Fimancial Accouning Pundamentals, be (Wild) Chapter 9 Accousting for Curreat Liabiliies INSTRUCTOR: IRMA LINETTE MIDDLETON, MBA NAME DATE A's income before interest expense and taxes is $250,000 and its interest expense is $100,000. Its times interest earned ratio is 2.5 Answer: TRUE OR FALSE 2) A note payable can be used to extend the payment due on an account payable Answer TRUE OR FALSE 3) A corporation has a $40,000 credit balance in the Income Tax Payable account. Period end information shows that the actual liability is $47,000. The company should record an entry to debit Income Tax Expense for $7,000 and credit Income Taxes Payable for $7,000. Answer TRUE OR FALSE 4) If a company has advance ticket sales totaling $2,000,000 for the upcoming football seasorn the receipt of cash would be journalized as: A) Debit Sales, credit Unearned Revenue. B) Debit Unearned Revenue, credit Sales. C) Debit Cash, credit Unearned Revenue D) Debit Unearned Revenue, credit Cash. E) Debit Cash, credit Ticket sales payable. Answer 5) On December 1, Victoria Company signed a 90-day, 6% note payable, with a face value of $15,000. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.) A) SO B) S75 C) $900 D) $225 E) $300 Answer Fimancial Accouning Pundamentals, be (Wild) Chapter 9 Accousting for Curreat Liabiliies INSTRUCTOR: IRMA LINETTE MIDDLETON, MBA NAME DATE A's income before interest expense and taxes is $250,000 and its interest expense is $100,000. Its times interest earned ratio is 2.5 Answer: TRUE OR FALSE 2) A note payable can be used to extend the payment due on an account payable Answer TRUE OR FALSE 3) A corporation has a $40,000 credit balance in the Income Tax Payable account. Period end information shows that the actual liability is $47,000. The company should record an entry to debit Income Tax Expense for $7,000 and credit Income Taxes Payable for $7,000. Answer TRUE OR FALSE 4) If a company has advance ticket sales totaling $2,000,000 for the upcoming football seasorn the receipt of cash would be journalized as: A) Debit Sales, credit Unearned Revenue. B) Debit Unearned Revenue, credit Sales. C) Debit Cash, credit Unearned Revenue D) Debit Unearned Revenue, credit Cash. E) Debit Cash, credit Ticket sales payable. Answer 5) On December 1, Victoria Company signed a 90-day, 6% note payable, with a face value of $15,000. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.) A) SO B) S75 C) $900 D) $225 E) $300