Accounting Final Exam Math

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

$600.

A company borrowed money from a bank by signing a three-year note payable in the amount of $15,000 on July 1. The note requires the company to pay interest at an annual rate of 8%. The company records adjusting entries on December 31. The adjusting entry that the company should record for accrued interest on December 31 of the same year would include a debit to interest expense for

$4,250.

A company has the following adjusted trial balance: Debit Credit Cash 400 Accounts receivable350 Prepaid rent100 Equipment3,300 Accumulated depreciation-Equipment 1,100 Accounts payable 250 Unearned service revenue 200 Common stock 600 Retained earnings 1,000 Service revenue 2,600 Interest revenue 100 Salaries and wages expense800 Depreciation expense500 Rent expense 300 Total5,8505,850 After closing entries have been journalized and posted, the post-closing trial balance total for the credit column will be

$4,400.

A company has the following adjusted trial balance: Debit Credit Cash 550 Accounts receivable250 Prepaid rent200 Equipment3,400 Accumulated depreciation-Equipment 1,000 Accounts payable 250 Unearned service revenue 400 Common stock 1,200 Retained earnings 1,100 Service revenue 2,650 Interest revenue 100 Salaries and wages expense1,200 Depreciation expense500 Rent expense 600 Total6,7006,700 After closing entries have been journalized and posted, the post-closing trial balance total for the credit column will be

$13,800,000

A company has the following asset account balances: Buildings, $9,500,000 Accumulated depreciation, $1,500,000 Patents, $750,000 Land Improvements, $800,000 Land, $5,000,000 How much will be reported on the balance sheet under property, plant, & equipment?

69.4 days

A company has the following: 20X2 20X1 Ending inventory $34,580 $32,650 Cost of goods sold 182,000 163,000 Sales revenue 300,000 250,000 Net income 100,000 80,000 What is its days' sales in inventory for 20X2?

$2,754

A company has the following: Dec. 1 Beginning inventory 15 units at $60 Dec. 5 Purchases 90 units at $56 Dec. 14 Sale 60 units Dec. 21 Purchases 45 units at $58 Dec. 30 Sale 42 units Assuming that a perpetual inventory system is used, what is the ending inventory on a LIFO basis for December?

$66,960

A company sold merchandise for $114,000. Returns from customers totaled $2,400. If the company's gross profit rate is 40%, what is its cost of goods sold?

increased by $89,559 Solution: [(Purchase - purchase returns & allowance) x (100% - discount percentage) + freight-in [(90,000 - 450) x 98% + 1,800 = $89,559

A company uses a perpetual inventory system to record the following events involving a recent purchase of inventory: On June 1, it purchased merchandise for $90,000, terms 2/10, n/30. On June 3, it paid freight costs of $1,800 on merchandise purchased. On June 6, it returned $450 of merchandise to the supplier. On June 9, it paid the amount due to the supplier. As a result of these events, the company's inventory

Bad Debts Expense 3,900 Allowance for Doubtful Accounts 3,900

A company uses the percentage-of-receivables method for recording bad debts expense. The accounts receivable balance is $90,000 at year-end. The total credit sales were $2,600,000 for the year. Management estimates that 4% of receivables will be uncollectible. What adjusting entry should be made if the Allowance for Doubtful Accounts has a debit balance of $300 before the year-end adjusting entry for Bad Debt Expense?

$340,000.

A company's accounting records show the following account balances: Purchase Discounts $ 3,000 Purchases 350,000 Beginning Inventory 32,000 Ending Inventory 39,000 Sales 690,000 The company's cost of goods sold is

$329,000.

A company's accounting records show the following account balances: Purchase Discounts $ 5,000 Purchases 342,000 Beginning Inventory 23,000 Ending Inventory 31,000 Sales 625,000 The company's cost of goods sold is

1.18

A company's average total assets are $275,000, depreciation expense is $20,000, and accumulated depreciation is $80,000. Net income is $1,500,000. Net sales total $325,000. What is the total asset turnover?

