Reference no: EM133069473

Questions -

Q1. Swifty Corporation's salaried employees are paid biweekly. Occasionally, advances made to employees are paid back by payroll deductions. Information relating to salaries for the calendar year 2021 is as follows:

	12/31/20	12/31/21
Employee advances	$25000	$34000
Accrued salaries payable	160000	?
Salaries expense during the year		1380000
Salaries paid during the year (gross)		1230000

At December 31, 2021, what amount should Swifty report for accrued salaries payable?

Q2. On September 1, 2020, Sheffield Corp. issued a note payable to Fidelity Bank in the amount of $2742000, bearing interest at 12%, and payable in three equal annual principal payments of $914000. On this date, the bank's prime rate was 13%. The first payment for interest and principal was made on September 1, 2021. At December 31, 2021, Sheffield should record accrued interest payable of?

Q3. If bonds are initially sold at a discount and the straight-line method of amortization is used, interest expense in the earlier years will

a. exceed what it would have been had the effective-interest method of amortization been used.

b. be the same as what it would have been had the effective-interest method of amortization been used.

c. be less than what it would have been had the effective-interest method of amortization been used.

d. be less than the stated (nominal) rate of interest.