Answer 1-10

Chapter 8 Homework Submit yourswers in CANVAS before it is due Use the following to answer questions 1-5 Select the correct reporting method for each of the items listed below: 1. Customers paid in advance. Reporting Method A. Current Liability B. Long term liability C. Disclosure note only D. Not reported 2. Bond payable. 3. Current portion of long term debt. 4. Unremitted FICA taxes withheld from employees wages. 5. A contingent liability with a probable likelihood of occurring within the next year but can estimated Use the following to answer questions 6-10 On October 1", FLY Tech, an Airline maintenance company, borrows $1,000,000 cash from the Bank to operations. FLY signs a 1 year, 3.45% promissory note. Interest is payable at maturity. FLY's year-end is Dec 31. 6. How is the loan classified on the company's December 31, year 1 balance sheet? A. Current liability B. Long term liability C. Note disclosure only D. Stockholders' Equity 7. How is the loan classified on the company's December 31, year 1 statement of cash flow? A. Operating activity B. Investing activity C. Financing activity D. Not shown on the statement of cash flows 8. S How much interest should be accrued on December 31 of the first year (assume no po entry was recorded for interest on the loan)? 9. S When the note is paid at maturity how much cash is paid to the Bank? 10. S When the note is paid at maturity how much does net income decrease