$38,900

A company's financial records report the following accounts and balances at the end of the year: Accounts payable$ 3,300Accounts receivable 4,000Cash 14,500Common stock 4,900Dividends 400Interest expense 18,000Notes payable 4,500Prepaid insurance 2,000Retained earnings 1,700Service revenue 24,500 What would the company show as its total credits on its trial balance?

$370,000

A corporation began the year with total liabilities of $120,000 and stockholders' equity of $40,000. During the year, the company reported the following: Net income, $120,000 Dividends, $15,000 Total liabilities at the end of the year were $225,000. How much were total assets at the end of the year?

$130,000.

A corporation bought equipment on January 1, 2021. The equipment cost $180,000 and had an estimated salvage value of $30,000. The estimated useful life of the equipment is 6 years. The straight-line method of depreciation is used. The book value of the equipment on January 1, 2023would be

$46,000

A corporation had the following accounts and balances: Accounts payable$ 8,000Accounts receivable 10,000Buildings 45,000Cash 6,000Common stock 7,000Equipment 10,000Notes payable 7,000Retained earningsNot givenUnearned service revenue 3,000 What is the balance of the company's retained earnings account?

(i) $380,000 and (ii) $740,000

A corporation has accounts and balances: Accounts payable$ 40,000Investments in bonds 20,000Accounts receivable 50,000Land 130,000Accumulated depreciation 50,000Notes payable 300,000Buildings 500,000Patents 20,000Cash 100,000Prepaid insurance 30,000Common stock 690,000Retained earnings 150,000Equipment 160,000Trademarks 40,000Inventory 200,000 The land is used as a parking lot. The bonds are expected to be held long-term. What are its (i) current assets and (ii) property, plant & equipment?

$270,000 Solution:Net sales = Sales - Sales returns and allowances - Sales discountsNet sales = $430,000 - 0 - 10,000 = $420,000Cost of goods sold = Net sales- gross profitCost of goods sold = $420,000 - 150,000 = $270,000

A corporation has the following: Sales revenue, $430,000 Sales discounts, $10,000 Gross profit, $150,000 Operating expenses, $80,000 Other expenses, $30,000How much is its cost of goods sold?

Treasury Stock will be debited for $1,500.

A corporation issued 1,000 shares of its $2.00 par value common stock for $10.00 per share and later repurchased 100 of those shares for $15.00 per share. Which of the following will be recorded when the repurchase of the shares is journalized?

Credit to Common Stock for $15,000

A corporation issued 2,500 shares of $6 par value common stock for $7 per share. Which of the following is included in the journal entry to record the issuance?

a debit to Discount on Bonds Payable for $120,000.

A corporation issued 3,000 bonds with a face value of $1,000 each at 96. The journal entry to record the issuance includes

redit to Common Stock for $80,000.

A corporation issued 8,000 shares of $10 par value per share stock for $15 per share. The journal entry to record this transaction would include a

$64,000

A corporation issues $200,000 of 5-year, 7% bonds at 103. What is its total cost of borrowing?

$50,000 Solution:The intangibles are copyright, trademarks, and goodwill. Goodwill is not amortized because it is considered to have an indefinite life. Trademarks are registered with the U.S. patent office and have lives of 20 years but they may be renewed indefinitely; because trademarks (and trade names) have indefinite lives, they are not amortized. The copyright is being amortized over 10 years at a rate of $50,000 per year (i.e., $500,000/10 years = $50,000 per year).

At the start of the current year, a company paid for the following in cash: Copyrights, $500,000 Equipment, $25,000,000 Goodwill, $4,500,000 Inventory, $4,000,000 Land, $15,000,000 Prepaid rent, $500,000 Research and development, $2,000,000 Supplies, $1,500,000 Trademarks, $1,000,000 It amortizes its intangibles over 10 years. Determine its current year amortization expense.

