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Ch 10 Graded Assignment Note: To receive partial credit on problems which require calculations, calculations must be shown. Problem I: (11 points)...

I have completed part of this assignment, just need the answers to the rest of the problems. Thanks!

Ch 10 Graded Assignment Note: To receive partial credit on problems which require calculations, calculations must be shown. Problem I: (11 points) Indicate whether each of the following statements is true (T) or false (F). a. _T__ All liabilities require the future sacrifice of cash in order to be satisfied (decreased). b. __T_ For a company with an operating cycle of less than one year, a liability is classified as “current” if it is expected to be satisfied within one year from the balance sheet date. c. _T__ Social security taxes are often referred to as FICA taxes and employers are required to match and pay in the same amount their employees had withheld. d. ___ Secured bonds have specific assets of the issuer pledged as collateral on the bonds. e. ___ A bond which can be converted into common stock at the option of the bondholder is referred to as a callable bond . f. ___ A contingent liability for which there is a probable loss and is reasonably estimable should be recorded and disclosed in the accounting system. g. ___ A company’s times interest earned ratio being higher this year than it was last year is an indication that the company’s ability to meet its interest payments as they become due has lessened over time. h. ___ If a particular transaction causes a company’s current assets and current liabilities to both decrease by an equal amount, the company’s working capital will remain unchanged. i. ___ It is best to use one of the solvency ratios when trying to measure a company’s ability to pay its short-term obligations as they become due. j. ___ When the market interest rate exceeds the face interest rate on a bond, the bond will be issued at a premium. k. ___ When a bond is redeemed early and the amount paid to retire the bond exceeds the bond’s carrying value, a loss will result. 1
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Problem II : (5 points) Dunning Inc. is a newly formed corporation. It publishes a monthly magazine focusing on sports events for teams in the ACC conference. Annual subscriptions to its magazine sell for $60 per year. On October 1, 20X1, 4,000 annual subscriptions were sold for a total of $240,000 in cash. A. How much subscription revenue should Dunning recognize in 20X1? Answer: $___ B. What should be the “Unearned Subscription Revenue” balance at 12/31/X1? Answer: $___ C. Below is the journal entry which shows the sale of the October 1 subscriptions. Prepare the adjusting entry at December 31, 20X1, to record subscription revenue for 20X1. Debit Credit Oct 1 Cash 240,000 Unearned Subscription Revenue 240,000 Dec 31 D. Accounting Check √ On scrap paper, post the above two journal entries to their respective t- accounts and compute account balances. Does the balance in your “Subscription Revenue” account match your answer to part “A”? Does the balance in your “Unearned Subscription Revenue” account match your answer to part “B”? If your answer to both questions is not “yes”, please go back and check your calculations and/or entries. You do not need to submit your scrap paper. 2
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Ch 10 Graded Assignment Solution.docx

Ch 10 Graded Assignment
Note: To receive partial credit on problems which require calculations, calculations must be shown.
Problem I:(11 points) Indicate whether each of the following statements...

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