Mutiple choice HW

a. C. 1.Springfield Company offers a bonus plan to its employees and the amount of the employee bonuses for the current year is estimated to be $969,000 to be paid during January of the following year. The journal entry on December 31 to record the bonuses is a. Debit Employee Bonus Expense $969,000; credit Accounts Receivable $969,000. b. Debit Estimated Bonus Payable $969,000; credit Cash $969,000. c Debit Employee Bonus Expense $969,000; credit Bonus Payable $969,000. d- Debit Uneamed Bonuses $969,000; credit Bonus Payable $969,000. e. No entry since the bonuses are not paid until January. 2.On April 12, Hong Company agrees to accept a 60-day, 6%, $8,400 note from Indigo Company to extend the due date on an overdue account. What is the journal entry that Indigo Company would make when it records payment of the note on the maturity date? (Use 360 days a year.) Multiple Choice Debit Cash $8,484; credit Interest Revenue $84; credit Notes Receivable $8,400. b. Debit Notes Payable $8,400; debit Interest Expense $126, credit Cash $8,526. Debit Cash $8,484; credit Interest Revenue $84; credit Notes Payable $8,400. d. Debit Notes Payable $8,400; credit Interest Expense $84, credit Cash $8,316. Debit Notes Payable $8,400; debit Interest Expense S84; credit Cash $8,484. 3.Cantrell Company is required by law to collect and send sales taxes to the state. If Cantrell has $11,000 of cash sales that are subject to an 7% sales tax, what is the journal entry to record the cash sales? Debit Cash $11,000; credit Sales $11,000; and record the taxes when paid. b. Debit Sales Taxes Payable $770; debit Cash $10,230; credit Sales $11,000. Debit Cash $11,770; credit Sales $11,000; credit Sales Taxes Payable $770. d. Debit Accounts Receivable $11,770; credit Sales $11,000; credit Sales Taxes Payable S770. e. Debit Cash S11,000; credit Sales $10,230; credit Sales Taxes Payable S770. 4.On May 22, Jarrett Company borrows $8,400, signing a 90-day, 6%, $8,400 note. What is the journal entry made by Jarrett Company to record the payment of the note on the maturity date? a. Debit Notes Payable $8,400; credit Interest Expense $126; credit Cash $8,274. b. Debit Notes Payable $8,400; credit Cash $8.400. C. Debit Notes Payable $8,526; credit Cash $8,526. d. Debit Notes Payable $8,400; debit Interest Expense $126; credit Cash $8,526. Debit Cash $8,526; credit Interest Revenue $126; credit Notes Receivable $8,400. e. a. c. e