Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

1. Unearned revenue is initially identified with a:

a. Credit to unearned revenue.
b. Credit to revenue.
c. Debit to revenue payable.
d. Debit to revenue.
e. Debit to unearned revenue.

 

2. On December 1, 20X4, company issued a $100,000, 12%, 6 month note payable to bank to borrow $100,000 needed for operating activities. On December 31, 20X4 following adjusting entry was made by company:
Interest Expense 1,000
Interest Payable 1,000
Maturity value of note will be:

a. $100,000
b. $106,000
c. $112,000
d. Some other amount.

 

3. Friday Company is being sued for $200,000. Company attorneys have concluded that chance of losing case is remote and there is only a 10% chance plaintiff will be successful. In financial statements prepared at end of current year Friday must:

a. Accrue $200,000 as a liability.
b. Do NOT accrue $200,000 as a liability but disclose the circumstances of the case in footnotes.
c. Do NOT accrue $200,000 nor footnote the circumstances of the case in footnotes.
d. Accrue $20,000 as a liability.

 

4. Greg Seller earns $30,000 as salesperson for Green Valley Company. Suppose that Combined PICA rate is 7.5% on base of $45,000, that $4,000 was withheld for federal and state income taxes, and combined FUTA/SUTA rate is 6% of first $7,000 paid to an employee. Total cost of keeping Greg on payroll is:

a. $30,000
b. $32,250
c. $32,670
d. $36,670
e. None of the above.

 

5. Dyson Company started operations on January 1 and had sales during year of $1,500,000. Company evaluates that warranty obligations will amount to 1% of sales. Prior to year-end, $9,500 had been expended to repair items covered under warranty agreements. What amounts must Dyson disclose in financial statements with regard to its warranty experience?

 

  Income Statement Balance Sheet 
a.  $15,000 $5,500
b.  $9,500 $5,500
c.  $9,500 $15,000
d.  $15,000 $9,500
e. None of the above.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M921809

Have any Question? 


Related Questions in Accounting Basics

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference "criminal fraud versus civil fraud and taxation of u.s. businesses operating abroad" please respon ...

Agrichem industries manufactures fertilizer concentrate and

AgriChem Industries manufactures fertilizer concentrate and uses cost standards. The fertilizer is produced in 500-pound batches; the normal level of production is 250 batches of fertilizer per month. The standard costs ...

Assignmentcarol is a single mother who owns a wholesale

Assignment Carol is a single mother who owns a wholesale auto parts distributorship. The business is organized as a sole proprietorship. Her business has advanced, and she can no longer devote the time necessary to do he ...

Your city has decided to build a new library the projected

Your city has decided to build a new library. The projected cost is $2 million. A bond issue for $1.2 million has been authorized, and the remainder is supposed to come from a contribution of $800,000 from the general fu ...

Payrolllocate a payroll processing company you may either

Payroll Locate a payroll processing company. You may either contact one in person, by telephone, or conduct an Internet search. Write a brief report describing the advantages and disadvantages of using a payroll processi ...

Assignmentguidelines for individual case assignment cutting

Assignment Guidelines for Individual Case Assignment: Cutting Edge Instructions This is an individual assignment and therefore must be completed by the individual student without outside assistance. In order to complete ...

Problem -a firm has the following probability distribution

Problem - A firm has the following probability distribution for annual losses due to vandalism. All amounts are before any tax consideration. The firm has a tax rate of 20%. Annual Losses Probability $ 0 .75 $ 4,000 .20 ...

This assignment will assess the following learning

This assignment will assess the following learning outcomes: - Demonstrate the impact on the financial statements and the implication for different users of accounts of alternative ways of treating controversial accounti ...

Palmona co establishes a 220 petty cash fund on january 1

Palmona Co. establishes a $220 petty cash fund on January 1. On January 8, the fund shows $125 in cash along with receipts for the following expenditures: postage, $41; transportation-in, $11; delivery expenses, $13; and ...

Reading concept summaryno plagiarism must be original

Reading Concept Summary **NO PLAGIARISM. MUST BE ORIGINAL. PLEASE USE REFERENCES IF NEEDED ** Write a 260- to 350-word summary of this week's readings. Please write about the following: Fixed Assets, Depreciation, and In ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro