bakery records the appropriate adjusting entry for the note on
December 31, 2018. What amount of cash will be needed to pay back the note payable
plus any accrued interest on May 1, 2019?
60.
The Pita Pit borrowed $100,000 on November 1, 2018, and signed a six-month note
bearing interest at 12%. Principal and interest are payable in full at maturity on May 1,
2019. In connection with this note, The Pita Pit should report interest expense at
December 31, 2018, in the amount of:
61.
The Pita Pit borrowed $100,000 on November 1, 2018, and signed a six-month note
bearing interest at 12%. Principal and interest are payable in full at maturity on May 1,
2019. In connection with this note, The Pita Pit should report interest expense in 2019 for
the amount of:
62.
Universal Travel, Inc. borrowed $500,000 on November 1, 2018, and signed a twelve–
month note bearing interest at 6%. Principal and interest are payable in full at maturity on
October 31, 2019. In connection with this note, Universal Travel, Inc. should report interest
payable at December 31, 2018, in the amount of:
63.
Universal Travel, Inc. borrowed $500,000 on November 1, 2018, and signed a twelve–
month note bearing interest at 6%. Principal and interest are payable in full at maturity on
October 31, 2019. In connection with this note, Universal Travel, Inc. should record interest
expense in 2019 in the amount of:
64.
Large, highly-rated firms sometimes sell commercial paper:
65.
An informal agreement that allows a company to borrow up to a prearranged limit without
having to follow formal loan procedures and prepare paperwork is known as:
66.
Which of the following is
not
an employer payroll cost?
67.
Which of the following are employer payroll costs?
I. FICA taxes.
II. Federal and state unemployment taxes.
III. Federal and state income taxes.
IV. Employer contributions to a retirement plan.
68.
Which of the following is
not
withheld from an employee’s salary?
69.
Which of the following are withheld from an employee’s salary?
I. FICA taxes.
II. Federal and state unemployment taxes.
III. Federal and state income taxes.
IV. Employee portion of health insurance.
70.
Which of the following is true regarding FICA taxes?
71.
Which of the following are
not
included in an employer’s payroll tax expense?
72.
Which of the following are included in an employer’s payroll tax expense?
73.
Mike Gundy is a college football coach making a base salary of $2,400,000 a year
($200,000 per month). Employers are required to withhold a 6.2% Social Security tax up to
a maximum base amount and a 1.45% Medicare tax with no maximum. Assuming the
Social Security maximum base amount is $118,500, how much will be withheld during the
year for the coach’s Social Security and Medicare.
74.
Mike Gundy is a college football coach making a base salary of $2,400,000 a year
($200,000 per month). Employers are required to withhold a 6.2% Social Security tax up to
a maximum base amount and a 1.45% Medicare tax with no maximum. Assuming the
Social Security maximum base amount is $118,500, through what month will Social
Security be withheld?
8-32
75.
Greger Peterson is a senior manager at a public accounting firm making a base salary of
$180,000 a year ($15,000 per month). Employers are required to withhold a 6.2% Social
Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum.
Assuming the Social Security maximum base amount is $118,500, how much will be
withheld during the year for Greger’s Social Security and Medicare.
76.
Greger Peterson is a senior manager at a public accounting firm making a base salary of
$180,000 a year ($15,000 per month). Employers are required to withhold a 6.2% Social
Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum.
Assuming the Social Security maximum base amount is $118,500, through what month will
Social Security be withheld?
77.
Action Travel has 10 employees each working 40 hours per week and earning $20 an hour.
Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are
7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is
the actual direct deposit of payroll for the first week of January?
78.
Action Travel has 10 employees each working 40 hours per week and earning $20 an hour.
Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are
7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is
the employer’s total payroll tax expense for the first week of January?
79.
Rock Adventures has 15 employees each working 40 hours per week and earning $30 an
hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes
are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee.
What is the actual direct deposit of payroll for the first week of January?
80.
Rock Adventures has 15 employees each working 40 hours per week and earning $30 an
hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes
are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee.
What is the employer’s total payroll tax expense for the first week of January?
81.
Deferred Revenues is a(n):
82.
In December 2017, Quebecor Printing received magazine subscriptions for 2018 from a
customer, who paid $500 in cash. What would be the appropriate journal entry for this
event?
83.
In January 2018, Summit Co. sells a gift card for $50 and receives cash. What would be the
appropriate journal entry for this event?
84.
In January, 2018, Summit Co. sells a gift card for $50 and receives cash. In February, 2018,
the customer comes back and spends $20 of their gift card on a water bottle. What would
be the appropriate journal entry for the purchase of the water bottle?
85.
At times, businesses require advance payments from customers that will be applied to the
purchase price when goods are delivered or services provided. These customer advances
represent:
86.
The sale of gift cards by a company is a direct example of:
87.
When a company delivers a product or service for which a customer has previously paid,
the company records the following: