Kate Johnson, President of BQ Industries, executed a note payable on behalf of the company on October 1, 2014 in the amount of $300,000 with an interest rate of 8% for 9 months. Calculate the following items and show your calculations: The total interest to be paid over the term of the note The interest that should be accrued at December 31, 2014 (the Fiscal Year End) The maturity value of the note when the note is due The date that the note is due (maturity date)
1) Total interest = Principal amount × Rate × Time
Fill in the blank(s) to complete the statement. The normal balance of sales returns and allowances is ________. _______ ________ and ________ is a contra revenue accountant. Sales is a(n) _______ account. A discount period is less time than the ________ ______. A debit to accounts receivables and a credit to sales records the sale of merchandise _________ _________. The ______ _______ _________ ________ lists in alphabetical order an account for each customer. ______ _______ in the general ledger is called the controlling the account. The collection of a sale on account is posted to the ______ and _______. Issuing ______ ______ results in a debit to sales returns and allowances and a credit to accounts receivable. The normal balance of Sales Discounts is _______. Sales Tax Payable is a(n) ________ in the general ledger. Cash sales result is a(n) ______ to cash and a ______ to sales. Sales Returns and Allowances is a(n) _____ ______ account. A sale on account is p
Now suppose the United States were to convert its tax system from an income tax to a flat tax. For individuals, there would be no itemized deductions allowed, instead they would have a high standard exemption (taxpayers below the exemption would not have to file). Tax exemptions would be in place for dividends and interest income. Businesses could deduct all expenditures on salaries and immediately expense asset acquisition costs.
The student discussion will focus on what effect if any such a tax system would eliminate incentives to shift activities:
From one period to the next?
From one type to another?
From one pocket to another pocket?
Why or why not?
Do you believe a flat tax with no itemized deductions is politically feasible for the United States? Why or why not? m
| Income tax is not considered as a regressive tax, it is always consid |
| The statement of cash flows for a company contained the following: |
| Cash flows from (used in) operating activities in the amount of | $ | 30,900 | ||
| Cash flows from (used in) investing activities in the amount of | $ | 31,900 | ||
| Cash flows from (used in) financing activities in the amount of | ($ | 43,100 | ) | |
|
||||
Change in cash for the peri
The indirect method of preparing the Cash Flow Statement basically adjusts the net income to reflect what the financials would have looked like if cash basis was used instead of accrual basis.
True
False
Correct answer
Depreciation is an accrual accounting entry that does not affect the cash account so it needs to be adjusted for when using the indirect method of the Cash Flow Statement.
True
False
Answer
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations.
a.Lita Lopez invested $70,000 cash and office equipment valued at $10,000 in the company.
b.The company purchased an office suite for $40,000 cash.
c.The company purchased office equipment for $15,000 cash.
d.The company purchased $1,200 of office supplies and $1,700 of office equipment on credit.
e.The company paid a local newspaper $500 cash for printing an announcement of the office’s opening.
f.The company completed a financial plan for a client and billed that client $2,800 for the service.
g.The company designed a financial plan for another client and immediately collected a $4,000 cash fee.
h.Lita Lopez withdrew $3,275 cash from the company for personal use.
i.The company received $1,800 cash as partial payment from the client described in transaction f.
j.The company made a partial payment of $700 cash on the equipment purchased in transaction d.
k.The company paid $1,800 cash for the office secretary’s wages for this period.
.Create the following table . Assets=Liabilities+EquityCash+Accounts Receivable+Office Supplies+Office Equipment+Office Suite=Accounts Payable+L. Lopez, Capital–L. Lopez, Withdrawals+Revenues–Expenses
Use additions and subtractions within the table to show the dollar effects of each transaction on individual items of the accounting equation. Show new balances after each transaction.
Check (1) Ending balances: Cash, $14,525; Expenses, $2,300; Accounts Payable, $2,200 2.Determine the company’s net income.
Solution
1.
| Transactions | Cash | +Revenue | – expenses | ||||||||
| a. | $70,000 |
how can operating expenses be broken into categories, and why would it make sense to do this
ANSWER:
Operating expenses refers to the expenses a
Care Clinic is preparing a worksheet for their staff. Their average starting salary is $60,000. Benefits are 25% this year. They expect them to go up to 27% next year. They are expecting to give a raise of 5% next year. Care Clinic has 20 employees. Prepare a formatted Excel Spreadsheet for Care Clinic which projects total staff expense for next year.
| Care Clinic Budget for total staff expense for next year | |||
| Per Emp | |||
how and why you would use cost principle?
HOW USE COST PRINCIPLE :
Cost principle in use as original
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