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175.Equipment acquired at a cost of $126,000 has a book value of $42,000. Journalize the disposal of the equipment under the following independent assumptions. a. The equipment had no market value and was discarded. b. The equipment is sold for $54,000. c. The equipment is sold for $24,000. d. The equipment is traded-in for a similar asset. The.
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177.Journalize the following transactions: Dec. 31 The accrued product warranty for the year is estimated to be 1.5% of net sales. Sales for the year totaled $8,000,000, and sales returns and allowances were $120,000. 31 The accrued vacation pay for the year is estimated to be $55,000. 31 Paid Reliable Insurance Co. $85,000 as fund trustee.
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148.Icon Company acquired patent rights on January 1, 2009 for $1,125,000. The patent has a useful life equal to its legal life of 15 years. On January 2, 2012, Icon successfully defended the patent in a lawsuit at a cost of $90,000. Required: (1) Determine the patent amortization expense for the current year.
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41.If not enough partnership cash or other assets are available to pay the withdrawing partner, a liability may be created for the amount owed the withdrawing partner. 42.When a partner withdraws from the partnership by selling his or her interest back to the partnership, the remaining partners must pay the withdrawing.
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71.Grayson Bank agrees to lend the Trust Company $100,000 on January 1. Trust Company signs a $100,000, 8%, 9-month note. The entry made by Trust Company on January 1 to record the proceeds and issuance of the note is: A.Interest Expense 8,000 Cash 92,000 Notes Payable 100,000 B.Cash 100,000 Notes Payable 100,000 C.Cash 108,000 .
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157.Identify each of the following expenditures as chargeable to (a) Land, (b) Land Improvements, (c) Buildings, (d) Machinery and Equipment, or (e) other account. (1) Cost of paving parking area for employees and customers. (2) Insurance during construction of building. (3) Interest incurred on loan during construction of building. (4) Fee paid for installation of equipment. (5) Special foundation.
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166.Aqua Construction installs swimming pools. They calculate that warranty obligations are 5% of gross sales. For the year just ending Aqua’s gross sales were $1,500,000. Due to previous quarter recognitions, the Warranty Liability account has a credit balance of $48,700. Determine the year’s total warranty liability and journalize any necessary.
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1.Receiving payment prior to delivering goods or services causes a current liability to be incurred. 2.For a current liability to exist, the following two tests must be met. The liability must be due usually within a year and must be paid out of current assets. 3.All long-term liabilities eventually become current liabilities. 4.The.
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150.On October 1, Sebastian Company acquired new equipment with a fair market value of $458,000. Sebastian received a trade-in allowance of $92,000 on the old equipment of a similar type and paid cash of $366,000. The following information about the old equipment is obtained from the account in the equipment.
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153.According to a summary of the payroll of Scotland Company, $450,000 was subject to the 7.0% social security tax and $500,000 was subject to the 1.5% Medicare tax. Also, $15,000 was subject to state and federal unemployment taxes. Required: (1) Calculate the employer’s payroll taxes using the following rates: State unemployment, 4.2%;.
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11.The discount on a note payable is charged to an account that has a normal credit balance. 12.The proceeds from discounting a $20,000, 60-day, note payable at 6% is $20,200. 13.Amounts withheld from each employee for Social Security and Medicare varies by state. 14.Form W-4 is a form authorizing employers to withhold a.
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61.Assuming a 360-day year, when a $40,000, 90-day, 9% interest-bearing note payable matures, total payment will amount to: A.$40,900 B.$43,600 C.$900 D.$3,600 62.Assuming a 360-day year, proceeds of $48,750 were received from discounting a $50,000, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was A.6.25% B.10.00% C.10.26% D.9.75% 63.Mobile Co. issued.
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79.Xavier and Yolonda have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%, salary allowances of $27,000 and $18,000 respectively, and the remainder equally. How much of the net.
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21.If nothing is stated, partnership income is divided in proportion to the individual partner's capital balance. 22.The salary allocation to partners used in dividing net income would also appear as salary expense on the partnership income statement. 23.If the articles of partnership provide for annual salary allowances of $36,000 and $18,000 to.
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41.Depending upon when an unfunded pension liability is to be paid, it will be classified on the balance sheet as either a long-term or a current liability. 42.During the first year of operations, employees earned vacation pay of $35,000. The vacations will be taken during the second year. The vacation pay.
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31.Federal income taxes withheld increase the employer's payroll tax expense. 32.The use of a separate payroll bank account is not an advantageous control, because it creates more complexity in reconciliation functions for a company and invites theft. 33.Employers are required to compute and report payroll taxes on a calendar-year basis, even if.
