loader  Loading... Please wait...

Question(s) / Instruction(s):

A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts:

  Accounts receivable     $ 345,000 debit 

  Allowance for uncollectible  accounts   700 credit 

  Net sales           790,000 credit 

All sales are made on credit. Based on past experience, the company estimates 0.6% of credit sales to be uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?

a)            $4,040

b)            $1,370

c)            $5,440

d)            $2,770

e)            $4,740

 

A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $62,000; the land at $45,000, and the parking lot at $18,000. Land should be recorded in the accounting records with an allocated cost of (Do not round intermediate calculations):

a)            $45,000.

b)            $0.

c)            $42,000.

d)            $100,000.

e)            $36,000.

 

Thomas Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $136,000. The asset is expected to have a salvage value of $15,900 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset's book value on December 31, Year 3 will be (Do not round intermediate calculations):

a)            $39,204

b)            $26,136

c)            $29,376

d)            $122,400

e)            $44,064

 

On December 1, Martin Company signed a 90-day, 7% note payable, with a face value of $13,200. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.)

a)            $77

b)            $154

c)            $924

d)            $0

e)            $231

 

 

Lomax Enterprises purchased a depreciable asset for $25,500 on March 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,700, Lomax Enterprises should recognize depreciation expense in Year 2 in the amount of:

a)            $4,750.00

b)            $22,800.00

c)            $21,850.00

d)            $6,375.00

e)            $5,700.00

 

Harvel Company is required by law to collect and remit sales taxes to the state. If Havel has $7,000 of cash sales that are subject to an 6% sales tax, what is the journal entry to record the cash sales?

a)            Debit Cash $7,000; credit Sales $7,000; and record the sales tax when paid.

b)            Debit Cash $7,420; credit Sales $7,000; credit Sales Taxes Payable $420.

c)            Debit Cash $7,000; credit Sales $6,580; credit Sales Taxes Payable $420.

d)            Debit Sales Taxes Payable $420; debit Cash $6,580; credit Sales $7,000.

e)            Debit Accounts Receivable $7,420; credit Sales $7,000; credit Sales Taxes Payable $420.

 

Hankco accepts all major bank credit cards, including Omni Bank's, which assesses a 2% charge on sales for using its card. On June 28, Hankco had $2,800 in Omni Card credit sales. What entry should Hankco make on June 28 to record the deposit?

a)            Debit Accounts Receivable $2,744; debit Credit Card Expense $56; credit Sales $2,800.

b)            Debit Cash $2,856; credit Credit Card Expense $56; credit Sales $2,800.

c)            Debit Cash $2,744; debit Credit Card Expense $56; credit Sales $2,800.

d)            Debit Cash $2,800; credit Sales $2,800.

e)            Debit Accounts Receivable $2,800; credit Sales $2,800.

 

Phil Phoenix is paid monthly. For the month of January of the current year, he earned a total of $8,488. The FICA tax for social security is 6.2% and the FICA tax rate for Medicare is 1.45%. The FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from his earnings was $1,408.37. His net pay for the month is (Round your intermediate calculations and final answer to two decimal places):

a)            $6,430.29

b)            $6,566.00

c)            $5,157.63

d)            $5,996.29

e)            $6,956.55

 

The interest accrued on $4,200 at 5% for 60 days is (Use 360 days a year. Do not round intermediate calculations):

a)            $25.

b)            $105.

c)            $245.

d)            $21.

e)            $35.

 

A 90-day note issued on April 10 matures on:

a)            July 11.

b)            July 9.

c)            July 13.

d)            July 12.

e)            July 10.

 

Find Similar Answers by Subject


Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)


Expert's Answer
Download Solution:
$2.50

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)



Reach Us

408-538-8534

20-3582-4059

39-008-4233

+1-408-904-6494