Exam 11: Current Liabilities and Payroll Accounting

Landfall Navigation began operations in 2017 and provides a one year warranty on the products it sells. They estimate that 20000 of the 400000 units sold in 2017 will be returned for repairs and that these repairs will cost $8 per unit. The cost of repairing 16000 units presented for service in 2017 was $128000. Landfall should report

Any balance in an unearned revenue account is reported as a(n)

Which of the following statements about liabilities under IFRS in incorrect? Companies sometimes show

As interest is recorded on an interest-bearing note the Interest Expense account is

A company receives $696 of which $56 is for sales tax. The journal entry to record the sale would include a a debit to Sales Tax Expense for $56. B) debit to Sales Taxes Payable for $56. C) debit to Sales Revenue for $696. D) debit to Cash for $696.

A retail store does not segregate sales and the amount of sales tax on sales. If the sales tax rate is 5% and the register total amounted to $136500 what is the amount of the sales taxes owed to the taxing agency?

Lake Norman Company has twenty employees who each earn $120 per day. If they accumulate vacation time at the rate of 1.5 vacation days for each month worked the amount of vacation benefits that should be accrued at the end of the month is

The payroll is paid by the

When an interest-bearing note matures the balance in the Notes Payable account is

Current liabilities are expected to be paid within one year or the operating cycle whichever is longer.

The following totals for the month of June were taken from the payroll register of Parks Company. Salaries and wages \ 80,000 FICA taxes withheld 6,132 Income taxes withheld 17,600 Medical insurance deductions 3,200 Federal unemployment taxes 640 State unemployment taxes 4,000 The journal entry to record the monthly payroll on June 30 would include a

On October 1 2016 Pennington Company issued an $800000 10% nine-month interest-bearing note. Assuming interest was accrued in June 30 2017 the entry to record the payment of the note on July 1 2017 will include a:

Sly's Salon has total receipts for the month of $9275 including sales taxes. If the sales tax rate is 6% what are Sly's sales for the month?

Dailey Company does not ring up sales taxes separately on the cash register. Total receipts for February amounted to $48150. If the sales tax rate is 7% what amount must be remitted to the state for February's sales taxes?

Maddy Peters's regular hourly wage rate is $14 and she receives an hourly rate of $21 for work in excess of 40 hours. During a March pay period Maddy works 47 hours. Maddy's federal income tax withholding is $80 and she has no voluntary deductions. Compute Maddy Peters's gross earnings and net pay for the pay period.

Current maturities of long-term debt

Current maturities of long-term debt refers to the amount of interest on a note payable that must be paid in the current year.

A cash register tape shows cash sales of $5000 and sales taxes of $300. The journal entry to record this information is a. Cash. 5,300 Sales Revenue 5,300 b. Cash. 5,300 Sales Tax Revenue 300 Sales Revenue 5,000 c. Cash. 5,000 Sales Tax Expense. 300 Sales Revenue 5,300 d. Cash. 5,300 Sales Revenue 5,000 Sales Tax Revenue 300

Country Outfilter's 2017 financial statements contained the following data (in millions). Current assets \ 16,890 Accounts receivable \ 1,550 Total assets 42,430 Interest expense 980 Current liabilities 12,000 Income tax expense 1,270 Total liabilities 32,580 Net income 2,230 Cash 380 Instructions Compute these values: (a) Working capital. (b) Current ratio.

Sales taxes collected from customers are a ______________ of the business until they are remitted to the taxing agency.