$136,000

At the start of the current year, a company's Allowance for Doubtful Accounts had a debit balance of $36,000. During the current year, it had net credit sales of $1,500,000 and it wrote-off $60,000 of accounts receivable as uncollectible. The company's accounts receivable at the end of the year is $400,000. Past experience indicates that the allowance should be 10% of the balance in receivables. What is the bad debt expense for the year?

2.80

Based on the following data (in dollars), what is the current ratio? Accounts payable$ 110,000Investments in bonds 170,000Accounts receivable 80,000Land 190,000Accumulated depreciation 40,000Notes payable (due in 2 years) 180,000Buildings 226,000Patents 140,000Cash 84,000Prepaid insurance 60,000Common stock 240,000Salaries and wages payable 20,000Inventory 140,000

3.28

Based on the following data (in dollars), what is the current ratio? Accounts payable$ 64,000Investments in bonds 160,000Accounts receivable 114,000Notes payable (due in 3 months) 56,000Accumulated depreciation 160,000Notes payable (due in 2 years) 200,000Cash 60,000Patents 100,000Equipment 1,500,000Prepaid insurance 2,000Inventory 138,000Short-term investments 80,000

$618,000.

Bonds with a face value of $600,000 and a quoted price of 103 have a selling price of

$40,000 increase

During the current year, a company's total liabilities increased by $50,000 and total stockholders' equity decreased by $10,000. How much did its total assets increase or decrease during the current year?

A deposit of $110 was incorrectly recorded by the bank as a deposit of $101.

For which of the following errors should the appropriate amount be added to the cash balance per bank statement on a company's bank reconciliation?

A check written by the company for $63 was incorrectly recorded on the company's books as $36.

For which of the following errors should the appropriate amount be subtracted from the cash balance per books on a bank reconciliation?

$346,250.

Haley Company issued $5,000,000, 20-year, 7% bonds on January 1 for $5,075,000. Interest is to be paid annually on January 1. If the issuing corporation uses the straight-line method to amortize discounts and premiums on bonds payable, the amount of bond interest expense to be recognized in the year issued is

total assets must have decreased by $4,000 or total stockholders' equity must have increased by $4,000.

If a transaction affected two accounts and total liabilities decreased by $4,000, then

Allowance for Doubtful Accounts 200 Accounts Receivable 200

In December, a company sold merchandise on account for $200 with terms 1/10, n/30. It uses the percentage of receivables basis for estimating uncollectible accounts at year-end. On May 1 of the next year, the company determines that it will not collect the amount due from the customer. Prepare the journal entry to record the write-off on May 1.

debits Supplies Expense for $110 and credits Supplies for $110.

The year-end trial balance for Garnet & Gold Corporation appears as follows: Garnet & Gold CorporationTrial BalanceDecember 31 DebitCreditCash$ 300Accounts Receivable500Prepaid Insurance60Supplies140Equipment4,000Accumulated Depreciation, Equipment$ 800Unearned Revenues300Common Stock 1,000Retained Earnings1,400Service Revenue3,000Salaries and Wages Expense1,000Rent Expense500 $ 6,500$ 6,500 If, at year-end, supplies on hand were $30, the company should record an adjusting entry that

Increase the Cash account by $200 and decrease the Notes Receivable account by $200.

Which of the following is the adjusting entry that a company would journalize when its bank statement indicates that the bank collected a $200 non-interest bearing note receivable from one of the company's customers on the company's behalf?

$68,000. Solution:At the end of the period, accounts receivable has a balance of $2,100,000 (i.e., given). The Allowance for Doubtful Accounts should be adjusted so that is will have a balance equal to $216,000 (i.e., given). Prior to the adjusting entry, the Allowance for Doubtful Accounts has a credit balance of $148,000 (i.e., $180,000 - 32,000 = $148,000). The adjusting entry records the difference of $36,000 (i.e., $216,000 - 148,000 = $68,000). This adjustment records Bad Debt Expense and the change to the Allowance for Doubtful Accounts.

he following information is related to the beginning of the year balances. Accounts receivable, $2,100,000 Allowance for doubtful accounts (credit balance), $180,000During the current year, sales on account were $580,000 and collections from customers were $344,000. Also during the current year, the company wrote off $32,000 in uncollectible accounts. At year-end, the company's credit manager estimates that $216,000 of the outstanding accounts receivable will be uncollectible. Bad debt expense for the current year is

Debit inventory for $250; credit cash for $250.

A corporation uses the perpetual inventory system. It purchased merchandise on account for $15,000 with terms 1/15, n/30. It pays a shipping company $250 to transport the merchandise from the seller. How would it record its payment of the transportation charges?

$69,850

The following totals were taken from the payroll records of a certain company: Wages, $100,000FICA taxes withheld, $7,650Federal income taxes withheld, $18,000Federal unemployment taxes, $450State income tax withheld, $4,500State unemployment taxes, $2,500 The entry to record accrual of employer's payroll would include a credit to salaries and wages payable in the amount of

$90.

The interest on a $4,000, 9%, 90-day note receivable is

$5,050

The maturity value of a $5,000, 6%, 60-day note receivable is

$262,500.

A company purchases land for $250,000. The company also assumes $3,000 in property taxes due on the land owed by the previous owner. The title and attorney fees totaled $2,000. The company spent $10,000 demolishing an old building on the land before construction of a new building could start. Proceeds from salvage of the demolished building was $2,500. What amount does the company record as the cost for the land?

$255 using perpetual, and $240 using periodic Solution: When using perpetual LIFO, cost of goods sold includes the last inventory acquired that was on hand at the date of sale; it does not include inventory acquired after the sale occurred.For each sale date, determine the inventory sold using LIFO for each sale of inventory; the inventory not sold during the period belongs in ending inventory.On December 12, sold 10 of the units acquired on Dec. 7 and 20 units of beginning inventory.On December 29, sold 20 of the units acquired on Dec. 20Ending inventory includes 40 units, including 30 units of beginning inventory, none of the units of inventory acquired on Dec. 7, and 10 units of inventory acquired on Dec. 29.Ending inventory = (30 x $6.00) + (10 x $7.50) = 180 + 75 = $255 When using periodic LIFO, cost of goods sold includes the last inventory acquired regardless of whether it was on hand at the date of sale; it c

A company has the following: December 1 Beginning inventory of 50 units at $6.00 per unitDecember 7 Purchased 10 units at $6.25 per unitDecember 12 Sold 30 unitsDecember 20 Purchased 30 units at $7.50 per unitDecember 29 Sold 20 units Assuming that a perpetual inventory system is used, what is the ending inventory on a LIFO basis for December? What if a periodic inventory system had been used instead of perpetual?

140.9 days

A company has the following: Sales revenue, $475,000 Beginning inventory, $80,000 Ending inventory, $110,000 Cost of goods sold, $285,000 Net income, $50,000 What is its days' sales in inventory?

increase its cash account's balance by $1,500.

A company has the following: Balance per bank, $11,460 Outstanding checks, $2,325 Deposits in transit, $3,750 NSF check, $315 Collect a note, $1,815 Cash balance per books, $11,385The adjusting entry that the company will journalize as a result of this reconciliation will

$9,550.

A company has the following: Cash balance per books on Dec. 31, $8,400 Bank charge for check printing, $50 NSF check, $280 Outstanding checks, $3,000 Deposits in transit, $600 Notes receivable and interest collected by bank, $1,480The adjusted cash balance per books on Dec. 31 is

$25,000 Solution:Original depreciation per year: ($180,000 - 30,000)/3 years = $50,000 per year.Revised depreciation per year: ($180,000 - 2 x 50,000 - 30,000)/(4-2) = $25,000 per year

A company purchased equipment for $180,000 on January 1 of its first year. The equipment's original estimated useful life is 3 years and its estimated salvage value is $30,000. The company uses the straight-line method of depreciation. On December 31 of its third year, before year-end adjusting entries have been recorded, the company decides to extend the estimated useful life 1 year giving it a total life of 4 years. The company did not change the salvage value and continues to use the straight-line method. How much depreciation expense should be recorded for the third year?

