Table 11-1

A $10,000, 90-day, 12% note payable was issued on November 1, 2008.

Table 11-6

Peter Tomach works for a manufacturing company. He earns $600 a week for a

40-hour week and time and a half for anything over 40 hours per week.

During the first week of the year, Peter worked 49 hours. The income tax

withholdings are 15% of gross earnings. Canada Pension Plan deductions are

4.95% of gross earnings and Employment Insurance deductions are 1.88% of

gross earnings. Ignore the basic Canada Pension Plan exemption.

Table 12-4

Jana Jones, Jill Jacks, and Carolle Cann formed a partnership by investing

$250,000, $200,000, and $150,000, respectively. They agreed to share

profits as follows:

1) Annual "salary" allowance of $40,000 to Jana, $20,000 to Jill, and

$30,000 to Carolle.

2) Interest on their original capital balances of 10%.

QUESTION 10

1. Referring to Table 11-6. The amount of Peter's gross pay is:

		$600.00
		$824.50
		$802.50
		$735.00

1 points

QUESTION 11

1. Net pay is equal to:

		gross pay minus all deductions
		take-home pay plus all deductions
		all deductions plus all withholdings
		straight time plus overtime, if any

1 points

QUESTION 12

1. Refer to Table 12-4. If during the first year of business, the company incurs a net loss of $20,000, the capital account of Carolle would:

		increase $56,667
		decrease $56,667
		increase $11,667
		decrease $11,667

1 points

QUESTION 13

1. The net income agreement for Crosby and Stills states net income and net loss shall be divided in a ratio of beginning capital balances. The net loss for the current year is $50,000. On January 1 of the current year, the capital balances were as follows: Crosby, $55,000; and Stills, $65,000. During the current year Crosby withdrew $40,000 and Stills withdrew $25,000. Compute the capital balances as of December 31 of the current year. NOTE - use four decimal places in calculations.

		debit of $7,917 credit of $12,917
		debit of $12,917 credit of $7,917
		credit of $7,917 credit of $12,917
		debit of $7,917 debit of $12,917

1 points

QUESTION 14

1. A limited partnership:

		is illegal in most provinces
		must have at least one general partner
		pays income taxes
		must have at least two general partners

1 points

QUESTION 15

1. Refer to Table 12-4. If the partnership earns a profit of $150,000 its first year, then Jana's capital account would be credited for:

		$42,000
		$65,000
		$40,000
		$45,000

1 points

QUESTION 16

1. Brown invests cash of $20,000 and a building with a cost of $350,000 and accumulated amortization to date of $195,000 in the Brown and Winter Partnership. The building has a current market value of $325,000. A mortgage payable of $105,000 is outstanding on the building and will be assumed by the partnership. Brown's capital account would be credited for:

		$165,000
		$270,000
		$240,000
		$175,000

1 points

QUESTION 17

1. Referring to Table 11-6. The entry to record salary expense includes a:

		debit to salary payable to employees
		credit to employee benefits expense
		credit to employee income tax payable
		debit to employee income tax expense

1 points

QUESTION 18

1. Referring to Table 11-6, the entry to record the payroll for Peter would include a:

		credit to Canada Pension Plan payable for $15.01
		credit to employee income tax payable for $120.38
		credit to employee benefits expense for $54.73
		debit to salary payable to employees for $802.50