QUIZ 2 : TOPIC 10 [ACCOUNTING FOR LIABILITIES]

Penthouse Sdn Bhd borrows RM88,500 on September 1, 2020 from Maybank by signing a notes, 12%, for a period of one year. Compute the interest payable at 31 December 2020?

• RM2,655

• RM3,540

• RM4,425

• RM10,620

Jon Dan Tee (JDT) Company borrowed RM70,000 on December 1, a 6 month, 6% notes. At December 31, when the accounting period ended, the adjustment entries are _____________.

• Dr. Interest expense RM2,100 ; Cr Bank RM2,100

• Dr. Interest expense RM2,100 ; Cr Interest payable RM2,100

• Dr. Interest expense RM350 ; Cr Bank RM350

• Dr. Interest expense RM350 ; Cr Interest payable 350

Jelitasara Sdn Bhd received cash RM15,225 for November sales, these amount was including sales tax 5%. Determine the correct amount that will be credited to sales accounts.

• RM15,986.25

• RM15,225

• RM14,500

• RM14,463.75

ETIQA Takaful Insurance collected a premium of RM18,000 for a one year insurance policy on April 1, 2020. How much will be the amount should be ETIQA Takaful Insurance report as a current liability for an Unearned Service Revenue at December 31?

• RM0

• RM4,500

• RM13,500

• RM18,000

At December 31, Panasonic Supply prepares an adjusting entry for a product warranty contract. Which of the following accounts is / are included in the entry?

• Miscellaneous expense

• Warranty expense

• Repair parts

• Miscellaneous expense and warranty expense

The time period for classifying a liability as current is one year or the accounting cycle. whichever is _________

• longer

• shorter

• probable

• possible

To be classified as a non-current liability, a debt must be expected to be paid within a period of ______________

• one year

• the accounting cycle

• 2 years

• more than one year

One stop Centre issued bonds that pay interest every January 1. The accounting period ended December 31, each year. Select the suitable journal entry at December 31.

• Debit Interest expense ; Credit Cash

• Debit Interest expense ; Credit Interest payable

• Debit Interest Payable; Credit Interest expense

• Debit Interest payable; Credit Cash

MasWings Airlines Bhd issued RM900,000, 8% 10 year bonds on January 1, 2020 at face value. Interest is payable annually on January 1. Select the suitable journal entry to record issuance of the bonds.

• debit bank RM900,000; credit bonds payable RM900,000

• debit bank RM900,000 ; credit bonds RM900,000

• Debit Bonds RM900,000 ; credit bank RM900,000

• Debit Bonds payable RM900,000 ; credit Bank RM900,000

MasWings Airlines Bhd issued RM900,000, 8% 10 year bonds on January 1, 2020 at face value. Interest is payable annually on January 1. Select the suitable journal entry to record interest for the year ended 31 December 2020.

• debit Interest expense RM720,000; credit Interest payable RM720,000

• debit Interest expense RM72,000; credit Interest payable RM72,000

• debit Interest expense RM72,000; credit Bank RM72,000

• debit Interest payable 72,000; credit Bank RM72,000