Fall Semester Success: Accounting Assignment Strategies
30. Boyd Docker engaged in the following activities in establishing his photography studio,...
Boyd Docker engaged in the following activities in establishing his photography studio, SnapShot!:
1. Opened a bank account in the name of SnapShot! and deposited $8,000 of his own money into this account in exchange for common stock.
2. Purchased photography supplies at a total cost of $950. The business paid $400 in cash, and the balance is on account.
3. Obtained estimates on the cost of photography equipment from three different manufacturers.
31. What are two ways Lean budget guardrails guide Value Stream investment decisions? (Choose two.) By..
What are two ways Lean budget guardrails guide Value Stream investment decisions? (Choose two.)
- By empowering the Product Owners to sequence the Solution Backlog
- By time criticality
- By establishing capacity allocation
- By requiring approval of large Epics
- By prioritizing work by return on investment
32. Sex, age, and caste all are examples of (a) achieved status (b) ascribed status (c) pre-set status..
Sex, age, and caste all are examples of
(a) achieved status (b) ascribed status
(c) pre-set status (d) status image
33. Flychucker SA is evaluating an extra dividend versus a share repurchase
Share Repurchase Flychucker SA is evaluating an extra dividend versus a share repurchase. In either case €5,000 would be spent. Current earnings are €0.95 per share, and the equity currently sells for €40 per share. There are 200 shares outstanding. Ignore taxes and other imperfections in answering parts (a) and (b).
a. Evaluate the two alternatives in terms of the effect on the price per share of the equity and shareholder wealth.
b. What will be the effect on Flychucker’s EPS and P/E ratio under the two different scenarios?
c. In the real world, which of these actions would you recommend? Why?
34. The following is the Receipts and Payments Accounts of Apollo Club in respect of the year 31st...
The following is the Receipts and Payments Accounts of Apollo Club in respect of the year 31st March, 2017:
The following additional facts are ascertained:
(a) There are 500 members, each paying an annual subscriptions of Rs.10, Rs. 3,500 being in arrears for 2015-16 at the beginning of 2016-17. During 2015-16, subscriptions were paid in advance by 30 members for 2016-17.
(b) Stock of Stationery at 31st March 2016 was Rs. 400 and at 31st March 2017 Rs.500.
(c) At 31st March, 2016, the rates and taxes were prepaid to the following 31st January, the yearly charge being Rs. 300.
(d) A quarter’s charge for telephone is outstanding, the amount accrued being Rs. 300. The charge for each quarter is same for both 2015-16 and 2016-17.
(e) Sundry Expenses accruing at 31st March 2016 were Rs. 50 and at 31st March 2017 Rs. 60.
(f) At 31st March 2016, Building stood in the books at Rs.30,000 and it is required to write off depreciation @ 10% p.a.
(g) Value of 8% securities at 31st March 2016 was Rs. 15,000 which was purchased at that date at par, additional securities worth Rs. 5,000 are purchased on 31st March 2017.
35. 154. An employee receives an hourly rate of $15, with time and a half for all hours worked in...
154. An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $5,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, .8% on the first $7,000. Prepare the journal entries to record the salaries expense and the employer payroll tax expense.
155. Townson Company had gross wages of $200,000 during the week ended December 10. The amount of wages subject to social security tax was $180,000, while the amount of wages subject to federal and state unemployment taxes was $24,000. Tax rates are as follows:
Social security | 6.0% |
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Medicare | 1.5% |
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State unemployment | 5.3% |
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Federal unemployment | 0.8% |
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The total amount withheld from employee wages for federal taxes was $32,000.
Required:
(1) | Journalize the entry to record the payroll for the week of December 10. |
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(2) | Journalize the entry to record the payroll tax expense incurred for the week of December 10. |
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156. According to a summary of the payroll of Scotland Company, $450,000 was subject to the 7.0% social security tax and $500,000 was subject to the 1.5% Medicare tax. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes.
Required:
(1) | Journalize the entry to record the accrual of payroll. |
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(2) | Journalize the entry to record the accrual of payroll taxes. |
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157. The payroll register of Seaside Architecture Company indicates $970 of Social Security and $257 of Medicare tax withheld on total salaries of $16,500 for the period. Federal withholding for the period totaled $4,235. Provide the journal entry for the period’s payroll.
36. Explain how client internal controls can be improved through the proper installation of IT.
Explain how client internal controls can be improved through the proper installation of IT.
