Financial Accounting > QUESTIONS & ANSWERS > AC 313 Intermediate Accounting II Ch 13 Quiz Key WITH ANSWERS (All)

AC 313 Intermediate Accounting II Ch 13 Quiz Key WITH ANSWERS

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1. Greeson Corp. signed a three-month, zero-interest-bearing note on November 1, 2014 for the purchase of $250,000 of inventory. The face value of the note was $253,900. Assuming Greeson used a “D ... iscount on Note Payable” account to initially record the note and that the discount will be amortized equally over the 3-month period, the adjusting entry made at December 31, 2014 will include a a. debit to Discount on Note Payable for $1,300. b. debit to Interest Expense for $2,600. c. credit to Discount on Note Payable for $1,300. d. credit to Interest Expense for $2,600. b $253,900 – $250,000 = $3,900. $3,900 × 2/3 = $2,600. 2. Palco Co., which has a taxable payroll of $900,000, is subject to FUTA tax of 6.2% and a state contribution rate of 5.4%. However, because of stable employment experience, the company’s state rate has been reduced to 2%. What is the total amount of federal and state unemployment tax for Palco Co.? a. $104,400 b. $73,800 c. $36,000 d. $25,200 d [(.062 – .054) + .02] × $900,000 = $25,200. 1 [Show More]

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