not be recorded at all because they are future liabilities no past event b a

Not be recorded at all because they are future

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a. not be recorded at all because they are future liabilities, no past event. b. a provision on the balance sheet. c. an accrual on the balance sheet. d. a contingent liability on the balance sheet. e. a contingent liability in the notes to the accounts. Feedback Your answer is incorrect. The correct answer is: a provision on the balance sheet. Question 6 Incorrect Mark 0.00 out of 1.00 Flag question
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Question text Assume that on 1 January 2009 the company issued $100,000 ten-year bonds with a 10% coupon rate paid semi-annually. The bond is issued to yield a 12% return to investors selling for $88,529. Which of the following would be part of the journal entries to record the sale of the bond on 1 January 2009? Select one: a. Dr Bonds $88,529 b. Dr Cash $100,000 c. Dr Cash $88,529 d. Dr Bonds $11,471 e. Dr Bonds $100,000 Feedback Your answer is incorrect. The correct answer is: Dr Cash $88,529 Question 7 Incorrect Mark 0.00 out of 1.00 Flag question Question text At the very beginning of 2009, Heatseaker Ltd issued 200, $1,000 bonds with a coupon rate of 7.3 percent which is paid annually in arrears to bond holders. The bonds have a 4 year maturity. The bonds were very well received by the market, so Heatseaker Ltd received $1045 for each of the bonds. This suggests an effective interest rate (market rate at time when the bonds were issued) of about 6 per cent. For the year ending 2010, what will the journal entry be in relation to recording interest expense and the coupon payment (rounded to nearest dollar): Select one: a. Dr Interest Expense $14,600 Cr Cash $14,600 b. Dr Interest Expense $12,416 Dr Bond Premium $2,184 Cr Cash $14,600
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c. Dr Interest Expense $12,540 Dr Bond Premium $2,060 Cr Cash $14,600 d. Dr Interest Expense $14,600 Cr Bond Premium $2,184 Cr Cash $12,416 e. Dr Interest Expense $12,285 Dr Bond Premium $2,315 Cr Cash $14,600 Feedback Your answer is incorrect. The correct answer is: Dr Interest Expense $12,416 Dr Bond Premium $2,184 Cr Cash $14,600 Question 8 Incorrect Mark 0.00 out of 1.00 Flag question Question text Future warranty costs related to this year’s sales will appear in the balance sheet under: Select one: a. not be recorded at all because they are future liabilities, no past event. b. a contingent liability in the notes to the accounts. c. an accrual on the balance sheet. d. a provision on the balance sheet. e. a contingent liability on the balance sheet. Feedback Your answer is incorrect. The correct answer is: a provision on the balance sheet. Question 9 Incorrect Mark 0.00 out of 1.00
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Flag question Question text Amounts owing to an advertising company as per an invoice received would appear on the company's balance sheet as: Select one: a. provisions b. accounts payable c. intangible asset d. contingent liability e. unearned revenue Feedback Your answer is incorrect. The correct answer is: accounts payable Question 10 Incorrect Mark 0.00 out of 1.00 Flag question Question text As a result of some major excavations this year for mining, PLM Ltd is obliged to carry out land restoration at the end of the excavations. This cost of the restoration will be shown in the balance sheet under: Select one: a. not recorded b. accounts payable c. provisions d. contingent liability
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e. contingent asset Feedback Your answer is incorrect.
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