Questions and Answers of College Accounting A Contemporary Approach 5th Edition

Indicate the impact of each of the transactions below on the fundamental accounting equation (Assets = Liabilities + Owner’s Equity) by placing an “I” to indicate an increase and a “D” to
The following transactions occurred at several different businesses and are not related.INSTRUCTIONSAnalyze each of the transactions. For each, decide what accounts are affected and set up T
The following occurred during June at Brown Financial Planning.INSTRUCTIONSAnalyze each transaction. Use T accounts to record these transactions and be sure to put the name of the account on the top
The following transactions took place at P and W Capital Investments.INSTRUCTIONSAnalyze each of the transactions. For each transaction, decide what accounts are affected and set up T accounts.
The following accounts and transactions are for Vincent Sutton, Landscape Consultant.INSTRUCTIONSAnalyze the transactions. Record each in the appropriate T accounts. Identify each entry in the T
The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local housing rentals. The entries for the first transaction are labeled with the
Selected accounts from the general ledger of the Escobedo Shipping Service follow. Analyze the following transactions and indicate by number what accounts should be debited and credited for each
The accounts that will be used by Metro Moving Company follow. Prepare a chart of accounts for the firm. Classify the accounts by type, arrange them in an appropriate order, and assign suitable
The transactions that follow took place at the Cedar Hill Recreation and Sports Arena during September 20X1. This firm has indoor courts where customers can play tennis for a fee. It also rents
The transactions listed below took place at Prasad Building Cleaning Service during September 20X1. This firm cleans commercial buildings for a fee.INSTRUCTIONSAnalyze and record each transaction in
French Taylor is a new staff accountant for Fashion House Beauty Supply. He has asked you to review the financial statements prepared for April to find and correct any errors. Review the income
Selected accounts from the general ledger of Martin Consulting Services follow. Record the general journal entries that would be made to record the following transactions. Be sure to include dates
The following transactions took place at the Pimental Employment Agency during November 20X1. Record the general journal entries that would be made for these transactions. Use a compound entry for
Lancaster Company must make three adjusting entries on December 31, 20X1.a. Supplies used, $11,000 (supplies totaling $18,000 were purchased on December 1, 20X1, and debited to the Supplies
Assume that you are the chief accountant for Eli’s Consulting Services. During January, the business will use the same types of records and procedures that you learned about in Chapters 1 through
Identify the normal balance and type of account for the following. In identifying the normal balance, use “Dr” for debit or “Cr” for credit. The first one is done as an example. ACCOUNT
Cozy Kitchens began operations March 1, 20X1. The firm sells its merchandise for cash and on open account. Sales are subject to a 6 percent sales tax. The terms for all sales on credit are net 30.
OfficePro Business Supplies began operations October 1, 20X1. The firm sells its merchandise for cash and on open account. Sales are subject to a 5 percent sales tax. During October, OfficePro
Sports Junction began operations March 1, 20X1. The firm sells its merchandise for cash; on open account; to customers using bank credit cards, such as MasterCard and Visa; and to customers using
W. Tsang Distributors operates in a state with no sales tax. Record the following transactions in a general journal: DATE 20X1 June 5 15 30 TRANSACTIONS Sold merchandise on account to Kisling
Precision Electronics began operations September 1, 20X1. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. The terms for all sales on credit
Appliances Unlimited began operations November 1, 20X1. The firm sells its merchandise for cash and on open account. Sales are subject to a 6 percent sales tax. During November, Appliances Unlimited
The following transactions took place at Animal World Amusement Park during May. Animal World Amusement Park must charge 8 percent sales tax on all sales. DATE 20X1 May 1 15 31 TRANSACTIONS Sold
1. Open the general ledger accounts and accounts receivable ledger accounts indicated below.2. Post the entries from the general journal in Problem 7.2A to the appropriate accounts in the general
1. Open the general ledger accounts and accounts receivable ledger accounts indicated below.2. Post the entries from the general journal in Problem 7.2B to the appropriate accounts in the general
