Multiple Choice (2 points each) dentify the choice that best completes the statement or answers the question A capital expenditure results in a debit to a. I. an expense account b. a capital account c. a liability account d. an asset account On June 8 Alton Co. issued an S90,000 6%,120-day note payable to Seller Co. Assuming a 360-day year for your calculations, what is the maturity value of the note? a. $90,450 b. $90,000 c. $91,800 d. $95,400 2. A business borrowed $40,000 on March l of the current year by signing a 30-day,9% interest bearing note. When the note is paid on March 31, the entry to record the payment should include a a. debit to Interest Payable $300 b. debit to Interest Expense $300 c. credit to Cash for $40,000 d. credit to Cash for $43,600 3 Chang Co. issued a $50,000, 120-day, discounted note to Guarantee Bank. The discount rate is 6%. Assuming a 360-day year, the cash proceeds to Chang Co. are a. $49,750 b. $47,000 c. $49,000 d. $51,000 4. 5. Which of the following is a disadvantage of a partnership when compared to a corporation? a. b. The partnership is more likely to have a net loss. The partnership is easier to organize. c. The partnership is less expensive to organize. d. The partnership has limited life. 6. When a partnership is formed, assets contributed by the partners should be recorded on the partnership books at their a. book values on the partners' books prior to their being contributed to the partnership b. fair market value at the time of the contribution original costs to the partner contributing them assessed values for property purposes c. d