37. S.S. Himalaya set out on a voyage from Calcutta to Bombay. On December 31, 2014 on which date the...
S.S. Himalaya set out on a voyage from Calcutta to Bombay. On December 31, 2014 on which date the accounts are to be closed, the return voyage had not been completed. The details for the entire voyage to Bombay and back to Calcutta completed after December 31 were :
Freight ~ 4,00,000; Coal consumption ~ 70,000; Stores consumed ~ 30,000; Port charges ~ 15,000; Salaries of the crew ~ 40,000; Depreciation ~ 40,000; Insurance (ship) ~ 20,000; Insurance (freight) ~ 8,000; Primage 10%; Address commission 5%. Only ~ 1,50,000 freight was available on the return journey. Prepare the Voyage Account up to December 31.
38. 151. On October 1, the company pays rent for twelve months in advance and debits an asset...
151. On October 1, the company pays rent for twelve months in advance and debits an asset account. At year end, the adjusting entry on the work sheet would
A. increase an expense account
B. decrease a liability account
C. increase an asset account
D. decrease an expense account
152. On August 1, a company collects revenue in advance for the next twelve months and credits a liability account. The adjusting entry at year end on the work sheet would
A. increase a liability account
B. decrease an asset account
C. decrease a revenue account
D. decrease a liability account
153. Which of the following is not an essential part of the accounting records?
A. The journal
B. The ledger
C. The chart of accounts
D. The work sheet
154. After totaling all of the columns in the work sheet, the Balance Sheet show debits of $35,678 and the credits of $39,901. This indicates that
A. neither net income or loss can be calculated because that is found on the income statement
B. the company recorded a net loss of $4,223
C. the company recorded a net income of $4,223
D. The amounts are out of balance and need to be corrected
155. The column of the income statement show the debits are equal to $56,899 and credits are $60,333. What do this information mean to the accountant?
A. Net income of $3,434
B. Net loss of $3,434
C. the accounts are out of balance
D. None are correct.
156. The balances for the accounts listed below appear in the Adjusted Trial balance columns of the end-of-period spreadsheet (work sheet). Indicate whether each balance should be extended to (a) an Income Statement column or (b) a Balance Sheet column.
(1) Retained Earnings
(2) Dividends
(3) Depreciation Expense
(4) Accumulated Depreciation
(5) Fees earned
(6) Unearned Fees
(7) Supplies
(8) Supplies Expense
157. In the Balance Sheet columns of the end-of-period spreadsheet (work sheet) for Sugar Company. for the current year, the Debit column total is $563,430, and the Credit column total is $544,210 before the amount for net income or net loss has been included. In preparing the income statement from the end-of-period spreadsheet (work sheet), what is the amount of net income or net loss?
158. Aaron Daniel owns and operates Reach It Baseball Batting Cages Company. On January 1, 2008, Aaron Daniel, the balance in capital stock was $100,000 and retained earnings had a balance of $212,000 During the year Aaron invested an additional $20,000 and the company paid cash dividends of $35,000. For the year ended December 31, 2008, Reach It Baseball Batting Cages reported a net income of $56,780. Prepare a statement of retained earnings for the year ended December 31, 2008.
39. On August 1, 2017, the following were the account balances of B&B Repair Services During August,...
On August 1, 2017, the following were the account balances of B&B Repair Services
During August, the following summary transactions were completed.
Aug. 1 Paid $400 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September.
3 Paid August rent $380.
5 Received $1,200 cash from customers in payment of account.
10 Paid $3,120 for salaries due employees, of which $1,700 is for August and $1,420 is for July salaries payable.
12 Received $2,800 cash for services performed in August.
15 Purchased store equipment on account $2,000.
20 Paid creditors $2,000 of accounts payable due.
22 Purchased supplies on account $800.
25 Paid $2,900 cash for employees’ salaries.
27 Billed customers $3,760 for services performed.
29 Received $780 from customers for services to be performed in the future.
Adjustment data:
1. A count shows supplies on hand of $960.
2. Accrued but unpaid employees’ salaries are $1,540.
3. Depreciation on equipment for the month is $320.
4. Services were performed to satisfy $800 of unearned service revenue.
5. One month’s worth of advertising services has been received.
6. One month of interest revenue related to the $4,000 note receivable has accrued. The 4-month note has a 6% annual interest rate. (Hint: Use the formula from Illustration 4-18 to compute interest.) Instructions
(a) Enter the August 1 balances in the ledger accounts. (Use T-accounts.)
(b) Journalize the August transactions.
(c) Post to the ledger accounts. B&B’s chart of accounts includes Prepaid Advertising, Interest Receivable, Service Revenue, Interest Revenue, Advertising Expense, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense.
(d) Prepare a trial balance at August 31.
(e) Journalize and post adjusting entries.
(f) Prepare an adjusted trial balance. (g) Prepare an income statement and a retained earnings statement for August and a classified balance sheet at August 31.
(h) Journalize and post closing entries and complete the closing process. (i) Prepare a post-closing trial balance at August 31.