An excerpt from the Consolidated Statements of Earnings for The Home Depot, Inc., is presented below. Review the financial data and answer the following analysis questions.Analyze:1. The Home Depot,
Record the following transactions of Divine Divas Fashions in a general journal. Fashion Park must charge 8 percent sales tax on all sales. DATE 20X1 April 2 3 4 6 30 TRANSACTIONS Sold merchandise
Incredible Sounds is a wholesale business that sells musical instruments. Transactions involving sales and cash receipts for the firm during April 20X1 follow. The firm sells its merchandise for cash
The Urban Florist is a wholesale shop that sells flowers, plants, and plant supplies. Transactions involving sales and cash receipts for the firm during May 20X1 follow. The firm sells its
Record the following transactions of Urban Star Sporting Goods in a general journal. Urban Star Sporting Goods must charge 8 percent sales tax on all sales. DATE 20X1 Feb. 2 15 20 TRANSACTIONS Sold
1. Open the general ledger accounts and accounts receivable ledger accounts shown below. Enter the balances as of April 1, 20X1.2. Post the entries from the general journal in Problem 7.4A to the
1. Open the general ledger accounts and accounts receivable ledger accounts indicated below. Enter the balances as of May 1, 20X1.2. Post the entries from the general journal in Problem 7.4B to the
Rivera Company made sales using the following list prices and trade discounts. What amount should be recorded for each sale?1. List price of $900 and trade discount of 25 percent.2. List price of
Royal Gift Shop sells cards, supplies, and various holiday greeting cards. Sales to retail customers are subject to an 8 percent sales tax. The firm sells its merchandise for cash; to customers using
The Olde English China Shop sells china, stemware, and other gift items. Sales to retail customers are subject to an 8 percent sales tax. The firm sells its merchandise for cash; to customers using
The journal entry to record the return of product by a customer would include a:a. Debit to Sales.b. Credit to Sales.c. Credit to Sales Tax Payable.d. Debit to Sales Tax Payable.
Floral Delights is a retail store that sells garden equipment, furniture, and supplies. The company began operations June 1, 20X1. The firm purchases its merchandise for cash and on open account.
Lens Queen Photo Shop is a retail store that sells cameras and photography supplies. The company began operations April 1, 20X1. The firm purchases its merchandise for cash and on open account.
Identify the normal balance and type of account for the following. In identifying the normal balance, use “Dr” for debit or “Cr” for credit. The first one is done as an example. Account
What is open-account credit?
Lantz Corporation engaged in the following transactions during June. Record these transactions in a general journal. DATE 20X1 June 4 15 30 TRANSACTIONS Purchased merchandise on account from
High Country Ski Shop is a retail store that sells ski equipment and clothing. High Country Ski Shop commenced business on September 1, 20X1. The firm purchases merchandise on open account. The
Sarah’s Card and Supplies Shop is a retail card, novelty, and business supply store. Sarah’s Card and Supplies Shop commenced business on April 1, 20X1. The firm purchases merchandise on open
1. Open the general ledger accounts and accounts payable ledger accounts indicated below. Enter the balance of Cash as of September 1, 20X1.2. Post the entries in Problem 8.2A from the general
1. Open the general ledger accounts and accounts payable ledger accounts indicated below. Enter the balance of Cash as of April 1, 20X1.2. Post the entries in Problem 8.2B from the general journal to
Record the following transactions of LeCoz Fashions: DATE 20X1 March 8 17 TRANSACTIONS Purchased merchandise on credit from Alenikov Designs, Invoice 1091, list price $5,000, trade discounts of 30
1. Open the general ledger accounts and accounts payable ledger accounts indicated below. Enter the balances as of June 1, 20X1.2. Post the transactions in Problem 8.4A to the appropriate accounts in
1. Open the general ledger accounts and accounts payable ledger accounts indicated below. Enter the balances as of August 1, 20X1.2. Post the entries in Problem 8.4B to the appropriate accounts in
1. Use the final balances of the vendor accounts after completing Exercise 8.8 to prepare a schedule of accounts payable for GeekAuto Supplies, Inc., as of January 31, 20X1.2. Does the total of your
Wang Corporation operates in a state with no sales tax. The company uses the perpetual inventory system. Record the following transactions in a general journal: DATE 20X1 June
Bushnell Company (buyer) and Schiff, Inc. (seller), engaged in the following transactions during February 20X1:Bushnell CompanySchiff, Inc.Both companies use the perpetual inventory system.
