FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- An employee receives an hourly rate of $25 with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: worked, 42; federal income tax withheld, $350; cumulative earnings for year prior to current week, $59, 700; FICA tax rate, 7.5% on maximum of $60,000, and 1.5% on earnings over $60,000. What is the gross pay for the employee?
- $725.00
- $702.50
- $1,075.00
- $1,052.50
- The balance in the prepaid rent account before adjustment at the end of the year is $12,000, which represents three months’ rent paid on December 1. The
adjusting entry required on December 31 is:- Debit Rent Expense, $4,000; credit Prepaid Rent, $4,000
- Debit Prepaid Rent, $8,000; credit Rent Expense, $8,000
- Debit Rent Expense, $8,000; credit Prepaid Rent, $8,000
- Debit Prepaid Rent, $4,000; credit Rent Expense $4,000
- With an increase in profits in a particular industry, we would expect:
- Firms to leave the industry
- Firms to produce less
- Firms to enter the industry
- People to buy less
TRUE/FALSE
- Equipment is an example of a liability.
- True
- False
- Revenue accounts are increased by credits.
- True
- False
- Asset accounts are increased by credits.
- True
- false
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