Question
A company sold equipment that originally cost $160,000 for $96,000 cash. The accumulated depreciation on the equipment was $64,000. The company should recognize a: Multiple
A company sold equipment that originally cost $160,000 for $96,000 cash. The accumulated depreciation on the equipment was $64,000. The company should recognize a:
Multiple Choice
-
$0 gain or loss.
-
$64,000 loss.
-
$96,000 gain.
-
$32,000 loss.
-
$32,000 gain.
An employee earned $61,600 during the year working for an employer. The Federal Insurance Contributions Act (FICA) tax rate for Social Security is 6.2% of the first $137,700 of employee earnings per calendar year, and the Federal Insurance Contributions Act (FICA) tax rate for Medicare is 1.45% of all earnings. The current Federal Unemployment Taxes (FUTA) tax rate is 0.6%, and the State Unemployment Taxes (SUTA) tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employees pay. What is the amount of total unemployment taxes the employee must pay?
Multiple Choice
-
$101.50
-
$56.00
-
$378.00
-
$434.00
-
$0.00
On December 1, Watson Enterprises signed a $27,300, 60-day, 4% note payable as replacement of an account payable with Erikson Company. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.)
Multiple Choice
-
$0
-
$91
-
$364
-
$1,092
-
$182
Reno contributed $101,000 in cash plus equipment valued at $40,000 to the RD Partnership. The journal entry to record the transaction for the partnership is:
Multiple Choice
-
Debit Cash $101,000; debit Equipment $40,000; credit RD Partnership, Capital $141,000.
-
Debit Cash $101,000; debit Equipment $40,000; credit Accounts Payable $141,000.
-
Debit Cash $101,000; debit Equipment $40,000; credit Reno, Capital $141,000.
-
Debit Reno, Capital $141,000; credit RD Partnership, Capital $141,000.
-
Debit RD Partnership, Capital $141,000; credit Reno, Capital $141,000.
Farmer and Taylor formed a partnership with capital contributions of $210,000 and $260,000, respectively. Their partnership agreement calls for Farmer to receive a $74,000 per year salary allowance. The remaining income or loss is to be divided equally. Assuming net loss for the current year is $17,000, the journal entry to allocate the net loss is:
Multiple Choice
-
Debit Income Summary, $17,000; Debit Farmer, Capital, $28,500; Credit Taylor, Capital, $45,500.
-
Debit Income Summary, $17,000; Credit Farmer, Capital, $8,500; Credit Taylor, Capital, $8,500.
-
Debit Taylor, Capital, $45,500; Credit Income Summary, $17,000; Credit Farmer, Capital, $28,500.
-
Debit Income Summary, $17,000; Debit Taylor, Capital, $28,500; Credit Farmer, Capital, $45,500.
-
Debit Income Summary, $17,000; Credit Taylor, Capital, $8,500; Credit Farmer, Capital, $8,500
A corporation issued 4,200 shares of its no par common stock at a cash price of $10 per share. The entry to record this transaction would be:
Multiple Choice
-
Debit Cash $42,000; credit Paid-in Capital in Excess of Par Value, Common Stock $4,200; credit Common Stock $37,800.
-
Debit Cash $42,000; credit Common Stock $42,000.
-
Debit Common Stock $42,000; credit Cash $42,000.
-
Debit Treasury Stock $42,000; credit Cash $42,000.
-
Debit Treasury Stock $4,200; debit Paid-in Capital in Excess of Par Value, Treasury Stock $37,800; credit Common Stock $42,000.
Gracey's Department Stores has $212,000 of 6% noncumulative, preferred stock outstanding. Gracey's also has $612,000 of common stock outstanding. During its first year, the company paid cash dividends of $42,000. This dividend should be distributed as follows:
Multiple Choice
-
$21,000 preferred; $21,000 common.
-
$16,560 preferred; $25,440 common.
-
$42,000 preferred; $0 common.
-
$12,720 preferred; $29,280 common.
-
$0 preferred; $42,000 common.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started