90.Glaus Corp. signed a three-month, zero-interest-bearing note on November 1, 2010 for the purchase of $150,000 of inventory. The face value of the note was $152,205. Assuming Glaus used a “Discount on Note Payable” account to initially record the note and that the discount will be amortized equally over the 3-month period, the adjusting entry made at December 31, 2010 will include aa.debit to Discount on Note Payable for $735.b.debit to Interest Expense for $1,470.c.credit to Discount on Note Payable for $735.d.credit to Interest Expense for $1,470.91.The effective interest on a 12-month, zero-interest-bearing note payable of $300,000, discounted at the bank at 10% is13 - 19
92.On September 1, Hydra purchased $9,500 of inventory items on credit with the terms 1/15, net 30, FOB destination. Freight charges were $200. Payment for the purchase was made on September 18. Assuming Hydra uses the perpetual inventory system and the net method of accounting for purchase discounts, what amount is recorded as inventory from this purchase?93.Sodium Inc. borrowed $175,000 on April 1. The note requires interest at 12% and principal to be paid in one year. How much interest is recognized for the period from April 1 to December 31?94.Collier borrowed $175,000 on October 1 and is required to pay $180,000 on March 1. What amount is the note payable recorded at on October 1 and how much interest is recognized from October 1 to December 31?a.$175,000 and $0.b.$175,000 and $3,000.c.$180,000 and $0.d.$175,000 and $5,000.95.Purest owes $1 million that is due on February 28. The company borrows $800,000 on February 25 (5-year note) and uses the proceeds to pay down the $1 million note and uses other cash to pay the balance. How much of the $1 million note is classified as long-term in the December 31 financial statements.96.Vista newspapers sold 4,000 of annual subscriptions at $125 each on September 1. How much unearned revenue will exist as of December 31?97.Purchase Retailer made cash sales during the month of October of $132,600. The sales are subject to a 6% sales tax that was also collected. Which of the following would be included in the summary journal entry to reflect the sale transactions?13 - 20
Current Liabilities and Contingencies
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