Explanations for how the multiple choice 1-8 answers are correct.

What is the carrying value of a bond payable Denne accrued liabiliry. Give an example of atypical the diflerence between secui the lender? debenture? Which type carries more risk for accrued liability. 5. Why is Uneamed Revenue considered a liability? 14, What How is a under IFR reported under GAAP? How does this differ payroll taxes and sales taxes considered 15. csupplement is interest expense calculated using the 10A) How amortization straight-line method of 7. Your company plans to hire an employee at a yearly salary issued at (a) a discount and (b) a premium'' of $70,000. Someone in your company says the actual cost will be lower because of payroll deductions. Someone else expense a be higher. Who is ght? What is likely to be 6. (Supplement 10B amortization for the total cost to the company? Explain. e using the effective interest method of premiu If a company has a long-term loan that has only two years bond at a discount and (b) a nse calculated it matures, how is it 17. (Supplement IOC) How is interest exper sheet (a) this year and (b) next reported on the balance approach to the effective-interest using the simplified discount and are the reasons that some bonds are issued at a bond issued at (a) a premium? discount and others are issued at a premium? MULTIPLE CHOICE I. Which of the following best describes Acerued Liabilities? a. S100,000 in the long-lenm ability section ha plas the interest to be paid over the five-year iod in the long-term liability section. b. Current amounts owed to suppliers of inventory. of the $100,000 in the current liability penses incurred, but not paid at the end of the n and the remainder of the principal in the long-term d. Revenues that have been eolleeled but not earned. d. A portion of the S100,000 plus interest in the current liability section and the remainder of the principal plus 2. As of February 28, American Greetings Corporation had 7AD0 ful time and 17 400 part-time employees. interest in the long-term liability section. Assume that in the last pay period of the year, the 4. Assume that Speedo International received $400,000 for company paid $8,000,000 to employees after deducting long-term promissory notes that were issued on November 1 S2,000,000 for employee income taxes, se12,000 for The notes pay interest on April 30 and October 31 at the FICA taxes, and S700.000 for ocher purposes. No pay- annual rate of 6 percent, which ments have been made to the government relating to these the market at that time. Which of the fol taxes. Which of the following statements is true nnal entries would be required at December 31? this pay period? Debit Credit a. FICA Taxes Payable should be $612,000 fuierest Expense b. FICA Taxes Payable should be SI,224 aierest Payable Salaries and Wages Expense should be d. None of the above is true. Assume that Warnaco Group Inc maiers o Klein u nderwear, borrowed SI00,000 from bank to interest Payable be repaid over the next five years, with principal 12,000 ments beginning next month. Which of the foliowing best laterest Expense describes the presentation of this debt in the bal Interest Payable as of today (the date of borrowing) Cash 12,000