Reference no: EM133057515

Question - Answer each of the following questions

Q1) If a company has advance ticket sales totaling $2,000,000 for the upcoming football season, the receipt of cash would be journalized as:

A) Debit Sales, credit Unearned Revenue.

B) Debit Unearned Revenue, credit Sales.

C) Debit Cash, credit Unearned Revenue.

D) Debit Unearned Revenue, credit Cash.

E) Debit Cash, credit Ticket sales payable.

Q2) At December 31st taxable sales for Tory Baking was $10,000. The State sales tax on baked goods is 6%.

1. Prepare journal entry to record the sales and related tax.

2. Record the payment of the tax to the state.

Q3) On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $9,000. What is the maturity value (principal plus interest) of the note on March 1? (Use 360 days a year.)

Q4) On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $9,000. What is the adjusting entry for the accrued interest at December 31 on the note? (Use 360 days a year.)

Q5) On the last day of November, Pond Company borrows $60,000 on a bank note for 60 days at 12 percent interest. Interest is not included in the face of the note. Prepare the following journal entries: (A) November 30th recording of the note; (B) December 31st accrual of interest expense; and (C) January 29th payment of the note plus interest.