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Study Resources (Accounting)

118.The journal entry a company uses to record fully funded pension rights for its salaried employees at the end of theyear 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 119.The journal entry a company uses to.
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137.  The following information is for employee Ella Dodd for the week ended March 15. Total hours worked: 48 Rate: $15 per hour, with double timefor all hours in excess of 40Federal income tax withheld: $200 United Fund deduction: $50 Cumulative earnings prior to current week: $6,400Tax rates: Social security: 6% on maximum earnings of.
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137.  Roseland Design borrowed $700,000 on a 90-day note from CorpOne Funding Company. CorpOne discounts thenote at 8%. (Assume a 360-day year is used for interest calculations.) (a)  Journalize Roseland’s entries to record: a.    The issuance of the note. b.    The payment of the note at maturity. (b)  Journalize CorpOne’s entries to record: a.    The.
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137.  Ecco Company sold $150,000 of kitchen appliances with six-month warranties during September.  The cost torepair defects under the warranty is estimated at 6% of the sales price.  On October 15, a customer required a $200 part replacement, plus $85 labor under the warranty. Provide the journal entry for (a) the estimated.
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137.  According to a summary of the payroll of Sinclair Company, $505,000 was subject to the 6.0% social security taxand $545,000 was subject to the 1.5% Medicare tax.  Also, $10,000 was subject to state and federal unemploymenttaxes. (a)             Calculate the employer’s payroll taxes using the following rates: State unemployment, 4.2%; Federal unemployment,.
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137.  Use the following information and calculate the quick ratio for Davis Company and for Bender Inc. (a)       Calculate the quick ratio for each company. (b)       Comment on which one is more able to meet current liabilities. Davis Co. Bender Inc. Account Dr. Cr. Dr. Cr. Cash $ 321 ? $ 425 ? Cash equivalents 88 ? 95 ? Current notes receivable 56 ? 46 ? Accounts receivable 603 ? 307 ? Prepaid expenses 55 ? 85 ? Merchandise inventory 714 ? 898 ? Fixed assets 920 ? 755 ? Accumulated depreciation—Fixed assets ? $ 415? ? $ 225? Accounts.
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41.Dissolution is the term which solely means to liquidate the partnership. a.True b.False 42.In partnership liquidation, gains and losses on the sale of partnership assets are divided among the partners' capitalaccounts on the basis of their capital balances. a.True b.False 43.If the share of losses on realization of the sale of noncash assets exceeds the balance.
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78.Which of the following would be used to compute the federal income taxes to be withheld from an employee'searnings? a.FICA tax rate b.wage and tax statement c.FUTA tax rate d.wage bracket and withholding table 79.Which of the following taxes would be deducted in determining an employee's net pay? a.FUTA taxes b.SUTA taxes c.FICA taxes d.all are correct 80.Which of the.
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31.Employers are required to compute and report payroll taxes on a calendar-year basis, even if a different fiscal yearis used for financial reporting and income tax purposes. a.True b.False 32.Payroll taxes levied against employers become an employer liability at the time the employee wages are incurred. a.True b.False 33.Most employers use payroll checks drawn on a.
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48.Current liabilities are due a.but not receivable for more than one year b.but not payable for more than one year c.and receivable within one year d.and payable within one year 49.Notes may be issued a.when assets are purchased b.to creditors to temporarily satisfy an account payable created earlier c.when borrowing money d.for all of these 50.On June 8, Smith Technologies.
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Match the following terms or phrases in (a–g) with the explanations in 1–8. Terms or phrases may be usedmore than once. Current ratio Working capital Quick assets Quick ratio Record an accrual and disclose in the notes to the financial statements Disclose only in notes to financial statements No disclosure needed in notes to financial statements DIFFICULTY:Moderate Bloom’s: Remembering LEARNING.
