question

Assume that social security taxes are payable at a 6% rate on the first $100,000 of earnings and Medicare taxes are payable at a 1.5% rate with no maximum earnings, and that federal and state unemployment compensation taxes total 4.6% on the first $7,000 of earnings. If an employee, George Jones, earns $2,500 for the current week and Jones' year-to-date earnings before this week were $6,800, what is the total payroll taxes related to the current week?

answer

$196.70

question

The cost of a product warranty should be included as an expense in the

answer

period of the sale of the product

question

Assuming a 360-day year, when a $30,000, 90-day, 5% interest-bearing note payable matures, total payment will amount to:

answer

$30,375

question

Use the following information to answer the following questions. The following totals for the month of April were taken from the payroll register of Magnum Company. Salaries $12,000 FICA taxes withheld 550 Income taxes withheld 2,500 Medical insurance deductions 450 Federal Unemployment Taxes 32 State Unemployment Taxes 216

answer

debit to Payroll Tax Expense for $798

question

The journal entry a company uses to record pension rights that have not been funded for its salaried employees, at the end of the year is

answer

debit Pension Expense; credit Unfunded Pension Liability

question

Xavier and Yolanda have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%, salary allowances of $38,000 and $28,000 respectively, and the remainder equally. How much of the net income of $75,000 is allocated to Xavier?

answer

$40,000

question

If there is no written agreement as to the way income will be divided among partners

answer

they will share income and losses equally

question

The characteristic of a partnership that gives the authority to any partner to legally bind the partnership and all other partners to business contracts is called

answer

mutual agency

question

Franco and Jason share income and losses in a 2:1 ratio after allowing for salaries to Franco of $15,000 and $30,000 to Jason. If the partnership suffers a $15,000 loss, by how much would Jason's capital account increase?

answer

$10,000

question

The capital accounts of Harrison and Marti have balances of $180,000 and $130,000, respectively, on January 1, 2010, the beginning of the current fiscal year. On April 10, Harrison invested an additional $20,000. During the year, Harrison and Marti withdrew $96,000 and $78,000, respectively, and net income for the year was $248,000. The articles of partnership make no reference to the division of net income. Based on this information, the statement of partners' equity for 2010 would show what amount as total capital for the partnership on December 31, 2010?

answer

$404,000

question

The entry to record the issuance of common stock at a price above par includes a debit to

answer

Cash

question

Retained earnings

answer

changes are summarized in the retained earnings statement

question

When a corporation completes a 3-for-1 stock split

answer

the market price per share of the stock is decreased the par value per share is decreased b and c

question

A restriction/appropriation of retained earnings

answer

has no effect on total retained earnings

question

When Bayou Corporation was formed on January 1, 20xx, the corporate charter provided for 100,000 share of $10 par value common stock. The following transaction was among those engaged in by the corporation during its first month of operation: The corporation issued 9,000 shares of stock at a price of $23 per share. The entry to record the above transaction would include a

answer

credit to Paid in Capital in Excess of Par for $117,000

question

The journal entry a company records for the issuance of bonds when the contract rate is less than the market rate would be

answer

debit Cash and Discount on Bonds Payable, credit Bonds Payable

question

On January 1, 2011, $1,000,000, 5-year, 10% bonds, were issued for $960,000. Interest is paid semiannually on January 1 and July 1. If the issuing corporation uses the straight-line method to amortize discount on bonds payable, the semiannual amortization amount is

answer

$4,000

question

Bonds Payable has a balance of $900,000 and Premium on Bonds Payable has a balance of $10,000. If the issuing corporation redeems the bonds at 103, what is the amount of gain or loss on redemption?

answer

$17,000 loss

question

A bond indenture is

answer

a contract between the corporation issuing the bonds and the bond trustee, who is acting on behalf of the bondholders.

question

On the first day of the fiscal year, Hawthorne Company obtained a $ 88,000, seven-year, 5% installment note from Sea Side Bank. The note requires annual payments of $15,208, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $4,400 and principal repayment of $10,808. The journal entry Hawthorne would record to make the first annual payment due on the note would include:

answer

a debit to Interest Expense for $4,400

question

Jacks Corporation purchases $200,000 bonds plus accrued interest for 2 months of $2,000 from Kennedy Company on March 1. The bonds have an annual interest rate of 6% payable on June 30 and December 31. The entry to record the purchase of the bonds would include:

answer

Interest Receivable debit $2,000

question

Investment is certificates of deposit and other securities that do not change in value are reported in the balance sheet as:

answer

cash and cash equivalents

question

Edison Corporation paid a dividend of $10 per share on its $100 par preferred stock and $2 per share on its $10 par common stock. The market value of the common stock is $80 per share. Edison's dividend yield is:

answer

2.5%

question

Which of the following stock investments should be accounted for using the cost method?

answer

investments of less than 20%

question

A company that has 25,000 shares of $5.00 par value common stock issued and outstanding paid a dividend of $.75 per share. The market value of the stock is $20.00 per share. The company's dividend yield is:

answer

3.75%

question

Which of the following is a noncash investing and financing activity?

answer

issuance of common stock to acquire land

question

The following selected account balances appeared on the financial statements of the Washington Company: Accounts Receivable, Jan. 1 $13,000 Accounts Receivable, Dec. 31 9,000 Accounts Payable, Jan 1 4,000 Accounts payable Dec. 31 7,000 Merchandise Inventory, Jan 1 10,000 Merchandise Inventory, Dec 31 15,000 Sales 56,000 Cost of Goods Sold 31,000 The Washington Company uses the direct method to calculate net cash flow from operating activities. Cash paid to suppliers is

answer

$33,000

question

On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include

answer

amortization of premium on bonds payable

question

Accounts receivable from sales transactions were $44,000 at the beginning of the year and $53,000 at the end of the year. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is

answer

$96,000

question

On the statement of cash flows, the cash flows from financing activities section would include all of the following except

answer

payments of interest on bonds payable

question

Which of the following are basic phases of the management process?

answer

Planning and controlling

question

Which of the following is not a prime cost?

answer

Supervisor's wages

question

Cost of goods sold for a manufacturer equals cost of goods manufactured plus:

answer

beginning finished goods inventory less ending finished goods inventory

question

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as:

answer

factory overhead cost

question

Each account in the cost ledger is called a:

answer

job cost sheet

question

Which of the following is the correct flow of manufacturing costs?

answer

Raw materials, work in process, finished goods, cost of goods sold

question

Selected accounts with some debits and credits omitted are presented as follows: Work in Process Aug. 1 Balance 275,000 Aug. 31 Goods finished 1,030,000 31 Direct materials X 31 Direct labor 450,000 31 Factory overhead X Factory Overhead Aug. 1-31 Costs incurred 145,000 Aug. 1 Balance 15,000 31 Applied (30% of direct labor cost) X If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for direct materials in August?

answer

$390,000

question

Materials purchased on account during the month amounted to $195,000. Materials requisitioned and placed in production totaled $168,000. From the following, select the entry to record the transaction on the day the materials were bought.

answer

Materials 195,000 Accounts Payable 195,000

question

When a job is completed in a service organization, the job costs are transferred to the

answer

cost of services account.

question

The debits to Work in Process--Assembly Department for April, together with data concerning production, are as follows: April 1, work in process: Materials cost, 3,000 units $ 8,000 Conversion costs, 3,000 units, 66.7% completed 6,000 Materials added during April, 10,000 units 30,000 Conversion costs during April 31,000 Goods finished during April, 11,500 units --- April 30 work in process, 1,500 units, 50% completed --- All direct materials are placed in process at the beginning of the process and the first-in, first-out method is used to cost inventories. The materials cost per equivalent unit for April is:

answer

$3.00

question

Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000. The journal entry to record the flow of costs into Department 2 during the period for applied overhead is:

answer

Work in Process--Department 2 70,000 Factory Overhead--Department 2 70,000

question

The debits to Work in Process--Assembly Department for April, together with data concerning production, are as follows: April 1, work in process: Materials cost, 3,000 units $ 7,200 Conversion costs, 3,000 units, 40% completed 6,000 Materials added during April, 10,000 units 25,000 Conversion costs during April 30,800 Goods finished during April, 12,000 units --- April 30 work in process, 1,000 units, 40% completed --- All direct materials are placed in process at the beginning of the process and the first-in, first-out method is used to cost inventories. The conversion cost per equivalent unit for April is:

answer

$2.75

question

A form prepared periodically for each processing department summarizing (1) the units for which the department is accountable and the units to be assigned costs and (2) the costs charged to the department and the allocation of these costs is termed a:

answer

cost of production report

question

Which of the following measures would not help managers to control and improve operations?

answer

Commissions paid per time period

question

Land acquired so it can be resold in the future is listed in the balance sheet as a(n)

answer

investment

question

The exclusive right to use a certain name or symbol is called a

answer

trademark

question

All leases are classified as either

answer

capital leases or operating leases

question

A machine with a cost of $80,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?

answer

$25,000

question

Equipment with a cost of $160,000, an estimated residual value of $40,000, and an estimated life of 15 years was depreciated by the straight-line method for 4 years. Due to obsolescence, it was determined that the useful life should be shortened by 3 years and the residual value changed to zero. The depreciation expense for the current and future years is

answer

$16,000

question

Accounting designed to meet the needs of decision-makers inside the business is referred to as:

answer

managerial accounting

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