b. $79,200 [$80,000 ($80,000 45/360 8%)]
b. $118,200 [$120,000 ($120,000 60/360 9%)]
Total wage payment .
One allowance (provided by IRS).
Multiplied by allowances claimed on Form W-4 .
Federal income taxes payable .
Advances on magazine subscriptions .
Total current liabilities .
*10,000 $75 9/12 = $562,500
The nine months of unfilled subscriptions are a cu
CASES & PROJECTS
The firm has no implicit or explicit contract to pay any bonus. The bonus is discretionary, even if the firm paid a two-week bonus for 10 straight years. The firm
is not behaving unethically for reducing the bonus to one weekregard
CURRENT LIABILITIES AND PAYROLL
6. If employees attendance records are kept
and their preparation supervised in such a
manner as to prevent errors and abuses,
then one can be assured that wages paid
are based on hours actua
New printing press: 1, 2, 3, 4, 5
b. Used printing press: 7, 8, 9, 10
Yes. All expenditures incurred for the purpose of making the land suitable for
its intended use should be debited to the land account.
b. No. Land is not
CASES & PROJECTS
It is considered unprofessional for employees to use company assets for
personal reasons, because such use reduces the useful life of the assets for
normal business purposes. Thus, it is unethical for Rosa Salinas to use Zebra
Sept. 30 Delivery Truck .
30 Repairs and Maintenance Expense .
9 Accumulated DepreciationDelivery Van.
9 Delivery Van .
a. $245,000 ($275,000 $30,000)
FIXED ASSETS AND INTANGIBLE ASSETS
1. a. Property, plant, and equipment
b. Current assets (merchandise inventory)
2. Real estate acquired as speculation should
be listed in the balance sheet under the caption Investments, b
Accounts receivable from the U.S. government are significantly different from
receivables from commercial aircraft carriers such as Delta and United. Thus,
Boeing should report each type of receivable separately. In the December 31,
CASES & PROJECTS
By computing interest using a 365-day year for depository accounts (liabilities),
Stacey is minimizing interest expense to the bank. By computing interest using a
360-day year for loans (assets), Stacey is maximizing interest revenu
1. Receivables are normally classified as (1)
accounts receivable, (2) notes receivable, or
(3) other receivables.
2. Elite Hardware should use the direct writeoff method because it is a small business
that has a
CH 26 NEGOTIABLE INSTRUMENT TRANSFERS #1
Negotiation is the way to "magically" transfer a negotiable instrument. Unless done correctly, the
transfer would only qualify as an assignment of a contract right.
1) What is the difference between an order instru
CH 32 AGENCY FORMATION & DUTIES
1) It is stated that agency relationships are consensual. How does that different than contractual? Can
you give an example of an agency relationship that is NOT contractual?
2) Can you distinguish between the agent's duty
CH 33 AGENCY LIABILITY & TERMINATION
1) Discuss the four (4) ways that a principal could be found contractually liable to a third party for an
2) Discuss how an agent can be found contractually liable personally for his/her actions.
CH 28 BANKING
1) Please summarize The 3 different relationships between Bank and customer in Section 2 of the
2) Distinguish between a cashier's check and a certified check. What advantages and disadvantages do
they have to a personal check?
1) Compare and contrast the following forms of concurrent ownership
a) Tenancy In Common
b) Joint tenancy
c) Tenancy By the Entirety
2) What are the necessary components of a valid deed?
3) Compare and contrast the following types of deed:
CH 26 HOLDER IN DUE COURSE #2
1) What makes a Holder in Due Course magical as compared to an ordinary holder?
2) How does one qualify as a HDC?
3) When is a check deemed "overdue"?
4) What is the shelter principle?
1) When an instrument is transferred, an