accounting help please?

12. ABC company uses the estimate of sales method of accounting for uncollectible accounts. ABC estimates that 3% of all credit sales will be uncollectible. On January 1, 2005, the Allowance for Doubtful Accounts had a credit balance of $2,400. During 2005, ABC wrote-off accounts receivable totaling $1,800 and made credit sales of $100,000. After the adjusting entry, the December 31, 2005, balance in the Uncollectible Accounts Expense would be ________.

$1,200

$3,000

$3,600

$7,200

13. Bright Co. holds Park Co.’s $20,000, 120 day, 9% note. The entry made by Bright Co. when the note is collected, assuming no interest has previously been accrued is:

Cash 20,000

Notes Receivable 20,000

Accounts Receivable 20,600

Notes Receivable 20,000

Interest Revenue 600

Cash 20,600

Notes Receivable 20,000

Interest Revenue 600

Accounts Receivable 20,600

Notes Revenue 20,000

Interest Revenue 600

25. Gray County Bank agrees to lend the Starkwood Building Company $100,000 on January 1. Starkwood Building Company signs a $100,000, 9%, 9-month note. The entry made by Starkwood Building Company on January 1 to record the proceeds and issuance of the note is: _________.

Interest Expense 9,000

Cash 91,000

Notes Payable 100,000

Cash 100,000

Notes Payable 100,000

Cash 100,000

Interest Expense 9,000

Notes Payable 109,000

Cash 100,000

Interest Expense 9,000

Notes Payable 109,000

Interest Payable 4,500

27. Prior to the last weekly payroll period of the calendar year, the cumulative earnings of employees A and B are $99,350 and $91,000 respectively. Their earnings for the last completed payroll period of the year are $850 each. The amount of earnings subject to social security tax at 6% is $100,000. All earnings are subject to Medicare tax of 1.5%. Assuming that the payroll will be paid on December 29, what will be the employer's total FICA tax for this payroll period on the two salary amounts of $850 each?

$127.50

$115.50

$112.50

$0

37. The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 40,000 shares were originally issued and 5,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared?

$80,000

$10,000

$70,000

$35,000

39. What is the total stockholders' equity based on the following data?

Common Stock $800,000

Excess of Issue Price Over Par

375,000

Retained Earnings (deficit)

50,000

$1,100,000

$1,125,000

$1,175,000

$1,225,000

44. When the market rate of interest was 11%, Welch Corporation issued $100,000, 8%, 10-year bonds that pay interest semiannually. Using the straight-line method, the amount of discount or premium to be amortized each interest period would be ________.

$4,000

$896

$17,926

$1,793

46. Bonds Payable has a balance of $900,000 and Premium on Bonds Payable has a balance of $10,000. If the issuing corporation redeems the bonds at 102, what is the amount of gain or loss on redemption?

$1,100 loss

$1,100 gain

$8,000 loss

$8,000 gain

1 Answer

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  • 1 decade ago
    Best Answer

    I just did this test so I've done some of them, but not sure if right yet cause its not graded!

    12. $3,000

    13. Cash 20,600

    Notes Receivable 20,000

    Interest Revenue 600

    27. $115.50

    37. $70,000

    39. $1,125,000

    44. $896

    46. $8,000 gain

    I do not know 27. that one I am still working on myself.

    Hope this helps! Good luck!

    Source(s): Doing the same test in Accounting II this week.
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