QUESTION 20 Madison Company issued an interest-bearing note payable with a face amount of $24,000 and a stated interest rate of 8% to the Metropolitan Ban carried a one-year term Based on this information alone, the amount of total liabilities appearing on Madison's Year 1 balance sheet would be $24,800 $24.720 $24,000 $25,920 Chiel Save and Submit to save and submit. Click Save All Answers to save all ansur. QUESTION 21 Which of the following items is not classified as a current asset? O Office supplies. O Office equipment. Prepaid rent O Merchandise inventory. Click Save and Submit to save and submit. Cliek: Save All Answers to save all answe QUESTION 22 On January 1, Year 1, the Mahoney Company borrowed $324,000 cash from Sun Bank by is payments beginning on December 31, Year 1. The annual payment on the loan based on the The amount of principal repayment included in the December 31, Year 1 payment is: $25,920. O $74,658. O $55,230 $81,150. Click Save and Submit to save and submit. Click Save All Answers to save all answers. n Bank by issuing a five-year 8% term note. The principal and interest are repaid by making annual based on the present value of annuity factor would be $81,150 ent is answers QUESTION 23 = Baby Beach Company experienced an event that had the following effects on its financial statements Balance Sheet Income Statement Statement of Cash Flows Assets Liabilitis + Stockholders' Equity Revenue - E NA NA Which of the following events could have caused these effects? Issued a note payable for cash Paid cash to settle accrued interest payable O Paid cash to settle the principal balance of note payable O Paid cash to acquire a long-term asset QUESTION 24 Click Save and Submit to save and submit. Click Save All Answers to save all answers. QUESTION 24 On March 1, Bartholomew Company purchased a new stamping machine with a list price discount. Other costs associated with the machine were: transportation costs, $550, sales operation, $500. The cost recorded for the machine was O $34,210 $32,300 $34,660 $35,160 Click Save and Submit to save and submit. Click Save Allansters to save all answers. e of $34,000. The company paid cash for the machine, therefore, it was allowed a 5% es tax paid, $1,360, installation costs, $450, routine maintenance during the first month of s