1838_1_Current-liabilities-are-review

1838_1_Current-liabilities-are-review - . Current...

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Current liabilities are (Points: 2) due, but not receivable for more than one year due, but not payable for more than one year due and receivable within one year due and payable within one year 2. On June 8, Alton Co. issued an $80,000, 6%, 120-day note payable to Seller Co. What is the due date of the note? (Points: 2) October 8 October 7 October 6 October 5 3. The interest charged by the bank, at the rate of 9%, on a 90-day, discounted note payable for $100,000 is (Points: 2) $9,000 $2,250 $750 $1,000 4. As interest is recorded on an interest-bearing note, the Interest Expense account is (Points: 2) decreased; the Interest Payable account is increased. increased; the Interest Payable account is increased. increased; the Notes Payable account is decreased. increased; the Notes Payable account is increased. 5. The journal entry to record the conversion of an $550 accounts payable to a notes payable would be: (Points: 2) Jan 31 Dr Cash 550 Cr Notes Payable 550 Jan 31 Dr Notes Receivable 550
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1838_1_Current-liabilities-are-review - . Current...

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