ant Mary's University smu.brightspace.com Netflix Question 1 (1 point) Ditter Limited purchased equipment costing $150,000 on October 1, 2019, by paying 10% down in cash and signing an 8%, 9-month note payable for the balance. Solvency Limited's year end is December 31. What accounts and balances will appear in Ditter's balance sheet under current liabilities at December 31? Accrued Interest: $2,700 Note payable: $135,000 Accrued Interest: $1,350 Note payable: $135,000 Accrued Interest: $2,700 Note payable: $150,000 Accrued Interest: $3,000 Question 2 (1 point) Momo Inc. generated sales for the current month of 200 units at $225 each. Each unit carries a 6-month warranty. Momo Inc. promises to repair the unit should it become defective. The estimated cost to the company to honour the warranty is $60 and past experience has shown that approximately 7% of all units will have to be repaired during the warranty period Record the entry to recognize warranty expense for the month Dr. Warranty Expense $3,150 int Mary's University 1 smu.brightspace.com Ne Accrued Interest: $3,000 Question 2 (1 point) Momo Inc. generated sales for the current month of 200 units at $225 each. Each unit carries a 6-month warranty. Momo Inc. promises to repair the unit should it become defective. The estimated cost to the company to honour the warranty is $60 and past experience has shown that approximately 7% of all units will have to be repaired during the warranty period. Record the entry to recognize warranty expense for the month Dr. Warranty Expense $3,150 Cr. Warranty Payable $3,150 Dr. Warranty Expense $840 Cr. Warranty Payable $840 Dr. Warranty Payable $840 Cr. Cash $840 Dr. Warranty Payable $3,150 Cr. Cash $3,150 Question 3 (1 point) The following list contains a number of debt instruments which you can assume have identical key terms (i.e., maturity and issuance date, interest rates and interest payment dates). What items on the list have equivalent accounting treatments (i.e. Mary's University smu.brightspace.com Netflis Question 3 (1 point) The following list contains a number of debt instruments which you can assume have identical key terms (i.e., maturity and issuance date, interest rates and interest payment dates). What items on the list have equivalent accounting treatments (i.e. journal entries for set-up, interest accrual, interest payment and repayment)? Term loan Bank Mortgage Unsecured debentures issued at a premium Serial debentures issued having a coupon rate of 3% when the market rate was 5% Bonds issued having a stated rate of 3% when the market rate was 3% 1/2 1/2/4/5 1/2/5 All of the above Question 4 (1 point) Trudeau Ltd. had sales of $175,600 during the month of August. All sales are for cash. GST of 5% was charged on top of these sales. How much GST will Trudeau remit to the government at the end of the month? smu.brightspace.com mt Mary's University N Question 4 (1 point) Trudeau Ltd. had sales of $175,600 during the month of August. All sales are for cash. GST of 5% was charged on top of these sales. How much GST will Trudeau remit to the government at the end of the month? None $8,362 $4,390 $8,780 Question 5 (1 point) Red Chin Inc. is getting ready to end their December 31, 2023 year. They have 3 employees who are entitled to a salary of $2,000 twice a month (i.e. 1/15th of the month). Amounts owed for the period from December 15-December 31 will be paid on January 1, 2024. Assume that employees are subject to a 15% income tax withholding rate and must pay CPP and El of 5% and 2% of their gross pay respectively. Prepare the employee side of the payroll accrual entry for Red Chin at December 31 Dr. Salary Expense $6,000 Cr. CPP Payable $3,00 Mary's University smu.brightspace.com N Ked Chin Inc. is getting ready to end their December 31, 2023 year. They have 3 employees who are entitled to a salary of $2,000 twice a month (i.e. 1/15th of the month). Amounts owed for the period from December 15-December 31 will be paid on January 1, 2024. Assume that employees are subject to a 15% income tax withholding rate and must pay CPP and El of 5% and 2% of their gross pay respectively. Prepare the employee side of the payroll accrual entry for Red Chin at December 31 Dr. Salary Expense $6,000 Cr. CPP Payable $3,00 Cr. El Payable $120 Cr. Payroll Accrual $5,580 Dr. Salary Expense $6,000 Cr. CPP Payable $3,00 Cr. El Payable $120 Cr. Employee Income Tax Payable $900 Cr. Payroll Accrual $4,680 Dr. Salary Expense $6,000 Dr. CPP Expense $300 ary's University smu.brightspace.com N Cr. Employee income tax PayaDie y Cr. Payroll Accrual $4,680 Dr. Salary Expense $6,000 Dr. CPP Expense $300 Dr. El Expense $120 Dr. Income Tax Expense $900 Cr. Payroll Accrual $6,000 Cr. CPP Accrual $3,00 Cr. El Accrual $120 Cr. Income Tax Payable $900 Dr. Salary Expense $6,000 Cr. Payroll Accrual $6,000 Submit Quiz 0 of 5 questions saved