1. The journal entry to record the issuance of a note to a creditor to satisfy an account payable created earlier would include a __________ to __________.

credit; Accounts Payable

credit; Notes Payable

debit; Notes Payable

debit; Inventory

2. On December 1, a company accepted a $5,000, 4%, 90-day note. How much accrued interest will be recorded as an adjusting entry on December 31, the end of the accounting period?

$166.67

$16.67

$1.67

$0.00; interest is not accrued at year-end

1. Assume that John Smith is a salesperson employed by McCrackin Company. Smiths regular rate of pay is $36 per hour, and any hours worked in excess of 40 hours per week are paid at 1 times the regular rate. Smith worked 42 hours for the week ended October 27. What are his total earnings for the week?

$2,268

$1,548

$1,512

None of these choices are correct.

2. A certificate that authorizes an employer to withhold federal income taxes from each employee is called a Form

W-2.

1040.

W-4.

1040EZ.

3. An employee earned $1,000 in the first pay period of the current year. How much is the total employer and employee social security taxes on these earnings? (Use the simplified rate shown in illustrations.)

$120

$60

$0; the earnings are not subject to social security tax

None of these choices are correct.

1. The adjusting entry to record accrued vacation at year-end would include a __________ to __________.

debit; Vacation Pay Expense

credit; Cash

debit; Vacation Pay Payable

credit; Vacation Pay Expense

2. Assume that Hartmann Company contributes 15% of employee monthly salaries to an employee 401k plan. Assuming $600,000 of monthly salaries, the journal entry to record the monthly contribution would include a __________ to __________ for $90,000.

debit; Pension Expense

debit; Cash

debit; Unfunded Pension Liability

credit; Unfunded Pension Liability

3. All of the following would be considered examples of employer postretirement benefits EXCEPT

social security.

dental care.

tax services.

medical care.

1. When an installment note is issued, the journal entry will include a __________ to __________.

debit; Notes Payable

debit; Cash

credit; Cash

credit; Notes Receivable

2. On January 1 of Year 1, Pierce Company borrowed $200,000 on a 10-year, 7% installment note payable. The terms of the note require Pierce to pay 10 equal payments of $25,000 each December 31 for 10 years. The required general journal entry to record the first payment on the note on December 31 of Year 1 is

debit Interest Expense, $14,000; debit Notes Payable, $11,000; credit Cash, $25,000.

debit Notes Payable, $14,000; debit Interest Expense, $11,000; credit Cash, $25,000.

debit Notes Payable, $25,000; credit Cash, $25,000.

None of these choices are correct.

1. If a contingent liability is probable and the amount of the liability can be reasonably estimated, it is

not recorded but should be disclosed.

recorded and disclosed.

recorded only.

not recorded and not disclosed.

2. Assume that during May, a company sold a product for $160,000 that includes a 36-month warranty. Historically, the average cost of repairs over the warranty period is 7% of the sales price. The entry to record the estimated product warranty expense would include a __________ to __________ for $11,200.

debit; Product Warranty Expense

credit; Cash

debit; Product Warranty Payable

credit; Product Warranty Expense

1. Which of the following would be reported as current liabilities on the balance sheet?

Accruals

Accounts payable

Notes payable

All of these choices are correct.

2. A company has the following liabilities as of December 31:

Accounts payable	$150,000
Notes payable (current portion)	217,000
Salaries and wages payable	55,000
Installment notes payable	1,140,000
Interest payable	32,000
Payroll taxes payable	15,500

What is the amount of total current liabilities reported on the balance sheet?

$319,500

$469,500

$1,609,500

None of these choices are correct.

1. The quick ratio is computed as __________ divided by __________.

assets; quick liabilities

quick assets; quick liabilities

quick assets; current liabilities

current assets; current liabilities

2. Lilac Company reported the following financial data for the year ended December 31:

Cash	$50,000
Accounts receivable	40,000
Inventory	25,000
Total assets	150,000
Current liabilities	49,000
Total liabilities	99,000

Lilacs quick ratio for the year ended December 31 is

1.5.

1.8.

2.4.

None of these choices are correct.

Proceeds from Notes Payable

On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount of $150,000. Assume a 360-day year.

a. Determine the proceeds of the note, assuming the note carries an interest rate of 10%. $

b. Determine the proceeds of the note, assuming the note is discounted at 10%. $

Employee Net Pay

Lindsey Vaters weekly gross earnings for the week ended March 9 were $1,000, and her federal income tax withholding was $161.20. Assuming the social security tax rate is 6% and Medicare tax is 1.5% of all earnings, what is Lindseys net pay? If required, round your answer to two decimal places. $

Please answer all questions