Principles of Accounting I

Quiz 11

#17

The journal entry used to record the issuance of a discounted note for the purpose of borrowing funds for the business is

a. debit Notes Payable; credit Cash

b. debit Accounts Payable; credit Notes Payable

c. debit Cash and Interest Payable; credit Notes Payable

d. debit Cash and Interest Expense; credit Notes Payable

#24

During its first year of operations, a company granted its employees vacation privileges and pension rights estimated at a cost of $24,178 and $15,400, respectively. The vacations are expected to be taken in the next year, and the pension rights are expected to be paid in the future 5-30 years. What is the total cost of vacation pay and pension rights to be recognized in the first year?

a. $15,400

b. $39,578

c. $24,178

d. $70,378

I missed both of these on a quiz. What is the correct answer and solution. Thank you