Use the following information for questions 13.

Coffey County Bank agrees to lend Adcock Brick Company $200,000 on January 1. Adcock Brick Company signs a $200,000, 8%, 9-month note.

1.The entry made by Adcock Brick Company on January 1 to record the proceeds and issuance of the note is

a.Interest Expense..................................................................... 12,000

Cash....................................................................................... 188,000

Notes Payable............................................................... 200,000

b.Cash....................................................................................... 200,000

Notes Payable............................................................... 200,000

c.Cash....................................................................................... 200,000

Interest Expense..................................................................... 12,000

Notes Payable............................................................... 212,000

d.Cash....................................................................................... 200,000

Interest Expense..................................................................... 12,000

Notes Payable............................................................... 200,000

Interest Payable............................................................. 12,000

2.What is the adjusting entry required if Adcock Brick Company prepares financial statements on June 30?

a.Interest Expense..................................................................... 8,000

Interest Payable............................................................. 8,000

b.Interest Expense..................................................................... 8,000

Cash.............................................................................. 8,000

c.Interest Payable...................................................................... 8,000

Cash.............................................................................. 8,000

d.Interest Payable...................................................................... 8,000

Interest Expense............................................................ 8,000

3.What entry will Adcock Brick Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30?

a.Notes Payable........................................................................ 212,000

Cash.............................................................................. 212,000

b.Notes Payable........................................................................ 200,000

Interest Payable...................................................................... 12,000

Cash.............................................................................. 212,000

c.Interest Expense..................................................................... 12,000

Notes Payable........................................................................ 200,000

Cash.............................................................................. 212,000

d.Interest Payable...................................................................... 8,000

Notes Payable........................................................................ 200,000

Interest Expense..................................................................... 4,000

Cash.............................................................................. 212,000

4.Sales taxes collected by a retailer are recorded by

a.crediting Sales Taxes Revenue.

b.debiting Sales Taxes Expense.

c.crediting Sales Taxes Payable.

d.debiting Sales Taxes Payable.

5.Unearned Rental Revenue is

a.a contra account to Rental Revenue.

b.a revenue account.

c.reported as a current liability.

d.debited when rent is received in advance.

6.The current portion of long-term debt should

a.be paid immediately.

b.be reclassified as a current liability.

c.be classified as a long-term liability.

d.not be separated from the long-term portion of debt.

Use the following information for questions 7-10.

The following totals for the month of April were taken from the payroll register of Main Company.

Salaries$24,000

FICA taxes withheld1,100

Income taxes withheld5,000

Medical insurance deductions900

Federal unemployment taxes64

State unemployment taxes432

7.The journal entry to record the monthly payroll on April 30 would include a

a.debit to Salaries Expense for $24,000.

b.credit to Salaries Payable for $24,000.

c.debit to Salaries Payable for $24,000.

d.debit to Salaries Expense for $17,000.

8.The entry to record the payment of net payroll would include a

a.debit to Salaries Payable for $16,504.

b.debit to Salaries Payable for $17,000.

c.debit to Salaries Payable for $15,900.

d.credit to Cash for $18,100.

9.The entry to record accrual of Main Companys payroll taxes would include a

a.debit to Payroll Tax Expense for $496.

b.debit to Payroll Tax Expense for $1,596.

c.credit to FICA Taxes Payable for $2,200.

d.credit to Payroll Tax Expense for $496.

10.The entry to record the accrual of federal unemployment taxes would include a

a.credit to Federal Unemployment Taxes Payable for $64.

b.debit to Federal Unemployment Taxes Expense for $64.

c.credit to Payroll Tax Expense for $64.

d.debit to Federal Unemployment Taxes Payable for $64