REVISION 5 : 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

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

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 the payment of interest on January 1, 2021.

• 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

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 the redemption of bonds at maturity date.

• Debit Bonds payable RM900,000

• Debit Interest expense RM72,000

• Debit Interest payable RM72,000

• Credit Bank RM900,000

• Credit Bank RM972,000

The Coldon Company issued RM300,000 of 10% bonds on January 1, 2019. The bonds are due January 1, 2024, with interest payable each July 1 and January 1. The bonds are issued at face value. Prepare Coldon's journal entries for July 1 interest payment

• Debit Interest expense RM30,000 ; Credit Bank RM30,000

• Debit Interest expense RM30,000; Credit Interest payable RM30,000

• Debit Interest expense RM15,000; Credit Bank RM15,000

• Debit Interest expense RM15,000; Credit Interest payable RM15,000

The Coldon Company issued RM300,000 of 10% bonds on January 1, 2019. The bonds are due January 1, 2024, with interest payable each July 1 and January 1. The bonds are issued at face value. Prepare Coldon's journal entries for issuance of bonds

• Debit Bank RM300,000 ; Credit Bonds payable RM300,000

• Debit Bank RM30,000 ; Credit Bonds payable RM30,000

• Debit Bank RM315,000 ; Credit Bonds payable RM315,000

• Debit Cash RM330,000 ; Credit Bonds payable RM330,000