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Practice Test for Final Exam (1)

Practice Test for Final Exam (1) - ACCT 225 Fall 2008...

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ACCT 225 – Fall 2008 Practice Test for Final Exam IMPORTANT: This practice test is not intended to cover every topic that is on the final exam. It is intended to give you some practice with multiple-choice questions covering topics that we have covered in Chapters 10-13 and Appendix D. Refer to the two previous practice tests for the old material. You should not study solely from this practice test if your goal is to past the final exam . 1. JHF Corporation’s payroll records for the November 15-21 pay period show that employees earned wages totaling $110,000. Federal income taxes of $16,000 and FICA taxes of $8,415 were withheld from this amount. Which of the following would be included in the journal entry to record this payroll? A debit to Wages Expense for $85,585. A debit to Wages Payable for $110,000. A credit to Cash for $110,000. A debit to Wages Expense for $110,000. 2. Larson Corporation borrowed $50,000 on a two-year, 10% note dated October 1, 2008. Interest is payable annually on October 1, 2009, and October 1, 2010 (the maturity date of the note). The corporation prepares its financial statements on a calendar-year basis. The entry that should be recorded on October 1, 2010, would include a: Debit to Interest Expense for $5,000. Debit to Interest Payable for $1,250. Debit to Notes Payable for 55,000. Credit to Notes Payable for $55,000. 3. If the market rate of interest is 12%, a $10,000, 20-year bond with a stated annual interest rate of 10% would be issued at an amount: A) less than face value. B) equal to face value. C) greater than face value. 4 . Gamecock Country’s corporate charter specifies that the company may sell up to 10 million shares of stock. The company sells 9 million shares to investors and later buys back 2 million shares. The current number of outstanding shares after these
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