Berkley's gross pay for the month is $5,400. His deduction for federal income tax is based on a rate of 18%. He has no voluntary deductions. His yearly pay is under the limit for OASDI. What is the amount of Berkley's net pay? (Assume a FICAOASDI Tax of 4.2% and FICAMedicare Tax of 1.45%.) $4,122.90 $5,400.00 $5,094.90 $4,428.00 Bike World offers warranties on all their bikes. They estimate warranty expense at 3.5% of sales. At the beginning of 2013, the Estimated Warranty Payable account had a credit balance of $1,200. During the year, Bike World had $295,000 of sales and had to pay out $5,300 in warranty payments. How much Warranty Expense will be reported on the 2013 income statement? $6,225 $6,500 $9,125 $10,325 A truck costs $300,000, and is expected to run 100,000 miles during its 5-year life. Residual value is expected to be zero because the truck was used when acquired. If the truck runs 24,000 miles the first year, how much depreciation should the company record under the units-of-production method? $85,000 $24,000 $72,000 $47,000 Jade signs a $6,500, 8.5%, six-month note dated November 1, 2013. The interest expense recorded for this note in 2013 will be $133. $92. $276. $184. The following information is from the 2015 records of Armand Camera Shop: Accounts Receivable, December 31, 2015 $40,000 (debit) Allowance for Bad Debts, December 31, 2015 prior to adjustment 1,500 (debit) Net credit sales for 2015 175,000 Accounts written off as uncollectible during 2015 15,000 Cash sales during 2015 27,000 Bad debts expense is estimated by the percent-of-sales method. The management estimates that 3% of net credit sales will be uncollectible. Calculate the amount of bad debts expense for 2015. $5,250 $3,450 $2,250 $2,850 The following information is from the records of Armadillo Camera Shop: Accounts receivable, December 31, 2015 $20,000 (debit) Allowance for Bad Debts, December 31, 2015 Prior to adjustment 600 (debit) Net credit sales for 2015 95,000 Accounts written off as uncollectible during 2015 350 Bad debts expense is estimated by the aging-of-accounts-receivables method. Management estimates that $2,850 of accounts receivable will be uncollectible. Calculate the amount of net accounts receivable after the adjustment for bad debts. $17,750 $17,150 $16,550 $13,000 On January 1, Davidson Services has the following balances: Davidson has the following transactions during January: Credit sales of $100,000, collections of credit sales of $85,000, and write-offs of $15,000. Davidson uses the direct write-off method. At the end of January, the balance in Accounts Receivable is $16,000. $24,000. $68,000. $28,000. The data of Franklin Brothers Corp. for two years are given below: 2014 2015 Cash and cash equivalents $5,400 $12,500 Total current liabilities 24,000 30,000 Based on the above information, which of the following statements is true? Cash ratio has increased from 0.02 in 2014 to 0.03 in 2015. Cash ratio has increased from 0.05 in 2014 to 0.08 in 2015. Cash ratio has increased from 0.417 in 2014 to 0.225 in 2015. Cash ratio has increased from 0.225 in 2014 to 0.417 in 2015. A company received a bank statement showing a balance of $75,100. Reconciling items included outstanding checks of $2,250 and a deposit in transit of $9,500. What is the company's adjusted bank balance? $63,350 $67,850 $82,350 $65,600 A company's cash ledger shows an ending balance of $4,000. Reconciling items included a bookkeeper error of $100 (a $500 check recorded as $600), two outstanding checks totaling $820, a service charge of $25, a deposit in transit of $280, and interest revenue of $31. What is the adjusted book balance? $3,894 $3,460 $4,106 $4,540 Assume that a company has only four customers: A, B, C, and D. The accounts receivable balance in the general ledger is $7,983, and the accounts receivable subsidiary ledger of customers A, C, and D has $1,246, $2,596, and $3,240 respectively. Calculate the amount in the accounts receivable subsidiary ledger account of customer B. $7,082 $2,147 $1,391 $901 The petty cash fund had an initial imprest balance of $200. It currently has $17 in cash, $3 in miscellaneous cash receipts and an additional $180 in specific cash receipts. The debit to Cash Short and Over would be $0. $17. $180. $183. A company has four vendors, and the accounts payable subsidiary ledger shows the following balances: Alpha $275,821 Beta 143,474 Gamma 78,943 Delta 34,187 Calculate the accounts payable balance in the general ledger. $419,295 $532,425 $275,821 $256,604