$26,720.

A company purchased equipment for $68,000 on January 1. Freight charges paid to acquire the equipment amounted to $2,800. There was also a cost of $8,000 for building a foundation for the equipment and installing the equipment. It is estimated that the equipment will have a $12,000 salvage value at the end of its 5-year useful life. The straight-line method of depreciation is used. What is the amount of accumulated depreciation at the end of the second year of using the asset and after adjusting entries have been recorded?

$476,500. Solution: Total cost = $420,000 + $22,000 + ($33,000 - 2,500) + 4,000 = $476,500

A company purchased land for $420,000. It also paid a real estate brokers' commission of $22,000 and spent $33,000 demolishing an old building on the land before construction of a new building could start. Proceeds from salvage of the demolished building was $2,500. The company also assumed $4,000 in property taxes due on the land owed by the previous owner. Under the historical cost principle, the cost of land would be recorded at

$74,000

A company purchased machinery for $210,000 on January 1, 2021. The company also paid freight charges of $4,000 and installation costs of $6,000. It is estimated that the machinery will have a $35,000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2022 if the straight-line method of depreciation is used?

$8,820

A company purchased merchandise inventory with an invoice price of $9,000 and credit terms of 2/10, n/30. What is the net cost of the goods if the company pays within the discount period?

$993,538

A corporation issues a $1,000,000, 12%, 20-year mortgage note. The terms provide for semiannual installment payments of $66,462. What is the remaining unpaid principal balance of the mortgage payable account after the first semiannual payment?

$583,689

A corporation issues a $600,000, 6%, 20-year mortgage note. The terms provide for annual installment payments of $52,311. What is the remaining unpaid principal balance of the mortgage payable account after the first annual payment?

$566,400

A corporation issues a $600,000, 6%, 20-year mortgage note. The terms provide for annual installment payments of $52,311. What is the remaining unpaid principal balance of the mortgage payable account after the second annual payment?

gain on disposal of $114,000.

A corporation paid $210,000 for a machine four years ago. This year, the machine was completely destroyed in a fire. The accumulated depreciation on the equipment is $84,000; that amount includes depreciation for the current year. An insurance check for $240,000 was received based on the replacement cost of the equipment. No journal entry for the casualty was recorded until the company received the check from the insurance company. The company's journal-entry to record the insurance proceeds will include a

debit Mortgage Payable for $20,000. Solution: When an installment payment is made on a mortgage note, the interest is a debit to Interest Expense and the reduction in principal is a debit to Mortgage Payable. Out of the $50,000 total payment, $20,000 reduces the mortgage payable for principal paid and the balance of $50,000 (i.e., $30,000) was for interest expense. Credit cash for the $50,000 total payment.

A corporation recently paid a $50,000 installment on its 20-year mortgage. The payment reduced the mortgage's outstanding principal by $20,000. The journal entry to record this transaction includes a

$1.75

A corporation reported net income of $28,000; net sales $400,000; beginning common shares outstanding of 12,000 and ending common shares outstanding of 20,000. There were no preferred dividends. What is its earnings per share (rounded to two decimal places)?

$4.00

A corporation reports the following balances and amounts:Accounts payable, $60,000Cash provided by operations, $150,000Accounts receivable, $25,000Net income, $50,000Average number of common shares, 12,000Salaries and wages payable, $45,000Average current liabilities, $220,000Stockholders' equity, $200,000Average total assets, $500,000Current assets, $200,000Average total liabilities, $320,000Current liabilities, $150,000Dividends paid to preferred shareholders, $2,000 Determine its earnings per share?

$70,000 and $45,000

A corporation reports the following: Sales revenue, $400,000; sales discounts, $5,000; sales returns and allowances, $15,000; operating expenses, $25,000; cost of goods sold, $310,000; income tax expense, $10,000. How much are gross profit and income from operations, respectively?

