1) Why is it important to report discontinued operations separately from income from
continuing operations?
2) The principle of internal control that prevents one individual from being responsible
for all the related activities of a given task is ______________.
3) The following payroll liability accounts are included in the ledger of Devito
Company on January 1, 2014:
FICA Taxes Payable$1,750
Federal Income Taxes Payable4,000
State Income Taxes Payable665
Federal Unemployment Taxes Payable175
State Unemployment Taxes Payable1,190
Union Dues Payable400
Health Insurance Payable5,000
U.S. Savings Bonds Payable1,500
In January, the following transactions occurred:
Jan.9Sent a check for $5,000 to Blue Cross and Blue Shield.
11Deposited a check for $5,750 in Federal Reserve Bank for FICA taxes and federal
income taxes withheld.
14Sent a check for $400 to the union treasurer for union dues.
18Paid state income taxes withheld from employees.
21Paid state and federal unemployment taxes.
22Purchased U.S. Savings Bonds for employees by writing a check for $1,500.
Instructions
Journalize the January transactions
4) Credit terms of 2/10, n/30 mean that
a 2% cash discount may be taken if payment is made within 10 days of the invoice date;
otherwise the full amount is due within 30 days
a 10% cash discount may be taken if payment is made immediately; a 2% discount if
paid within 30 days
c.a 2% cash discount may be taken if payment is made within 10 days of the invoice
date; otherwise the full amount is due at the end of the month
d.an additional amount equal to 2% of the invoice price must be paid if payment is not
received within 10 days; the account is overdue after 30 days
5) Unit fixed costs __________________ with the changes in the level of activity.