Reference no: EM132762378

Question 1 - Viking Company borrowed $500,000 from the credit union to acquire farm equipment on January 1, 2015. The 10-year, 4% note required annual payments of $61,645 made on 12/31.

Using the information above, what is the journal entry on December 31, 2015?

(a) Debit M/P $20,000, Int. Exp $41,645, Credit Cash $61,645

(b) Debit M/P $61,645, Int. Exp $20,000, Credit Cash $61,645

(c) Debit M/P $41,645, Int. Exp $20,000, Credit Cash $61,645

Question 2 - Viking Company borrowed $500,000 from the credit union to acquire farm equipment on January 1, 2015. The 10-year, 4% note required annual payments of $61,645 made on 12/31. What is the notes payable balance after the December 31, 2016 payment is made?

(a) 376,710

(b) 415,044

(c) 438,355

Question 3 - Assume the Polar Express sells cheap one-way tickets for students to go home over the holidays. Because seating was limited, $10,000 worth of tickets were sold on Dec. 1. All students were successfully delivered home by Dec. 25. What is the journal entry on December 1 to record the ticket sales?

(a) Debit Cash $10,000, Credit Unearned Rev. $10,000

(b) Debit A/R $10,000 Credit Unearned Rev. $10,000

(c) Debit A/R $10,000 Credit Revenue. $10,000

(d) Debit Cash $10,000, Credit Revenue $10,000

Question 4 - Assume the Polar Express sells cheap one-way tickets for students to go home over the holidays. Because seating was limited, $10,000 worth of tickets were sold on Dec. 1. All students were successfully delivered home by Dec. 25. What is the Adjusting journal entry on December 31?

(a) Debit Unearned Rev. $10,000, Credit Revenue $10,000

(b) Debit Revenue $10,000, Credit Unearned Rev. $10,000

(c) Debit Unearned Rev. $10,000, Credit A/R $10,000

(d) Debit Revenue $10,000, Credit A/R $10,000