accounting principle solutions

accounting principle solutions - 11 H K * H K H K * pae * )...

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Unformatted text preview: 11 H K * H K H K * pae * ) Question 1: Score 3/3 Quick Study 11-1: Classifying liabilities L.O. C1 Which of the following items are normally classified as a current liability for a company that has a 15-month operating cycle? (Select all that apply.) Choice Selected Note payable due in 18 months. No [answer withheld] Note payable maturing in 2 years. No [answer withheld] Salaries payable. Yes [answer withheld] FICA taxes payable. Yes [answer withheld] Note payable due in 11 months. Yes [answer withheld] Portion of long-term note due in 15 months. Yes [answer withheld] Total correct answers: 4 Question 2: Score 3/3 Your response Quick Study 11-3: Accounting for sales taxes L.O. C2 Wheeling Computing sells merchandise for $12,000 cash on September 30 (cost of merchandise is $7,800). The sales tax law requires Wheeling to collect 6% sales tax on every dollar of merchandise sold. Record the entry for the $12,000 sale and its applicable sales tax. Also record the entry that shows the remittance of the 6% tax on this sale to the state government on October 15. (Omit the "$" sign in your response.) Date General Journal Debit Credit Sept. 30 Cash (7%) 12720 (7%) Sales (7%) 12,000 (7% ) Sales Taxes Payable (7%) 720 (7%) Sept. 30 Cost of Goods Sold (7%) 7,800 (7%) Merchandise Inventory (7%) 7,800 (7%) Oct. 15 Sales Taxes Payable (7%) 720 (7%) Cash (7%) 720 (7%) Question 3: Score 3/3 Quick Study 11-9: Accounting for contingent liabilities L.O. C3 The following legal claims exist for VanBeek Co. Identify the accounting treatment for each claim as either ( a ) a liability that is recorded or ( b ) an item described in notes to its financial statements.) an item described in notes to its financial statements....
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This note was uploaded on 11/07/2010 for the course BBA 1023 taught by Professor Luoyi during the Spring '10 term at University of Macau.

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accounting principle solutions - 11 H K * H K H K * pae * )...

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