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Chapter 10:  Fixed Assets and Intangible Assets 133.  Equipment acquired at a cost of $126,000 has a book value of $42,000.  Journalize the disposal of the equipmentunder the following independent assumptions. The equipment had no market value and was discarded. The equipment is sold for $54,000. The equipment is sold for $24,000. The equipment is.
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21.Medicare taxes are paid by both the employee and the employer. a.True b.False 22.Federal unemployment taxes are paid by the employer and the employee. a.True b.False 23.Federal unemployment compensation taxes that are collected by the federal government are notpaid directly to theunemployed but are allocated among the states for use in state programs. a.True b.False 24.Federal income taxes are.
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1.Receiving payment prior to delivering goods or services causes a current liability to be incurred. a.True b.False 2.All long-term liabilities eventually become current liabilities. a.True b.False 3.For a current liability to exist, the liability must be due usually within a year and must be paid out of current assets. a.True b.False 4.The borrower issues a note payable to a.
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Chapter 10:  Fixed Assets and Intangible Assets Classify each of the following costs associated with long-lived assets as one of the following: Buildings Machinery and equipment Land Land improvements 134.  Cost of insurance during the construction of new office building 135.  Landscaping at new business location 136.  Interest on money borrowed to finance construction of new office building 137. .
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31.When a new partner is admitted by making an investment in the partnership, the old partners' capital accounts arealways credited. a.True b.False 32.When a new partner is admitted by making an investment of assets in the partnership and the new partner has topay a premium for admission, a bonus is divided among the.
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137.  Excel Products Inc. pays its employees semimonthly.  The summary of the payroll for December 31, indicated thefollowing: Salary expense$120,000 Federal income tax withheld20,000 For the year ended December 31, $40,000 of the December 31 payroll is subject to social security tax of 6%; $120,000 is subject to Medicare tax of 1.5%; $10,000 is.
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11.The discount on a note payable is charged to an account that has a normal credit balance. a.True b.False 12.The proceeds from discounting a $20,000, 60-day, note payable at 6% is $20,200. a.True b.False 13.Amounts withheld from each employee for social security and Medicare vary by state. a.True b.False 14.An employee's take-home pay is equal to gross pay less.
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88.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 withheld1,050 Income taxes withheld2,600 Retirement savings1,000 The entry to record the payment of net pay would include a a. debit to salaries payable for $14,000 b. debit to salaries payable for $9,350 c. credit.
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Chapter 10:  Fixed Assets and Intangible Assets 133.  Financial statement data for the years ended December 31 for Parker Corporation are as follows: Current Year Prior Year Sales Fixed assets (net):Beginning of the year $2,595,600 $901,070 $2,409,498 $820,000 End of the year 829,330 901,070 a)    Determine the fixed asset turnover for the current and prior years. b)   Does the change in fixed asset turnover.
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Chapter 10:  Fixed Assets and Intangible Assets 133.  Machinery acquired at a cost of $80,000 and on which there is accumulated depreciation of $55,000 (includingdepreciation for the current year to date) is exchanged for similar machinery.  Assume that the transaction hascommercial substance. For financial reporting purposes, present entries to record the.
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68.Taylor Bank lends Guarantee Company $150,000 on January 1.  Guarantee Company signs a $150,000, 8%, 9-month note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the noteis a. Interest Expense12,000 Cash138,000 Notes Payable150,000 b. Cash150,000 Notes Payable150,000 c. Cash162,000 Interest Expense12,000 Notes Payable150,000 d. Notes Payable120,000 Interest Payable7,200 Cash120,000 Interest Expense7,200 69.The journal entry to.
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Chapter 10:  Fixed Assets and Intangible Assets 133.  On October 1, Sebastian Company acquired new equipment with a fair market value of $458,000.  Sebastianreceived a trade-in allowance of $92,000 on the old equipment of a similar type and paid cash of $366,000.  Thefollowing information about the old equipment is obtained from.
