Question

Principles of Accounting I Quiz 11 #17 The journal entry used to record the issuance of...

Principles of Accounting I

Quiz 11

#17

The journal entry used to record the issuance of a discounted note for the purpose of borrowing funds for the business is

a. debit Notes Payable; credit Cash

b. debit Accounts Payable; credit Notes Payable

c. debit Cash and Interest Payable; credit Notes Payable

d. debit Cash and Interest Expense; credit Notes Payable

#24

During its first year of operations, a company granted its employees vacation privileges and pension rights estimated at a cost of $24,178 and $15,400, respectively. The vacations are expected to be taken in the next year, and the pension rights are expected to be paid in the future 5-30 years. What is the total cost of vacation pay and pension rights to be recognized in the first year?

a. $15,400

b. $39,578

c. $24,178

d. $70,378

I missed both of these on a quiz. What is the correct answer and solution. Thank you

Homework Answers

Answer #1
17
The journal entry used to record the issuance of a discounted note for the purpose of borrowing funds for the business is Debit Cash and Interest Expense; credit Notes Payable
Option D is correct
24
Under the accrual basis, cost of vacation pay and pension rights are to be recognized in the year in which they accrue
Total cost of vacation pay and pension rights to be recognized in the first year = 24178+15400= $39578
Option B is correct
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What would be the required journal entry on the date of issuance if a company issues...
What would be the required journal entry on the date of issuance if a company issues $100,000 five-year, 10% bond for $96,231 and the interest is to be paid semiannually? A. debit cash, $100,000, and credit bond payable $100,000 B. debit cash $103,769, and credit bond payable $100,000 and credit premium on bonds payable $3,769 C. debit bonds payable $103,769 and debit discount on bonds payable $3,769, and credit cash $100,000 D. debit cash $103,769 and debit discount on bonds...
Prepare the journal entry for the issuance of these bonds. Assume the bonds are issued for...
Prepare the journal entry for the issuance of these bonds. Assume the bonds are issued for cash on January 1, 2016. Garcia Company issues 9.00%, 15-year bonds with a par value of $310,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 7.00%, which implies a selling price of 118 2/5. Record the issue of bonds with a par value of $310,000. Note: Enter debits before credits. Date General Journal Debit Credit Jan...
I need to make a journal entry for the following problems. I think I got #1...
I need to make a journal entry for the following problems. I think I got #1 right but I need help with how to solve #2 if possible, thank you. 1. On Jan 1 a corporation issued $325,000, 5.5%, 9 year bonds when the market rate was 6%. Interest is to be paid annually on each Jan 1, beginning 1 year from the date of issue. THIS IS WHAT I GOT FOR THIS ONE: Jan 1. Cash Debit   $313,947   ...
The journal entry to record 31 days of accrued interest at the end of the month...
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...
Pizza Delivery Worksheet This is a simple journal entry project. I want to make sure that...
Pizza Delivery Worksheet This is a simple journal entry project. I want to make sure that you understand the basics of journal entries. Look at the calendar and make a journal entry for each transaction. At the bottom of the calendar page I listed the accounts that you will use. Use only these to complete the journal page. This is basic chapter 2 debits and credits journal entries. Let's look at the first entry. You open your business with $500....
The following information is available for the pension plan of Tyson Company for the year 2020....
The following information is available for the pension plan of Tyson Company for the year 2020. Actual and expected return on plan assets $ 14,300 Benefits paid to retirees 41,900 Contributions (funding) 96,100 Interest/discount rate 10 % Prior service cost amortization 8,800 Projected benefit obligation, January 1, 2020 529,000 Service cost 58,800 Compute pension expense for the year 2020. Pension expense for 2020 $enter pension expense for 2017 in dollars Prepare the journal entry to record pension expense and the...
PLEASE USE CHARTS I PROVIDED Fosters Manufacturing Co. warrants its products for one year. The estimated...
PLEASE USE CHARTS I PROVIDED Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 8% of sales. Assume that sales were $560,000 for January. On February 7, a customer received warranty repairs requiring $260 of parts and $70 of labor. CHART OF ACCOUNTS Fosters Manufacturing Co. General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125...
A business provides its employees with varying amounts of vacation per year, depending on the length...
A business 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 pay is $63,600. Required: a. Journalize the adjusting entry required on January 31, the end of the first month of the current year, to record the accrued vacation pay. Refer to the Chart of Accounts for exact wording of account titles. b. How is the vacation pay reported on the company’s balance sheet? When...
A business issued a 45-day, 4% note for $275,000 to a creditor on account. Journalize the...
A business issued a 45-day, 4% note for $275,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note on January 1 and (b) the payment of the note at maturity, including interest. Assume a 360-day year. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Merchandise Inventory 116 Supplies 118 Prepaid Insurance...
A business issued a 45-day, 4% note for $240,000 to a creditor on account. Journalize the...
A business issued a 45-day, 4% note for $240,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note on January 1 and (b) the payment of the note at maturity, including interest. Assume a 360-day year. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Merchandise Inventory 116 Supplies...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT