题目内容

Madison Bank lends Neenah Paper Company $100,000 on January 1, 2014. Neenah Paper Company signs a $100,000, 8%, 6-month note. The journal entry made by Neenah Paper Company on January 1, 2014 is:

A.debit Cash for $92,000 and credit Note Payable for $92,000.
B.debit Interest Expense for $8,000 and credit Cash for $8,000.
C.debit Cash for $100,000 and credit Notes Payable for $100,000.
D.debit Interest Expense for $8,000 and credit Interest Payable for $8,000.

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Monthly sales are $500,000. Warranty costs are estimated at 4% of monthly sales. Warranties are honored with replacement products. No defective products are returned during the month. At the end of the month, the company should record a journal entry with a credit to:

A.Estimated Warranty Payable for $20,000.
B.Warranty Expense for $20,000.
C.Sales for $20,000.
D.Inventory for $20,000.

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Mariano Corporation sells 10,000 units of inventory during the first year of operations for $500 each. The selling price includes a one-year warranty on parts. It is estimated that 3% of the units will be defective and that repair costs are estimated to be $50 per unit. In the year of sale, warranty contracts are honored on 80 units for a total cost of $4,000. What amount will be reported as Estimated Warranty Liability at the end of the year?

A.$4,000
B.$6,000
C.$11,000
D.$15,000

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Michigan Bank lends Detroit Furniture Company $100,000 on December 1. Detroit Furniture Company signs a $100,000, 12%, 4-month note. The total cash paid for interest (only) at maturity of the note is:

A.$1,000.
B.$2,000.
C.$3,000.
D.$4,000

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The journal entry to record accrued interest on a short-term note payable must include a debit to:

A.Interest Payable and a credit to Cash.
B.Interest Expense and a credit to Cash.
C.Interest Expense and a credit to Interest Payable.
D.Interest Payable and a credit to Notes Payable.

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Madison Bank lends Neenah Paper Company $100,000 on January 1, 2014. Neenah Paper Company signs a $100,000, 8%, 6-month note. The journal entry made by Neenah Paper Company on January 1, 2014 is:

A.debit Cash for $92,000 and credit Note Payable for $92,000. B.debit Interest Expense for $8,000 and credit Cash for $8,000. C.debit Cash for $100,000 and credit Notes Payable for $100,000. D.debit Interest Expense for $8,000 and credit Interest Payable for $8,000.

Monthly sales are $500,000. Warranty costs are estimated at 4% of monthly sales. Warranties are honored with replacement products. No defective products are returned during the month. At the end of the month, the company should record a journal entry with a credit to:

Michigan Bank lends Detroit Furniture Company $100,000 on December 1. Detroit Furniture Company signs a $100,000, 12%, 4-month note. The total cash paid for interest (only) at maturity of the note is:

The journal entry to record accrued interest on a short-term note payable must include a debit to:

A.debit Cash for $92,000 and credit Note Payable for $92,000.
B.debit Interest Expense for $8,000 and credit Cash for $8,000.
C.debit Cash for $100,000 and credit Notes Payable for $100,000.
D.debit Interest Expense for $8,000 and credit Interest Payable for $8,000.