9) A company receives a $10,000, 12%, 60-day note, dated June 15, from a custome
ID: 2587663 • Letter: 9
Question
9) A company receives a $10,000, 12%, 60-day note, dated June 15, from a customer to apply on account. Compute the maturity value of the note. (Use a 360-day year.)
A)$ 9,800
B) $10,000
C) $10,200
D) $11,200
10) What journal entry does a company make to record the collection of an interest-bearing note received and collected in the same accounting period?
A)
Debits Cash, credits Notes Payable, and credits Interest Expense
B)
Debits Cash, credits Notes Receivable, and credits Interest Revenue
Debits Notes Payable, debits Interest Expense, and credits Cash
Debits Notes Receivable, debits Interest Revenue, and credits Cash
11) Which of the following is a characteristic of plant assets? They
A)
Are also called intangible assets
Are held for sale and not used in operations
Are tangible assets used in operations
Have a useful life of less than one year
12) Equipment with a cost of $65,000 has an estimated salvage value of $5,000 and an estimated life of 5 years or 15,000 hours. What is the amount of depreciation for the first full year, assuming the company uses the straight-line method?
A) $8,000
B) $12,000
C) $24,000
D) $26,000
Debits Cash, credits Notes Payable, and credits Interest Expense
B)
Debits Cash, credits Notes Receivable, and credits Interest Revenue
C)Debits Notes Payable, debits Interest Expense, and credits Cash
D)Debits Notes Receivable, debits Interest Revenue, and credits Cash
11) Which of the following is a characteristic of plant assets? They
A)
Are also called intangible assets
B)Are held for sale and not used in operations
C)Are tangible assets used in operations
D)Have a useful life of less than one year
12) Equipment with a cost of $65,000 has an estimated salvage value of $5,000 and an estimated life of 5 years or 15,000 hours. What is the amount of depreciation for the first full year, assuming the company uses the straight-line method?
A) $8,000
B) $12,000
C) $24,000
D) $26,000
O $700 $2.700 O $1,100 $ 9.800 O$10,000 $10.200 QUESTION 10Explanation / Answer
9) Maturity value = (10000*12%*60/360)+10000 = 10200
so answere is c) $10200
10) Collection from notes journal entry :
Debit cash a/c, Credit notes receivable, Credit interest revenue
so answer is b) Debits Cash, credits Notes Receivable, and credits Interest Revenue
11) Plant assets are that assets which is used in operating not held for sale and it is in tangible nature.
so answer is c) Are tangible assets used in operations
12) Straight line dep = (65000-5000)/5 = $12000
so answer is b) $12000
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