# UMUC ACC311/ACC 311 Quiz 1 2015 (100% SCORE) - 93550

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1. Which of the following is generally associated with payables classified as accounts payable?

Periodic Payment Secured

of Interest by Collateral

a. No No

b. No Yes

c. Yes No

d. Yes Yes

2. On January 1, 2013, Hershey Co. leased a building to Mars, Corp. for a ten-year term at an annual rental of \$80,000. At inception of the lease, Hershey received \$320,000 covering the first two years' rent of \$160,000 and a security deposit of \$160,000. This deposit will not be returned to Mars upon expiration of the lease but will be applied to payment of rent for the last two years of the lease. What portion of the \$320,000 should be shown as a current and long-term liability, respectively, in Hershey’s December 31, 2013 balance sheet?

Current Liability Long-term Liability

a. \$0 \$320,000

b. \$80,000 \$160,000

c. \$160,000 \$160,000

d. \$160,000 \$80,000

3. On September 1, 2012, Tavani Co. issued a note payable to National Bank in the amount of \$1,200,000, bearing interest at 12%, and payable in three equal annual principal payments of \$400,000. On this date, the bank's prime rate was 11%. The first payment for interest and principal was made on September 1, 2013. At December 31, 2012, Tavani should record accrued interest payable of

a. \$48,000.

b. \$44,000.

c. \$32,000.

d. \$29,334.

4. Focus Company’s salaried employees are paid biweekly. Occasionally, advances made to employees are paid back by payroll deductions. Information relating to salaries for the calendar year 2013 is as follows:

12/31/12 12/31/13

Accrued salaries payable \$65,000 ?

Salaries expense during the year \$650,000

Salaries paid during the year (gross) \$625,000

At December 31, 2013, what amount should Focus report for accrued salaries payable?

a. \$90,000.

b. \$84,000.

c. \$72,000.

d. \$25,000.

5. Smith Co. sells major household applianc

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