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137.  Journalize the following entries on the books of the borrower and creditor.  Label accordingly. (Assume a 360-dayyear is used for interest calculations.) Jun.1Regis Co. purchased merchandise on account from Winthrop Co., $60,000, terms n/30. Jun.  30Regis Co. issued a 60-day, 5% note for $60,000 on account. Aug. 29Regis Co. paid the amount.
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137.  Lamar Industries warrants its products for one year.  The estimated product warranty expense is 3% of sales.Sales for June were $190,000.  In July, a customer received warranty repairs requiring $185 of parts and $50 oflabor. (a)                Journalize the adjusting entry required at June 30, the end of the first month.
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137.  Below are two independent sets of transactions for Welcott Company: (a)    Welcott provides its employees with varying amounts of vacation per year, depending on the length ofemployment.  The estimated amount of the current year’s vacation pay is $78,000.  Journalize the adjusting entryrequired on January 31, the end of the first.
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11.A limited liability company is a business entity form designed to overcome some of the disadvantages of thepartnership form. a.True b.False 12.For tax purposes, a limited liability company may elect to be treated as a partnership. a.True b.False 13.The limited liability company may elect to be manager managed rather than member managed which means thatonly authorized.
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137.  The payroll summary for December 31 for Waters Co. revealed total earnings of $80,000.  Earnings subject to 6%social security tax were $60,000; earnings subject to 1.5% Medicare tax were $80,000; and earnings of $3,000were subject to 4.3% state and 0.8% federal unemployment compensation tax.  Journalize the entry to record.
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Chapter 10:  Fixed Assets and Intangible Assets Match each account name to the financial statement section (a-i) in which it would appear. Current Assets Fixed Assets Intangible Assets Current Liability Long-Term Liability Owners’ Equity Revenues Operating Expenses Other Income/Expense 134.  Loss from Impaired Goodwill 135.  Buildings 136.  Trademarks 137.  Gain on Sale of Equipment 138.  Research and Development Costs 139.  Loss on Disposal of Asset 140.  Accumulated .
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108.Which of the following is an example of a variable component of a payroll system? a.hours worked b.Medicare tax rate c.rate of pay d.social security number 109.According to a summary of the payroll of Scotland Company, $450,000 was subject to the 6.0% social security taxand $500,000 was subject to the 1.5% Medicare tax.  Federal income.
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137.  Nelson Industries warrants its products for one year. The estimated product warranty is 4.3% of sales. Sales were$475,000 for September. In October, a customer received warranty repairs requiring $215 of parts and $65 oflabor. (a)                 Journalize the adjusting entry required at September 30, the end of the first month of.
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137.  The current assets and current liabilities for Kolbie Company and Newton Company are as follows: Kolbie Company ( in millions)For the Year Ending December 31 Newton Company (in millions) For the Year Ending December 31 Current assets: Cash and cash equivalents $ 8,352 $ 8,546 Short-term investments 6,034 752 Accounts receivable 3,029 5,152 Inventories 446 660 Other current assets* 2,195 2,829 Total current assets $20,056 $17,939 Current liabilities: Accounts payable $4,970 $10,430 Accrued and other.
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137.  John Woods’ weekly gross earnings for the present week were $2,500.  Woods has two exemptions.  Using $80value for each exemption and the tax rate schedule below, what is Woods’ federal income tax withholding? Single person (including head of household) If amount of wages(aftersubtracting withholding allowance) is: The amount of income tax withholding is: of excess over: Not.
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137.  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.   1Winston Co. purchased merchandise for $75,000 on account from Bagley Co., terms n/30.Sept.   1Winston Co. issued a 90-day, 6% note for $75,000 on.
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1.There are only four legal structures to form and operate a business. a.True b.False 2.In a general partnership, each partner is individually liable to creditors for debts incurred by the partnership, to theextent of the partner's capital balance. a.True b.False 3.A partnership is a legal entity separate from its owners. a.True b.False 4.A partnership is subject to federal income.
