1A) Phoenix Agency leases office space for $7,600 per month. On January 3, Phoenix incurs $78,600 to improve the leased office space. These improvements are expected to yield benefits for 8 years. Phoenix has 6 years remaining on its lease. Compute the amount of expense that should be recorded the first year related to the improvements

1B) Jackson Consulting had the following accounts and balances at December 31:

Account	Debit			Credit
Cash	$	20,000
Accounts Receivable		6,000
Prepaid Insurance		1,500
Supplies		5,000
Accounts Payable				$	500
Common Stock					9,000
Retained Earnings					7,200
Dividends		1,000
Service Revenue					20,000
Utilities Expense		2,000
Salaries Expense		1,200
Totals	$	36,700		$	36,700

Using the information in the table, calculate Jackson Consulting's reported net income for the period

1C) On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The company credited Unearned Fees for the amount received and the subscriptions started immediately. Assuming adjustments are only made at year-end, What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the first year

1D) On May 1, Sellers Marketing Company received $1,500 from Franco Marcelli for a marketing campaign effective from May 1 this year to April 30 of the following year. The Cash receipt was recorded as unearned fees and at year-end on December 31, $1,000 of the fees had been earned. Assuming adjustments are only made at year-end, the adjusting entry on December 31 would be

1E) A company had net sales of $752,000 and cost of goods sold of $543,000. Its net income was $17,530. The company's gross margin ratio equals

1F)A company's inventory records report the following in November of the current year:

Beginning	November 1	5 units @ $20
Purchase	November 2	10 units @ $22
Purchase	November 12	6 units @ $25

On November 8, it sold 12 units for $54 each. Using the LIFO perpetual inventory method, what was the amount recorded in the cost of goods sold account for the 12 units sold?

1G) An employee earned $46,600 during the year working for an employer when the maximum limit for Social Security was $118,500. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee's annual FICA taxes amount is

1I) The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both taxes are applied to the first $7,000 of an employee's pay. Assume that an employee earned total wages of $10,900. What is the amount of total unemployment taxes the employer must pay on this employee's wages

1J) On November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $11,700. What is the adjusting entry for the accrued interest at December 31 on the note? (Use 360 days a year.)

1K) Athena Company provides employee health insurance that costs $14,400 per month. In addition, the company contributes an amount equal to 4% of the employees' $144,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a:

1L)On April 12, Hong Company agrees to accept a 60-day, 10%, $5,000 note from Indigo Company to extend the due date on an overdue account. What is the journal entry needed to record the transaction by Indigo Company

1M)On November 1, Alan Company signed a 120-day, 12% note payable, with a face value of $19,800. What is the maturity value of the note on March 1? (Use 360 days a year.)

1N)An employee earned $60,800 during the year working for an employer. The FICA tax rate for Social Security is 6.2% of the first $118,500 of employee earnings per calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. What is the amount of total unemployment taxes the employee must pay?

1O) Springfield Company offers a bonus plan to its employees and the amount of the employee bonuses for the current year is estimated to be $969,000 to be paid during January of the following year. The journal entry on December 31 to record the bonuses is: