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WorksheetsREVISION 5 : TOPIC 10 [ACCOUNTING FOR LIABILITIES]
Total questions: 30
Worksheet time: 15mins
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
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
Able Electronics Company issues a RM1,000,000, 8%, 20-year mortgage note on January 1. The terms provide for annual installment payments, exclusive of real estate taxes and insurance, of RM101,852. After the first installment payment, the principal balance is
RM1,000,000
RM978,148
RM920,000
RM898,148
Belle Corporation retires its bonds at 105 on January 1, following the payment of annual interest. The face value of the bonds is RM600,000. The carrying value of the bonds at the redemption date is RM621,500. The entry to record the redemption will include a
credit of RM21,500 loss on Bond Redemption
debit od RM30,000 to Bonds Redemption
credit of RM8,500 to Gain on Bond Redemption
debit of RM600,000 to Bond Payable; and interest expense RM21,500
A corporation issues RM500,000, 8%, 5-year bonds on January 1, 2020. Interest is paid annually on January 1. the amount of interest expense to be recognized on December 31, 2020 is
RM44,200
RM42,100
RM40,000
RM35,800
On January 1, 2020, RM3,000,000, 5-year, 10% bonds, Interest is paid twice per year, on January 1 and July 1 each year. Accounting period ended 31 December each year. The suitable journal entries to record the interest payment on 1 January 2021 is :
debit interest expense RM150,000
debit interest payable RM150,000
credit interest payable RM150,000
credit interest expense RM150,000
On October 1, Eli's Carpet Service borrows RM125,000 from First Bank on a 6-month, RM125,000, 8% note. What entry must Eli's Carpet Service make on December 31 before financial statements are prepared?
debit Interest payable RM2,500; credit interest expenses RM2,500
debit interest expenses RM10,000; credit interest payable RM10,000
debit interest expense RM2,500; credit interest payable RM2,500
debit interest expense RM2,500; credit Bank RM2,500
On October 1, Eli's Carpet Service borrows RM125,000 from First Bank on a 3-month, RM125,000, 8% note. The entry by Eli's Carpet Service to record payment of the note and interest on January 1 is
debit Notes Payable RM127,500;
credit Bank RM127,500
debit Notes Payable RM125,000 ; interest payable RM2,500;
credit Bank RM127,500
debit Notes Payable RM125,000; Interest Payable RM10,000;
credit Bank RM135,000
debit Notes Payable RM125,000; Interest Expense RM2,500;
credit Bank RM127,500
On September 1, Bud's Painting Service borrows RM150,000 from Highlands Bank on a 4-month, RM150,000, 6% note. What entry must Bud's Painting Service make on December 31 before financial statements are prepared?
The interest charged on a RM400,000 note payable, at the rate of 8%, on a 3-month note would be
RM32,000
RM17,776
RM8,000
RM2,666
On September 1 2021, Bud's Painting Service borrows RM150,000 from Highlands Bank on a 4-month, RM150,000, 6% note. Accounting period ended 31 December each year. Which is the suitable journal entry to record the repayment of notes and interest on 1 January 2022?
On September 1, Bud's Painting Service borrows RM150,000 from Highlands Bank on a 4-month, RM150,000, 6% note. Which is the suitable journal entry to record the repayment of notes and interest on the maturity date?
On October 1, 2020, Dakota Company issued an RM800,000, 10%, nine-month interest-bearing note. If the Dakota Company is preparing financial statements at December 31, 2020, the adjusting entry for accrued interest will include a:
credit to Interest Payable of RM30,000.
debit to Interest Expense of RM20,000
credit to Interest Payable of RM40,000.
debit to Interest Expense of RM60,000
On October 1, 2020, Pennington Company issued an RM800,000, 10%, nine-month interest-bearing note. Assuming interest was accrued in June 30, 2021, the entry to record the payment of the note on July 1, 2021, will include a:
debit to Interest Expense of RM20,000.
credit to Bank of RM800,000
debit to Interest Payable of RM60,000.
debit to Notes Payable of RM860,000.
Koppernaes Company has total proceeds (before segregation of sales taxes) from sales of RM9,540. If the sales tax is 6%, the amount to be credited to the account Sales is:
RM8,968
RM9,000
RM9,540
RM10,112
Mackenzie Insurance Company collected a premium of RM15,000 for a 1-year insurance policy on May 1. What amount should Mackenzie report as a current liability for Unearned Insurance Revenue at December 31?
RM0
RM5,000
RM10,000
RM15,000
Mackenzie Insurance Company collected a premium of RM15,000 for a 1-year insurance policy on May 1. What amount should Mackenzie report as a Insurance Revenue at December 31?
RM0
RM5,000
RM10,000
RM15,000
A company receives RM396, of which RM36 is for sales tax. The journal entry to record the sale would include a
debit to Sales Tax Expense for RM36.
credit to Sales Taxes Payable for RM36.
debit to Sales for RM396.
debit to Bank for RM360.
A company receives RM696, of which RM56 is for sales tax. The journal entry to record the sales would include a
debit to Sales Tax Expense for RM56.
debit to Sales Taxes Payable for RM56.
debit to Sales for RM696.
debit to Bank for RM696.
A retail store does not segregate sales and the amount of sales tax on sales. If the sales tax rate is 5% and the register total amounted to RM262,500, what is the amount of the sales taxes owed to the taxing agency?
RM262,500
RM250,000
RM13,125
RM12,500
On January 1, 2020, Mazzeo Company, a calendar-year company, issued RM1,600,000 of notes payable, of which RM400,000 is due on January 1 for each of the next four years. The proper statement of financial position presentation on December 31, 2020, is
Current Liabilities : Notes Payable RM1,600,000.
Non Current Liabilities : Notes Payable RM1,600,000.
Current Liabilities, Notes Payable RM800,000;
Non Current Liabilities : Notes Payable RM800,000.
Current Liabilities : Notes Payable RM400,000;
Non Current Liabilities : Notes Payable RM1,200,000
