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WorksheetsAccounting 5.01
Total questions: 10
Worksheet time: 30mins
Name
Class
Date
1.
High Country Apparel signed a $75,000, two-year, interest-bearing, 5% note on October 1, 2009. What is the maturity value of the note?
a)
82,500
b)
78,750
c)
70,000
d)
75,000
2.
Carson's Shoe Store signed a 90-day, interest-bearing, 10% note for $5,000.00 with First National Bank.What is Carson's Shoe Store's journal entry for the issuance of the note payable?
a)
Debit Cash $5,500.00; credit Notes Payable $5,500.00
b)
Debit Cash $5,000.00; credit Notes Payable $5,000.00
c)
Debit Notes Payable $5,000.00; credit Cash $5,000.00
d)
Debit Notes Payable $5,500.00; credit Cash $5,500.00
3.
Carson's Candy Shoppe signed a 60-day, 10% note to Jello Beans for an extension of time on its accountpayable in the amount of $2,000.00. What is the correct entry for Carson's Candy Shoppe to record the notepayable for an extension of time?
a)
Debit Notes Payable $2,000.00; credit Accounts Payable/Jello Beans $2,000.00
b)
Debit Notes Payable $2,033.33; credit Accounts Payable/Jello Beans $2,033.33
c)
Debit Accounts Payable/Jello Beans $2,033.33; Credit Notes Payable $2,033.33
d)
Debit Accounts Payable/Jello Beans $2,000.00; credit Notes Payable $2,000.00
4.
Lighten Up Electrical Supply received a payment of a note receivable in the amount of $1,675.00. Interest onthe note receivable was $75.00. What is the journal entry to record the payment of the note receivable?
a)
Debit Cash $1,675.00; credit Accounts Receivable $1,675.00
b)
Debit Accounts Receivable $1,675.00; credit Cash $1,675.00
c)
Debit Cash $1,675.00; credit Interest Income $75.00; credit Notes Receivable $1,600.00
d)
Debit Cash $1,600.00; debit Interest Expense $1275.00; credit Accounts Receivable $1,675.00
5.
The Style Company signed a one-year, 10%, interest-bearing note for $10,000.00 with First American Bank.What is the journal entry for the issuance of the note payable?
a)
Debit Cash $10,000.00; Credit Notes Payable $10,000.00
b)
Debit Notes Payable $10,000.00; Credit Cash $10,000.00
6.
Blowing Rock Hardware paid First American Bank in full for a 180-day, 12%, interest-bearing note for$10,000. Using a 360-day year, what is the journal entry for the payment of the note payable?
a)
Debit Cash $10,600.00; credit Notes Payable $10,600.00
b)
Debit Cash $10,600.00; credit Notes Payable $10,000.00; credit Interest Expense $600.00
c)
Debit Notes Payable $10,600.00; credit Interest Expense $600.00; credit Cash $10,000.00
d)
Debit Notes Payable $10,000.00; debit Interest Expense $600.00; credit Cash $10,600.00
7.
Tucker's Cafe signed a $15,000, 180-day, 10%, interest-bearing note on May 1, 2009. Using a 360-day year,what is the maturity value of the note?
a)
$15,750.00
b)
$16,750.00
8.
Sneakers Snack Shop signed a $30,000, 90-day, 8%, interest-bearing note on August 1, 2009. Using a360-day year, what is the maturity value of the note?
a)
$30,600.00
b)
$32,400.00
9.
Marty Smith dishonored a 180-day, 5% note for $5,000.00. What is the journal entry to record thedishonored note receivable?
a)
Debit Notes Receivable $5,125.00; debit Interest Expense $125.00; credit Accounts Receivable/MartySmith $5,125.00
b)
Debit Accounts Receivable/Marty Smith $5,000.00; credit Notes Receivable $5,000.00
c)
Debit Accounts Receivable/Marty Smith $5,125.00; credit Interest Income $125.00; credit NotesReceivable $5,000.00
d)
Debit Notes Receivable $5,125.00; credit Accounts Receivable/Marty Smith $5,125.00
10.
Master Marketing received a payment of a note receivable in the amount of $1,295.00. Interest on the notereceivable was $95.00. What is the journal entry to record the payment of the note receivable?
a)
Debit Cash $1,295.00; Credit Interest Income $95.00; Credit Notes Receivable $1,200.00
b)
Debit Cash $1,200.00; Debit Interest Expense $95.00; Credit Accounts Receivable $1,295.00
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