accounting 6-10
Sue's Jewelry sold 40 necklaces for $ 25 each to a credit customer. The invoice included a 7% sales tax and payment terms of 3/10, n/30. In addition, 5 necklaces were returned prior to payment. The entry to record the original sale would include: (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)
a debit to Accounts Receivable for $ 1 comma 070.
net pay equals
gross pay less deductions
The bank statement does NOT show:
outstanding checks
Dave Brown's cumulative earnings are $73,000, and his gross pay for the week is $6,200. If the FICA rates are: OASDI 6.2% on a limit of $117,000 and Medicare is 1.45%, what are his FICAminusOASDI and FICAminusMedicare taxes for the week?
$384.40; $89.90
Bob Stein's hourly wage is $ 45, and he worked 43 hours during the week. Assuming an overtime rate of time and a half over 40 hours, Bob's gross pay is: (Round your answer to the nearest whole dollar.)
2,003
Shelly's cumulative earnings before this pay period were $ 7 comma 600 and gross pay for the week is $ 800. Assuming the wage base limit is $7,000, how much of this week's pay is subject to taxes for FUTA and SUTA?
400
Hardware Restoration had net purchases of $ 56 ,000. If Purchases Returns and Allowances are $ 18, 000 and Purchases Discounts are $ 2, 200, what are gross purchases?
76,200
accounts receivable subsidiary ledger
A book or file that contains the individual records, in alphabetical order, of amounts owed by various credit customers
Urban Camping sold goods for $ 300 to a charge customer. The customer returned for credit $ 100 worth of goods. Which entry is required to record the return transaction?
Debit Sales Returns and Allowances $ 100; credit Accounts Receivable $ 100
Collected a payment from a credit customer. This will be recorded with:
a credit to an asset account
Sue's Jewelry sold 40 necklaces for $ 25 each to a credit customer. The invoice included a 7% sales tax and payment terms of 3/10, n/30. In addition, 5 necklaces were returned prior to payment. The entry to record the original sale would include: (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)
a debit to Accounts Receivable for $ 1, 070.
The bank statement included bank charges. On the bank reconciliation, this item is:
a deduction from the balance per company books.
If a credit memorandum is issued, what account will be decreased on the seller's books?
accounts receivable
Bank interest earned on a checking account would be shown on a bank reconciliation as:
added to the balance per books.
A $ 110 petty cash fund has cash of $ 10 and valid receipts for $ 50. The entry to replenish the fund would include a:
credit to cash for $100
Sam's Tutoring Service's $ 540 petty cash fund has a shortage of $ 6. The facts are: $ 190 in valid receipts for expenses; $ 534 in coins and currency. The journal entry to replenish the petty cash fund would include a:
debit to Cash Short and Over for $ 6.
The entry establishing a $ 340 petty cash fund would include a:
debit to petty cash $340
The number of allowances claimed by an employee determines how much will be withheld from their paycheck for:
federal income tax
Outstanding checks
have not been presented to the bank for payment but have been subtracted in the checkbook.
The debit recorded in the journal to establish the petty cash fund is to:
petty cash
A debit memorandum increases which account on the buyer's books?
purchase returns and allowances
Gross Earnings are the same as:
regular earnings + overtime earnings.
The contra- revenue accounts include:
sales returns and allowances , sales discount
Endorsing a check guarantees
transfers the right to deposit or transfer cash.
The accounts payable subsidiary ledger should equal the control account in the general ledger.
true
Which of the following would NOT typically be an employee payroll withholding?
unemployment taxes
Home Restoration reports net sales of $ 90, 000. If sales returns and allowances are $ 10, 000 and sales discounts are $ 2, 500, what are gross sales?
102,500
On February 12, Clare purchased $400 of merchandise on account from Larsen's Accessories, terms 2/10, n/30. The goods were shipped F.O.B. destination. The freight charge was $40. The amount to be recorded in the Accounts Payable Subsidiary ledger is:
400
Net sales
Gross sales - sales returns - sales returns and allowances
Credit terms of 2/15 n/30 mean that:
a 2% discount is allowed if the customer pays the bill within 15 days, or the entry amount is due within 30 days.
