Question Details

Sales taxes collected by a retailer are recorded by 



1.	The interest charged on a ¥100,000,000 note payable, at the rate of 8%, on a 90-day note would be

	2.	The interest charged on a ¥100,000,000 note payable, at the rate of 6%, on a 60-day note would be

 3.	The interest charged on a ¥200,000,000 note payable, at the rate of 8%, on a 3-month note would be

	4.	The interest charged on a ¥200,000,000 note payable, at the rate of 6%, on a 2-month note would be


	5.	On October 1, 2011, Pennington Company issued a €40,000, 10%, nine-month interest-bearing note. If the Pennington Company is preparing financial statements at December 31, 2011, the adjusting entry for accrued interest will include a:


	6.	On October 1, 2010, Pennington Company issued a €40,000, 10%, nine-month interest-bearing note. Assuming interest was accrued in June 30, 2011, the entry to record the payment of the note on July 1, 2011, will include a:


		Use the following information for questions 7-9.

London Bank and Trust agrees to lend the Beckham Company £2,000,000 on January 1, 2010. Beckham Company signs a ₤2,000,000, 6%, 9-month note.

	7.	The entry made by Beckham Company on January 1 to record the proceeds and issuance of the note is 

	8.	Assuming that monthly accruals are not made, what adjusting entry is required if Beckham Company prepares financial statements on June 30?

	9.	What entry will Beckham Company make to pay off the note and interest at maturity assuming that no interest has been accrued since June 30?

	10.	Harrods Company receives £165, of which £15 is for sales tax. The journal entry to record the sale would include a 


 11.	Franco Company credits its Sales account for the sales price and the sales tax collected on sales. If the sales tax rate is 9% and the balance in the Sales account amounted to €279,000, what is the amount of the sales taxes owed to the taxing authority (rounded to the nearest €)?


	12.	Monique's Boutique has total receipts for the month of May of €25,570 including sales taxes. If the sales tax rate is 10%, what amount of sales revenue did the boutique earn in May (rounded to the nearest €)?


Use the following information for questions 13 and 14.

Ski Quarterly typically sells subscriptions on an annual basis, and publishes four times a year in January, April, July and October. The magazine sells 70,000 subscriptions in January at CHF16 each.

	13.	What entry is made in January to record the sale of the subscriptions? 

	14.	If Ski Quarterly publishes a quarterly financial statement at March 31, the adjusting journal entry to recognize revenue earned will include:

 15.	In what order are current liabilities typically listed on the statement of financial position?


	16.	Sales taxes collected by a retailer are recorded by 

	17.	Unearned Rental Revenue is


	18.	Crawford Company has total proceeds (before segregation of sales taxes) from sales of $4,770. If the sales tax is 6%, the amount to be credited to the account Sales is:


	19.	Reliable Insurance Company collected a premium of $15,000 for a 1-year insurance policy on May 1. What amount should Reliable report as a current liability for Unearned Insurance Premiums at December 31?

	20.	A company receives $132, of which $12 is for sales tax. The journal entry to record the sale would include a





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