Final

Aaron earns $23.50 per hour with time−and−a−half for hours in excess of 40 per week. He worked 51 hours at his job during the first week of March 2017. Aaron pays income taxes at 15​% and 7.65​% for OASDI and Medicare. All of his income is taxable under FICA. Determine​ Aaron's net pay for the week.​ (Do not round any intermediate​ calculations, and round your final answer to the nearest​ cent.)

$1,027.01 *11.2 23.50*40 hour= 940 base pay 23.50*1.5=35.25 11 hour *35.25= 387.75 gross income is 1327.75 -15%=199.16 -7.65%=101.57

Healthy​ Living, a diet​ magazine, collected $2,400,000 in subscription revenue on June 30. Each subscriber will receive an issue of the magazine in each of the next 12​ months, beginning with the July issue. The company uses the accrual method of accounting. What is the amount of Subscription Revenue that has been earned by the end of​ December? (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest whole​ number.)

$1,200,000 *3.3 Collected amount 2400000 / month in a yr 12= 200000 times month from June to Dec (6) 6 month * 200000= $1,200,000

On June​ 1, 2017, Smith​ & Beecham Services issued $41,000 of 7​% bonds that mature in five years. They were issued at par. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On December​ 31, 2017, how much interest is paid to​ bondholders?

$1,435 *12.3

A company purchased 500 units for $ $20 each on January 31. It purchased 600 units for $24 each on February 28. It sold a total of 660 units for $40 each from March 1 through December 31. What is the amount of ending inventory on December 31 if the company uses the first−​in, first−out ​(FIFO) inventory costing​ method? (Assume that the company uses a perpetual inventory​ system.)

$10,560 First in first out * Take first and calc total. Take second invetory calc total. Subtract amount sold from second number Thake that number and multiply by purchase amount. Subtract that portion from 2nd totals gives answer. 1. 50020=10000 2. 60024=14400 3. 660-500= 160 4. 160*$24= 3840 5. 3840-14400= $10,560

The balances of select accounts of​ Janet, Inc. as of December​ 31, 2016 are given​ below: Notes Payable —short−term $1,400 Salaries Payable 4,000 Notes Payable—long−term 21,000 Accounts Payable 3,200 Unearned Revenue 1,000 Interest Payable 2,200 The Unearned Revenue is the amount of cash received for services to be rendered in​ January, 2017. The Interest Payable is due on February​ 15, 2017. What are the total current liabilities shown on the balance​ sheet?

$11,800 *4.1 explain: Notes Payable short-term $1400 Salaries Payable 4,000 Accounts Payable 3,200 Unearned Revenue 1,000 Interest Payable 2,200 Total current liabilities $ 11800

Mason Painting Services has a weekly payroll of $22,000. December 31 falls on Wednesday and Mason will pay its employees the following Monday​ (January 5) for the previous full week. Assume that Mason has a five−day workweek and has an unadjusted balance in Salaries Expense of $810,000. What amount should be debited to Salaries Expense on December​ 31?

$13,200 *3.3 weekly payroll 22000 /5 days = 4,400 4,400 *3 days = 13,200

on January​ 1, 2017,​ Anodel, Inc. acquired a machine for $1,060,000. The estimated useful life of the asset is five years. Residual value at the end of five years is estimated to be $57,000. Calculate the depreciation expense per year using the straight−line method.

$200,600 *9.2 http://www.calculatorsoup.com/calculators/financial/depreciation-straight-line.php

The cost of an asset is $1,060,000​, and its residual value is $130,000. Estimated useful life of the asset is ten years. Calculate depreciation for the first year using the double−declining−balance method of depreciation.​ (Do not round any intermediate​ calculations, and round your final answer to the nearest​ dollar.)

$212,000 *9.2 ?????

Accounts Receivable has a balance of $32,000​, and the Allowance for Bad Debts has a credit balance of $3,000. The allowance method is used. What is the net realizable value of Accounts Receivable before and after a $2,100 account receivable is written​ off?

$29,000​; $29,000 *8.3 Bad debit 3000- 2100 writen off = 900 900+2100=3000 3000- Balance $32000=29000

On January​ 1, 2017, Zade Manufacturing Corporation purchased a machine for $40,100,000. ​Zade's management expects to use the machine for 33,000 hours over the next six years. The estimated residual value of the machine at the end of the sixth year is $50,000. The machine was used for 4,100 hours in 2017 and 5,200 hours in 2018. What is the depreciation expense for 2017 if the corporation uses the units−of−production method of​ depreciation? (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest​ dollar.)

$4,975,924 *9.2 ????

The balance in the Bonds Payable account is a credit of $68,000. The balance in the Discount on Bonds Payable account is a debit of $3,650. What is the​ bond's carrying​ amount?

$64,350 bonda amount - discount *12.3

The Allowance for Bad Debts has a credit balance of $7,500 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging−of−receivables ​method, the​ company's management estimates that uncollectible accounts will be $16,000. What will be the amount of Bad Debts Expense reported on the income​ statement?

$8,500 *8.3 ????

A company has a petty cash fund amount of $300. When​ replenished, it has petty cash receipts of $33 for gas​ expense, $33 for postage​ expense, $11 for supplies​ expense, and $12 for miscellaneous expenses. Assume the cash balance is not over or short. In the journal​ entry, Cash would be credited for​ ________.

$89 *7.4 add expenses

Following is an extract of account balances of Wilson Mowing Services as of December 31: Data data What is the amount of total assets at the end of the​ year?

* 1.5 , in Ha1etn.doc Explanation: +Accounts receivable $5,000 +Truck 10,000 +Equipment 8,000 +Cash 7,500 ------------------------------------- Total assets $30,500

2017 2016 Cash $52,500 $49,000 Short-term Investments 33,000 20,000 Net Accounts Receivable 52,000 51,000 Merchandise Inventory 160,000 46,000 Total Assets 534,000 553,000 Accounts Payable 129,500 126,000 Salaries Payable 25,000 14,000 Long-term Note Payable 58,000 55,000 Compute the current ratio for 2016. (Round answer to two decimal places.)

1.19 Current Ratio = Total current assets / Total current liabilities Current Ratio = (Cash $49,000 + Short-term Investments $20,000 + Net Accounts Receivable $51,000 + Merchandise Inventory $46,000 ) / (Accounts Payable $126,000 + Salaries Payable $14,000 ) Current Ratio = $166,000 / $140,000 Current Ratio = 1.19

The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 The business received $9,000 cash and issued common stock to stockholders. Mar. 2 Paid the first​ month's rent of $800. Mar. 3 Purchased equipment by paying $4,000 cash and executing a note payable for $7,000. Mar. 4 Purchased office supplies for $740 cash. Mar. 5 Billed a client for $11,000 of design services completed. Mar. 6 Received$7,600 on account for the services previously recorded. What is the balance in​ Cash?

11060 *2.3 Explantion: + Cash 9000 - rent 800 -equipment 4000 -office supplies 740 +received on account 7600 ___________________________________ 11060

​Coleman, Inc. provides the following data from its income statement for​ 2017: Net Sales $510,000 Cost of Goods Sold ​(180,000​) Gross Profit $330,000 Calculate the gross profit percentage.​ (Round your answer to two decimal​ places.)

64.71% *15.4 Gross profit percentage = Gross profit / Net sales * 100= 330000*510000=0.6470588235294118 0.6470588235294118*100= 0.64705

A company that uses a perpetual inventory system purchased inventory on account and later returned goods worth $300 to the vendor. Which of the following would be the correct journal entry to record these​ returns?

Accounts Payable 300 Merchandise Inventory 300 *5.2

​Charms, Inc. has determined that an account receivable of​ $125 is uncollectible. The company uses the direct write−off method. Which of the following entries is required to record the write−​off?

Bad Debts Expense 125 Accounts Receivable 125 *8.2

On December​ 31, 2017, Clark Sales has 10−year Bonds Payable of $93,000 and Discount on Bonds Payable of 0$4,350. How will this be shown on the December​ 31, 2016 Balance​ Sheet?

Bonds Payable $93,000 less Discount on Bonds Payable $4,350 for a carrying amount of $88,650 *12.3

A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $10,000 and paid $750 for the freight−in. The company sold the whole lot to a supermarket chain for $12,000 on account. The company uses the specific−identification method of inventory costing. Which of the following entries correctly records the cost of goods​ sold?

Cost of Goods Sold 10,750 Merchandise Inventory 10,750 *6.2 ADD industrial soap cost $10,000 + $750 for freight.

​Ropers, Inc. purchases 8,000 shares of its previously issued $2 par value common stock for $160 per share. Which of the following is the correct journal entry to record this​ transaction?

Debit Treasury Stock—Common $1,280,000​, and credit Cash $1,280,000. 13.3

​Ropers, Inc. purchases 8,000 shares of its previously issued $3 par value common stock for $560 per share. Which of the following is the correct journal entry to record this​ transaction?

Debit Treasury Stock—Common $4,480,000​, and credit Cash $4,480,000. 13.2

Which of the following accounts will be closed by debiting the Income Summary​ account?

Depreciation Expense *4.3

Which of the following is true of net sales​ revenue?

It is calculated by deducting sales discounts and sales returns and allowances from sales. *5.3

Which of the following accounts will be closed by debiting the Income Summary​ account?

Salaries Expense *4.3

Which of the following is a permanent​ account?

Salaries Payable *4.3

Which of the following accounts will be closed by crediting the Income Summary​ account?

Service Revenue *4.3

Under the direct write−off ​method, which of the following is included in the entry to write off an uncollectible​ account?

a credit to the​ customer's Account Receivable *8.2

A company that uses the perpetual inventory system purchases inventory for $63,000 on​ account, with terms of 3​/10, ​n/30. Which of the following is the journal entry to record the payment made within 10​ days?

a debit to Accounts Payable for $63,000​, a credit to Merchandise Inventory for $1,890​, and a credit to Cash for $61,110 *5.2 1.inventory $63000 * .03 = 1890 2.$1890 - Inventory $63000=61,110

Sales revenue for a sporting goods store amounted to $529,000 for the current period. All sales are on account and are subject to a sales tax of 12​%. Which of the following would be included in the journal entry to record the sales​ transaction?

a debit to Accounts Receivable for $592,480 *11.1

Under the direct write−off ​method, the entry to write off an uncollectible account will include​ ________.

a debit to Bad Debts Expense account *8.2

The matching principle states that​ ________.

all expenses should be recorded when they are incurred during the period *3.2

Dallkin Corporation issued 7,000 shares of common stock on January​ 1, 2017. The stock has no par value and was issued at $20 per share. The journal entry for this transaction includes a​ ________.

debit to Cash for $140,000 and a credit to Common Stock—No−Par Value for $140,000 *13.2 shares issued * $ per share =

Revenue is earned when the business has​ ________.

delivered a good or service to the customer *3.2

The revenue recognition principle guides accountants in​ ________.

determining when to record revenues *3.2

An account that is not closed at the end of the period is called​ a(n) ________.

permanent account *4.3

Under a perpetual inventory​ system, merchandise returned by a customer to the seller is recorded as a​ ________ in the books of seller.

sales return *5.3

Which of the following categories of accounts are temporary accounts that are closed at the end of the​ year?

​revenues, expenses, and dividends *4.3