Question 10

1. Wright Company sells merchandise with a one-year warranty.  This year, sales consisted of 2,000 units.  It is estimated that warranty repairs will average $15 per unit sold, and 30% of the repairs will be made this year and 70% next year.  In this year's income statement, Wright should show warranty expense of

   Â	a.	$9,000.
   Â	b.	$21,000.
   Â	c.	$0.
   Â	d.	$30,000.

5 points   

Question 11

1. On June 8, Smith Technologies issued a $75,000, 6%, 140-day note payable to Johnson Company.  What is the due date of the note?

   Â	a.	October 27
   Â	b.	October 28
   Â	c.	October 26
   Â	d.	October 25

5 points   

Question 12

1. Assuming a 360-day year, when a $20,000, 90-day, 5% interest-bearing note payable matures, total payment will be

   Â	a.	$21,000
   Â	b.	$250
   Â	c.	$20,250
   Â	d.	$1,000

5 points   

Question 13

1. During September, Excom sold 100 radios for $50 each and provided a two-year warranty with each unit.  Each radio cost Excom $30 to produce.  If 5% of the goods sold typically need to be replaced over the warranty period and one is actually replaced during September, for what amount in September would Excom debit Product Warranty Expense?

   Â	a.	$120
   Â	b.	$30
   Â	c.	$50
   Â	d.	$150

5 points   

Question 14

1. A current liability is a debt that is reasonably expected to be paid

   Â	a.	out of currently recognized revenues
   Â	b.	between 6 months and 18 months
   Â	c.	out of cash currently on hand
   Â	d.	within one year

5 points   

Question 15

1. An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $120; social security tax rate, 6%; and Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, 0.8% on the first $7,000. What is the net amount to be paid to the employee?

   Â	a.	$601.50
   Â	b.	$574.90
   Â	c.	$660.00
   Â	d.	$568.74

CourseLover

(12)

Status NEW Posted 10 Dec 2017 07:12 AM My Price 10.00

-----------  ----------- H-----------ell-----------o S-----------ir/-----------Mad-----------am ----------- Th-----------ank----------- yo-----------u f-----------or -----------usi-----------ng -----------our----------- we-----------bsi-----------te -----------and----------- ac-----------qui-----------sit-----------ion----------- of----------- my----------- po-----------ste-----------d s-----------olu-----------tio-----------ns.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age-----------

Not Rated(0)

• Buy Answer