ACC 1223 Study Guide Fall 2009 - Copy

ACC 1223 Study Guide Fall 2009 - Copy - 1. Mobile Co....

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1. Mobile Co. issued a $45,000, 60-day, discounted note to Guarantee Bank. The discount rate is 6%. At maturity, the borrower will pay: a. $45,450 b. $42,300 c. $45,000 d. $44,550 2. Which of the following forms is typically given to employees at the end of the calendar year so that employees can file their individual income tax forms? a. Employment Withholding Allowance Certificate (W-4) b. Wage and Tax Statement (Form W-2) c. Employer's Quarterly Federal Tax Return (Form 941) d. 401k plans 3. An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $5,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, .8% on the first $7,000. What is the employer's payroll tax expense? a. $55.13 b. $61.01 c. $86.00 d. $141.13 4. For a current liability to exist, the following two tests must be met. The liability must be due usually within a year and must be paid out of current assets. a. True b. False 5. Internal controls for cash payments also apply to payrolls. a. True b. False 6. During the first year of operations, employees earned vacation pay of $35,000. The vacations will be taken during the second year. The vacation pay expense should be recorded in the second year as the vacations are taken by the employees. a. True b. False 7. Partner A has a capital balance of $20,000 and devotes full time to the partnership. Partner B has a capital balance of $30,000 and devotes half time to the partnership. In what ratio is net income to be divided? a. 3:5 b. 1:1 c. 2:3 d. 1:2 8. Xavier and Yolanda have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%, salary allowances of $27,000 and $18,000 respectively, and the remainder equally. How much of the net loss of $6,000 is allocated to Yolanda? a. $1,000 b. $3,000 c. $5,000 d. $0
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9. Soledad and Winston are partners who share income in the ratio of 1:3 and have capital balances of $100,000 and $140,000 at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $130,000. What amount of loss on realization should be allocated to Soledad? a. $60,000 b. $27,500 c. $92,500 d. $32,500 10. Partners Ken and Macki each have a $40,000 capital balance and share income and losses in a 3:2. Cash equals $20,000, noncash assets equal $120,000, and liabilities equal $60,000. If the noncash assets are sold for $80,000, the Macki’s capital account will a. decrease by $16,000. b. decrease by $24,000.
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This note was uploaded on 04/05/2012 for the course ACCT 4221 taught by Professor Crumbley,d during the Spring '08 term at LSU.

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ACC 1223 Study Guide Fall 2009 - Copy - 1. Mobile Co....

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