Question 1 On July 1, 200X you enter into a note payable of $200,000 with a 5% annual interest rate. Your interest

Question 1

On July 1, 200X you enter into a note payable of $200,000 with a 5% annual interest rate.  Your interest expense for 200X will be:

$10,000. 

$2,500 

$2,000 

$5,000    

Question 2

Post Company issues a 6 year, 6%, $200,000 bond at par on July 31. The journal entry would be:

A debit to cash of $200,000 and a credit to bonds payable of $200,000. 

A debit to bonds payable of $200,000 and a credit to cash of $200,000. 

A debit to cash of $200,000 and a credit to bonds receivable of $200,000. 

A debit to bonds receivable of $200,000 and a credit to cash of $200,000.

Question 3

Post Company issues a 6 year, 6%, $200,000 bond at par on July 31.  How much interest will be paid over the life of the bond?

$4,000 

$6,000 

$12,000 

$72,000    

Question 4

A company has current assets of $500,000, net income of $10,000, current liabilities of 250,000 and equity of $250,000.? What is the current ratio?

0.5 

7.5 

0.3 

2.0