Matching Questions
1.Identify the balance sheet classification (athroughe) in which each account description numbered 1 through 7 would be reported. You may use each letter more than once or not at all. You may assign more than one category to an account if it can be classified in more than one category.
a.Current assets
b.Long-term assets
c.Current liabilities
d.Long-term liabilities
e.Not reported on the balance sheet
____1.Loss on redemption
____2.1-year non-interest-bearing note receivable
____3.Discount on bonds that mature in 3 years
____4. 6-month note payable
____5.Premium on bonds issued that mature in 8 months
____6.Discount on notes payable due in 12 months
____7.Lease liability on a 5-year capital lease paid annually
2.Identify the effect(s) as a result of each transactionlisted as 1 through 4 below by placing the letter of the effect on total liabilities and the effect on net income in the two columns provided. Keep in mind that there are currently no accrued expenses recorded on the balance sheet as liabilities.
Effects
I.Increase
D.Decrease
X.Does not change
Liabilities
Net Income
1.Acquired the use of equipment under a capital lease
2.A capital lease payment is paid (principal and interest)
3.Periodic interest and amortization of bond discount is recognized
4.Paid interest on bonds issued at par
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here