Question Details

Ebbert Company- salaried employees 



1.	Which of the following is generally associated with payables classified as accounts payable?
		Periodic Payment	Secured
		of Interest	by Collateral
	a.	No	No
	b.	No	Yes
	c.	Yes	No
	d.	Yes	Yes

	2.	On January 1, 2012, Bacon Co. leased a building to Horner Corp. for a ten-year term at an annual rental of $140,000. At inception of the lease, Bacon received $560,000 covering the first two years' rent of $280,000 and a security deposit of $280,000. This deposit will not be returned to Horner upon expiration of the lease but will be applied to payment of rent for the last two years of the lease. What portion of the $560,000 should be shown as a current and long-term liability, respectively, in Bacon's December 31, 2012 balance sheet?
		Current Liability	Long-term Liability
	a.	$0	$560,000
	b.	$140,000	$280,000
	c.	$280,000	$280,000
	d.	$280,000	$140,000

	3.	On September 1, 2014, Halley Co. issued a note payable to Fidelity Bank in the amount of $1,800,000, bearing interest at 10%, and payable in three equal annual principal payments of $600,000. On this date, the bank's prime rate was 11%. The first payment for interest and principal was made on September 1, 2015. At December 31, 2015, Halley should record accrued interest payable of
a.	$66,000.
b.	$60,000.
c.	$40,000.
d.	$132,000.

4.	Included in Vernon Corp.'s liability account balances at December 31, 2014, were the following:
7% note payable issued October 1, 2014, maturing September 30, 2015	$250,000
8% note payable issued April 1, 2014, payable in six equal annual 
	installments of $150,000 beginning April 1, 2015	600,000
Vernon's December 31, 2014 financial statements were issued on March 31, 2015. On January 15, 2015, the entire $600,000 balance of the 8% note was refinanced by issuance of a long-term obligation payable in a lump sum. In addition, on March 10, 2015, Vernon consummated a noncancelable agreement with the lender to refinance the 7%, $250,000 note on a long-term basis, on readily determinable terms that have not yet been implemented. On the December 31, 2014 balance sheet, the amount of the notes payable that Vernon should classify as short-term obligations is
a.	$175,000.
b.	$125,000.
c.	$50,000.
d.	$0.

	5.	Ebbert Company- salaried employees are paid biweekly. Occasionally, advances made to employees are paid back by payroll deductions. Information relating to salaries for the calendar year 2015 is as follows:
			12/31/14		  12/31/15	
Employee advances	$24,000	$  36,000
Accrued salaries payable	140,000	?
Salaries expense during the year		1,400,000
Salaries paid during the year (gross)		1,250,000
		At December 31, 2015, what amount should Ebbert report for accrued salaries payable?
a.	$290,000.
b.	$162,000.
c.	$114,000.
d.	$150,000.




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help