Reference no: EM133184578

Questions -

Q1) On November 1, 2021, Tim's Toys borrows $30,000,000 at 9% to finance the holiday sales season. The note is for a six-month term and both principal and interest are payable at maturity. What is the balance of interest expense for the loan as of December 31, 2022?

Q2) Tummy Foods purchased a two-year fire and extended coverage insurance policy on August 31, 2021, and charged the $4,200 premium to Prepaid insurance. At its December 31, 2021, year-end, Tummy Foods would record which of the following adjusting entries?

Q3) Eve's Apples opened its business on January 1, 2021, and paid for two insurance policies effective that date. The policy for equipment damage was $36,000 for 18 months, and the crop damage policy was $12,000 for a two-year term. What is the balance in Eve's insurance expense as of December 31, 2021?

Q4) Willow rentals purchased office supplies for cash. the general journal entry made by willow rentals will include a: debit to accounts receivable. credit to willow, capital. debit to accounts payable. credit to cash. credit to supplies.

Q5) GreenLawn Co. provides landscaping services to clients. On May 1, a customer paid GreenLawn $60,000 for 6-months services in advance. GreenLawn's general journal entry to record this transaction will include a:

Q6) Davis Hardware Company uses a perpetual inventory system. How should Davis record the sale of merchandise, costing $620, and sold for $960 cash?