Accounting Homework 10 Questions

1. Amounts owed to suppliers for products or services purchased on open account are called:notes payableunearned revenuesaccounts payableaccrued expensesTable 1A $10,000, 90 day, 12% note payable was issued on November 1, 19X10.2. Referring to Table 1, what is the amount of the accrued interest on December 31, 19X10?a. $300b. $1,200c. $150d. $2003. Warranty expense is debited in the period that:a. the product is repairedb. the product is soldc. the cash is collected from the customerd. either the product is sold or the cash is collected4. Unearned revenue represents revenue that has:a. been earned and collectedb. been earned but not yet collectedc. been collected but not yet earnedd. not been collected nor earned5. The entry to accrue interest on a note payable would include a:a. debit to note payableb. credit to interest receivablec. credit to interest revenued. debit to interest expense6. Short-term notes payable:a. are a common form of financingb. are generally due within one yearc. both a and b are correctd. are shown on the balance sheet as a reduction to notes receivable7. A contingent gain that is reasonably possible and can be reasonably estimated should be:a. disclosed in a note to the financial statementsb. accrued with a journal entryc. either disclosed in a note or accrued with a journal entryd. ignored until the actual gain materializes8. Tina Martin works as a cost accountant receiving $520 for a 40-hour work week. She is paid time andone-half for anything over 40 hours. If Tina works 47 hours, her total pay is:a. $611.00b. $520.00c. $656.50d. cannot be determined from the information givenTable 7Barbara and Bill are the only two employees of Bush Company.In January, 19X10, Barbara’s gross pay was $5,500 and Bill’s gross pay was $5,200. Each employee paysfederal income tax equal to 25% of gross pay. In addition, Bill pays $200 for insurance premiums andBarbara pays $225. Each has $25 withheld for life insurance premiums. Assume a FICA tax rate of 8% on all earnings, a federal unemployment tax rate of .8%, and a state unemployment tax rate of 5.4%. Theunemployment taxes are based on the first $7,000 of employee annual earnings.9. Referring to Table 7, the entry to record the payroll for January would include a:a. debit to salary payable to employees for $6,694b. credit to FICA tax payable for $856c. credit to federal unemployment tax payable for $86d. credit to state unemployment tax payable for $57810. Referring to Table 7, the entry to record the payroll taxes imposed on the employer would include a:a. debit to FICA tax payable for $856b. debit to employee income tax payable for $2,675c. debit to federal unemployment tax payable for $86d. credit to state unemployment tax payable for $578