51. Voluntary payroll deductions may include all of the following except A. charity donationsB. 401K deductionsC. group health insuranceD. FICA taxes 52. All of the following payroll taxes are levied against the employer except
53. Jennifer Cakes places a coupon in each box of its product. Customers may send in five coupons and $3, and the company will send them a recipe book. Sufficient books were purchased at a cost of $5 each. A total of 400,000 boxes of product were sold in 2014. It was estimated that 6% of the coupons would be redeemed. During 2014, 8,000 coupons were redeemed. Which entry should be made at December 31, 2014? 54. American Business Services introduced a new machine on January 1, 2014. The machine carried a two-year warranty against defects. The estimated warranty costs related to dollar sales were 3% in the year of sale and 5% in the year after sale. Additional information follows:Actual WarrantyYearSalesExpenditures2014$50,000$ 900201580,0004,200If the expense warranty accrual method is used, what amount relating to warranties should be reflected on the December 31, 2015, balance sheet? 55. Which journal entry would probably be made if the modified cash basis of accounting for warranties is in use for a sale made in 2014? A. 2014Warranty Expense XXEstimated Liability under Warranties XXB. 2015Estimated Liability under Warranties XXCash XXC. 2014Cash XXSales XXUnearned Warranty Revenue XXD. 2015Warranty Expense XXCash XX
56. Concerning accounting for warranties, which of the following statements is true? 57. King Sales sells a certain product for $20,000. Included in this price is an implied service contract of $600. Fifty machines were sold in 2014. Warranty expense incurred during 2014 amounted to $35,000. The company uses the sales warranty accrual method. Which entry would probably not be made in 2014?
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