Question : 1. Current liabilities are: A. due, but not receivable for more than : 1224945

1. Current liabilities are:  
A. due, but not receivable for more than one year.
B. due, but not payable for more than one year.
C. due and receivable within one year.
D. due and payable within one year.

2. The journal entry to record the issuance of a note for the purpose of borrowing funds is:  
A. debit Accounts Payable; credit Notes Payable.
B. debit Cash; credit Notes Payable.
C. debit Notes Payable; credit Cash.
D. debit Cash and Interest Expense; credit Notes Payable.

3. The journal entry to record the payment of an ordinary note is:  
A. debit Cash; credit Notes Payable.
B. debit Cash; credit Accounts Payable.
C. debit Notes Payable and Interest Expense; credit Cash.
D. debit Notes Payable and Interest Receivable; credit Cash.

4. The interest charged by the bank, at the rate of 9%, on a 3-month, discounted note payable for $100,000 is:  
A. $9,000.
B. $2,250.
C. $750.
D. $1,000.

5. Grayson Bank agrees to lend the Trust Company $100,000 on January 1. Trust Company signs a $100,000, 12%, 9-month note. What entry will Trust Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30? 
A. Notes Payable                                    109,000
            Cash                                                            109,000
B. Notes Payable                                    100,000
Interest Payable                                     9,000
            Cash                                                            109,000
C. Interest Expense                                  12,000
Notes Payable                                    100,000
            Cash                                                            112,000
D. Interest Payable                                   12,000
Notes Payable                                    100,000
            Cash                                                            112,000

6. Which of the following would most likely be classified as a current liability? 
A. Two-year notes payable
B. Bonds payable
C. Mortgage payable
D. Portion of long-term debt due within one year

7. The amount of federal income taxes withheld from an employee’s gross pay is recorded as a: 
A. payroll expense.
B. contra account.
C. current asset.
D. current liability.

8. The portion of long-term debt due within one year should: 
A. be classified as a long-term liability.
B. not be separated from the long-term portion of debt.
C. be paid immediately.
D. be reclassified as a current liability.

9. Moore Company has the following information for the pay period of December 15 – 31, 2012:

Salaries

$18,000

Federal income tax

$2,700

State income tax

$2,160

FICA

$1,017

Salaries are paid on December 31, 2012. On December 31st, Cash would be recorded for:  
A. $18,000.
B. $13,140.
C. $12,123.
D. $15,300.

10. Moore Company has the following information for the pay period of December 15 – 31, 2012.

Salaries

$18,000

Federal income tax

$2,700

State income tax

$2,160

FICA

$1,017

Salaries are paid on December 31, 2012. On December 31st, Salaries Expense would be recorded for:  
A. $18,000.
B. $12,123.
C. $15,300.
D. $13,140.