Accounting Final
Mike returned $310 of merchandise to Secret Trails. His original purchase was $620, with terms 1/10, n/30. If Mike pays the balance of his account after the discount period, how much should he pay? (Round your calculations to the nearest whole dollar.)
$310
Sales discounts are NOT taken on which of the following?
A. Freight B. Sales Tax C. Merchandise returned D. Sales Discounts are not taken on any of the above.
Which tax does not have a wage base limit?
FICA Medicare
Which of the following accounts would most likely be debited in the replenishment of petty cash?
Postage expense
The drawee is the:
bank that drawer has an account with.
The total of all cash sales and credit sales equals:
gross sales
An example of an internal control is not:
he use of unnumbered checks.
a W-4 form:
provides the number of allowances an employee has claimed.
A company must pay Form 941 taxes electronically if:
they pay more than $2500 in a given quarter
An employee has $800 withheld from his check for federal income tax. What is the employer's portion of the federal income tax they need to pay?
$0
Robert Smith's hourly rate is $35.00, and he worked 31 hours during the week. What is his gross pay for the week? (Round your answer to the nearest whole dollar.)
$1085
Home Restoration reports net sales of $90,000. If sales returns and allowances are $17000 and sales discounts are $2,500, what are gross sales?
$109,500
Beth's earnings during the month of May were $1,200. Her earnings for the year prior to May were $12,800. Beth's employer is subject to state unemployment of 2.0% and federal unemployment taxes of 0.8% on the first $7,000. The employer's unemployment payroll tax expense for May is:
0 bc over the maximum
An employee has gross earnings of $1,000 and withholdings of $ 77 FICA (OASDI and Medicare), and $50 for income taxes (FIT and SIT). The employer pays $ 77 FICA (OASDI and Medicare), $ 12 for SUTA, and $ 6.60 FUTA. What is the employer's total cost of the employee? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest whole dollar.)
1000+ 77+ 12+ 6.6= $1096
Bob sold goods for $ 400 to a charge customer. The customer returned for credit $ 30 worth of goods. Terms of the sale were 3/10, n/30. If the customer pays the amount owed within the discount period, what is the amount the customer should pay? (Round your calculations to the nearest whole dollar.)
400-30-(370x.03)= $359
Jane's Jewelry sold 50 necklaces for $30 each to a credit customer. The invoice included a 7% sales tax and payment terms of 3/10, n/30. In addition, 7 necklaces were returned prior to payment. The entry to record the payment after the discount period would include: (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)
A credit to accounts recivable for $1380
Internal control over a company's assets should not include the following procedures:
All cash receipts will be accumulated until significant enough for a major deposit.
H.R. Camping sold goods for $ 200 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
When a business starts, what must it obtain that identifies itself to the government?
Employer Identification Number (EIN)
ToF Canceled checks are negotiable at the bank for the face value.
False
ToF Deposits that have been added to the bank balance but not the checkbook balance are called deposits in transit.
False
ToF Employees must receive W-3s by January 31 of the following year.
False
ToF On a bank reconciliation, outstanding checks are deducted from the balance per the books.
False
Which of the following transactions will cause one asset to be debited and another to be credited when the perpetual inventory system is in use?
Purchased merchandise inventory for cash
Which of the following transactions will cause a liability to be credited and an asset account to be debited when the perpetual inventory system is in use?
Purchased merchandise inventory on account
The look back period is used to determine whether:
a business should make its Form 941 tax deposits on a monthly or semiweekly basis.
Collected a payment from a credit customer. This will be recorded with:
a credit to an asset account.
The entry to replenish a $300 petty cash fund, which has cash of $160 and valid receipts for $130 would include:
a credit to cash for $140
Mel's Art studio was moving and sold furniture that was no longer needed for cash. The entry would include:
a credit to furniture
Cash Short and Over is:
a misc. expense or misc. revenue depending on the balance in the account
A payment for $27 is incorrectly recorded on the checkbook stub as $72. The $45 error should be shown on the bank reconciliation as:
added to the balance per books
Bank interest earned on a checking account would be shown on a bank reconciliation as:
added to the balance per books.
Merchandise Inventory is what type of account?
asset
Prepaid Worker's Compensation Insurance is what type of account?
asset
What type of an account is the petty cash fund?
asset
Unemployment taxes are:
based on wages paid to employees and based on the employers payment history
The entry to establish the petty cash fund was not completed. This would cause:
cash to be overstated
Form SS-4 is:
completed to obtain an EIN
The journal entry to record the entry of a customer's nonsufficient funds check would include a:
credit to cash
Recording to the accounts receivable subsidiary ledger is done:
daily
The entry to record a payment on a $ 660 account within the 5% discount period would include a:
debit to accounts payable for $660
Sam's Tutoring Service's $480 petty cash fund has a shortage of $3. The facts are: $210 in valid receipts for expenses; $477 in coins and currency. The journal entry to replenish the petty cash fund would include a:
debit to cash short and over for $3
The time frame when customers are allowed to pay their bills and still be eligible for a discount is the:
discount period
The check is written and signed by the:
drawer
What type of account is Payroll Tax Expense?
expense
From the bank reconciliation, no entry was recorded for a debit memo for a new check fee expense. This would cause:
expenses to be understated
The principal ledger containing all the balance sheet and income statement accounts is the:
general ledger
The Wages and Salaries Expense account would be used to record:
gross earnings for the office workers.
Workers' Compensation Insurance is:
paid by the employer to protect the employee against job-related injury or death.
Which of the following transactions would most likely NOT be recorded in an auxiliary petty cash record?
payment on a $100 rent bill
Which of the following transactions would be recorded in an auxiliary petty cash record?
purchase of first aid supplies
A form used within a business by the requesting department asking the purchasing department to buy specific goods is called a(n):
purchase requisition
If a display rack was purchased for the store, which of the following accounts would be increased?
store equipment
Accounts of a single type are kept in the:
subsidary ledger
A bank service charge would be included on the bank reconciliation as a(n):
subtraction from the balance per books.
When calculating the employer's payroll tax expense, the clerk forgot about the wage base limits. This will cause:
the expenses and liabilities to be overstated
The return of merchandise by a credit customer was recorded with a debit to Accounts Payable and a credit to Accounts Receivable and the subsidiary ledger. This error will cause:
the net income for the period to be overstated
On October 31, Janoch's Dog Kennel purchased $ 800 of merchandise on account from the Ganster Company. The goods were shipped F.O.B. shipping point. The freight charge of $ 120 was paid by Ganster Company and added to the invoice. The amount to record in the Merchandise Inventory account is:
$920
Sold Merchandise for Cash subject to a sales tax accepting cash. This will be recorded with:
A. a debit to a liability account. B. a credit to an asset account. C. a debit to Capital. D.None of these is correct.
The accounts receivable subsidiary ledger:
A. is organized in alphabetical order. B. should equal the controlling account in the general ledger. C. is not kept in the same book as Accounts Receivable.
FICA taxes provide funding to the government to pay:
A. monthly retirement benefits for persons over age 62. B. benefits for persons who have become disabled. C. medical benefits for persons over age 65
A monthly depositor:
A. will remain a monthly depositor, once classified, for one year at which time they will be reevaluated. B. is determined by the amount of Form 941 taxes that they paid in the lookminus back-period. C. is an employer who only has to deposit Form 941 taxes on the 15th day of the month (or next banking day).
When adjustments are made to the bank balance when completing a bank reconciliation, a journal entry is needed to bring the bank balance up to date.
False- it would be books
ToF An employer can reduce the federal unemployment tax rate by paying the state unemployment tax on time.
True
Returned merchandise for credit on account. The perpetual inventory system is in use. This will be recorded with:
a debit to a liability and a credit to an asset.
Returned merchandise paid for within the discount period for a Cash refund. This will be recorded with:
a debit to an asset.
If Wages and Salaries Payable is debited, what account would most likely be credited?
cash
Supplies is a(n):
cost
The length of time the customer is allowed to repay the bill is the:
credit period
The entry to record the payment of taxes withheld from employees and FICA taxes would be to:
credit Cash; debit FICA OASDI Payable, FICA Medicare Payable, and Federal Income Tax Payable.
When a company records a bank deposit, it will:
debit the Cash account on the company's books. Your answer is correct.
Outstanding checks:
have not been presented to the bank for payment but have been subtracted in the checkbook.
The payroll register:
is a worksheet
What type of an account is Wages and Salaries Payable?
liability
Joe's Tax Service has two types of employees, management and clerical support. The company estimates that it will pay the clerical support $510,000 next year and the managers $280,000. For every $100, the company pays $0.14 into the workers' compensation insurance. Calculate the amount of worker's compensation insurance.
$1106
Bob's Cake House's payroll for April includes the following data: Gross salaries $24,000 Salaries subject to FICA: 6.2% Social Security 18,000 1.45% Medicare 24,000 Salaries subject to: 0.8% FUTA 1,000 2.0% SUTA 1,000 The employer's payroll tax for the period would be: (Round intermediary calculations to the nearest cent and final answers to the whole dollar.)
