HM 235

Robert purchased a truck for $60,000 with a life expectancy of 5 years; using straight-line depreciation, the amount of the depreciation adjustment for each would be:

$1,000

What would the book value be at the end of the year 6 for a piece of equipment using the straight-line method when cost is $11,000, residual value is $1,000, and the expected life is 10 years?

$5,000

Net sales for James, Inc. were $4,000,000; net income was $810,000; and gross profit was $1,300,000. Profit margin would be

20.25%

The business provided services to a credit customer. To record this:

An asset is debited and revenue is credited

Financial Accounting Equation

Assets = Liabilities + Owner's Equity

How does the purchase of supplies on account affect the account equation?

Assets Increase, liabilities increase

The beginning balance for the month in the equipment account was $3,000. The company purchased an additional $1,000 worth of Equipment during the month. The ending balance in the account is:

Debit of $4,000

The entry to record the payment of office salaries would be:

Debit salaries Expense, Credit cash

The account for Payroll Tax Expense includes all of the following except:

Federal income tax

Net income or net loss is calculate on the:

Income statement

What type of an account is Wages and Salaries Payable?

Liability

Which of the following items is NOT listed on the balance sheet?

Revenue

If Accounts Receivable has been credited, it is most likely that:

The company collect a payment from a customer

An outflow of cash from investing activites would be:

The purchase of plane property and equipment

If Prepaid Rent Expense for the period is NOT adjusted:

assets will be overstated and expenses will be understated.

The balance sheet contains:

assets, liabilities, owner equity

straight line depreciation

cost - salvage value) / useful life

Greetings online disposed a van for $4,000 with and original cost of $22,000 with accumulated depreciation of $15,000. The journal entry would include a:

debit to Loss on Disposal of Plant Asset $3,000

Bob love earned $126,400 prior to the payroll period ending June 15th. For the current payroll, Bob Love earned $5,00 and has the following deductions: FICA-OASDI (with a limit of $128,400), FICA-Medicare; federal income take of $300; and state income tax $40. What is his net pay?

$4,463.50

Net income was $45,000 in 2017 and $60,000 in 2018. The percentage increase or decrease in net income was:

33.33%

Accumulated Depreciation is found on which of the following financial statements

Balance sheet

A corporation

Can continue indefinitely, has limited stock risk to stockholders, and is owned by stockholders.

During the month of January, Katelyn invested $9,000 in starting her legal practice. The proper journal entry would be:

Cash, debit $9,000; Katelyn, Capital, credit $9,000

Oustanding checks:

Have not been processed by the bank for payment but have been subtracted in the checkbook.

A debit to a liability account was posted to an expense account. This would cause:

Liabilities to be overstated

The debit amount to Payroll Tax Expense represents:

The employer's portion of the payroll taxes

Bob Stein's hourly wage is $45.00, and he worked 42 hours during the week. Assuming an overtime rate of time and a half over 40 hours, Bob's gross pay is:

$1,935

Equipment with a cost of $150,000 has an accumlated depreciation of $50,000. What is the book value of the equipment

$100,000

Strawberry Supreme purchased new baking equipment for $17,000 subject to a discount of 3%. The discount was taken. Additional costs included sales tax $700, installation of $500 and insurance for the first year of $1,000. The total cost to be added to the equipment account is:

$17,690

Harvest Moon Company has total assets of $20,000. If $2,000 cash is used to purchase a new computer, the total assets would be:

$20,000

If assets are $50,000 and total liabilities are $22,000 Capital must equal:

$28,000

Calculate from the following information accumlated by Bob Clark, the adjusted book cash balance at the end of April.

$4,000

Accounts payable had a normal starting balance of $500. There were debit postings of $200 and credit postings of $100 during the month. The ending balance would be:

$400 credit.

Lacy purchased equipment for $76,000 on January 1. Its residual value is $4,000 with a useful life of 8 years. The amount of depreciation expense each year under the straight-line method is:

$9,000

If beginning and ending inventories are $175,000 and $120,000, respectively, and the cost of goods sold for the month (30 days) is $450,000, what is the number of days in inventory ratio?

