A2 - 1.00 Accounting for departmentalized business - quizs

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

• merchandising business.
• manufacturing business.
• construction business.
• service business.

Blastin' Sound Music shop has $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, and $240 in life insurance premiums withholding. The correct entry for recording this company payroll is:

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

Booming Corporation purchased CDs on account from Hear All Supply Company, $500, Purchase Invoice No. 5. The correct entry to record the transaction is:

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

Candy Corporation issued a credit to Sweet Shop for damaged candy, $50, plus sales tax, $6, total $56, from Sales Invoice No. 5, Credit Memo No. 46. The journal entry to record the transaction is:

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

Daisy Corporation received 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. The journal entry to record the transaction is:

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

Cole’s Custom Designs offers custom skateboards and skateboard gear for sale. Alice is the accountant for the company, and she is currently preparing the Departmental Margin statements. Based on this information, what is the Cost of Merchandise Sold the Skateboards Division? Refer to Figure 1.03-B

• $7,290

• $,8700

• $8,800

• $15,500

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?

• $84.67

• $34.67

• $68.74

• $160.33

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, Tape 33. The journal entry to record the transaction is:

• debit Sales-Shoes, $500, Sales-Pocketbooks, $300, Sales Tax Payable, $50; credit Cash, $850.
• debit Cash, $850; credit Sales-Shoes, $500, Sales-Pocketbooks, $300, Sales Tax Payable, $50.
• debit Cash, $800; credit Sales, $800.
• debit Sales, $800; credit Cash, $800.

Jabroni's Meat Market recorded dividends of $30,000. The correct journal entry to record the closing entry for the Dividends account is:

• Debit Retained Earnings, $30,000; credit Dividends Payable, $30,000.

• Debit Dividends Payable, $30,000; credit Retained Earnings, $30,000.

• Debit Dividends, $30,000; credit Retained Earnings, $30,000.

• Debit Retained Earnings, $30,000; credit Dividends, $30,000.

Cole’s Custom Designs offers custom skateboards and skateboard gear for sale. Alice, the accountant for the company, is currently preparing the Departmental Margin statements. Based on the information provided, what is the Departmental Margin for the Skateboards Division? Refer to Figure 1.03-B

• $7,290

• $8,700

• $8,800

• $15,500