$1492
Carl's earnings during the month of March were $6,400. His earnings for the year prior to March were $5,500. Carl's employer is subject to federal unemployment taxes of 0.8% and state unemployment taxes of 5.4% on the first $7,000. The employer's unemployment payroll tax expense for Carl in the month of March is: (Round any intermediate calculations to the nearest cent, and your final answer to the nearest whole dollar.)
$1500x5.4% + $1500x.8% = $93
An employee has gross earnings of $1,800 with withholdings of 6.2% FICA- OASDI, 1.45% FICA- Medicare, $50 for federal income tax and $30 for state income tax. How much is the net pay? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest whole dollar.)
$1582
Sam's Online Service on April 30 has the following transactions: Merchandise Inventory purchased: $ 27,000 Merchandise Inventory returned: $4,000 If Sam's is offered a 4%discount, but does not pay the invoice in time to receive the discount, how much does Sam owe?
$23000
John bought goods for $ 400 on credit. John returned $ 50 worth of goods. Terms of the sale were 4/10, n/30. If John pays the amount owed within the discount period, what is the amount they should pay? (Round intermediary and final calculations to the nearest whole dollar.)
$336
B & J Lumber Restoration purchased merchandise inventory of $ 53,000. If B and J returned merchandise inventory of $ 9,000 and was able to take a discount of 1%, what is the total amount owed?
$43560
Determine the adjusted cash balance per bank for Sheryl's Packaging on November 30, from the following information: Cash balance on the bank statement $3,200 Customer's check returned-- NSF $300 Customer's note collected by the bank $600 Deposits in transit, November 30 $1,000 Outstanding checks, November 30 $3,700
$500
Carla's cumulative earnings before this pay period were $5,320, and gross pay for the week is $600. Assuming the wage base limit is $7,000, how much of this week's pay is subject to taxes for SUTA and FUTA?
$600
The May bank statement for Accounting Services shows a balance of $6,200, but the balance per books shows a cash balance of $7,680. Other information includes: 1.A check for $190 to pay the electric bill was recorded on the books as $30. 2.Included on the bank statement was a note collected by the bank for $370 plus interest of $30. 3.Checks outstanding totaled $270. 4.Bank service charges were $50. 5.Deposits in transit were $1,880. The adjusted cash balance at the end of May should be:
$7810
Jack's Online Service on April 30 has the following transactions: Merchandise Inventory purchased: $ 32,000 Merchandise Inventory returned: 11,000 If Jack's pays the invoice in time to receive a 5%discount, what is the amount Jack owes?
32,000 - 11,000 -(21,000x.05) = $19,950
Which form is used to report FICA taxes for the employer and employee, and also federal income taxes for the employee?
Form 941
Received payment, within the discount period, for merchandise sold previously. This will be recorded with:
a credit to an asset account.
Sara's Jewelry sold 40 necklaces for $35 each to a credit customer. The invoice included a 7% sales tax and payment terms of 2/10, 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 $1,498.
Joy's Accessories bought 61 necklaces for $ 13 each on account. The payment terms of 3/10, n/30. In addition, 7 necklaces were returned prior to payment. The entry to record the initial purchase would include:
a debit to Merchandise Inventory for $ 793
Jim's Accessories bought 80 necklaces for $ 30 each on account. Payment terms are 4/10, n/30. In addition, 6 necklaces were returned prior to payment. The entry to record the return would include:
a debit to accounts payable for $176
Returned merchandise paid for within the discount period for cash. The perpetual inventory system is in use. This return will be recorded with:
a debit to an asset and a credit to an asset.
Tim returned $ 1,400 of merchandise within the discount period. The entry to record the return is to:
debit Accounts Payable for $ 1,400; credit Merchandise Inventory for $ 1,400
Dora's Blankets and Bedding had a sale of $ 460 to a charge customer, terms 2/15, n/30. Dora should record this transaction as follows: (Round intermediary calculations to the nearest cent and final answers to the whole dollar.)
debit accounts receivable $460 credit sales $460
The entry to record a payment on a $ 690 account within the 2% discount period would include a:
debit to Accounts Payable for $ 690
Which report would an employer review if they wanted to check how much an employee has earned to date?
individual employee earnings record and payroll register
A characteristic of Sales Returns and Allowances is that:
it tracks returns from customers and it is a contra-revenue account.
The employee earnings record:
keeps track of an individual employee's payroll history for a calendar year.