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

Problem 1panda incs 10-k report contains the following

Problem 1 Panda Inc.'s 10-K report contains the following footnote relating to its leasing activities: At December 31, 2013, the company was committed to non-cancellable leases with remaining terms of one to 15 years. A ...

Accounting assignment1 the standard direct labor time for

Accounting Assignment 1. The standard direct labor time for producing one pair of original Crocs is 0.6 hours and the direct labor rate for producing one pair of original Crocs is $18.50 per hour. During February, 10,000 ...

Question 2-64start from the trial balance and the posted

Question 2-64 Start from the trial balance and the posted T-accounts that Haupt Consulting prepared at December 18, as follows HAUPT CONSULTING Trial Balance December 18, 2010 Balance Account Tide Debit Credit Cash $7,70 ...

Accounting assignmentthis project requires you to select a

Accounting Assignment This project requires you to select a business and analyze part of its accounting information system. You will focus on a selected business process, develop conclusions from your observations, and a ...

Ace lawn care module - mini practice problemjim graham

Ace Lawn Care Module - Mini Practice Problem Jim Graham started his career mowing lawns for neighbors while he was in junior high school. Jim worked summers for the local golf course while he was in high school and now t ...

Tf question1under the modified accrual basis of accounting

T/F QUESTION 1 Under the modified accrual basis of accounting, there is no matching principle and no attempt to amortize costs that benefit multiple periods. 2 In fund accounting, expenditures may be classified in differ ...

To make sure you are up to date on the special guidelines

To make sure you are up to date on the special guidelines the GASB has declared, your manager asked you to research GASB Statement No. 56. He also asked you to show him, side by side, how government accounting journal en ...

Project - case 1davis dry goods distributes silk ties you

Project - Case 1 Davis Dry Goods distributes silk ties. You are in charge of creating Davis' master budget for the upcoming second quarter, April - June 2015. Davis desires a minimum ending cash balance each month of $11 ...

Case 2b - mendel paper companymendel paper company produces

CASE 2B - MENDEL PAPER COMPANY Mendel Paper Company produces four basic paper product lines at one of its plants: computer paper, napkins, place mats, and poster board. Materials and operations vary according to the line ...

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 "Negative Cash Flow" Please respond to the following: • Assess how the free cash-flow method can b ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen