Determine how each of the following transactions affect liabilities A Payment

# Determine how each of the following transactions

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12. Determine how each of the following transactions affect liabilities.A. Payment to employees for wages previously accruedB. Accrue interest of \$100 on a note payableC. Payment of \$100 to bank for interest accrued on a note payable Topic: Balance sheet presentation of stockholders’ equity 13.Use the following information to prepare the shareholders’ equity section of the balance sheet forMickey Incorporated:A. Common Stock - \$.15 par value: 60,000 shares authorized, 25,000 shares outstanding as ofDecember 31, 2013B. Retained Earnings, December 31, 2013, \$34,000C. Treasury Stock –Mickey repurchased 3,000 shares at \$25 per shareD. Total Shareholders’ Equity as of December 31, 2013 is \$270,000 Page 6 of 10
) Topic: Cost Behavior 14.Classify each of the following costs as variable, fixed, mixed, or step by writing an X under one of thefollowing headings (Sales volume is the cost driver). Variable Fixed Mixed Step 1. Total selling and administrative costs 2. Salaries of supervisors (each supervisor is in charge of five production employees) 3. Raw materials used in production 4. Power consumption in a restaurant 5. Cost of goods sold in a restaurant 6. Salaries of employees who handle 20 claims per month 7. Pulpwood in a paper mill 8. Salaries of two secretaries in the corporate office 9. Total current manufacturing costs 10. The cost of an automobile rented on the basis of a daily charge plus \$0.50 per mile Answer: Variable Fixed Mixed Step 1. Total selling and administrative costs X 2. Salaries of supervisors (each supervisor is in charge of five production employees) X 3. Raw materials used in production X 4. Power consumption in a restaurant X 5. Cost of goods sold in a restaurant X 6. Salaries of employees who handle 20 claims per month X 7. Pulpwood in a paper mill X 8. Salaries of two secretaries in the corporate office X 9. Total current manufacturing costs X 10. The cost of an automobile rented on the basis of a daily charge plus \$0.50 per mile X Topic: High-Low Cost Estimation

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