A2 - 1.00 Accounting for departmentalized business - flashcards

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Ben's Barbershop's balance sheet contains no inventory account. This company would be classified as a:

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service business.

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What is the correct entry to record the transaction when Booming Corporation purchased CDs on account from Hear All Supply Company for $500?

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debit Purchases-CDs, $500; credit Accounts Payable/Hear All Supply Company, $500.

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Betty Lou's Variety Store recorded cash and credit card sales of shoes, $500, pocketbooks, $300, and sales tax, $50, for a total of $850. What is the journal entry to record the transaction?

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debit Cash, $850; credit Sales-Shoes, $500, Sales-Pocketbooks, $300, Sales Tax Payable, $50.

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Journal entry for credit issued to Sweet Shop for damaged candy, $50, plus sales tax, $6, total $56, from Sales Invoice No. 5, Credit Memo No. 46.

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debit Sales Returns and Allowances-Candy, $50, Sales Tax Payable, $6; credit Accounts Receivable/Sweet Shop, $56.

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Journal entry for Daisy Corporation receiving cash on account from Hamilton's Music Store, $1,164, covering Sales Invoice No. 88 for CDs, $1,200 ($1,000 plus sales tax $200), less a 3% discount, $36, Receipt No. 81.

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debit Cash $1,164, Sales Discount-CDs, $36; credit Accounts Receivable/Hamilton's Music Store, $1,200.

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Blastin' Sound Music shop payroll entry: $2,000 in Salaries-Audio, $2,500 in Salaries-Video, $325 in Social Security withholding, $85 in Medicare withholding, $400 in federal income tax withholding, $300 in state income tax withholding, $240 in life insurance premiums withholding.

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debit Salary Expense-Audio, $2,000, Salary Expense-Video, $2,500; credit Social Security Tax Payable, $325, Medicare Tax Payable, $85, Federal Income Tax Payable, $400, State Income Tax Payable, $300, Life Insurance Premiums Payable, $240, Cash $3,150.

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Carson’s Candy Shoppe has $2,000 in gross pay. The federal unemployment tax rate is 0.8%. What is the employer's federal unemployment tax for the pay period?

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$16

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Journalize the payment of federal unemployment taxes of $56 by Watauga Office Supply.

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debit Federal Unemployment Tax Payable $56; credit Cash $56.

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Greg has gross earnings of $245.00, Social Security withholding of $15.19, Medicare withholding of $3.55, federal income tax withholding of $50.00, and state income tax withholding of $15.93. What are Greg's total deductions?

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$84.67

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What is the Merchandise Available for Sale for the Clothing Division? Review Figure 1.03-A

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$68,000