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58.Assuming a 360-day year, when a $50,000, 90-day, 9% interest-bearing note payable matures, total payment will be a. $51,125 b. $54,500 c. $1,125 d. $4,500 59.Assuming a 360-day year, proceeds of $48,750 were received from discounting a $50,000, 90-day note at abank.  The discount rate used by the bank in computing the proceeds was a. 6.25% b..
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Chapter 10:  Fixed Assets and Intangible Assets Classify each of the following costs associated with long-lived assets as one of the following: Land improvements Buildings Land Machinery and equipment 134.  Outdoor lighting at new business location 135.  Cost assessed by city for paving a public street that borders land on which a new business location will beconstructed 136. .
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137.  A business issued a 120-day, 6% note for $10,000 to a creditor on account. The company uses a 360-day year forinterest calculations. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note atmaturity, including interest. Description Debit Credit (a) (b) 138.  On August 1, Batson Company issued.
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Match each payroll item that follows to the one item (a–f) that best describes its characteristics. a.  Amount is limited, withheld from employee only b.  Amount is limited, withheld from employee and matched by employer c.  Amount is limited, paid by employer only d.  Amount is not limited, withheld from employee only e.  Amount is.
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41.A defined contribution plan promises employees a fixed annual pension benefit. a.True b.False 42.In a defined benefits plan, the employer bears the investment risks in funding a future retirement income benefit. a.True b.False 43.The accounting for defined benefit plans is usually very easy and straightforward. a.True b.False 44.During the first year of operations, a company granted warranties on its.
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Chapter 10:  Fixed Assets and Intangible Assets Match the intangible assets described with their proper classification (a-d). Patent Copyright Trademark Goodwill 134.  Rights to sell a book and make a profit 135.  A new kitchen gadget that can be produced by only one company 136.  Mickey Mouse 137.  Location of a company 138.  McDonald’s golden arches 139.  I-Tunes music 140.  Reputation of.
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137.  Hadley Industries warrants its products for one year.  The estimated product warranty expense is 4% ofsales.  Assume that sales were $210,000 for June.  In July, a customer received warranty repairs requiring $205 ofparts and $75 of labor. (a)                Journalize the adjusting entry required at June 30, the end of the.
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Chapter 10:  Fixed Assets and Intangible Assets 133.  On the first day of the fiscal year, a new walk-in cooler with a list price of $58,000 was acquired in exchange foran old cooler and $44,000 cash.  The old cooler had a cost of $25,000 and accumulated depreciation of $16,000.Assume the transaction.
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Chapter 10:  Fixed Assets and Intangible Assets Classify each of the following as: a.  Ordinary maintenance and repairs b.  Asset improvements c.  Extraordinary repairs 133.  Fixing damage due to a car accident 134.  Paving a new parking lot 135.  Resurfacing a pool in an apartment building 136.  Exterior and interior painting 137.  Adding refrigerant to an air conditioning system 138. .
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137.  The payroll register of Seaside Architecture Company indicates $970 of social security and $257 of Medicare taxwithheld on total salaries of $16,500 for the period.  Federal withholding for the period totaled $4,235.  Prepare thejournal entry for the period’s payroll. 138.  The payroll register of Seaside Architecture Company indicates $870 of.
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137.  Townson Company had gross wages of $200,000 during the week ended December 10.  The amount of wagessubject to social security tax was $180,000, while the amount of wages subject to federal and state unemploymenttaxes was $24,000.  Tax rates are as follows: Social security 6.0% Medicare 1.5% State unemployment 5.3% Federal unemployment 0.8% The total amount withheld from employee.
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21.If the net income of a partnership is less than the total of the allowances provided by the partnership agreement, thedifference must be divided among the partners in the income-sharing ratio. a.True b.False 22.The amount that a partner withdraws as a monthly salary allowance does notaffect the division of net income. a.True b.False 23.Partner A devotes.
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