1.The following information relates to XYZ Corporation for the year ended February 28, 2015.

Bank loan (long term)$101,000

Mortgage Payable (current term portion)$537,000

Income taxes payable$29,000

Bonuses payable (to be paid March 15, 2015)$36,500

Insurance premiums payable$11,000

What is XYZ Corporation's total current liabilities for the year ended February 28, 2015?

$76,500

$177,500

$537,000

$613,500

$714,500

2.Company A sells a machine to Company B on September 1 for $30,000. The down payment to be paid by Company B is $5,000. Company B must pay monthly minimum payments of $200. 12% interest rate per annum on the unpaid balance is deducted from each payment and the balance is applied to reduce the principal outstanding.

Company B makes the following payments to Company A:

October 1$500November 1$500December 1$1,000January 2$500

make a partial amortization schedule in order to answer the following question.

In preparing an amortization schedule, what is the balance at the end of December?

$25,000

None of the other alternatives are correct

$24,750

$23,742

$24,500

3.On January 1, 2011, Hoffman Company, a calendar year company, issued $75,000 of notes payable of which $15,000 is due on January 1 for each of the next 5 years. The proper Balance Sheet presentation on December 31, 2011, is

Long term Liabilities $75,000

Current Liabilities $60,000 \ Long-Term Liabilities $15,000

Current Liabilities $15,000 \ Long-Term Liabilities $60,000

None of the above

Current Liabilities $75,000

4.On January 2012, Lower Under Co announced an offer to issue bonds with a $200,000 par value, a 10% annual contract rate with interest payable semi-annually, and with a three-year life to gain some liquidity given the current market conditions. Interest payments are due on April 1 and October 1 of each year. Lower Under agrees to make six payments over the three years of the bond. Bonds are issue on April 1st 2012, maturity date is April 1, 2015 and the market rate on April 1st 2012 is 8%. Lower Under Co. closes its books annually on December 31 and uses the effective interest method.

Indicate which of the following statements is true:

bonds were issued with a premium equal or larger than $10,000

bonds were issued with a discount equal or larger than $10,000

bonds were issued at par

bonds were issued with a discount equal or smaller than $9,999

bonds were issued with a premium equal or smaller than $9,999

5.Company A sells a machine to Company B on September 1 for $27,000. The down payment to be paid by Company B is $3,000. Company B must pay monthly minimum payments of $265. 12% interest rate per annum on the unpaid balance is deducted from each payment and the balance is applied to reduce the principal outstanding.

Company B makes the following payments to Company A:

October 1 $500

November 1 $500

December 1 $1,000

January 2 $500

make a partial amortization schedule in order to answer the following question.

In preparing an amortization schedule, what is the amount of interest paid for December?

$250

$240

$500

$260

None of the other alternatives are correct