$60,000

A corporation sells bonds with a face value of $1,000,000 and a contractual interest rate of 8% for $1,200,000. The bonds will mature in 10 years. Using the straight-line method of amortization, how much interest expense will be recognized in year 1?

Credit Inventory for $27.50 Solution: The discount terms are 1/10, n/30 which indicates a 1% discount if paid within 10 days but the full amount is due otherwise. Since the bill is paid on the tenth day (or sooner), the buyer gets the 1% discount. The balance due is $3,000 less the returned goods of $250, or $2,750, minus the discount on the net amount. The discount on $2,750 is $27.50, so $2,722.50 is due. The accounting entry will debit Accounts Payable for $2,750, credit Cash for $2,722.50, and credit Inventory for $27.50.

A corporation uses a perpetual inventory system. It purchased $3,000 of merchandise on August 2 on account with terms 1/10, n/30. It returned $250 of the merchandise on August 4. It pays on August 12. Which of the following is part of the journal entry it records when it pays on August 12?

13.5 Solution: ($200,000 + $20,000 + $50,000) / $20,000 = 13.50

In the current year, a corporation had net income of $200,000, interest expense of $20,000, and tax expense of $50,000. Its net sales were $1,000,000 and its cost of goods sold was $400,000. What was its times interest earned for the year?

6.67

In the current year, a corporation had sales of $500,000, net income of $150,000, interest expense of $30,000, and tax expense of $20,000. Its net sales were $1,000,000 and its cost of goods sold was $200,000. What was its times interest earned for the year?

5.00

In the current year, a corporation had sales of $500,000, net income of $90,000, interest expense of $30,000, and tax expense of $30,000. Its net sales were $1,000,000 and its cost of goods sold was $200,000. What was its times interest earned for the year?

$235,000

In the current year, a corporation has a times interest earned ratio of 12.00. Its interest expense is $25,000 and its tax expense is $40,000. Its net sales were $500,000 and its cost of goods sold was $200,000. What was the company's net income?

Beta

In the table below the information for four companies is provided. Company Accounts receivable turnover Alpha 16.0 Beta 18.1 Gamma 15.5 Delta 11.9 Industry Average 13.0 Assuming all four companies are in the same industry, which company appears to have the greatest likelihood of paying its current obligations?

Gamma

In the table below the information for four companies is provided. Company Days' sales in inventory Alpha 14.0 Beta 16.5 Gamma 19.5 Delta 11.5 Industry Average 13.0 Assuming all four companies are in the same industry, which company has the highest ending inventory relative to cost of goods sold?

$4,500 Solution:Depreciation expense per year = (Cost - salvage value)/Life Depreciation expense per year = ($75,000 - 15,000)/10 years = $6,000 per yearDepreciation expense for April 1 through December 31 = $6,000 x 9/12 = $4,500

On April 1 of the current year, a company purchases and places into service new equipment. The cost of the equipment is $75,000. The equipment has an estimated 10-year life and $15,000 salvage value at the end of its useful life. What is the depreciation expense for the current year ending December 31 if the company uses the straight-line method of depreciation?

$21,680.

On January 1, a corporation issued $200,000 of 10%, 5-year bonds for $191,600. Interest is paid annually. If the corporation uses the straight-line method of amortization, the amount of bond interest expense for the first year is

$110,000

On January 1, a corporation sells bonds with a face value of $1,000,000 and a contractual interest rate of 9% for $800,000. The bonds will mature in 10 years. Using the straight-line method of amortization, how much interest expense will be recognized in the first year?

A debit to Notes Receivable for $3,000 and a credit to Accounts Receivable for $3,000

On May 1, a company receives a $3,000, 4-month, 10% note from a customer as a settlement of its accounts receivable. What journal entry will the company record on May 1?

A debit to Notes Receivable for $5,000 and a credit to Accounts Receivable for $5,000

On May 1, a company receives a $5,000, 6-month, 10% note from a customer as a settlement of its accounts receivable. What journal entry will the company record on May 1?