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164.Determine the depreciation, for the year of acquisition and for the following year, of a fixed asset acquired on October 1 for $500,000, with an estimated life of 5 years, and residual value of $50,000, using (a) the declining-balance method at twice the straight-line rate and (b) the straight-line method..
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169.Eagle Country Club has acquired a lot to construct a clubhouse. Eagle had the following costs related to the construction: Architects’ Fees $25,000 Construction Labor 80,000 Engineers’ Fees 15,000 Fences around building 9,000 Grading and leveling 10,000 Insurance costs incurred during construction 7,000 Interest on money borrowed for construction 5,000 Land 37,000 Building Materials 237,000 Sales Taxes 6,000 Trees and Shrubs 6,000 170.A copy machine acquired with a cost of $1,410 has.
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157.The payroll summary for December 31 for Waters Co. revealed total earnings of $80,000. Earnings subject to 6% social security tax were $50,000; earnings subject to 1.5% Medicare tax were $80,000; and earnings of $3,000 were subject to 4.3% state and 0.8% federal unemployment compensation tax. Journalize the entry to.
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91.Payroll taxes levied against employees become liabilities A.the first of the following month B.at the time the payroll is paid C.when earned by the employee D.at the end of an accounting period 92.The following totals for the month of June were taken from the payroll register of Arcon Company: Salaries expense $14,000 Social security and Medicare Taxes.
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160.Journalize each of the following transactions: (a) A wing costing $1,250,000 was added to the building. A new mortgage was issued for the cost. (b) Equipment was upgraded to increase its capacity to produce widgets. The upgrade cost of $13,000 was paid in cash. (c) A major overhaul costing $7,000 on a machine increased the.
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153.Financial Statement data for the years ended December 31 for Parker Corporation is as follows: 2012 2011 Net Sales $2,595,600 $2,409,498 Fixed Assets: Beginning of the year $ 901,070 $820,000 End of the year 829,330 901,070 a) Determine the Fixed Asset Turnover for 2012 and 2011. b) Does the change in Fixed Asset Turnover.
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69.When a partnership is formed, assets contributed by the partners should be recorded on the partnership books at their A.book values on the partners' books prior to their being contributed to the partnership B.fair market value at the time of the contribution C.original costs to the partner contributing them D.assessed values for property.
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163.Below are two independent sets of transactions for Welcott Company: (1) Welcott provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year’s vacation pay is $78,000. Journalize the adjusting entry required on January 31, the end of the.
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141.A business issued a 120-day, 6% note for $10,000 to a creditor on account. The company uses a 360-day year for interest calculations. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Ref Account Debit Credit 142.On August 1, Batson Company issued.
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180.Clanton Company engaged in the following transactions during 2011. Record each in the general journal below: 1) On January 3, 2011, Clanton purchased a copyright from Dalton Company with a cost of $250,000 with a remaining useful life of 25 years. 2) On January 10, 2011, Clanton purchased a trademark from Felton.
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11.A Limited Liability Company is a business entity form designed to overcome some of the disadvantages of the partnership form. 12.For tax purposes, a Limited Liability Company may elect to be treated as a partnership. 13.The Limited Liability Company may elect to be manager managed rather than member managed which means that.
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177.Macon Co. acquired drilling rights for $7,500,000. The oil deposit is estimated at 37,500,000 gallons. During the current year, 3,000,000 gallons were drilled. Journalize the adjusting entry at December 31, 2011 to recognize the depletion expense. Journal Date Description Post Ref Debit Credit 178.On July 1, 2010, Howard Co. acquired patents rights for $40,000. The patent.
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144.Roseland Design borrowed $700,000 on a 90-day note from CorpOne Funding Company. CorpOne discounts the note at 8%. (Assume a 360-day year is used for interest calculations.) Required: (1) Journalize Roseland’s entries to record: a. The issuance of the note. b. The payment of the note at maturity. (2) Journalize CorpOne’s entries to record: a. The receipt of the note. b. The.
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81.Which statement below is not a determinate in calculating the amount of federal income taxes withheld from an individuals pay? A.filing status B.types of earnings C.gross pay D.number of exemptions 82.Which of the following would be used to compute the federal income taxes to be withheld from an employee's earnings? A.FICA tax rate B.wage and tax statement.
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173.Journalize the following entries on the books of Winston Co. for August 1, September 1, and November 30. (Assume a 360-day year is used for interest calculations.) Aug. 1 Winston Co. purchased merchandise for $60,000 on account from Bagley Co., terms n/30. Sept. 1 Winston Co. issued a 90-day, 5% note for $60,000 on.
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155.Williams Company acquired machinery on July 1, 2009, at a cost of $130,000. The estimated useful life of the machinery was 10 years and the estimated residual value was $10,000. Williams uses the double-declining-balance method of depreciation. On October 1, 2012, Williams sold the equipment for $75,000. 1) Record the journal.
