Questions from Accounting Principles

Q: Coghlan Auto Supply does not segregate sales and sales taxes at the

Coghlan Auto Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $16,380. All sales are subject to a 5% sales tax. Compute sales taxes payable, and...

Q: Derby University sells 4,000 season basketball tickets at $210

Derby University sells 4,000 season basketball tickets at $210 each for its 12 game home schedule. Give the entry to record (a) the sale of the season tickets and (b) the revenue recognized by playing...

Q: Yahoo! Inc.’s recent financial statements contain the following selected

Yahoo! Inc.’s recent financial statements contain the following selected data (in thousands). Compute (a) working capital and (b) current ratio.

Q: On December 1, Bruney Company introduces a new product that includes

On December 1, Bruney Company introduces a new product that includes a one-year warranty on parts. In December, 1,000 units are sold. Management believes that 5% of the units will be defective and tha...

Q: Beth Corbin’s regular hourly wage rate is $16, and she

Beth Corbin’s regular hourly wage rate is $16, and she receives an hourly rate of $24 for work in excess of 40 hours. During a January pay period, Beth works 45 hours. Beth’s federal income tax withho...

Q: Data for Beth Corbin are presented in BE11.7. Prepare

Data for Beth Corbin are presented in BE11.7. Prepare the journal entries to record (a) Beth’s pay for the period and (b) the payment of Beth’s wages. Use January 15 for the end of the pay period and...

Q: In January, gross earnings in Lugo Company totaled $80,

In January, gross earnings in Lugo Company totaled $80,000. All earnings are subject to 7.65% FICA taxes, 5.4% state unemployment taxes, and 0.8% federal unemployment taxes. Prepare the entry to recor...

Q: Peosta Company identifies the following items for possible inclusion in the taking

Peosta Company identifies the following items for possible inclusion in the taking of a physical inventory. Indicate whether each item should be included or excluded from the inventory taking. a. Good...

Q: Record the following transactions on the books of RAS Co.

Record the following transactions on the books of RAS Co. a. On July 1, RAS Co. sold merchandise on account to Waegelein Inc. for $17,200, terms 2/10, n/30. b. On July 8, Waegelein Inc. returned merch...

Q: In its first month of operations, Weatherall Company made three purchases

In its first month of operations, Weatherall Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $7, and (3) 200 units at $8. Assuming there ar...