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1) Lipinski Company completed and transferred 90,000 units during the current period.
Based on the following information, determine the cost of the goods completed during
the current reporting period and journalize the transfer.
2) Blake Company pays its employees for two weeks vacation each year. The total
annual cost of the vacation benefit is $113,000. Prepare the journal entry to record the
weekly accrued vacation expense.
3) ______________________ basis accounting means that revenues are recognized
when cash is received and that expenses are recorded when cash is paid.
________________________ basis accounting means that the financial effects of
revenues and expenses are recorded when earned or incurred.
4) On January 31, Hale Company's payroll register showed that its employers earned
$30,320 of office salaries and $82,750 of sales salaries. Withholdings from the
employees' salaries include FICA Social Security taxes as the rate of 6.2%, FICA
Medicare taxes at the rate of 1.45%, $16,960 of federal income taxes, $2,350 of medical
insurance deductions (which represents 50% of the total cost of the employee medical
insurance), and $4,210 of 401(k) retirement contribution deductions. Hale Company
pays the other 50% of the employee insurance cost and matches the employee 401(k)
contributions. Several employees earned more than $7,000 for the period which reduced
salaries subject to unemployment to $110,000. No employees exceeded the
FICA-Social Security taxable wage base.
1> Prepare the journal entry to record Hale Company's January 31 payroll expenses and
liabilities.
2> Prepare the journal entry to record Hale Company's employer payroll taxes resulting
from the January 31 payroll. Hale's merit rating reduces its state unemployment to 4%
of the first $7,000 paid each employee. The federal unemployment tax rate is .8%.
3> Prepare the journal entry to record Hale's additional employee expenses.
5) The ________________________________ depreciation method allocates equal
amounts of an asset's cost to depreciation during its useful life.
6) From the adjusted trial balance for Worker Products Company given below, prepare
the necessary closing entries.
7) Three important assumptions in cost-volume-profit analysis is that (1)
_______________ per unit is constant, (2) _____________ per unit is constant, and (3)
______________ are constant in total.
8)
In the table below, indicate with an "X" in the proper column whether the account is a
temporary (nominal) account or a permanent (real) account.
9) The gross margin ratio, return on total assets, and basic earnings per share are all
_____________ ratios.
