Nacron company borrowed 8000 from the bank signing a

This preview shows page 13 - 15 out of 33 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Managerial Accounting: The Cornerstone of Business Decision-Making
The document you are viewing contains questions related to this textbook.
Chapter 4 / Exercise 4-17
Managerial Accounting: The Cornerstone of Business Decision-Making
Hansen/Mowen
Expert Verified
94.______ Nacron Company borrowed $8,000 from the bank signing a 9%, 3-month note onSeptember 1. Principal and interest are payable to the bank on December 1. If thecompany prepares monthly financial statements, the adjusting entry that the companyshould make for interest on September 30, would bea.Debit Interest Expense, $60; Credit Interest Payable, $60.b.Debit Interest Expense, $720; Credit Interest Payable, $720.c.Debit Note Payable, $720; Credit Cash, $720.d.Debit Cash, $60; Credit Interest Payable, $60.
95.______ Nova Real Estate signed a four-month note payable in the amount of $6,000 onSeptember 1. The note requires interest at an annual rate of 12%. The amount of interest tobe accrued at the end of September is
96.______ Snell Tables paid employee wages on and through Friday, January 26, and the nextpayroll will be paid in February. There are three more working days in January (29–31).Employees work 5 days a week and the company pays $900 a day in wages. What will bethe adjusting entry to accrue wages expense at the end of January?
The next payroll amounting to $60,000 is to be paid in the following month. What will be thejournal entry to record the payment of salaries?
4-33
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Managerial Accounting: The Cornerstone of Business Decision-Making
The document you are viewing contains questions related to this textbook.
Chapter 4 / Exercise 4-17
Managerial Accounting: The Cornerstone of Business Decision-Making
Hansen/Mowen
Expert Verified
Test Bank for Financial Accounting: Tools for Business Decision Makingb.Salaries Expense ..................................................................60,000Cash .............................................................................60,000c.Salaries Expense ..................................................................20,000Cash .............................................................................20,000d.Salaries Expense ..................................................................20,000Salaries Payable ...................................................................40,000Cash .............................................................................60,00098.______ An adjusted trial balancea.is prepared after the financial statements are completed.b.proves the equality of the total debit balances and total credit balances of ledgeraccounts after all adjustments have been made.c.is a required financial statement under generally accepted accounting principles.d.cannot be used to prepare financial statements.
99.______ Which of the statements below is nottrue?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture