Accounting Final Chapter 11
$1012
John earns $22 per hour for a regular 40 hour work week. Any hours worked over 40 hours are paid at time and a half. What is John's gross pay if he worked 44 hour this week?
27.00 (120,000 + 10,000 + 5,000)/ 5,000
Jones Company has the following financial information: Net Income for 2017 = $120,000 Income Tax Expense for 2017 = $10,000 Interest Expense for 2017 = $5,000 What is the times-interest-earned ratio?
a credit to a liability
Jones Company is being sued for $100,000 and the attorney advises Jones that they will probably lose the lawsuit and is estimated Jones will pay the full amount of $100,000. Jones Company would need to record __________.
Debit: Vacation Benefits Expense 2000 Credit: Vacation Benefits Payable 2000
Jones Company provides vacation benefits at a cost of $2,000 per month. What is the journal entry to record the accrued vacation for the month?
D: Merch inv 10,000 C: Notes payable 10,000
Jones Company purchased merchandise inventory with a 10%, 120 day note payable for $10,000. The company uses the perpetual inventory system. The entry to record the purchase of the merchandise with the note would be:
$1500
Jones Company's balance reflected Estimated Warranty Payable of $1,000 credit at the end of 2016, the current year. During 2017, the following year, Jones had sales of $100,000 and expects product warranties to cost the company 9% of sales. During 2017 Jones paid $8,500 for warranties. What is Jones Estimated Warranty Payable balance at the end of 2017?
Its not: - always a long-term agreement It is: 1. It is a present obligation that entails settlement by probable future transfer or use of cash, goods, or services. 2. It is an unavoidable obligation 3. the transaction or other event creating the obligation has already occurred.
A liability has three essential characteristics
Federal and State Unemployment Taxes
All of the following taxes may be withheld to arrive at the employee's net pay EXCEPT:
$186 Only 3,000 of the $5,000 earned will be taxed ($117,000 max - $114,000 already earned = $3,000). In this case, $3,000 * .062 = $186.
An employee has year to date earnings of $114,000. The employee's gross pay for the next pay period is $3,000. FICA - OASDI is 6.2% and the wage base is $117,000. How much FICA - OASDI tax will be withheld from the employee's pay (answer is rounded to nearest whole dollar)?
Debit: Sales Tax Payable 1400 Credit: Cash 1400
Base Electronics collects $1,400 in sales tax this month. To pay the sales tax, the journal entry would be:
Debit: Cash 14,980 Credit: Sales Revenue 14000 Sales tax expense 980
Base Electronics had sales of $14,000 this month and collected an additional 7% sales tax. Assuming all sales are cash, the journal entry to record this transaction would be:
Debit: Income Tax Expense 1540 Credit: Income Tax Payable 1540
Base Electronics incurred federal income tax payable of $1,540. The journal entry to record the federal income tax owed would be:
Debit: Income Tax Payable 1200 Credit: Cash 1200
Base Electronics owes $1,200 for federal income tax incurred which has been recorded as a liability. The journal entry to pay the $1,200 owed would be:
Debit: Cash 1000 Credit: Unearned Revenue 1000
Bigs Law Firm received $1,000 in advanced on May 1 from a client for a case to be completed next month. The journal entry to record receiving the advance payment for future service revenue would be:
Debit: Unearned Revenue 300 Credit: Service Revenue 300
Bigs Law Firm received $1,000 in advanced on May 1 from a client for a case to be completed next month. During the month of May, Bigs completed $300 worth of work. The journal entry to record the revenue earned would be:
Time Intrest Earned Ratio
Earning Before Interest & taxes(EBIT)/ interest expense
At the beginning of 2019, the credit balance in Estimated Warranty Payable is $1,000. The adjusting entry at the end of the year, recording warranty expense for the current year's sales is for $100,000 x 9% = $9,000 and Estimated Warranty Payable is credit for this amount. During the year, Estimated Warranty Payable is debited as claims of $8,500 are paid, making the ending balance $1,000 + $9,000 - $8,500 = $1,500.
Jones Company's balance reflected Estimated Warranty Payable of $1,000 credit at the end of 2018, the current year. During 2019, the following year, Jones had sales of $100,000 and expects product warranties to cost the company 9% of sales. During 2019, Jones paid $8,500 for warranties. What is Jones Estimated Warranty Payable balance at the end of 2019?
Debit: Notes Payable 10000 Debit: Interest Expense 333 Credit: Cash 10333
Jones Corporation purchased merchandise inventory with a 10%, 120-day note payable for $10,000. The company uses the perpetual inventory system. What is the journal entry to record payment of the note on the due date? (Round interest to the nearest dollar and assume a 360-day year.)
Interest Payable of $1400
On January 1 of the current year, Jones Company borrowed $20,000 on a five-year, 7% note payable. On December 31 of the current year, Jones Company should record:
200,000 * 10% = 20,000 (1,000 + 20,000) - 17,000(paid) = $5,000 remaining in his warranty
Parker Company's balance reflected Estimated Warranty Payable of $2,000 credit at the end of 2018, the current year. During 2019, the following year, Parker had sales of $200,000 and expects product warranties to cost the company 10% of sales. During 2019, Parker paid $17,000 for warranties. What is Parkers Estimated Warranty Payable balance at the end of 2019?
No disclosure is required
Smith Company has a lawsuit pending from a customer claiming damages of $50,000. Smith's attorney advises that the likelihood the customer will win is remote (unlikely). What information about the lawsuit does GAAP require?
-FICA- Medicare Tax -FICA- OASDI Tax -Federal and State Unemployment Taxes
The employer is responsible for which of the following payroll taxes?
Payroll Tax
To record employee payroll, all except the following are recorded as payables:
