Author: Anonymous

Minelli’s Market bought $11,300 worth of merchandise from Food Suppliers and signed a 120-day, 6% promissory note for the $11,300. Food Supplier’s journal entry to record the sales transaction is:

On September 1, Cottage Grove, a newly formed company, had the following stock issued and outstanding: Common stock, $1 par value, 15,000 shares originally issued for $18 per share Preferred stock, $15 par value, 3,000 shares originally issued for $45 per share Cottage Grove’s September 1 statement of equity should report

Nalepa Inc. purchased equipment for $23,500 on April 1, 2022. The equipment will be depreciated using the straight-line method over its four-year useful life. Assuming the equipment’s salvage value is $2,300, what will be the amount of accumulated depreciation on the equipment on December 31, 2024?  

Calabrese Company reported the following purchases and sales of its only product. Calabrese uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using LIFO.   Date Activities Units Acquired at Cost Units Sold at Retail May 1 Beginning Inventory 180 units @ $13   May 5 Purchase 235 units @ $15   May 10 Sales   155 units @ $23 May 15 Purchase 115 units @ $16   May 24 Sales   105 units @ $24

On December 31, Manning Company has an unadjusted credit balance of $1,600 in its Allowance for Doubtful Accounts. Following is a schedule of its December 31 accounts receivable by age. Age of Accounts Receivable Accounts Receivable Expected Percent Uncollectible Not yet due $ 96,000 1.0% 1 to 30 days past due 64,000 2.5% 30 to 60 days past due 16,000 11.0% 61 to 90 days past due 6,500 37.0% Over 90 days past due 3,200 70.0% The Gross Accounts Receivable balance should be reported as: [answer1]. The Allowance for Doubtful Accounts balance should be reported as: [answer2]. The Net Accounts Receivable balance should be reported as: [answer3].   The Bad Debt Expense should be reported as: [answer4].

The matching principle, as applied to bad debts, requires:

Briguglio Company reported the following purchases and sales of its only product. Briguglio uses a periodic inventory system. Determine the cost assigned to cost of goods sold using FIFO.   Date Activities Units Acquired at Cost Units Sold at Retail May 1 Beginning Inventory 180 units @ $13   May 5 Purchase 235 units @ $15   May 10 Sales   155 units @ $23 May 15 Purchase 115 units @ $16   May 24 Sales   105 units @ $24

On November 1, Witt Company signed a 120-day, 10% note payable, with a face value of $21,000. Witt made the appropriate year-end accrual. What is the journal entry as of March 1 to record the payment? Note: Use 360 days a year.

Tran Company reported the following purchases and sales of its only product. Tran uses a periodic inventory system. Determine the cost assigned to cost of goods sold using LIFO.   Date Activities Units Acquired at Cost Units Sold at Retail May 1 Beginning Inventory 180 units @ $13   May 5 Purchase 235 units @ $15   May 10 Sales   155 units @ $23 May 15 Purchase 115 units @ $16   May 24 Sales   105 units @ $24

Megan earned $100,000 working for Christopher Corporation in the current year. The current rate for FICA Social Security is 6.2% payable on earnings up to $160,200 maximum per year and the rate for FICA Medicare 1.45% of all earnings. The employer’s total FICA payroll tax for this employee is: