1) Rich Company’s experience shows that 20% of its sales are for cash and 80% are on
credit. An analysis of credit sales shows that 50% are collected in the month following
the sale, 45% are collected in the second month, and 5% prove to be uncollectible.
Calculate items (1) through (10) below:
2) The four categories of equity accounts are ____________________,
_________________, _____________________, and _____________________.
3) A company has 90 employees and a weekly payroll of $117,000. The FICA-social
security tax rate is 6.2% and the FICA-Medicare tax rate is 1.45%. The total
withholding for federal income tax is $16,500 for the current week. Calculate the
amount of FICA taxes owed (assuming no employee’s salary is over the FICA limit) and
prepare the journal entry to accrue this week’s salaries expense and withholdings.
4) Discuss how technology based information systems affect accounting
5) A company’s property records revealed the following information about its plant
assets:
Calculate the depreciation expense for each machine for the year ended December 31
for Year 1, and for the year ended December 31 for Year 2.
6) Explain how to compute book value per share and discuss how it can be used to
analyze the financial condition of a corporation.
7) The second step in accounting for production activity in a period is to compute
____________________.
8) Identify several opportunities in accounting and its related fields.