accounting301 HW - ACCT301 Homework Assignment #1 (45...

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ACCT301 Homework Assignment #1 (45 points) (Due on 2/17) The first 4 questions are multiple-choice and each question is worth 1 point. The rest of the questions are computational. 1. In November and December 2010, Lane Co., a newly organized magazine publisher, received $90,000 for 1,000 three-year subscriptions at $30 per year, starting with the January 2011 issue. Lane included the entire $90,000 in its 2010 income tax return. What amount should Lane report in its 2010 income statement for subscriptions revenue? a. $0. b. $5,000. c. $30,000. d. $90,000. 2. Colaw Co. pays all salaried employees on a biweekly basis. Overtime pay, however, is paid in the next biweekly period. Colaw accrues salaries expense only at its December 31 year end. Data relating to salaries earned in December 2010 are as follows: Last payroll was paid on 12/26/10, for the 2-week period ended 12/26/10. Overtime pay earned in the 2-week period ended 12/26/10 was $10,000. Remaining work days in 2010 were December 29, 30, 31, on which days there was no overtime. The recurring biweekly salaries total $180,000. Assuming a five-day work week, Colaw should record a liability at December 31, 2010 for accrued salaries of a. $54,000. b. $64,000. c. $108,000. d. $118,000. 3. Tolan Corp.'s trademark was licensed to Eddy Co. for royalties of 15% of sales of the trademarked items. Royalties are payable semiannually on March 15 for sales in July through December of the prior year, and on September 15 for sales in January through
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accounting301 HW - ACCT301 Homework Assignment #1 (45...

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