Accounting Ch. 8, 9, 10

The entry to record the amortization of a premium on bonds payable on an interest payment date includes:

The journal entry a company records for the issuance of bonds when the contract rate is greater than the market rate would be

The journal entry a company records for the payment of interest, interest expense, and amortization of bond discount is

On January 1, 2010, the Baker Corporation issued 10% bonds with a face value of $50,000. The bonds are sold for $46,000. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 2014. Baker records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31, 2010, is

When the market rate of interest on bonds is higher than the contract rate, the bonds will sell at

If $2,000,000 of 10% bonds are issued at 97, the amount of cash received from the sale is

The adjusting entry to record the amortization of a discount on bonds payable is

On January 1, $2,000,000, 5-year, 10% bonds, were issued for $1,960,000. Interest is paid semiannually on January 1 and July 1. If the issuing corporation uses the straight-line method to amortize discount on bonds payable, the semiannual amortization amount is

Bonds with a face amount $1,000,000 are sold at 98. The entry to record the issuance is a. Cash Premium on Bonds Payable Bonds Payable b. Cash Premium on Bonds Payable Bonds Payable c. Cash Discount on Bonds Payable 1,000,000 20,000 980,000 1,000,000 1,000,000 980,000 d. Cash Bonds Payable Bonds Payable 980,000 20,000 980,000 20,000 980,000

Under the cost principle, a company capitalizes:

Ordinary repairs and maintenance always:

A company paid $500,000 to purchase equipment and $15,000 to have the equipment delivered to and installed in the company's production facilities. Commercial use of the equipment began on May 1, 2011. The estimated residual value of the equipment is $5,000. The equipment is expected to be used a total of 28,000 hours throughout its estimated useful life of six years. The company has an October 31, 2011 year-end and had used the equipment a total of 11,200 hours prior to the year-end. Using the units- of- production method, what amount of depreciation expense (to the nearest thousand) would the company report for this equipment in the income statement prepared for the year-ended October 31, 2011?

Purrfect Pets has a facility that originally cost $375,000. The balance of the accumulated depreciation account for the facility is $258,000. The company expects to be able to sell the facility for $107,000 at the end of its useful life. The residual value of the facility is:

Paul Hauling has a fleet of 10 large trucks that cost a total of $1,410,000. The fleet is expected to provide 1,000,000 miles of transportation during an estimated 10-year life, and be sold for 10% of the original cost at the end of that time. If the fleet traveled 125,000 miles in the current twelve-month period, what would be the depreciation expense under the straight-line (SL) and units-of-production (U-of-P) methods?

A machine is purchased on January 1, 2011, for $90,000. It is expected to have a useful life of five years and a residual value of $5,000. The company closes its books on December 31. Under the double-declining balance method, what is the total amount of depreciation to be expensed during the 2012 fiscal year (year 2 of 5)?

A company sells a piece of equipment half-way through the accounting period. The straight-line rate of depreciation on the equipment is $40,000 a year. Before recording the asset sale, the company should debit:

An asset is purchased on January 1 for $40,000. It is expected to have a useful life of five years after which it will have an expected salvage value of $5,000. The company uses the straight-line method. If it is sold for $30,000 exactly two years after its purchased, the company will record a:

In recording the acquisition cost of an entire business:

Freight costs incurred when a long-lived asset is purchased should generally be

If a truck's engine is overhauled for $8,000, the journal entry would normally include a debit to

During one pay period, your company distributes $130,500 to employees as net pay. The income tax withholdings were $19,000 and the FICA withholdings were $5,000. The total compensation expense to the company for this pay period, excluding any unemployment taxes, was:

A company pays $9,000 in interest on notes consisting of $6,000 of interest that was accrued during the last accounting period and $3,000 of interest that accumulated during this accounting period that has not yet been accrued on the books. The journal entry for the interest payment should:

On January 1, which of the following journal entries will be made by Backyard to record the proceeds and issue of the note?

What adjusting entry should Backyard make on June 30 before preparing its annual financial statements?

IBM is planning to issue $1,000 bonds with a stated interest rate of 7% and a maturity date of July 15, 2022. If interest rates rise in the economy so that similar financial investments pay 9%, IBM will:

A corporate bond with a face value of $1,000 is issued at 107. This means that the bond actually sold for:

Bobby Darin is the only employee of Atlantic Records, Inc. During the first week of January, Darin earned $800 and had federal and state income tax withholdings of $40 and $15, respectively. FICA taxes are 7.65 percent on wages up to $100,000. State and federal unemployment taxes for the period are $50 and $8, respectively. What would be the amount of Darin's payroll check for the first week of January?

What is the employer's payroll tax expense for the week?

Sales tax collected by a company is normally reported as

Assuming a 360-day year, the interest charged by the bank, at the rate of 6%, on a 90-day, discounted note payable of $100,000 is

Martin Jackson receives an hourly wage rate of $30, with time and a half for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $350; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the net amount to be paid to Jackson?

A pension plan that promises employees a fixed annual pension benefit, based on years of service and compensation, is called a(n)

Zennia Company provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year's vacation cost is $135,000. The journal entry to record the adjusting entry required on December 31, the end of the current year, to record the current month's accrued vacation pay is

McKay Company sells merchandise with a one-year warranty. In Year 1, it estimates warranties on sales of 1,200 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in Year 1 and 70% in Year 2. In the Year 1 income statement, McKay should show warranty expense of

On January 1, the Elias Corporation issued 10% bonds with a face value of $50,000. The bonds are sold for $46,000. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, ten years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the entire year ended December 31 of the first year is

The journal entry a company records for the issuance of bonds when the contract rate is less than the market rate would be

The entry to record the amortization of a premium on bonds payable on an interest payment date would