The journal entry a company uses to record pension

| July 14, 2018

Question 4 The journal entry a company uses to record pension rights that have not been funded for its salaried employees at the end of the year is a. debit Pension Expense; credit Unfunded Pension Liability b. debit Salary Expense; credit Cash c. debit Pension Expense; credit Unfunded Pension Liability and Cash d. debit Pension Expense; credit Cash 5 points Question 5 McKay Company sells merchandise with a one-year warranty. In Year 1, sales consisted of 1,200 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in Year 1 and 70% in Year 2. In the Year 1 income statement, McKay should show warranty expense of a. $0 b. $12,000 c. $3,600 d. $8,400 5 points Question 6 The current portion of long-term debt should a. not be separated from the long-term portion of debt b. be paid immediately c. be reclassified as a current liability d. be classified as a long-term liability 5 points Question 7 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

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