Question
The journal entry to record 31 days of accrued interest at the end of the month on a $10,000 note payable at 9% interest would
The journal entry to record 31 days of accrued interest at the end of the month on a $10,000 note payable at 9% interest would include (use a 365-day year to calculate interest):
a. debit Interest Expense for $76.44 | ||
b. debit Interest Payable for $900.00 | ||
c. debit Interest Expense for $900.00 | ||
d. debit Interest Payable for $76.44 |
When a company issues stock that has a par or stated value, then the par or stated value of the shares is the most that can be recorded in the Common Stock account.
a. true | ||
b. false |
Freight paid on goods shipped to customers ('Freight Out') would be included on the Income Statement in which of the following cost categories?
a. Cost of Goods Sold | ||
b. Selling Expense | ||
c. Administrative Expense | ||
d. 'Other' (non-operating) Expense |
Samson Co. sold $4,000 of goods to Ramsey Co. on account. Ramsey later returned $500 of the goods purchased from Samson. Upon receipt of the returned merchandise, Samson should record a
a. debit to Sales Returns and Allowances for $500. | ||
b. debit to Accounts Receivable for $500. | ||
c. debit to Cash for $500. | ||
d. credit to Sales for $500. |
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