90.2K

Verified Solution

Link Copied!

Will rate on multiple accounts if all 3 are answered

Question 67) Angel Eyes Corporation operates on a calendar year basis (this means that the company has a December 31 year-end). The company is in its first year of operations and received its annual property tax bill on March 31 for $21,000. The bill is due April 30. Relevant entries were made on March 31 and April 30. The adjusting entry on December 31 would include Oc. a credit to cash for $21,000 d. a debit to property tax expense for $5,250 e. a debit to property tax expense for $14,000. a. a debit to prepaid property tax for $15,750. b. a credit to cash for $15,750. Question 76) Which of the following statements is true? a. Liquidity ratios measure a company's long-term ability to pay debt. b. Solvency ratios measure a company's ability to repay current debt. c. A high liquidity ratio generally indicates that a company has a greater ability to meet its current obligations. d. Solvency ratios measure a company's ability to survive on a short-term basis. O e. liquidity and solvency ratios are generally the same. Question 71) A five-year, 4%, $102,000 note payable is issued on January 1. Terms include equal annual instalment payments of $22,912. The entry to record the first instalment payment will include a a. debit to Notes Payable of $18,832. Ob. credit to Interest Expense of $4,080. c. credit to Notes Payable of $22,912. d. debit to Cash of $22,912. O'e. debit to Interest Expense of $2,020

Answer & Explanation Solved by verified expert

See Answer