Questions from College Accounting

Q: Kelly Company on September 1, 201X, had inventory costing $

Kelly Company on September 1, 201X, had inventory costing $30,000 and during September had net purchases of $67,900. Over the years, Kelly Company’s gross profit averaged 42% on sales. Given that the...

Q: Ben Stein, single, claiming one exemption, has cumulative earnings

Ben Stein, single, claiming one exemption, has cumulative earnings before this biweekly pay period of $116,200. If he is paid $1,980 this period, what will his deductions be for FIT and FICA (OASDI an...

Q: Given the following accounts, complete the table by inserting appropriate numbers

Given the following accounts, complete the table by inserting appropriate numbers next to the individual transaction to indicate which account is debited and which account is credited. 1. Cash 2. Acc...

Q: Blue Company incurred the following expenditures to buy a new machine:

Blue Company incurred the following expenditures to buy a new machine: • Invoice, $28,000 less 9% cash discount. • Freight charges, $490. • Assembly charges, $1,100. • Special base to support machine,...

Q: On May 1, 2014, Falcon Company bought a patent at

On May 1, 2014, Falcon Company bought a patent at a cost of $5,400. It is estimated that the patent will give Falcon a competitive advantage for 9 years. Record in general journal form amortization fo...

Q: Hobbs Company bought a light general-purpose truck for $9

Hobbs Company bought a light general-purpose truck for $9,200 on January 7, 2006. Calculate the yearly depreciation using the MACRS method.

Q: A. Lot and B. Sharpless have decided their partnership earnings

A. Lot and B. Sharpless have decided their partnership earnings will be shared as follows: (a) 12% interest allowance on capital balances at beginning of year, (b) remainder to be shared equally. Capi...

Q: Julie Eagle, Tami DeBurgo, and Abby Ellis are partners who

Julie Eagle, Tami DeBurgo, and Abby Ellis are partners who share losses and gains in a ratio of 2:2:1. Their capital balances are $5,200, $5,700, and $3,700, respectively. The partners are anxious to...

Q: L. White, V. Sable, and E. Rabel

L. White, V. Sable, and E. Rabel are partners with capital balances of $93,000, $84,000, and $70,000, respectively. Rabel sells his interest in the company for $88,000 to P. Skou. White and Sable have...

Q: Josh, Chase, and Cameron have capital balances before liquidation

Josh, Chase, and Cameron have capital balances before liquidation of $12,000, $28,000, and $34,000, respectively. Cash balance is $45,000, and the partners share losses and gains in a 3:2:1 ratio. Al...