Reference no: EM13300184
The Crafter Company had the following assets and liabilities as of December 31, 2012:
| ASSETS |
|
| Cash |
$28,000 |
| Accounts receivable |
15,000 |
| Inventory |
20,000 |
| Equipment |
50,000 |
|
|
| LIABILITIES |
|
| Current portion of long-term debt |
10,000 |
| Accounts payable |
2,000 |
| Long-term debt |
25,000 |
|
|
Determine the quick ratio for the end of the year (rounded to one decimal point).
a 5.3
b 3.6
c 3.3
d 2.3
Assuming a 360-day year, proceeds of $48,750 were received from discounting a $50,000, 90-day note at a bank. The discount rate used by the bank in computing the proceeds
a 6.25%
b 10.00%
c 10.26%
d 9.75%
Which of the following statements concerning taxation is accurate? Answer
a Corporations pay federal income taxes but not state income taxes.
b Corporations pay federal and state income taxes.
c Only the owners must pay taxes on corporate income.
d Corporations pay income taxes but their owners do not.
The following totals for the month of April were taken from the payroll register of Magnum Company.
| Salaries |
$12,000 |
| FICA taxes withheld |
550 |
| Income taxes withheld |
2,500 |
| Medical insurance deductions |
450 |
| Federal Unemployment Taxes |
32 |
| State Unemployment Taxes |
216 |
|
|
The journal entry to record the monthly payroll on April 30 would include a Answer
a credit to Salaries Payable for $8,500
b debit to Salaries Expense for $8,252
c debit to Salaries Payable for $8,500
d debit to Salaries Payable for $8,252