What's the answer?
Which of the following is TRUE of a contingent liability?
A) It is a liability arising from a lawsuit filed in court.
B) It is an actual liability that is difficult to estimate.
C) It is an actual liability that depends on a past event.
D) It is a potential liability that depends on a future event.
Which of the above companies has the highest debt-paying ability?
A) Bennett Company
B) Forge Company
C) Stacy Company
D) Fellow Company
Over a 3-year term, in $5000 principal installments on March 1 of each year, beginning March 1, 2019. Each yearly installment will include both principal repayment of $5000 and interest payment made on March 1, 2019.
A) $5225
B) $15,000
C) $5450
D) $5000
Celebrate Holidays Company signed a 7%, 10-year note for $161,000. The company paid an installment of $2500 for the first month. What portion of the first monthly payment is principal? (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)
A) $4830
B) $15,917
C) $1561
D) $4061
Adventure Travel signed a 14%, 10-year note for $152,000. The company paid an installment of $2200 for the first month. After the first payment, what is the principal balance? (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)
A) $151,573
B) $150,227
C) $154,200
D) $149,800
On January 1, 2018, Brazos Company purchased equipment and signed a six-year mortgage note for $97,000 at 15%. The note will be paid in equal annual installments of $25,631, beginning January 1, 2019. On January 1, 2019, the journal entry to record the first installment payment will include a debit to Interest for $14,550.
Calculate the balance of Mortgage Payable after the payment of the first installment. (Round your answer to the nearest whole number.)
A) $120,702
B) $24,000
C) $141,722
D) $117,722
Which of the following is the amount the borrower must pay back to the bondholders at maturity?
A) present value
B) stated interest value
C) principal amount
D) market value