During one week, four production employees of Morgan Manufacturing Company worked the hours shown below. All these employees receive overtime pay at one and one-half times their regular hourly rate
Robin Market works for Cycle Industries. Her pay rate is $14.50 per hour and she receives overtime pay at one and one-half times her regular hourly rate for any hours worked beyond 40 in a week.
The monthly salaries for December and the year-to-date earnings of the employees of Cross Consulting Company as of November 30 follow.Determine the amount of social security tax to be withheld from
What does being classified an “exempt” employee mean?a. Level of dangerous work being performed by employeesb. Can take off work any time desiredc. Employee does not have to pay medicare taxd.
On April 1, Manning Meat Distributors sold merchandise on account to Fichman’s Franks for $3,700 on Invoice 1001, terms 2/10, n/30. The cost of merchandise sold was $2,200. Payment was received in
The payroll register of Exterior Cleaning Company showed total employee earnings of $5,000 for the payroll period ended July 14.INSTRUCTIONS1. Compute the employer’s payroll taxes for the period.
The payroll register of Auto Detailers showed total employee earnings of $6,000 for the week ended April 8.INSTRUCTIONS1. Compute the employer’s payroll taxes for the period. The tax rates are as
The Home Depot, Inc., reported the following data in its Form 10-K filing (for the fiscal year ended February 3, 2019):Analyze: Assume all employees receive contributions to their retirement
How does a business deposit federal payroll taxes?a. Employees deposit their own taxes due at a bank.b. The company makes the deposit at any bank.c. The company makes the deposit using bitcoin.d. The
On January 31, AC Gourmet Shop prepared its Employer’s Annual Federal Unemployment Tax Return, Form 940. During the previous year, the business paid total wages of $462,150 to its 14 employees. Of
Record the following transactions of Beach Bikes in a general journal: DATE 20X1 April 1 2 4 7 30 TRANSACTIONS Purchased merchandise for cash, $2,510. Returned merchandise for cash purchased on April
Record the following transactions of Evelyn’s Designs in a general journal: DATE 20X1 April 1 9 15 17 24 TRANSACTIONS Purchased merchandise on credit from American Fabricators, Invoice 885, $2,000,
Giovanni’s Pizza purchased merchandise on account from Restaurant Suppliers. The merchandise had a list price of $3,000, with trade discounts of 30 percent and 5 percent, terms n/30. What amount
Bos Sporting Goods, a retail sportswear company, purchased merchandise of $500 on account from Awesome Sweats, a supplier. Awesome Sweats prepaid freight charges of $50 and added them to the invoice.
What is a schedule of accounts payable? Why is it prepared?
Bae Company (buyer) and Johnson, Inc. (seller), engaged in the following transactions during February 20X1:Bae CompanyJohnson, Inc.Journalize the transactions above in a general journal for both Bae
Bennington Company (buyer) and Sanchez, Inc. (seller), engaged in the following transactions during January 20X1:Bennington CompanySanchez, Inc.INSTRUCTIONS1. Open the accounts payable ledger account
Brown Company (buyer) and Stone Corp. (seller) engaged in the following transactions during February 20X1:Brown CompanyStone Corp.INSTRUCTIONS1. Open the accounts payable ledger account and accounts
ROE Company reports purchases of $12,000, freight in of $400, purchases returns and allowances of $800, and purchases discounts of $120. What is the amount of the net delivered cost of purchases?a.
What type of accounts are kept in the accounts payable ledger?
