General Accounting

Q1) On June 8, AC company. issued an $90,000, 6%, 120-day note payable to SC company. Assuming a 360-day year for your calculations, what is the maturity value of the note?

Q2) The MX Company issued $100,000 of 12% bonds on April 1, 2010 at face value. The bonds pay interest semiannually on January 1 and July 1. The bonds are dated January 1, 2010, and mature on January 1, 2014. The total interest expense related to these bonds for the year ended December 31, 2010 is?

Q3)The journal entry a company records for the payment of interest, interest expense, and amortization of bond discount is

A- debit Interest Expense, credit Interest Payable and Discount on Bonds Payable

B- debit Interest Expense, credit Cash and Discount on Bonds Payable

C- debit Interest Expense and Discount on Bonds Payable, credit Cash

D- debit Interest Expense, credit Cash

Q4) On the first day of the current fiscal year, $1,000,000 of 10-year, 7% bonds, with interest payable semiannually, were sold for $1,050,000. Prepare entries to record the following transactions for the current fiscal year:

A-Issuance of the bonds.

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B- First semiannual interest payment.

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C- Amortization of bond premium for the year, using the straight-line method of amortization.

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Q5) Prepare entries to record the following

  A- Issued 1,000 shares of $15 par common stock at $54 for cash

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B- Issued 1,400 shares of no-par common stock in exchange for equipment with a fair market price of $24,000.

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C-Purchased 100 shares of treasury stock at $26.

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D- Sold 100 shares of treasury stock purchased in (c) at $29