Questions from Financial Accounting

Q: What kind of account is Unearned Revenue? a. Revenue

What kind of account is Unearned Revenue? a. Revenue account b. Expense account c. Liability account d. Asset account

Q: An end-of-period adjusting entry that debits Unearned Revenue

An end-of-period adjusting entry that debits Unearned Revenue most likely will credit a. A revenue. b. An asset. c. An expense. d. A liability.

Q: Myron, Inc., manufactures and sells computer monitors with a three

Myron, Inc., manufactures and sells computer monitors with a three-year warranty. Warranty costs are expected to average 7% of sales during the warranty period. The following table shows the sales and...

Q: Moment’s Fashions has a debt that has been properly reported as a

Moment’s Fashions has a debt that has been properly reported as a long-term liability up to the present year (2012). Some of this debt comes due in 2012. If Moment’s Fashions continues to report the c...

Q: A bond with a face amount of $10,000 has

A bond with a face amount of $10,000 has a current price quote of 102.875. What is the bond’s price? a. $10,287.50 b. $10,102.88 c. $1,028,750 d. $1,028.75

Q: Bond carrying value equals Bonds Payable a. Minus Premium on

Bond carrying value equals Bonds Payable a. Minus Premium on Bonds Payable. b. Plus Discount on Bonds Payable. c. Plus Premium on Bonds Payable. d. Minus Discount on Bonds Payable. e. Both a and b f....

Q: What type of account is Discount on Bonds Payable and what is

What type of account is Discount on Bonds Payable and what is its normal balance? a. Contra liability; Credit b. Contra liability; Debit c. Adjusting account; Credit d. Reversing account; Debit

Q: The entry to record the sale of the bonds on April 1

The entry to record the sale of the bonds on April 1 would be as follows: Sunny Day Company sells $400,000 of 13%, 10-year bonds for 97 on April 1, 2012. The market rate of interest on that day is 1...

Q: Sunny Day Company uses the straight-line amortization method. The

Sunny Day Company uses the straight-line amortization method. The amount of interest expense for each year will be a. $60,000. b. $53,200. c. $54,000. d. $52,000. e. none of these. Sunny Day Company...

Q: McPherson Corporation issued $400,000 of 10%, 20-

McPherson Corporation issued $400,000 of 10%, 20-year bonds payable on January 1, 2012, for $295,000. The market interest rate when the bonds were issued was 14%. Interest is paid semiannually on Janu...