The Balances of Select Accounts of McMurray, Inc The Unearned Revenue Is the Amount of Cash Received for December

question 194

Multiple Choice

The balances of select accounts of McMurray, Inc. as of December 31, 2018 are given below: $$\begin{array} { | l | r | } \hline \text { Notes Payable-short-term } & \$ 1,300 \\\hline \text { Salaries Payable } & 3,000 \\\hline \text { Notes Payable-long-term } & 24,000 \\\hline \text { Accounts Payable } & 3,300 \\\hline \text { Unearned Revenue } & 1,000 \\\hline \text { Interest Payable } & 2,400 \\\hline\end{array}$$ The Unearned Revenue is the amount of cash received for services to be rendered in January 2019. Interest Payable will be paid on February 5, 2019. What are the total long-term liabilities shown on the balance sheet at December 31, 2018?

• A) $1,300
• B) $3,000
• C) $4,300
• D) $24,000

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Definitions:

Compounded Semi-annually

A technique used to compute interest in which the interest is compounded semi-annually by being added to the principal sum two times within the year.

Compounded Quarterly

The process where interest on an investment is calculated and added to the principal every three months, contributing to the growth of the investment amount.

Compounded Monthly

Entails the regular addition of interest to the principal balance of a loan or deposit every month, affecting overall returns or costs.

Semi-monthly Payments

Payments that are made twice a month, often on the 1st and 15th, typically in the context of salaries or loans.