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Study Resources (Accounting)

11) Retained earnings represents investments by the shareholders of the corporation. 12) A debit balance in retained earnings is referred to as a deficit. 13) The policy-making body of a corporation is called the board of directors. 14) Corporate bylaws are established by provincial governments to regulate company operations in the interest of.
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7) Referring to Table 11-6, the entry to record the payroll costs imposed on the employer would include a: A) debit to Canada Pension Plan Expense of $39.72. B) credit to Employee Income Tax Payable for $120.38. C) debit to Salary Expense for $600. D) credit to Employment Insurance Payable for $15.01. Table 11-7   Camparound Canada.
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48) Discuss the characteristics of a corporation. Indicate, wherever appropriate, if the characteristic is an advantage or a disadvantage of the corporate form of business. 49) List some of the shareholder rights normally attached to common shares. 1) No-par-value shares are shares of stock that do not have a value assigned to.
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29) Jack and Will formed the JW Partnership on January 1, 2013, by combining the separate assets of their respective proprietorships. Information relating to their assets and liabilities are as follows: Jack's assetsWill's assets BookMarketBookMarket valuevaluevaluevalue Cash$100,000$100,000$95,000$95,000 Net accounts receivable39,00037,00028,00036,000 Inventory60,00075,000 55,00066,000 Land50,00080,00075,00082,000 Buildings80,00070,00090,00090,000 Accumulated     amortization25,000---- 30,000---- Accounts payable18,00018,00025,00025,000 Prepare the balance sheet for JW Partnership on January 1, 2013,.
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15) Refer to Table 11-16. What is the correct journal entry to record the employer's share of the withholdings? A) Employee benefits expense 123.19             CPP payable   72.77             EI payable 26.90             Worker's compensation payable 23.52 B) Employee benefits expense 133.95             CPP payable   72.77             EI payable   37.66             Worker's compensation payable 23.52 C) Employee benefits expense 99.67             CPP payable   72.77            .
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18) Jensen, Zhang, and Singh had a partnership that splits profits and losses equally. Singh declared his intention to withdraw from the partnership. Partnership assets were revalued and partner capital balances were adjusted to the following amounts: Jensen $90,000 Zhang $70,000 Singh $ 100,000 Due to a set of unusual legal circumstances, it was mutually agreed that.
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  Match the following. A) common shares B) outstanding shares C) shareholders' equity D) board of directors E) President 36) Documents used by a government to grant its permission to form a corporation 37) Chief operating officer in charge of managing the day-to-day operations of a corporation. 38) Owners' equity of a corporation 39) Shares in the hands of shareholders 40).
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  Table 11-5   On March 1, 2014, William Browning received $15,000 in advance for services to be provided over the next 12 months. 53) Refer to Table 11-5. The entry on March 1, 2014, would include a: A) credit to Sales Revenue for $15,000. B) credit to Unearned Revenue for $15,000. C) debit to Sales.
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17) Answer the following questions briefly and concisely. a)Why is it important for a company to separate the current portion of long-term debt from the long-term debt? b)How would the under accrual of warranty expense affect a company's financial statements? c)What is the difference between a liability and a contingent liability? d)What are contingent.
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1) Mutual agency in a partnership means that partnership decisions may be made by any one of the partners. 2) Accounting for a partnership is similar to accounting for a proprietorship. 3) A partnership agreement may be oral. 4) Partners can share in net income or loss in any manner they choose. 5).
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32) On June 30, William Tellman, Wendy Carlos, and David Wu started a partnership. Their investments were as follows:            Please use the format below to prepare a balance sheet at June 30. Assets Liabilities Owners' Equity 1) If the partnership agreement specifies a method for allocating profits but not losses, then losses are shared.
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    Jim and Joe are partners agreeing to share profits and losses in a 2:6 ratio, respectively. Business has been profitable and they have decided to admit Jewel to the partnership for a cash investment. The balances in Jim and Joe's capital accounts are presently $240,000 and $260,000, respectively. 13) Refer to.
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47) The Stewart and Smith Partnership earned a net income of $90,000 for the current year. Beginning capital balances were $70,000 for Scott Stewart and $140,000 for Rick Smith. Prepare the closing entries to transfer net income to the partners' capital accounts based on the following independent net income agreements. a).
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Objective 11-5 1) The components of the payroll system are a payroll register, payroll cheques, and an earnings record for each employee. 2) The duties of hiring and terminating employees should be separated from payroll accounting and from access to pay cheques. 3) Current liabilities: A) are subtracted from long-term liabilities on the balance.
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  A) unlimited liability B) general partnership C) partnership agreement D) partnership E) dissolution F) mutual agency G) death of a partner H) limited liability partnership 27) Agreement that is the contract between partners 28) Ending of a partnership 29) A voluntary association of two or more persons who co-own a business for profit 30) Every partner can bind the business to.
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  Wally, Willie, and Watson formed a partnership several years ago. Wally has decided to withdraw from the partnership. The current capital balances are: Wally, capital, $50,000; Willie, capital, $65,000; and Watson, capital, $100,000. Prior to the withdrawal of Wally, the partners agree to revalue some of the partnership assets. Inventory.
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11) Current liabilities on the balance sheet would include all of the following except: A) accrued expenses. B) estimated liabilities. C) earned revenues. D) unearned revenues. 12) Which of the following is not an advantage of paying employees using electronic funds transfer (EFT)? A) reduced salary expense. B) reduced administrative costs. C) no lost pay cheques. D) ensures that.
