81. The interest charged on a ¥150,000,000 note payable, at the rate of 8%, on a 90-day note would be
a.¥12,000,000.
b.¥6,666,000.
c.¥3,000,000.
d.¥1,000,000.
82. The interest charged on a ¥150,000,000 note payable, at the rate of 6%, on a 60-day note would be
a.¥9,000,000.
b.¥5,000,000.
c.¥2,250,000.
d.¥1,500,000.
83. The interest charged on a ¥300,000,000 note payable, at the rate of 8%, on a 3-month note would be
a.¥24,000,000.
b.¥12,000,000.
c.¥6,000,000.
d.¥4,000,000.
84. The interest charged on a ¥300,000,000 note payable, at the rate of 6%, on a 2-month note would be
a.¥18,000,000.
b.¥9,000,000.
c.¥4,500,000.
d.¥3,000,000.
85. On October 1, 2013, Pennington Company issued an €80,000, 10%, nine-month interest-bearing note. If Pennington Company is preparing financial statements at December 31, 2013, the adjusting entry for accrued interest will include a
a.credit to Notes Payable of €2,000.
b.debit to Interest Expense of €2,000
c.credit to Interest Payable of €4,000.
d.debit to Interest Expense of €3,000.
86. On October 1, 2013, Pennington Company issued an €80,000, 10%, nine-month interest-bearing note. Assuming interest was accrued in June 30, 2014, the entry to record the payment of the note on July 1, 2014, will include a
a.debit to Interest Expense of €2,000.
b.credit to Cash of €80,000
c.debit to Interest Payable of €6,000.
d.debit to Notes Payable of €86,000.
87. London Bank and Trust agrees to lend the Beckham Company £3,000,000 on January 1, 2014. Beckham Company signs a £3,000,000, 6%, 9-month note.
The entry made by Beckham Company on January 1 to record the proceeds and issuance of the note is
a.Interest Expense......................................135,000
Cash2,865,000
Notes Payable...........................................3,000,000
b.Cash...........................................3,000,000
Notes Payable...........................................3,000,000
c.Cash...........................................3,000,000
Interest Expense...........................................135,000
Notes Payable...........................................3,135,000
d.Cash...........................................3,000,000
Interest Expense...........................................135,000
Notes Payable...........................................3,000,000
Interest Payable...........................................135,000
88. London Bank and Trust agrees to lend the Beckham Company £3,000,000 on January 1, 2014. Beckham Company signs a £3,000,000, 6%, 9-month note.
Assuming that monthly accruals are not made, what adjusting entry is required if Beckham Company prepares financial statements on June 30?
a.Interest Expense......................................90,000
Interest Payable...........................................90,000
b.Interest Expense......................................90,000
Cash90,000
c.Interest Expense......................................120,000
Cash120,000
d.Interest Payable......................................120,000
Interest Expense...........................................120,000
89. London Bank and Trust agrees to lend the Beckham Company £3,000,000 on January 1, 2014. Beckham Company signs a £3,000,000, 6%, 9-month note.
What entry will Beckham Company make to pay off the note and interest at maturity assuming that no interest has been accrued since June 30?
a.Notes Payable........................................3,135,000
Cash3,135,000
b.Notes Payable........................................3,000,000
Interest Payable...........................................135,000
Cash3,135,000
c.Interest Expense......................................135,000
Notes Payable...........................................3,000,000
Cash3,135,000
d.Interest Payable......................................90,000
Notes Payable...........................................3,000,000
Interest Expense...........................................45,000
Cash3,135,000
90. Harrods Company receives £220, of which £20 is for sales tax. The journal entry to record the sale would include a
a.debit to Sales Taxes Payable for £20.
b.credit to Sales Taxes Payable for £20.
c.debit to Sales Revenue for £220.
d.debit to Cash for £200.