9.1-*PLEASE ANSWER ALL 5 QUESTIONS*

5 multiple choice questions.

1.

2. TRUE OR FALSE

3.

4.

5.

Vogel Company purchased $8,000 of equipment by making a $500 down payment and issuing a note for the remainder. As a result of this event, assets increased by $8,000 True or False Indicate whether each of the following is true or false. Perez Company borrowed money from its bank in July Year 1 . The accrual of interest on the loan at the end of Year 1: a) reduces cash flows. b) involves recognition of interest expense. c) does not affect income for Year 1. d) involves recognition of a liability. e) records a cash payment for interest. Which of the following is a claims exchange transaction? Multiple Choice Accrual of interest on a note payable Issued a note to purchase equipment Repaid principal on a note payable Paid interest on a note payable ear 2. Assume no other transactions. ased on this information alone, what are the amounts of total liabilities that would appear on Riley's December 31 balance sheets for Year 1 and Year 2, respectively? Multiple Choice $28,000 and $0 $29,260 and $0 $29,260 and $29,740 $1,260 and $480 Joseph Company is preparing to repay a one-year note on May 1 , Year 2 . The first step in this process is to accrue eight months of interest expense. True or False