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51.Current liabilities are A.due, but not receivable for more than one year B.due, but not payable for more than one year C.due and receivable within one year D.due and payable within one year 52.Notes may be issued A.when assets are purchased B.to creditor's to temporarily satisfy an account payable created earlier C.when borrowing money D.all of the.
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160.The following totals for the month of February were taken from the payroll register of Arcon Company: Salaries expense $13,000 Social security and medicare taxes withheld 975 Income taxes withheld 2,600 Retirement savings 500 Salaries subject to federal and state unemployment taxes of 6.2% 4,000 How much is the total payroll expense for Arcon Company for this payroll? Assume that the.
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59.Which of the following is characteristic of a general partnership? A.The partners have co-ownership of partnership property. B.The partnership is subject to federal income tax. C.The partnership has an unlimited life. D.The partners have limited liability. 60.Which of the following is not a characteristic of a general partnership? A.the partnership is created by a contract B.mutual agency C.partners.
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121.The journal entry a company uses to record fully funded pension rights for its salaried employees at the end of the year is A.debit Salary Expense; credit Cash B.debit Pension Expense; credit Unfunded Pension Liability C.debit Pension Expense; credit Unfunded Pension Liability and Cash D.debit Pension Expense; credit Cash 122.The journal entry a company.
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167.On July 1st, Harding Construction purchases a bulldozer for $330,000. The equipment has a 9 year life with a residual value of $15,000. Harding uses straight-line depreciation. (a) Calculate the depreciation expense and provide the journal entry for the first year ending December 31st. (b) Calculate the third year’s depreciation expense and.
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21.Most employers are required to withhold federal unemployment taxes from employee earnings. 22.FICA tax is a payroll tax that is paid only by employers. 23.Medicare taxes are withheld from an employee's pay only until the employee has earned a specific amount each year. 24.Medicare taxes are paid by both the employee and the.
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101.The employee earnings record would contain which column that the payroll register would probably not contain? A.deductions B.payment C.earnings D.cumulative earnings 102.The detailed record indicating the data for each employee for each payroll period and the cumulative total earnings for each employee is called the A.payroll register B.payroll check C.employee's earnings record D.employer's earnings record 103.An employee receives an.
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180.For Company A and Company B: (a) Calculate the quick ratio for each company. (b) Comment on which one is more able to meet current liabilities. Company A Company B Account Dr Cr Dr Cr Cash $21 $25 Cash Equivalents 8 10 Trade Notes Receivable 7 6 Accounts Receivable 6 7 Prepaid Expenses 5 5 Merchandise Inventory 15 13 Fixed Assets 20 55 Accumulated Depreciation- Fixed Assets $ 5 $25 Accounts Payable 26 8 Current Accrued Liabilities 13 19 Mortgage Payable 17 24 Capital 20 40 Total $81 $81 $116 $116 .
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31.Many partnerships provide for the admission of new partners or withdrawals of present partners by amending existing partnership agreements, so that the firm may continue to operate without executing a new agreement. 32.A person may be admitted to a partnership only with the consent of all the current partners. 33.Partnership's asset accounts.
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131.The Crafter Company had the following assets and liabilities as of December 31, 2012: ASSETS Cash $35,000 Accounts receivable 15,000 Inventory 30,000 Equipment 50,000 LIABILITIES Current portion of long-term debt 10,000 Accounts payable 2,000 Long-term debt 25,000 Determine the quick ratio for the end of the year (rounded to one decimal point). A.6.7 B.13.0 C.4.2 D.3.5 132.Garrett Company sells merchandise with a one year warranty. In 2012, sales consisted of 3,500 units..
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170.The Core Company had the following assets and liabilities as of December 31, 2012: ASSETS Cash $58,000 Accounts receivable 25,000 Inventory 20,000 Equipment 50,000 LIABILITIES Current portion of long-term debt 20,000 Accounts payable 12,000 Long-term debt 25,000 Calculate: Current Ratio, Working Capital and Quick Ratio 171.On October 1, Ramos Co. signed a $90,000, 60-day discounted note at the bank. The discount rate was 6%, and the note was.
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1.There are only four legal structures to form and operate a business. 2.In a general partnership, each partner is individually liable to creditors for debts incurred by the partnership, to the extent of the partner's capital balance. 3.A partnership is a legal entity separate from its owners. 4.A partnership is subject to federal.
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175.The summary of the payroll for the monthly pay period ending July 15 indicated the following: Sales salaries $125,000 Federal income tax withheld 32,300 Office salaries 35,000 Medical insurance withheld 7,370 Social security tax withheld 10,200 Medicare tax withheld 2,550 Journalize the entries to record (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate.
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