Question 1

_______________ are obligations expected to be paid using current assets or by creating other current liabilities.

Accepted Answer

The answer of _______________ are obligations expected to be paid...

Question 2

Taxable goods or services on which GST is calculated and that include everything except zero-rated and exempt supplies are called ________________.

Accepted Answer

The answer of Taxable goods or services on which GST...

Question 3

Buy Best Company sells personal computers for $2,300 each.The price includes a two-year warranty.During 2015,the company sells 600 computers.On the basis of past experience,the warranty costs are estimated to be $150 per computer.The actual warranty costs paid by Buy Best during 2015 were $45,000.Prepare general journal entries to record the estimated warranty expense and the warranty payments during 2015.

Accepted Answer

The answer of Buy Best Company sells personal computers for...

Question 4

On June 14,Cool Sports gave a 90-day note payable to Slip and Slide Co.,instead of cash payment of an overdue account.The amount of the note was $65,000 at an interest rate of 12%.
Prepare the journal entry and determine the maturity date for Cool Sports to record payment of the note.

Accepted Answer

The answer of On June 14,Cool Sports gave a 90-day...

Question 5

On November 16,Predator Company borrowed $112,000 from DT Bank.The loan had an interest rate of 10% and was due in 90 days.Predator Company's fiscal year-end is December 31.
Prepare the journal entry to record the payment of the note on Predator's books.

Accepted Answer

The answer of On November 16,Predator Company borrowed $112,000 from...

Question 6

Classify each of the following items as either:
1.Long-term liability.
2.Current liability.
3.Not a liability
30-day promissory note
Car payments on a 4-year loan due this year
Salaries payable
Bonds payable
Employee deductions
Income taxes payable
Mortgage payments on a 30-year loan due this year
Mortgage payments on a 30-year loan due next year
Warranty work completed this year
Accounts payable

Accepted Answer

The answer of Classify each of the following items as...

Question 7

Contingent liabilities are disclosed when the liability is not _______________ or it cannot be _______________.

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The answer of Contingent liabilities are disclosed when the liability...

Question 8

_____________ is to compensate the owner of note payable for its use by a borrower until payment is made.

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The answer of _____________ is to compensate the owner of...

Question 9

On November 16,Predator Company borrowed $112,000 from DT Bank.The loan had an interest rate of 10% and was due in 90 days.Predator Company's fiscal year-end is December 31.
Prepare the journal entry to record the interest due at December 31.

Accepted Answer

The answer of On November 16,Predator Company borrowed $112,000 from...

Question 10

On September 15,Lohr Co.borrowed $50,000 from Close Bank.The loan had an interest rate of 12% and was due in 60 days.
Prepare the journal entry for Lohr Co.to record the note.

Accepted Answer

The answer of On September 15,Lohr Co.borrowed $50,000 from Close...

Question 11

On November 15,Lohr Co.borrowed $20,000 from Convenient Bank.The loan had an interest rate of 12% and was due in 120 days. Prepare the journal entry to record the payment of the note on Lohr's books,assuming an adjusting entry was made at December 31^st ,Lohr Co.'s year end.

Accepted Answer

The answer of On November 15,Lohr Co.borrowed $20,000 from Convenient...

Question 12

A refund of GST would be received if the balance in the GST ________________ account exceeded the balance in the GST __________________ account.

Accepted Answer

The answer of A refund of GST would be received...

Question 13

The difference between the amount received from a promissory note and the amount repaid is _______________.

Accepted Answer

The answer of The difference between the amount received from...

Question 14

A company sells its product subject to a warranty that covers the cost of parts and labour for repairs during the six months after sale.Warranty costs are estimated to be 4.5% of sales for parts,and 1.5% of sales for labour.During the month of June,the company performed warranty work and used $8,000 worth of parts and paid $4,000 in wages for labour to do the warranty work.Sales for June amounted to $450,000.
(1)What account should be debited for the $4,000 in labour?
(2)What should be the amount of estimated warranty expense for June?
(3)If the Estimated Warranty Liability account had a $10,000 credit balance on May 31,what should be the account balance as of June 30?

Accepted Answer

The answer of A company sells its product subject to...

Question 15

Unearned revenues are amounts received _______________.

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The answer of Unearned revenues are amounts received _______________....

Question 16

Honest Computers sells computers with a 6-month warranty.In January,the company sold 35,000 computers at $2,600 each and 1,500 computers were returned for repairs.The total repair costs amounted to $185,000.It is estimated that 3% of all units sold will need repairs under warranty at an estimated cost of $300 per unit.Prepare the journal entry to record warranty expense for January.

Accepted Answer

The answer of Honest Computers sells computers with a 6-month...

Question 17

Elder Helpers Ltd estimates its income taxes at 35% of pre-tax income.For the quarter ended September 30,pre-tax income was $300,000.Prepare the journal entry to record the estimated income taxes and the subsequent remittance on October 5.

Accepted Answer

The answer of Elder Helpers Ltd estimates its income taxes...

Question 18

On November 16,Predator Company borrowed $112,000 from DT Bank.The loan had an interest rate of 10% and was due in 90 days.Predator Company's fiscal year-end is December 31.
Prepare the journal entry to record the receipt of the cash.

