A company issues a $10,000,9%, 4-month note payable on November 1, 2018. How much interest expense should be recorded for this note payable for 2018? $0 $75 C. $150 D. $300 A . _2. Smith company borrowed $20,000 at a rate of 6% for 5 years. The terms of the installment note require them to pay $387 per month for the next 5 years. How much of the first monthly payment will be paid against the principle of the note? A. $287 $100 C. $387 $200 B D _3 A 3. Which of the following taxes are imposed only on the employer? Social Security Tax B. Medicare Tax C. State Income Tax D. Federal Unemployment Tax 4. Which of the following taxes are imposed on the both the employer and employee? A. Medicare Tax B. Federal Unemployment Tax C. Local Income Tax D. State Unemployment Tax 5. Thompson Corporation has signed a 2 year contract where they agree to rent an office building by paying $8,000 on the first day of every month. How would this contract be reported in the financial statements of Thompson? Thompson would have a current liability for $96,000 (1" year of contract) and a long-term liability for $96,000 (2nd year of contract). B. Thompson would have an estimated liability of $192,000. Thompson would have a long-term liability of $192,000. Thompson would report the contract as a commitment in the Notes to the Financial Statements. A C. D. Freed Corporation is named as the defendant in a $10 million lawsuit regarding product liability. Freed is not certain if they will win or lose the lawsuit. Where will Freed report the lawsuit in their financial statements A As a long-term liability. B. As a current liability C. As a contingent liability reported in the notes to the financial statements. D. This would not get reported in the financial statements of Freed. 7. Killian Manufacturing acquired a piece of machinery by signing a 5-year lease requiring them to . __7 pay $714 per month. At the end of the lease period, Killian will own the equipment. This type of lease would be called A. An operating lease B. A capital lease c. A bonded lease. D. An open-ended lease. Gregg Industries Isued $10,000,000 of 20 year, 8% bonds in the Fall of 2002. Currently, the bonds are selling at a price of 105. This price indicates that: Investors want to earn a rate of interest that is less than 8%. Investors want to earn a rate of interest that is more that 8%. C. Investors will pay more than the face value for these bonds. 8. A. B