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WorksheetsQUIZ 2 : TOPIC 10 [ACCOUNTING FOR LIABILITIES]
Total questions: 15
Worksheet time: 11mins
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
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
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 adjusting journal entries for December 31.
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