The following transactions took place at Fabulous Fashions Outlet during July 20X1. Fabulous Fashions Outlet uses a perpetual inventory system. Record the transactions in a general journal. Use 8 as
The following transactions took place at Grow-Right Garden Center during June 20X1. Grow-Right Garden Center uses a perpetual inventory system. Record the transactions in a general journal. Use 10 as
Post the entries in the general journal below to the accounts payable account in the general ledger and to the appropriate accounts in the accounts payable ledger. Assume the following account
Identify the normal balance and type of account for the following. In identifying the normal balance, use “Dr” for debit or “Cr” for credit. The first one is done as an example. Account
Lantz Corporation engaged in the following transactions during June. The company uses the perpetual inventory system. Record these transactions in a general journal. DATE 20X1 June
Record the following transactions of Evelyn’s Designs in a general journal. The company uses the perpetual inventory system. DATE 20X1 April 1 9 15 17 24 TRANSACTIONS Purchased merchandise on
What is “time and a half”?a. 11:30 amb. 150% times employee base rate of payc. The FUTA rate of tax on quarterly earningsd. Means you owe federal income tax plus another 50%
Which one of the following is not a required deduction from payroll required by federal law?a. FUTA taxb. Social security taxc. Federal income taxd. Medicare tax
The hourly rates of four employees of European Enterprises follow, along with the hours that these employees worked during one week. Determine the gross earnings of each employee. Employee
What is (are) a good reason(s) for using a payroll bank account for payroll that is separated from your operating bank account?a. Easier to audit payroll transactionsb. Easier to find an
Alan Johnson works for CAT Commercial Builders, Inc. His pay rate is $14.00 per hour and he receives overtime pay at one and one-half times his regular hourly rate for any hours worked beyond 40 in a
Delta Company pays salaries and wages on the last day of each month. Payments made on December 31, 20X1, for amounts incurred during December are shown below. Cumulative amounts paid prior to the
How are unemployment insurance benefits financed?a. They are financed by taxing the employee and withholding from gross earnings.b. Employers pay the entire tax based on an amount determined by state
Which factor(s) does not determine the amount of federal income tax to be withheld from an employee’s earnings?a. State where employee livesb. Number of dependents the employee claimsc. Marital
What accounts are affected when payroll checks are written?a. Cash is debited for gross earnings.b. Cash is credited for net earnings.c. Federal Income Tax is debited.d. Accounts Payable is credited.
Country Covers has four employees and pays them on an hourly basis. During the week beginning June 24 and ending June 30, these employees worked the hours shown below. Information about hourly rates,
The four employees for ACWorks are paid on an hourly basis. During the week of December 25–31, 20X1, these employees worked the hours indicated. Information about their hourly rates, marital
Several years ago, Kat Cortz opened Ocho Tacos, a restaurant specializing in homemade tacos. The restaurant was so successful that the company expanded, and now operates eight restaurants in the
How are social security benefits financed?a. All social security benefits are from dollars withheld from employee pay.b. Employers totally fund social security.c. State governments fund social
Which of the following is recorded on an individual earnings record?a. Gross earnings each pay periodb. Federal income tax withheld each pay periodc. Social security tax withheld each pay periodd.
Alex Wilson operates On-Time Courier Service. The company has four employees who are paid on an hourly basis. During the workweek beginning December 15 and ending December 21, 20X1, employees worked
The Home Depot, Inc., reported the following data in its FY 2018 10-K (for the fiscal year ended February 3, 2019):Analyze:1. What percentage of total current liabilities is made up of accrued
The purpose of FUTA is to provide benefits fora. Employees who become unemployed.b. Employees who become injured while on the job.c. Retired workers.d. Disabled employees.
Which of the following affects the amount of Medicare tax to be withheld from an hourly rate employee’s pay?a. Medical insurance premiumb. Marital statusc. Withholding allowances claimed on Form
Details related to all employees’ gross earnings, deductions, and net pay for a period are found in thea. Payroll register.b. Individual earnings record.c. General journal.d. Cash payments journal.
What is an exempt employee?
Metro Media Company pays its employees monthly. Payments made by the company on October 31 follow. Cumulative amounts for the year paid to the persons prior to the October 31 payroll are also
Daily Operations pays its employees monthly. Payments made by the company on November 30, 20X1, follow. Cumulative amounts paid to the persons named prior to the November 30 payroll are also given.1.
Who pays the social security tax?a. Employee onlyb. Employer onlyc. Both employee and employerd. None of the above

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