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% FICAminus​OASDI, ​1.45% FICAminus​Medicare, ​$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