$14,250 loss

The current carrying value of a company's $600,000 face value bonds is $597,750. The company redeemed the bonds at 102. What is the company's gain or loss on the redemption?

99,900 Solution: The common stock account records the par value of common stock that has been issued. Given the common stock account's total is $300,000 and common stock has a $3 par value per share the company the company must have 100,000 shares of common stock issued (i.e., $300,000/$3 per share = 100,000 shares).This company has treasury stock. Treasury stock is a corporation's own stock that has been reacquired. With $1,200 of treasury stock recorded on the company's books and a $12 cost per share the company must have 100 shares of its own common stock being held as treasury stock.The number of outstanding shares equals the number of issued shares minus the number of shares reacquired (i.e., treasury shares). This company has 100,000 shares outstanding (i.e., 100,000 - 100 = 99,900).

The following data is available for a certain corporation at December 31: Common stock, par $3 (authorized 250,000 shares), $300,000 Treasury stock (at cost $12 per share), $1,200Based on the data, how many shares of common stock are outstanding?

11.1%

The following information is provided for a certain company (in $ millions): Net income for the current year is $390 Net income for the prior year was $350 Net sales for the current year is $4,100 Net sales for the prior year were $3,800 Total assets as of the end of the current year was $4,000 Total assets as of the end of the prior year was $3,000 What is the company's return on assets for the current year?

$68,000.

The following information is related to the beginning of the year balances. Accounts receivable, $2,100,000 Allowance for doubtful accounts (credit balance), $180,000During the current year, sales on account were $580,000 and collections from customers were $344,000. Also during the current year, the company wrote off $32,000 in uncollectible accounts. At year-end, the company's credit manager estimates that $216,000 of the outstanding accounts receivable will be uncollectible. Bad debt expense for the current year is

$230,000

The following is information from a certain corporation's financial records for the current fiscal year.i. Cash received from customers, $350,000ii. Revenue earned, $390,000iii. Cash paid for wages, $150,000iv. Wages incurred, $160,000v. Cash received from shareholders for additional shares of stock, $40,000What is the company's net income for the current year using the accrual basis of accounting?

lower liquidity.

The following ratios are available for Alpha Inc. and Omega Inc. Alpha Inc. Omega Inc.Current ratio 1.8 1.6Profit margin ratio 0.10 0.25 Compared to Alpha Inc., Omega Inc. has

$11,300 Solution: The employer's payroll tax deduction includes the employer's portion of FICA taxes payable, federal unemployment taxes payable, and state unemployment taxes payable. The employer journalizes the following: Debit: Payroll tax expense, $11,300Credit: FICA tax payable, $7,650Credit: Federal unemployment tax payable, $550Credit: State unemployment tax payable, $3,100 Employer's payroll taxes = FICA taxes + Federal unemployment taxes + State unemployment taxesEmployer's payroll taxes = $7,650 + 550 + 3,100 = $11,300.

The following totals were taken from the payroll records of a certain company: Wages, $100,000FICA taxes withheld, $7,650Federal income taxes withheld, $17,000Federal unemployment taxes, $550State income tax withheld, $2,000State unemployment taxes, $3,100 The entry to record accrual of employer's payroll taxes would include a debit to payroll tax expense in the amount of

$10,600

The following totals were taken from the payroll records of a certain company: Wages, $100,000FICA taxes withheld, $7,650Federal income taxes withheld, $18,000Federal unemployment taxes, $450State income tax withheld, $4,500State unemployment taxes, $2,500 The entry to record accrual of employer's payroll taxes would include a debit to payroll tax expense in the amount of


संबंधित स्टडी सेट्स

Assessment of the skin, hair and nails

View Set

Chapter 2: Physical Properties of Minerals

View Set

Chapter 47 Assessment of endocrine System

View Set

A&P Chapter 5 Smartbook questions

View Set

chapter 3 lesson 3 interactions of waves

View Set

Canada - Territories/Provinces & Capitals/Major Cities

View Set

Chapter 7 -- Benign Disorders of the Female Reproductive Tract

View Set