Question
Question 9 Cameron Company sells 2,000 units of its product for $500 each in 2017. The selling price includes a one-year warranty on parts. It
Question 9
Cameron Company sells 2,000 units of its product for $500 each in 2017. The selling price includes a one-year warranty on parts. It is expected that 3% of the units will be defective and that repair costs will average $100 per unit. In 2017, warranty contracts are honoured on 40 units for a total cost of $4,000. What amount should Cameron Company accrue on December 31, 2017 for estimated warranty expense?
$6,000
$4,000
$2,000
$30,000
Question 10
Jill Cole's regular rate of pay is $10 per hour with one and one-half times her regular rate for any hours which exceed 44 hours per week. She worked 52 hours last week. Therefore, her gross wages were
$520.
$440.
$560.
$880
Question 11
On October 1, Jacob's Auto Service borrows $75,000 from Provincial Bank on a $75,000, 3-month, 6% note. The entry by Jacob's Auto Service to record payment of the note and accrued interest on January 1 is:
Notes Payable
76,125Cash
76,125
Notes Payable75,000Interest Payable1,125Cash76,125
Notes Payable75,000Interest Payable4,500Cash79,500
Notes Payable
75,000Interest Expense
1,125Cash76,125
Question 12
On December 31, 2017, Indiglow Company has a five-year note payable of $450,000. Of that balance, $90,000 will be paid within one year from the balance sheet date. How much of the note payable should Indiglow Company report as a long term liability when they prepare the December 31, 2017 statement of financial position?
$360,000
$450,000
$90,000
$540,000
Question 13
A cash register tape shows cash sales of $1,000 and HST of $130. The journal entry to record this information is:
Cash1,000Sales
1,000
Cash1,130
Sales Tax Revenue
130
Sales
1,000
Cash
1,000
Sales Tax Expense
130
Sales
1,130
Cash1,130Sales
1,000HST Payable130
Question 14
Acme borrows $100,000 on July 1 and is issued a 6% one-month note payable. Interest is payable at maturity. On August 1, Acme repays the note and interest. The August 1 journal entry is
debit Interest Payable $6,000, debit Note Payable $100,000 and credit Cash $106,000.
debit Interest Expense and credit Interest Payable for $6,000.
debit Interest Expense $500, debit Note Payable $100,000 and credit Cash $100,500.
debit Interest Payable and credit Interest Expense for $500.
Question 15
Muffin Company issued a five-year, interest-bearing note payable for $50,000 on January 1, 2017. Each January the company is required to pay $10,000 on the note. How will this note be reported on the December 31, 2018 balance sheet?
Long-term debt, $50,000
Long-term debt, $40,000
Long-term debt, $30,000; Long-term debt due within one year, $10,000
Long-term debt of $40,000; Long-term debt due within one year, $10,000
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