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26) Jack and Will decide to form the JW Partnership. On January 1, 2014, they combine their assets with the following current market values and book values: Jack's assetsWill's assets BookMarketBookMarket valuevaluevaluevalue Cash$100,000$100,000$95,000$95,000 Net accounts receivable39,00037,00028,00023,000 Inventory60,00075,000 55,00072,000 Land50,00080,00075,00090,000 Buildings80,00070,00090,00075,000 Accumulated   amortization25,000---- 30,000---- Accounts payable18,00018,00025,00025,000 Journalize the entries on January 1, 2014, to record the partners' initial investments. 27) Jill and.
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  Tic, Tac, and Toe have year-end capital balances, before closing entries, of $202,000, $182,000, and $116,000, respectively. They have agreed to share profits and losses in the ratio of their capital balances. 27) Refer to Table 12-2. Assuming the business earns a profit of $72,500, the amount allocated to Tic is: A).
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36) Describe four of the items that should be covered in a partnership agreement. 37) Most professionals such as doctors, lawyers and public accounting firms in Canada are organized as limited liability partnerships (LLPs). Explain the fundamental concept that governs an LLP. 38) List four of the characteristics of a partnership. 1) Contributions.
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14) Ivey and Balzac had a partnership that distributed profits in a ratio of 1:3 respectively. At the end of 2014, they agreed to liquidate the partnership. Prior to liquidation, the partnership had Cash of $50,000, Inventory of $75,000, Equipment (net) of $235,000, and no payables. Partner capital balances were: Ivey: .
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21) An individual partner's signing of a contract to buy coffee for a doughnut shop that the partnership owns and operates falls under which characteristic of partnerships? A) unlimited liability B) limited life C) mutual agency D) co-ownership of property 22) A partnership balance sheet includes: A) a category for assets contributed by each partner B) a.
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7) The law requires all employers to provide paid vacations to their employees. 8) Because contingent liabilities are not real liabilities, they are easy to overlook. 9) The law requires most employers to provide a minimum number of weeks holiday per year. 10) A contingent liability is an actual liability that is estimated.
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40) Answer the following questions briefly and concisely. a)Why is it important for a company to separate the current portion of long-term debt from the long-term debt? b)How would the under accrual of warranty expense affect a company's financial statements? c)What is the difference between a liability and a contingent liability? d)What are contingent.
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  Match the following.   A) gross pay B) employees' income tax payable C) deductions D) benefits E) Canada Pension Plan contributions F) net pay G) Employment Insurance contributions H) Workers' Compensation premiums 17) A contribution withheld from employees' pay and matched by the employer 18) A contribution withheld from employees' pay and matched by the employer at the rate of 1.4.
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17) Sales revenue for Booker Company for 2014 amounted to $800,000. The products sold carry a six-month warranty. Management estimates the cost of the warranty to be 3% of sales revenue. Booker should: A) debit Warranty Expense in 2014 for $24,000. B) debit Estimated Warranty Payable in 2014 for $24,000. C) debit Warranty.
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21) Which of the following forms of business organizations terminates when the ownership structure changes? A) corporation B) partnership C) share capital D) shareholders' equity 22) Share capital represents: A) investments by the creditors of a corporation B) capital that the corporation has earned through profitable operations C) investments by the shareholders of a corporation D) retained earnings 23) Retained.
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52) Refer to Table 12-13    Assuming that the business earns $135,000: 1) allocate the income to Burns and Allan. 2) calculate the balance of each partner's capital account. 53) Refer to Table 12-13    Assuming that the business earns $135,000 and that each partner withdrew $1,000 per month during the year: 1) allocate the.
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7) Partnership profits and losses may be allocated based on capital investments and on service. 8) Unless the partnership agreement specifically indicates an income ratio, partnership net income or loss is not allocated to the partners. 9) The balance in the partner's capital account consists of the partner's initial investment plus the.
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5) The partnership records receipt of the partners' initial investments at their current market values. 6) Often partners hire an independent firm to appraise their assets and liabilities at current market value. 7) The asset and liability sections on the balance sheet are the same for a proprietorship and a partnership. 8) When.
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6) Increases in contributed capital and in retained earnings come from producing revenue. 7) Convertible preferred shares must be converted into common shares when the corporation declares the conversion. 8) If a company has both preferred and common shares outstanding, the preferred shareholders have the first claim to shareholders' equity. 9) Convertible preferred.
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73) The Cart Company, whose year end is December 31, entered into the following transactions relating to notes payable during 2013: Nov. 15Purchased inventory costing $45,000 by signing a 60-day, 6% note payable. Dec.  1Purchased additional inventory costing $30,000 by signing a 120-day, 7% note payable. Dec. 13Gave a 180-day, $20,000 note payable.
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  Match the following.   A) warranty 30) Product guarantee against defects 31) Bill's Bargain Vacuums warrants all of its products for one full year against any defect in manufacturing. Sales for 2013 and 2014 were $758,000 and $871,000, respectively. Bill's Bargain Vacuums expects warranty claims to run 4.5% of annual sales. Bill's paid $30,150.
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  Match the following.   A) contingent liability B) liability C) interest payable D) Operating line of credit 67) A potential liability that depends on a future event arising out of past events 68) An obligation to transfer assets or to provide services in the future 69) An account related to notes payable 70) A bank loan that is negotiated.
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11) One of the advantages of a partnership is unlimited personal liability. 12) For income tax purposes the income of the partnership flows through to become the taxable income of the partners. 13) To make certain that each partner fully understands how a particular partnership will operate in the future, partners should.
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