1. Known liabilities of estimated amounts are: a. Ignored b. reported on the bal
ID: 2386412 • Letter: 1
Question
1. Known liabilities of estimated amounts are:a. Ignored
b. reported on the balance sheet.
C.contingent liabilities.
d. reported only in the notes to the financial statements.
2. On January 1, 2012, you borrowed $13,000 on a five-year, %6 note payable. At December 31, 2013, you should record:
a. interest payable of $780
b. note receivable of $13,000
c. cash payment of $13,000
d. nothing.
3. Your company sells $110,000 of goods and you collect sales tax of 4%. What current liability does the sale create?
a. Sales tax payable of $4,400
b. sales revenue of 114,400
c. Unearned revenue f 4400
d. none
Explanation / Answer
b. reported on the balance sheet.
a. interest payable of $780
a. Sales tax payable of $4,400
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