Reference no: EM132554846

Problem 1: On July 1, 200X you enter into a note payable of $200,000 with a 5% annual interest rate. Your interest expense for 200X will be:

Group of answer choices

$2,500

$10,000.

$5,000

$2,000

Problem 2: Post Company issues a 6 year, 6%, $200,000 bond at par on July 31. The journal entry would be:

Group of answer choices

A debit to cash of $200,000 and a credit to bonds payable of $200,000.

A debit to bonds receivable of $200,000 and a credit to cash of $200,000.

A debit to cash of $200,000 and a credit to bonds receivable of $200,000.

A debit to bonds payable of $200,000 and a credit to cash of $200,000.

Problem 3: Post Company issues a 6 year, 6%, $200,000 bond at par on July 31. How much interest will be paid over the life of the bond?

Group of answer choices

$72,000

$6,000

$4,000

$12,000

Problem 4: A company has current assets of $500,000, net income of $10,000, current liabilities of 250,000 and equity of $250,000. What is the current ratio?

Group of answer choices

0.3

2.0

0.5

7.5

Problem 5: If a company has gross salaries of $12,000 and it withholds $1,800 for income taxes and $800 for FICA taxes, the journal entry to record the employee's pay should include:

Group of answer choices

Debit to salary payable for $9,400

Credit to cash for $12,000

Debit to salary expense for $9,400

Credit to salary payable for $9,400