Copies of important stored data, programs, and documentation made periodically are called _____________________________
_.
Fill in the blank(s) with correct word
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Q. 2) Prima, Inc. issued 15-year bonds with a face value of 50,000. The bonds carry a 7 stated interest rate and pay interest once a year. They were issued when the market interest rate was 6 and sold for 54,856.38.
Required:
a. Complete the amortization schedule for the first two years of the bond issue using the effective interest method.
Beginning carrying value Cash payment Interest expense Amortization of discount Ending carrying value
Year 1 54,856.38
Year 2
b. Put an X in the appropriate box to describe how each of these items will behave with each additional interest payment:
Increase Decrease Remain the same
1 Cash payment for interest
2 Interest expense
3 Bond carrying value
c. Fill in the correct dollar amounts:
At maturity, after the last interest payment has been made, the unamortized premium on the bonds will be ______________ and the carrying value of the bonds will be _______________.
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Q. 3) The amount of deposits in transit is included on the bank reconciliation as a(n)
a. deduction from the balance per the company's books
b. deduction from the balance per bank statement
c. addition to the balance per bank statement
d. addition to the balance per company books
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Q. 4) Total sales less the sales price of any goods returned by customers, less any reduction in price given to customers, less cash discounts allowed by the seller, is called
a. cost of goods sold.
b. gross margin.
c. net sales.
d. gross profit.
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Q. 5) Ace Electronics accepted a promissory note from Fenstermaker, who promised to pay Ace 2,000 plus 6 interest at the end of six months. When Ace first accepts the note, it should record ________.
A) a note payable of 2,000
B) a note receivable of 2,000
C) a note payable of 2,060
D) a note receivable of 2,060
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Q. 6) Accompanying the bank statement was a credit memo for a short-term note collected by the bank for thecustomer. What entry is required in the company's accounts?
a. debit Notes Receivable; credit Cash
b. debit Cash; credit Miscellaneous Income
c. debit Cash; credit Notes Receivable and Interest Revenue
d. debit Accounts Receivable; credit Cash
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