Questions from Accounting Principles

Q: During the month of January, an employee earned $4,

During the month of January, an employee earned $4,000 of salary. Withholdings from the employee’s salary consist of FICA Social Security taxes of $248, FICA Medicare taxes of $58, federal income taxe...

Q: How could a production cost report be used to determine if a

How could a production cost report be used to determine if a program to reduce water usage is successful?

Q: During the month of January, an employer incurred the following payroll

During the month of January, an employer incurred the following payroll taxes: FICA Social Security taxes of $372, FICA Medicare taxes of $87, FUTA taxes of $36, and SUTA taxes of $324. Prepare the jo...

Q: On December 1, Home Store sells a mower (that costs

On December 1, Home Store sells a mower (that costs $200) for $500 cash with a one-year warranty that covers parts. Warranty expense is estimated at 8% of sales. On January 24 of the following year, t...

Q: Amy and Lester are partners in operating a store. Without consulting

Amy and Lester are partners in operating a store. Without consulting Amy, Lester enters into a contract to purchase $10,000 of merchandise for the store. Amy says she did not authorize the order and t...

Q: Fee and Karley had a tech business. After two unprofitable years

Fee and Karley had a tech business. After two unprofitable years, the business closed. At that point, the liabilities of the business were $100,000 larger than its assets. Under each separate situatio...

Q: Dave Krug contributed $1,000 cash along with inventory and

Dave Krug contributed $1,000 cash along with inventory and land to a new partnership. The inventory had a market value of $2,000. The land had a market value of $5,000. The partnership also accepted a...

Q: Andy and Jin form an LLC. Jin invests $3,

Andy and Jin form an LLC. Jin invests $3,000 cash, equipment with a market value of $6,000, and land with a market value of $40,000. Prepare the LLC’s journal entry to record Jin’s investment. Hint: T...

Q: Lopez and Gomez are members in an LLC that reports net income

Lopez and Gomez are members in an LLC that reports net income of $130,000. An agreement states that Lopez receives a $20,000 salary allowance and Gomez receives a $50,000 salary allowance. Any remaini...

Q: Pena LLC has two members, Sophia and Maria, who share

Pena LLC has two members, Sophia and Maria, who share net income and loss equally. Total equity of the business is $100,000, which is made up of Sophia, Member Equity, of $60,000, and Maria, Member Eq...