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sydney park fitness gym has unearned revenue of 10 000 salaries payable of 15 000 an 643865

1. Jade Larson Antiques owes $20,000 on a truck purchased for use in the business. The company makes principal payments of $5,000 each year plus interest at 8%. Which of the following is true?

a. After the first payment is made, the company owes $15,000 plus three year’s interest.

b. After the first payment, $15,000 would be shown as a long term liability.

c. After the first payment is made, $5,000 would be shown as the current portion due on the long term note.

d. Just before the last payment is made, $5,000 will appear as a long term liability on the balance sheet.

2. Sydney Park Fitness Gym has Unearned revenue of $10,000, Salaries payable of $15,000, and Allowance for uncollectible accounts of $5,000. What amount would Sydney report as Total current liabilities?

a. $30,000

b. $25,000

c. $20,000

d. $15,000

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