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Accounting MCQs_Solution_Accounting MCQs_Solution_24 Nov

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Question;The following facts pertain to questions 1;and 2;The Scepter Shop recorded October sales of $185,000.;All sales are cash. Their one store is in an area with a 7.5% sales tax rate.;Cost of goods sold for these sales amounted to 112,000. The Scepter Shop must;pay its sales tax liability by the 15th day of the month following;the month of sales.;1. What accounts will be affected in the;transaction recording the October sales?;a.;cash, sales tax expense, sales revenues;b.;cash, sales tax payable, sales revenues;c.;cash, sales revenues;d.;cash, sales tax expense;2. When the sales taxes are paid on;November 15, what accounts are involved in this transaction?;a.;cash, sales tax expense;b.;accounts payable, sales tax expense;c.;cash, sales tax payable;d.;none of the above.;The following information pertained to;questions 3 through 5;The Standard Company signed a note on;November 15, 2013 when it borrowed $25,000. The note had a maturity date of 90;days and an APR interest rate of 6 %.;3. What was the amount of interest to be;accrued on December 31, 2013? (Use the actual number of days method.);a.;766.67;b.;189.04;c.;375.00;d.;191.67;4. What is the total amount of interest to;be accrued for 2014? (Use the actual number of days method.);a.;180.82;b.;183.33;c.;187.50;d.;184.93;5. When the note is finally paid off by;Standard, which accounts are affected?;a.;note receivable, interest expense;b.;note payable, interest payable, cash;c.;note receivable, interest expense, cash;d.;note payable, interest expense, interest payable, cash;The following information pertains to;questions 6 through 8;Larry, Moe and Curly work for Stooges;Inc., which does not have a policy of paying time-and-a-half for hours worked;in excess of 40 per week. The following information relates to a recent week;Name Hourly;Rate # hours;worked Federal Income Tax withheld;Larry 7.50 45 15%;Moe 9.25 56 22%;Curly 8.50 38 20%;Social Security withholding is at 6%;Medicare withholding is at 1.5%.;6. Calculate the total gross wages of all;three employees for the week.;a.;1,298.25;b.;1,186.25;c.;1,178.50;d.;1,211.45;7. What is the net pay of Curly for the;week?;a.;234.18;b.;298.78;c.;303.62;d.;239.02;8. What is the total amount of;Social Security and Medicare taxes that Stooges must send to the government for;this week?;a.;88.39;b.;317.57;c.;635.14;d.;176.78;9. The Whipsaw Company wants to accumulate;$250,000 in 5 years in order to purchase a new machine. It prefers to make a;one-time payment to a bank account that will pay 4%. How much must the;single-sum payment be so that it will grow to $250,000 in 5 years at an APR of;4%?;a.;50,000.00;b.;205,481.75;c. 248,975.63;d.;215,986.48;10. The Quigley Company wants to set up a;fund to pay off a $125,000 loan in 8 years. It can invest the same sum of money;each year to an account that will pay 4%. What will Quigley?s annual;contribution to the fund be?;a. 14,382.01;b. 13,289.24;c. 13,565.98;d. 14,001.54

 

Paper#44647 | Written in 18-Jul-2015

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