1. Which of the following most likely would be classified as a current liability? (a) Dividends payable b. Bonds payable in 5 years c. Three-year notes payable d. Mortgage payable as a single payment in 10 years 2. Moss County Bank agrees to lend the Sadowski Brick Company $500,000 on January 1. Sadowski Brick 3. A company receives $348, of which $28 is for sales tax. The journal entry to record the sale would include a a debit to Sales Taxes Expense for $28. b. debit to Sales Taxes Payable for $28. c. debit to Sales Revenue for $348. d. debit to Cash for $348. 4. On January 1, 2020, Ermler Company, a calendar-year company, issued $2,000,000 of notes payable, of which $500,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31,2020 , is a. Current liabilities, $2,000,000. b. Long-term debt, $2,000,000. c. Current liabilities, $500,000; Long-term Debt, $1,000,000. d. Current liabilities, $500,000; Long-term Debt, $1,500,000. 5. Bonds with a face value of $600,000 and a quoted price of 104% have a selling price of (a) $625,500. b. $624,150. c. $602,550. d. $624,000. 6. If a corporation issued $9,000,000 in bonds which pay 5% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30% ? a. $4,500,000 b. $135,000 c. $450,000 d. $315,000 1. Which of the following most likely would be classified as a current liability? (a) Dividends payable b. Bonds payable in 5 years c. Three-year notes payable d. Mortgage payable as a single payment in 10 years 2. Moss County Bank agrees to lend the Sadowski Brick Company $500,000 on January 1. Sadowski Brick 3. A company receives $348, of which $28 is for sales tax. The journal entry to record the sale would include a a debit to Sales Taxes Expense for $28. b. debit to Sales Taxes Payable for $28. c. debit to Sales Revenue for $348. d. debit to Cash for $348. 4. On January 1, 2020, Ermler Company, a calendar-year company, issued $2,000,000 of notes payable, of which $500,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31,2020 , is a. Current liabilities, $2,000,000. b. Long-term debt, $2,000,000. c. Current liabilities, $500,000; Long-term Debt, $1,000,000. d. Current liabilities, $500,000; Long-term Debt, $1,500,000. 5. Bonds with a face value of $600,000 and a quoted price of 104% have a selling price of (a) $625,500. b. $624,150. c. $602,550. d. $624,000. 6. If a corporation issued $9,000,000 in bonds which pay 5% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30% ? a. $4,500,000 b. $135,000 c. $450,000 d. $315,000
