Accounting Final

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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.


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