If the employee has $ 700 withheld from their check for federal income tax, what is the amount that the employer would need to pay for their portion of the federal income tax?
0
Which of the following statements about subsidiary ledgers is most accurate?
The accounts receivable subsidiary ledger is a book of accounts that provides supporting detail for Accounts Receivable.
Jane works 43 hours at a rate of pay of $20 per hour. She receives double pay over 40 hours. What is her gross pay?
920
subsidiary ledger
A ledger that contains accounts of a single type. Example: The accounts receivable subsidiary ledger records all credit customers.
If the owner of Pague Legal Services forgot to deduct a withdrawal from the balance per books, what entry would be necessary?
Debit Withdrawals; credit Cash
Gross sales
The revenue earned from sale of merchandise to customers
Sue's Jewelry sold 30 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10, n/30. In addition, 5 necklaces were returned prior to payment. The entry to record the payment after the discount period would include:
a credit to Accounts Receivable for $662.50.
A list of creditors with balances owed is called:
a schedule of accounts payable
Sold merchandise subject to a sales tax, accepting cash. This will be recorded with:
credit to a liability account
Home Restoration reports net sales of $ 90, 000. If sales returns and allowances are $ 10, 000 and sales discounts are $ 2, 500, what are gross sales?
$102,500
An employee has gross earnings of $ 1 comma 400 with withholdings of 6.2% FICAminusOASDI, 1.45% FICAminusMedicare, $50 for federal income tax and $ 10 for state income tax. How much is the net pay?
1,233
Jemco bought goods for $300 on credit. Jemco returned $50 worth of goods. Terms of the sale were 2/10, n/30. If Jemco pays the amount owed within the discount period, what is the amount they should pay?
245
A record showing the activity and the balances owed by each customer is called the:
accounts receivable subsidiary ledger.
FOB shipping point
purchaser pays or is responsible for the shipping costs
Karen's cumulative earnings before this pay period were $ 5 comma 350, and gross pay for the week is $ 800. Assuming the wage base limit is $7,000, how much of this week's pay is subject to taxes for SUTA and FUTA?
800
Monica's Closet received payment in full within the discount period for goods sold on a $600 sales invoice, terms 2/10, n/30. Which entry records this payment?
Debit Cash $588, debit Sales Discount $12; credit Accounts Receivable $600
Monica's Closet received payment in full within the discount period for goods sold on a $600 sales invoice, terms 2/10, n/30. Which entry records this payment?
Debit Cash $588, debit Sales Discount $12; credit Accounts Receivable $600
A payment for $ 54 is incorrectly recorded on the checkbook stub as $ 15. The $ 39 error should be shown on the bank reconciliation as:
deducted from the balance per books.
On a bank reconciliation, deposits added to the bank side are called:
deposits in transit
FOB destination
seller pays for is responsible for the cost of the freight to purchasers location
The petty cash account is debited when
the account balance is being increased.
An entry to record the payment to a vendor was correctly recorded and posted to the general ledger but was not posted to the subsidiary ledger. This error will cause:
the accounts payable control account to not agree with the subsidiary ledger.
Payment for merchandise sold on credit for $100 subject to 1/10 n/30 was received within the discount period long cash$99 was received. This was recorded with a debit to Sales Discounts for $1, a debit to Cash for $99, and a credit to Accounts Receivable $100, but no mention was made of the subsidiary ledger account. This error will cause:
the control account to not agree with the subsidiary ledger.
Payment for merchandise sold on credit for $100 subject to 1/10 n/30 was received within the discount periodlong dash$99 was received. This was recorded with a debit to Sales Discounts for $1, a debit to Cash for $99, and a credit to Accounts Receivable $100, but no mention was made of the subsidiary ledger account. This error will cause:
the control account to not agree with the subsidiary ledger.
A sales discount correctly taken by the charge customer was debited to Sales at the time the entry was recorded. This error will cause
the sales discount account to be understated
