1. Universal Travel Inc. borrowed $498,000 on November 1, 2018, and signed a 12-month note bearing interest at 4%. Interest is 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:

Multiple Choice $19,920. $13,280. $3,320. $16,600

2.Branch Company, a building materials supplier, has $17,400,000 of notes payable due April 12, 2019. At December 31, 2018, Branch signed an agreement with First Bank to borrow up to $17,400,000 to refinance the notes on a long-term basis. The agreement specified that borrowings would not exceed 80% of the value of the collateral that Branch provided. At the date of issue of the December 31, 2018, financial statements, the value of Branch's collateral was $19,400,000. On its December 31, 2018, balance sheet, Branch should classify the notes as follows:

Multiple Choice $3,480,000 long-term and $13,920,000 current liabilities. $15,520,000 long-term and $1,880,000 current liabilities. $17,400,000 of current liabilities. $17,400,000 of long-term liabilities.

4. On December 31, 2018, L Inc. had a $3,000,000 note payable outstanding, due July 31, 2019. L borrowed the money to finance construction of a new plant. L planned to refinance the note by issuing long-term bonds. Because L temporarily had excess cash, it prepaid $650,000 of the note on January 23, 2019. In February 2019, L completed a $4,500,000 bond offering. L will use the bond offering proceeds to repay the note payable at its maturity and to pay construction costs during 2019. On March 13, 2019, L issued its 2018 financial statements. What amount of the note payable should L include in the current liabilities section of its December 31, 2018, balance sheet?

Multiple Choice $2,350,000. $650,000. $3,000,000. $0.

5. Barbara Muller Services (BMS) pays its employees monthly. The payroll information listed below is for January 2018, the first month of BMS's fiscal year. Assume none of the employees' earnings reached $7,000 during the month. Salaries $ 106,000 Federal income taxes to be withheld 35,000 Federal unemployment tax rate .80 % State unemployment tax rate (after FUTA deduction) 5.40 % Social security tax rate 6.2 % Medicare tax rate 1.45 % The journal entry to record payroll for the January 2018 pay period will include a debit to payroll tax expense of:

Multiple Choice $62,891. $6,572. $14,681. $8,109.

6.Oklahoma Oil Corp. paid interest of $782,000 during 2018, and the interest payable account decreased by $122,000. What was interest expense for the year?

Multiple Choice $538,000. $904,000. $660,000. $782,000.

7. During the year, L&M Leather Goods sold 1,130,000 reversible belts under a new sales promotional program. Each belt carried one rebate certificate which entitles the customer to a $4.60 cash refund when the rebate is submitted for redemption. L&M estimates that 80% of the rebates will be redeemed. 494,000 rebates had been submitted for redemption during the year. At December 31, L&M should report a liability for unredeemed rebate certificates of:

Multiple Choice $4,158,400. $904,000. $1,886,000. $2,272,400.

8. Jane's Donut Co. borrowed $192,000 on January 1, 2018, and signed a two-year note bearing interest at 10%. Interest is payable in full at maturity on January 1, 2020. In connection with this note, Jane's should report interest expense at December 31, 2018, in the amount of:

Multiple Choice $0. $40,704. $19,200. $38,400.

9. Diversified Industries sells perishable electronic products. Some must be shipped in reusable containers. Customers pay a deposit for each container. The deposit is equal to the container's cost. Customers receive a refund when the container is returned. During 2018, deposits collected on containers shipped were $790,000. Deposits are forfeited if containers are not returned in 18 months. Containers held by customers on January 1, 2018, were $420,000. During 2018, $500,000 was refunded and deposits of $29,500 were forfeited. Required: 1. Prepare the appropriate journal entries for the deposits received and returned during 2018. 2. Determine the liability for refundable deposits to be reported in the December 31, 2018, balance sheet.

Record the deposits collected. Record the containers returned. Record the deposits forfeited - record revenue. Record the deposits forfeited - adjust inventory.

10. The following selected transactions relate to liabilities of Chicago Glass Corporation for 2018. Chicago's fiscal year ends on December 31. 1.On January 15, Chicago received $6,500 from Henry Construction toward the purchase of $61,000 of plate glass to be delivered on February 6. 2.On February 3, Chicago received $6,200 of refundable deposits relating to containers used to transport glass components. 3.On February 6, Chicago delivered the plate glass to Henry Construction and received the balance of the purchase price. 4.First quarter credit sales totaled $650,000. The state sales tax rate is 4% and the local sales tax rate is 2%.

Required: Prepare journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)