Accepted Answer

The answer of On November 16,Predator Company borrowed $112,000 from...

Question 19

Classify each of the following items as either:
1.Known current liability.
2.Estimated liability.
3.Contingent liability.
Pending lawsuit
Warranty liability on $150,000 worth of products sold
Accounts payable
Income taxes payable
CPP payable
Interest payable
Environmental liability
Property taxes payable
Payroll taxes payable
Unearned revenues

Accepted Answer

The answer of Classify each of the following items as...

Quiz 11: Current Liabilities

_______________ are obligations expected to be paid using current assets or by creating other current liabilities.

Taxable goods or services on which GST is calculated and that include everything except zero-rated and exempt supplies are called ________________.

On June 14,Cool Sports gave a 90-day note payable to Slip and Slide Co.,instead of cash payment of an overdue account.The amount of the note was $65,000 at an interest rate of 12%. Prepare the journal entry and determine the maturity date for Cool Sports to record payment of the note.

On November 16,Predator Company borrowed $112,000 from DT Bank.The loan had an interest rate of 10% and was due in 90 days.Predator Company's fiscal year-end is December 31. Prepare the journal entry to record the payment of the note on Predator's books.

Contingent liabilities are disclosed when the liability is not _ or it cannot be _.

_____________ is to compensate the owner of note payable for its use by a borrower until payment is made.

On November 16,Predator Company borrowed $112,000 from DT Bank.The loan had an interest rate of 10% and was due in 90 days.Predator Company's fiscal year-end is December 31. Prepare the journal entry to record the interest due at December 31.

On September 15,Lohr Co.borrowed $50,000 from Close Bank.The loan had an interest rate of 12% and was due in 60 days. Prepare the journal entry for Lohr Co.to record the note.

On November 15,Lohr Co.borrowed $20,000 from Convenient Bank.The loan had an interest rate of 12% and was due in 120 days. Prepare the journal entry to record the payment of the note on Lohr's books,assuming an adjusting entry was made at December 31^st ,Lohr Co.'s year end.

A refund of GST would be received if the balance in the GST account exceeded the balance in the GST __ account.

The difference between the amount received from a promissory note and the amount repaid is _______________.

Unearned revenues are amounts received _______________.

Elder Helpers Ltd estimates its income taxes at 35% of pre-tax income.For the quarter ended September 30,pre-tax income was $300,000.Prepare the journal entry to record the estimated income taxes and the subsequent remittance on October 5.

On November 16,Predator Company borrowed $112,000 from DT Bank.The loan had an interest rate of 10% and was due in 90 days.Predator Company's fiscal year-end is December 31. Prepare the journal entry to record the receipt of the cash.

Quiz 11: Current Liabilities

_______________ are obligations expected to be paid using current assets or by creating other current liabilities.

Taxable goods or services on which GST is calculated and that include everything except zero-rated and exempt supplies are called ________________.

On June 14,Cool Sports gave a 90-day note payable to Slip and Slide Co.,instead of cash payment of an overdue account.The amount of the note was $65,000 at an interest rate of 12%. Prepare the journal entry and determine the maturity date for Cool Sports to record payment of the note.

On November 16,Predator Company borrowed $112,000 from DT Bank.The loan had an interest rate of 10% and was due in 90 days.Predator Company's fiscal year-end is December 31. Prepare the journal entry to record the payment of the note on Predator's books.

Contingent liabilities are disclosed when the liability is not _______________ or it cannot be _______________.

_____________ is to compensate the owner of note payable for its use by a borrower until payment is made.

On November 16,Predator Company borrowed $112,000 from DT Bank.The loan had an interest rate of 10% and was due in 90 days.Predator Company's fiscal year-end is December 31. Prepare the journal entry to record the interest due at December 31.

On September 15,Lohr Co.borrowed $50,000 from Close Bank.The loan had an interest rate of 12% and was due in 60 days. Prepare the journal entry for Lohr Co.to record the note.

On November 15,Lohr Co.borrowed $20,000 from Convenient Bank.The loan had an interest rate of 12% and was due in 120 days. Prepare the journal entry to record the payment of the note on Lohr's books,assuming an adjusting entry was made at December 31st ,Lohr Co.'s year end.

A refund of GST would be received if the balance in the GST ________________ account exceeded the balance in the GST __________________ account.

The difference between the amount received from a promissory note and the amount repaid is _______________.

Unearned revenues are amounts received _______________.

Elder Helpers Ltd estimates its income taxes at 35% of pre-tax income.For the quarter ended September 30,pre-tax income was $300,000.Prepare the journal entry to record the estimated income taxes and the subsequent remittance on October 5.

On November 16,Predator Company borrowed $112,000 from DT Bank.The loan had an interest rate of 10% and was due in 90 days.Predator Company's fiscal year-end is December 31. Prepare the journal entry to record the receipt of the cash.

Contingent liabilities are disclosed when the liability is not _ or it cannot be _.

On November 15,Lohr Co.borrowed $20,000 from Convenient Bank.The loan had an interest rate of 12% and was due in 120 days. Prepare the journal entry to record the payment of the note on Lohr's books,assuming an adjusting entry was made at December 31^st ,Lohr Co.'s year end.

A refund of GST would be received if the balance in the GST account exceeded the balance in the GST __ account.