AC 210 final

Redmont company's gross salaries and wages are 30,000 and its withholds 4,500 for income taxes and 2000 for FICA taxes, the journal entry to record the employees pay( assuming they have been incurred but not paid)should include a a.debit to salaries and wages expense for 23,500 b.debit to salaries and wages payable 23,500 c. credit to salaries and wages payable for 30,000 d. credit to salaries and wages payable for 23,500

*incurred but not paid= salaries and wages expense-increases with credit) 30,000 -4,500 -2000 - 23500 answer is d

Avalon industries buys equipment for 24,000. expects to use it for 10 years, and expects it residual value to be 3,000. use straight line method, the company should report annual depreciation for the equipment? a.4,200 b.2,100 c.2,400 d.4,800

2,100 (cost-residual value)* 1/useful life

On November 1, 2018 sky mountain Co. borrowed 200,000 cash on a 1 year, 6% note payable that requires sky mountain to pay both principal and interest on October 31st 2019. Given no prior adjusting entries have been recorded, the adjusting journal entry on December 31, 2018, sky mountains year-end, would include a a.credit to cash fro 2000 b.debit to interest expense of 12,000 c. credit to interest payable of 2000 d. credit to note payable of 2,000

200,000*.06*2/12=2000 c. credit to interest payable of 2,000

during one pay period star valley company distributes 234,900 to employees as net pay. income tax withholdings were 34,200 and the FICA withholdings were 9,000. total payroll costs to the company for this pay period, excluding any unemployment taxes? a.269,100 b.234,900 c.278,100 d.287,100

287,100 remember to add FICA twice

Durango, inc purchased a parcel of land for 450,000. attorney fees 3,000. broker fee of 7,500. this parcel of land should be recorded in the accounting records for

460,00 add all costs together

Viewmont manufacturing began the year owing its suppliers 4,800 for merchandise purchased last year. Viewmont then sold half of the merchandise for 8,000 on account. two weeks later, viewmont paid its suppliers 1,600 and bought another 6,400 of merchandise on account. Viewmont now has an accounts payable balance of: a.17,600 b.9,600 c.1,600 d.7,200

4800 owing suppliers -1600 paid its suppliers +6400 = 9600

payroll taxes paid by the employees include which of the following? a. federal income tax, federal unemployment tax, Medicare b.social security, federal unemployment tax, and state unemployment tax c.social security, federal income tax, and federal unemployment tax d.federal income tax withheld, tax withheld, state income tax withheld, medicare

PAYROLL TAXES PAID BY EMPLOYEES d. federal income tax withheld, tax withheld, state income tax withheld, medicare

contributed capital totals 30,000. retained earnings equals 65,000, treasury stock equals 18,000 and common stock equals 10,000. if the company does not have any accumulated other comprehensive income(loss) what is the total amount of stockholders equity? a.77,000 b. 113000 c.123,000 d.87,000

a.77,000 30,000 contributed capital +65000 retained earnings -18,000 treasury stock = 77,000

accumulated depreciation; a.appears in the asset section of the balance sheet b.appears on the income statement c.is a liability on the balance sheet d.is a contra-stockholders equity item

a.appears in the asset section of the balance sheet accumulated depreciation is a contra asset

the number of shares outstanding equals the number of shares: a.issued minus the number of shares in treasury b.authorized minus the number of shares issued c. issued plus the number of shares in treasury d. authorized plus the number of shares issued

a.issued minus the number of shares in treasury outstanding=issued-treasury

when preparing the balance sheet for papago Co. for December 31st 2018 which item would not be classified as a current liability? a.note payable due march 1st 2020 b. accounts payable c.income taxes due on September 15, 2019 d. the current proportion of a 30 year mortgage

a.note payable due on march 1st 2020

on February 16, a company declares a 40 cent dividend to be paid on april 5th. There are 2,600,000 shares of common stock issued and outstanding. The entry recorded by the company on February 16 includes a debit to: a. dividends payable and a credit to cash for 781,600 b.dividends and a credit to dividends payable for 824,000 c. dividends and a credit to dividends payable for 781,000 d. dividends payable and a credit to cash for 824,000

b. debit to dividends credit to dividends payable

Just in Thyme, Inc has the following December 31, 2018 equity balances. common stock 20,000. Additional paid in capital 30,000. retained earnings 50,000. If just in thyme repurchases shares of its stock for 10,000. the total stockholders equity balance would be: a.60,000 b.90,000 c.110,000 d.40,000

b.90,000 20,000 common stock +30,000 paid in capital +50,000 retained earnings -10000 repurchased stock = 90,000

Marshall company purchases a machine for 800,000. The machine has an estimated residual value of 40,000, The company expects the machine to produce 2,000,000 units. the machine is used to make 400,000 units during this period. use units of production method. The depreciation expense for this period is: a.160,000 b.800,000 c.152,000 d.760,000

c.152,000 (cost -residual value) * actual production/ estimated production

in an initial public offering on May 1 2009 Timmy Hilfigure purchased 1,000 shares of Abner Crummie, Inc. for 5,000. On April 30,2015, Timmy Hilfigure sold the 1,000 shares for 8,000 to Ralph Loring. What is the effect of the sale on April 30, 2015? a. Abner Crummie, Inc will record a 3,000 loss b.Abner Crummie, Inc will record a gain of 3000 c. Abner Crummie, Inc will not be directly affected by this transaction d. Abner Crummie, Inc will record a decrease in cash of 8,000

c.Abner Crummie, Inc will not be directly affected by this transaction Transaction in April is only between Timmy and Ralph.

which of the following statements about capitalizing is correct? a. capitalizing costs refers to the process of converting assets to expenses b.all capitalized assets can be depreciated c. capitalizing a cost means to record it as an asset d.capitalizing costs results in an immediate decrease in net income

c.capitalizing costs means to record it as an asset

a company issues 1 million shares of common stock with a par value of .05 for 15.30 a share. The entry to record this transaction includes a debit to cash for:

cash 15,300,000 common stock . 50,000 ADPIC . 15,250,000

The viviana Co, uses the indirect methpd to determine its cash flows from operations. Which of the following items will be subtracted from net income to find its cash flows from operations? a.decrease in supplies b.increase in accounts payable c. depreciation expense d. increase in accounts recievable

d. increase in a accounts receivable subtracting bc do opposite

if shares of common stock are issued at a market price greater than par value, the amount in excess of par should be credited to: a.common stock b.treasury stock c. retained earnings d. additional paid in capital

d.additional paid in capital

which of the following does not create a liability? a.buying goods and services on credit b. obtaining a short term loan c.issuing a long term debt d. remitting sales tax to the government

d.remitting sales tax to the govenment

the entry to record the initial borrowing of cash by issuing a promissory note will include a debit to _______ and credit to _______

debit cash credit notes payable

which of the following would not be considered a long lived asset? a. buildings b. land improvements c. inventory d. land

inventory- comes and goes will not be there for more than a year

a company bought land and a building for 128,000. the building has a useful life of 20 years. why should the company split the 128,000 cost between the land the building?

land is not depreciated, while the building will be depreciated over its 20-year useful life

which of the following accurately describes the treatment of ordinary and extraordinary repairs?

ordinary repairs are expensed as incurred; extraordinary repairs are treated as capital expenditures (capitalized)