Answered step by step
Verified Expert Solution
Question
1 Approved Answer
6. Which of the following is true about accounts payable? 1. Accounts payable are also called trade accounts payable 2. When accounts payable are recorded
6. Which of the following is true about accounts payable? 1. Accounts payable are also called trade accounts payable 2. When accounts payable are recorded at the net amount, a Purchase Discounts account will be used. 3. When accounts payable are recorded at the gross amount, a Purchase Discounts Lost account will be used. A) B) 2 C) 3 D) Both 2 and 3 are true. 7. Which of the following is an example of a contingent liability? A) Obligations related to product warranties. B) Possible receipt from a litigation settlement. C) Pending court case with a probable favorable outcome. D) Tax loss carryforwards. Use the following to answer question 8: On October 1, 2017 Macklin Corporation issued 5%, 10-year bonds with a face value of $6,000,000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. 8. The entry to record the issuance of the bonds would include a credit of A) $150,000 to Interest Payable. B $240,000 to Discount on Bonds Payable. C) $5,760,000 to Bonds Payable. D) $240,000 to Premium on Bonds Payable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started