Question :-
The journal entry a company uses to record pension rights that have not been funded for its salaried employees at the end of the year is
a. debit Pension Expense; credit Unfunded Pension Liability
b.debit Salary Expense; credit Cash
c.debit Pension Expense; credit Unfunded Pension Liability and Cash
d.debit Pension Expense; credit Cash
Question:-
McKay Company sells merchandise with a one-year warranty. In Year 1, sales consisted of 1,200 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in Year 1 and 70% in Year 2. In the Year 1 income statement, McKay should show warranty expense of
a.$0
b.$12,000
c.$3,600
d.$8,400
Question:-
The current portion of long-term debt should
a.not be separated from the long-term portion of debt
b.be paid immediately
c.be reclassified as a current liability
d.be classified as a long-term liability
Question:-
Chang Co. issued a $50,000, 120-day, discounted note to Guarantee Bank. The discount rate is 6%. Assuming a 360-day year, the cash proceeds to Chang Co. are
a.$49,750
b.$47,000
c.$49,000
d.$51,000