Reference no: EM132484475

Question 1 - Karley Company sold equipment on July 1, 2021 for $75,000. The equipment had cost $210,000 and had $120,000 of accumulated depreciation as of January 1, 2021. Depreciation for the first 6 months of 2021 was $12,000. Prepare the journal entry to record the sale of the equipment.

Question 2 - The journal entry to record the payroll for Fox-Gardiner Company for the week ending January 8, would probably include a

a. credit to FICA Taxes Payable.

b. credit to Wages Expense.

c. debit to Federal Income Taxes Payable.

d. credit to Salaries Expense.

Question 3 - Based on the following information, compute the current ratio. (Round current ratio to 1 decimal place, e.g. 2.5)

Current assets $150,000

Total assets 900,000

Current liabilities 95,000

Total liabilities 500,000

Question 4 - Mike Dooley's regular hourly wage is $19 an hour. He receives overtime pay at the rate of time and a half. The FICA tax rate is 7.65%. Mike is paid weekly. For the first pay period in January, Mike worked 44 hours. All hours over 40 earn the overtime rate. Mike's federal income tax withholding is $150 and his state income tax withholding is $60. Mike has authorized that $25 be withheld from his check each pay period for savings bonds. Compute Mike Dooley's net pay for the pay period.

Question 5 - The partnership of Bher and Dhillips reports net income of $121,200. The partners share equally in income and losses. The entry to record the partners' share of net income will include a

a. credit to Bher, Capital for $60,600.

b. credit to Income Summary for $121,200

c. credit to Dhillips, Drawing for $60,600.

d. debit to Dhillips, Capital for $60,600.