10.00

The current ratio for a company with current assets of $120,000, current liabilities of $50,000, total assets of $150,000, and net sales of %80,000, would be:

2.4

With a beginning Accounts Receivable balance of $30,000, and ending balance of $46,000, and net credit sales of $480,000 for fiscal year 2018, compute the # of Days Sales Outstanding Ratio.

28.9

Jefferson Tutoring had the following payroll information on February 28: Gross Pay Cumulative Earnings Prior to this Payroll R Hitchcock $4,000. $4,000 Assume: FICA tax rates are: OASDI 6.2% on a limit of $117,000 and Medicare 1.45%. State Unemployment tax rate is 2% on the first $7,000.Federal Unemployment tax rate is 0.8% on the first $7,000. Using the information above, the journal entry to record the payroll tax expense for Jefferson Tutoring would include:

A credit to the FUTA payable for $24, A debit to Payroll Tax Expense in the amount of $390, A credit to SUTA payable for $60

Owner's Withdrawals

A decrease in assets

The bank statement included bank charges. On the bank reconciliation, the item is:

A deduction from the balance per company books.

During the month of October, Ford advertised on the Internet. Ford received the bill for $600 in October, but waited until November to pay the advertising expense. The journal entry to record the payment in November is:

Accounts payable, Debit; Cash credit

Internal control over a company's assets should include the following procedures:

All cash receipts will be deposited into the bank the same day they arrive, All cash payment will be made by check (except petty cash), Responsibilities and duties of employees will be divided.

In the statement of cash flows, which event would cause cash to be increased?

An increase in Accounts payable

If the balance of food inventory at the start of the month was $6,000 and at the end of the month you had $1,500 on hand, the adjusting entries for Food Expense would be:

Debit Food Expense, $4,500; Credit Food Inventory $4,500

On November 1, Duane paid $24,000 in advance for a year's rent. The November 30 adjusting entry for rent expense should include a:

Debit rent expense, $2000

Which of the following items are on both the income statement and the statement of owner's equity

Net income

The May bank statement for Consulting Services shows a balance of $7300, but the balance per books shows a cash balance of $8,980. Other information includes: 1. A check for $200 to pay the electric bill was recorded on the books as $20. 2. Included on the bank statement was a note collected by the bank for $400 plus interest of $30. 3. Checks outstanding totaled $260. 4. Bank service charges were $50. 5. Deposits in transit were $2,140. Which item should be subtracted from bank balance during the bank reconciliation?

Outstanding check

A transaction completed by Norton Company caused a $4,00 increase in both the total assets and the total liabilities. This transaction could have been:

Purchase of office equipment for $12,000, paying $8,000 cash, with the rest on account

Which of the following rations helps evaluate how well a company is earning profit from the common stockholders?

Return on stockholders' equity

Collins Restaurants reported $3,650,000 in Sales for 2018 and $3,345,000 for 2017. Controllable Earnings for 2018 were $1,355,000 and $1,215,000 for 2017. Using the Industry Rules from class, which of the following is correct?

Rule #1 was met

Rick Corporation's Accounts Receivable increased by $25,000 during the year. What is the adjustment to the cash flow statement?

Subtract the increase from the net income in operating activities section

The employer's total FICA, SUTA, and FUTA tax is accounted for as:

a debit to Payroll Tax Expense

A $100 petty cash fund has cash of $20 and valid receipts for $40. The entry to replenish the fund would include a:

debit to over/short $40

Sam's catering made a payment via check for $64 but it is incorrectly recorded on the books as $46. The $18 error should be shown on the bank reconciliation as:

deducted from the balance per books

The number of allowances claimed by an employee determines how much will be withheld from their paycheck for:

federal income tax.

It's the end of the account period and no electric bill has been received ( but the expense has been incurred); you should record an entry that:

increases the total liabilities and increases the total expenses

A dishwasher that originally cost $5,000 has no estimated salvage value and was depreciated over 5 years (straight-line depreciation) At the end of the second year, it was sold for $2,500 cash. The transaction would result in a:

loss of $500