Current Liabilities
FICA, Federal and State unemployment taxes and fringe benefits are paid by who and where would you debit when recording them?
Employers; payroll tax expense
The following costs are associated with the purchase of a piece of land that will be used to rebuild an office building:
The sale price of the land was $500,000; they sold salvaged parts that were on the land for $30,000; they demolished the old building for $20,000; they had a ground breaking ceremony (food and supplies) $2,500; and land preparation and leveling cost $9,500
What amount should be recorded for the purchase of the land?
$499,500
What type of account is a Copyright (A,L,SE,R,E)?
Asset
What are the 3 elements of the fraud triangle?
Rationalization, Motivation, and Opportunity
The current portion of long-term debt sound be:
a) Paid Immediately
b) reported as a long-term liability of the balance sheet
c) combined wit the rest of the long-term debt on the balance sheet
d) reported as a current liability on the balance sheet
d) reported as a current liability on the balance sheet
On December 16, your company received $2,500 for a round trip flight to Hilo, HI. The departure date was December 12 and the return date was December 24. What would you record on December 16?
Debit Cash $2500, credit Deferred Revenue $1,250 and Service Revenue $1,250
On October 1, 2021, Able company purchased equipment to be used in their landscaping business. The equipment cost $440,000. It will be used for 5 years, after which its salvage value is estimated to be $40,000. What would you record as the adjusting entry for depreciation on Dec 31, 2021 using straight-line?
Debit Depreciation Expense and credit accumulated depreciation for $20,000
What financial statement would you find a loss?
Income Statement
A bank reconciliation reconciles the bank statement with the company's what?
Cash account in the balance sheet
Which of the following intangibles is not amortized?
A. Patent
B. Copyright
C. Goodwill
D. Franchise
C. Goodwill
On December 18, Your company sold Logo T-shirts to customers, the total cash receipts for the sale were $6,360. Upon further research you find the sales tax rate is 6%. What would you record on December 18?
Debit Cash for $6,360
Credit Sales Revenue for $6,000 and Sales tax payable for $360
On January 1, 2021, Able company purchased equipment to be used in their landscaping business. The equipment cost $440,000. It will be used for 5 years, after which its salvage value is estimated to be $40,000. What would you record as the adjusting entry for depreciation on Dec 31, 2022 using double declining balance?
Debit Depreciation Expense and credit accumulated depreciation for $105,600
Income tax payable is a temporary or permanent account?
Permanent
Bunny Company has the following information:
Jan 31, the balance in the company's cash account has a balance of 26,897. The company's bank statement shows a balance of $29,049.
Outstanding checks at Jan 31, include check #303 in the amount of $1,525, and check #355 in the amount of $1,369
The bank cleared check #358 in the amount of $770 the company had incorrectly recorded the check as 1,770; and the check was used to purchase supplies
The bank deducted $67 for an NSF check from a customer deposited on January 20, and a deposit in transit placed in the banks night depository on Jan 31 totaled $1,675 and did not appear on the bank statement.
How would you prepare the bank reconciliation for the banks side?
Balance per bank 29,049
Add: Deposits in transit 1,675
Less: Outstanding Checks
#303 -1,525
#355 -1,369
Adjusted Bank Balance 27,830
a. Ensure the business is profitable
b. Enhance the health of employees
c. Improve the accuracy and the reliability of financial information
d. Ensure the compliance with tax regulations.
c. Improve the accuracy and the reliability of financial information
The Right company borrowed $10,000 cash from National Bank on a 9-month, 12 % note on July 1, 2021. The interest is payable at maturity. What would you record for National Bank on December 31 as an adjusting entry for interest?
Debit Interest Receivable for $600, and Credit Interest Revenue for $600
On January 1, 2021, Able company purchased equipment to be used in their landscaping business. The equipment cost $440,000. It will be used for 5 years or 160,000 hours, after which its salvage value is estimated to be $40,000. In 2021 it used 44,000 hours. What would you record as the adjusting entry for depreciation on Dec 31, 2021 using activity based costing?
Debit Depreciation Expense and credit accumulated depreciation for $110,000
What is the equation used for the current ratio?
Current Ratio=Current Assets/Current Liabilities
Bunny Company has the following information:
Jan 31, the balance in the company's cash account has a balance of 26,897. The company's bank statement shows a balance of $29,049.
Outstanding checks at Jan 31, include check #303 in the amount of $1,525, and check #355 in the amount of $1,369
The bank cleared check #358 in the amount of $770 the company had incorrectly recorded the check as 1,770; and the check was used to purchase supplies
The bank deducted $67 for an NSF check from a customer deposited on January 20, and a deposit in transit placed in the banks night depository on Jan 31 totaled $1,675 and did not appear on the bank statement.
How would you prepare the bank reconciliation for the company's books side?
Balance per bank 26,897
Add: Correction on check 1,000
Less: NSF Check -67
Adjusted Bank Balance 27,830
Which one of the following regarding the book value of an asset is correct?
a. It is the original cost of the asset minus the depreciation expense for that asset during the year
b. It is the fair value of the asset if the asset is sold
c. It reflects the original cost of the asset less accumulated depreciation
d. It is the original cost at which the asset was purchased
c. It reflects the original cost of the asset less accumulated depreciation
The Right company borrowed $10,000 cash from National Bank on a 9-month, 12 % note on July 1, 2021. The interest is payable at maturity. What would you record for Right Company at maturity on April 1, 2022?
Debit Notes Payable for $10,000, Interest Payable for $600, and Interest Expense for $300
and Credit Cash for $10,900
On January 1, 2021, Able company purchased equipment to be used in their landscaping business. The equipment cost $440,000. It will be used for 5 years, after which its salvage value is estimated to be $40,000. What would you record if Able company sold the equipment for $150,000 on Dec 31 2023?
Debit Cash for $150,000; accumulated depreciation $240,000; and Loss on sale of equipment for $50,000
also Credit Equipment for $440,000
Max Inc. Balance Sheet is as follows:
Cash- 23,000; Net Receivable- 12,000; Inventory- 16,500; Total Current Assets- 51,500
Accounts Payable- 13,040; Deferred Revenue- 4,500; Total Current Liabilities- 17,540
What is the acid test (quick) ratio?
1.995
Bunny Company has the following information:
Jan 31, the balance in the company's cash account has a balance of 26,897. The company's bank statement shows a balance of $29,049.
Outstanding checks at Jan 31, include check #303 in the amount of $1,525, and check #355 in the amount of $1,369
The bank cleared check #358 in the amount of $770 the company had incorrectly recorded the check as 1,770; and the check was used to purchase supplies
The bank deducted $67 for an NSF check from a customer deposited on January 20, and a deposit in transit placed in the banks night depository on Jan 31 totaled $1,675 and did not appear on the bank statement.
What would you record as adjusting entries from the bank reconciliation on Jan 31?
Debit Cash and credit supplies for $1,000
also
Debit Accounts Receivable and Credit Cash for $67
What is it when two or more people act in coordination to circumvent internal controls?
Collusion