Question 1
Alpha Company records all sales at the register with amounts that include 8% sales tax. During November 2016, total sales at the register were recorded as $706,320. Use this information to determine what amount of sales tax liability that Alpha Company should record for an end of the month adjusting entry.
Question 2
Charlie Delta, an employee of the Bravo Zulu Company is paid by cheque on each payday and earns $15 per hour. Charlie worked 50 hours the week ending February 26, 2016. Overtime in excess of 40 hours must be paid at 150% of the normal hourly rate. Payroll liabilities are paid at the end of each quarter. The following apples to all of Charlie's wages for this period:
|
Item
|
Rate/Amount
|
|
Social Security taxes
|
6.0%
|
|
Medicare/Medicaid taxes
|
1.5%
|
|
Federal Income Taxes withheld
|
$210
|
|
State Income Taxes withheld
|
$50
|
All this week's wages were subject to:
|
Item
|
Rate/Amount
|
|
Federal Unemployment Tax
|
0.5%
|
|
State Unemployment Tax
|
3.0%
|
Use this information to determine for the February 26 pay period:
1. Charlie's Net Pay
2. Bravo Zulu's employer payroll tax expense
3. Total Payroll Liability for Bravo Zulu
(Round calculations to the nearest penny. Enter dollar values in answer boxes rounded to the nearest penny.)
Question 3
On December 31, 2015, Alpha Corporation has outstanding 1,000 shares of $100 par value, 7% cumulative and nonparticipating preferred stock, and 20,000 shares of $10 par value common stock. No dividends were paid in 2015. During 2016, Alpha distributed $40,000 in dividends. Use this information to determine for the 2016 the amount of dividends that will be distributed to:
1. Preferred Stock
2. Common Stock
Question 4
On January 2, 2016, Alpha Corporation's initial capital stock transaction consisted of an issuance of 5,000 shares of $5 par value common stock, for $60 per share. On June 30, 2017 another 10,000 shares were authorized to be issued. Use this information to determine for the June 30, 2017 balances for:
1. Common Stock
2. Additional Paid in Capital in excess of par Common Stock
Question 5
On July 1, 2016, Alpha Company, a world famous international monthly food publication, sold 1,000 two-year subscriptions to their highly demanded monthly magazine. Each subscription sold for $18 each. Monthly magazines are mailed at the end of each month. Use this information to determine what amount should be reported on Alpha Company's December 31, 2016 balance sheet as a part of the Unearned Subscriptions Revenue related to the July 2016 sales.
Question 6
Alpha Company sells widgets for $35 each. The widget has a one year warranty. Alpha estimates that 6% of the widgets will require repair during the warranty period. The estimated average repair cost is $4.30 per widget. On July 31, the Estimated Warranty Liability account had a normal balance of $25,000. During August, sales were $70,000. During August, 470 widgets were repaired under the warranty agreement with an actual cost of $4.50 each. Use this information to determine:
1. The August 31 Estimated Warranty Liability ending balance
2. The August Warranty Expense
Question 7
On July 1, 2016, Alpha Company, a world famous international monthly food publication, sold 1,000 two-year subscriptions to their highly demanded monthly magazine. Each subscription sold for $18 each. Monthly magazines are mailed at the end of each month. Use this information to prepare the July 1 subscription sale and the year end adjusting General Journal entries (without explanation) for 2016. If no entry is required then write "No Entry Required."
Question 8
On July 1, 2016, Alpha Company borrowed $100,000 from Mega Bank. Alpha signed a 5% note, due in one year. Alpha uses accrual basis for accounting and its fiscal year ends on December 31. Use this information to prepare the compound General Journal entry (without explanation) for the payment of the note on June 30, 2017. If no entry is required then write "No Entry Required."
Question 9
On July 1, 2016, Alpha Company purchased from Zulu Company, a truck for $24,000. Alpha signed a Note Payable due in one year for $25,440. Alpha uses accrual basis for accounting and its fiscal year ends on December 31. Use this information to prepare the compound General Journal entry (without explanation) for the payment of the note on June 30, 2017. If no entry is required then write "No Entry Required."
Question 10
On January 2, 2016, Alpha Corporation issued 15,000 shares of $10 par value common stock for $15 per share. On March 1, 2016, Alpha reacquired 1,000 of these shares when they were trading $20 each. September 1, 2016, when the market was soaring, Alpha reissued 500 shares of treasury stock at the going market rate of $25 per share. Use this information to prepare the General Journal entry (without explanation) for September 1.
Question 11
On January 1, 2016, Alpha Corporation had 300,000 shares of common stock outstanding with a par value of $3 per share. On March 31, Alpha Corporation authorized a 10% stock dividend when the market value was $8 per share. Use this information to prepare the General Journal entry (without explanation) for March 31. If no entry is required then write "No Entry Required."
Question 12
The following are selected accounts for the Alpha Dog Company after all Fiscal Year December 31, 2016, adjusting entries & closing entries have been posted. All balances are normal.
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Account
|
Amount
|
|
Common Stock, $5 par
|
$150,000
|
|
Treasury Stock, at cost $10 per share
|
20,000
|
|
Dividends Payable
|
5,000
|
|
Paid in Capital in excess of par, Common Stock
|
30,000
|
|
Paid in Capital in excess of par, Preferred Stock
|
3,500
|
|
Retained Earnings
|
140,000
|
|
Bonds Payable
|
75,000
|
|
Preferred Stock, $100 par, 5% cumulative
|
35,000
|
On December 31, 2016, Common Stock was authorized 50,000 shares and Preferred Stock was authorized 5,000 shares. Prepare only the Stockholder's Equity section of the Classified Balance Sheet for the year end. Be sure to use a good format, dollar signs and single underlines were required. There are a few extra lines in the formatted input answer form to allow for acceptable balance sheet format variations.