Reference no: EM131155076

Question :-

The journal entry a company uses to record pension rights that have not been funded for its salaried employees at the end of the year is

a. debit Pension Expense; credit Unfunded Pension Liability

b.debit Salary Expense; credit Cash

c.debit Pension Expense; credit Unfunded Pension Liability and Cash

d.debit Pension Expense; credit Cash

Question:-

McKay Company sells merchandise with a one-year warranty. In Year 1, sales consisted of 1,200 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in Year 1 and 70% in Year 2. In the Year 1 income statement, McKay should show warranty expense of

a.$0

b.$12,000

c.$3,600

d.$8,400

Question:-

The current portion of long-term debt should

a.not be separated from the long-term portion of debt

b.be paid immediately

c.be reclassified as a current liability

d.be classified as a long-term liability 

Question:-

Chang Co. issued a $50,000, 120-day, discounted note to Guarantee Bank. The discount rate is 6%. Assuming a 360-day year, the cash proceeds to Chang Co. are

a.$49,750

b.$47,000

c.$49,000

d.$51,000