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Avalanche Automotive withholds federal and state income taxes, FICA taxes, and federal and state unemployment taxes. Avalanche also contributes to health insurance premiums. Which of these, if any, would be considered fringe benefits?
Contributions to health insurance premiums paid by the employer
Mammoth Manufacturing reports sales of $500,000 and net income of $30,000. Mammoth also reports beginning total assets of $400,000 and ending total assets of $450,000. What is Mammoth’s return on assets, or ROA?
7.06%
Sabre Swords sells a building for $500,000. The original cost of the building was $750,000 and accumulated depreciation of $200,000. What would be the gain/loss on this sale?
Loss of $50,000
The Detroit Red Wings sell $5,000,000 worth the tickets for their home hockey games. As of December 31, the Red Wings have played 30% of their home games. How much service revenue should the Red Wings record on December 31?
$1,500,000
Lightning Legal issues a nine-month 8% note receivable for $10,000. How much interest revenue will Lightning record on the day the note is issued?
$0
Blues Boards understate their ending inventory balance by $2,500 in the current year. What impact will this error have on retained earnings?
Retained earnings will be understated by $2,500
Hurricane Hardware owns a trademark that they plan to renew, a patent, and a copyright. Their balance sheet also shows goodwill. Which, if any, of these assets should Hurricane amortize?
The patent and copyright
In pursuit of creating a new patent, Stars Solutions incurs costs related to R&D salaries, depreciation on R&D equipment, filing fees, and paying another company to do a portion of the development. Which costs included?
Filing fees
Wild Widgets incurs costs associated with both shipping inventory out to customers and in from suppliers. Wild also returns damaged inventory to a vendor and receives a purchase discount. Which transactions require debit to inventory?
Shipping in (freight-in) from suppliers
Oiler Originals buys a drill. In addition to the purchase price, Oiler also pays for shipping, installation, and insurance for the first year of operation. Which, if any, of these costs, are included in the cost of drill on balance sheet?
Purchase price, shipping, and installation
Flyer Foods sells 125 units on account for $10 each, but the customer returns 25 of them one week later. What journal entry should Flyer record for this return? (Ignore the entry for putting returned units back into inventory)
DR Sales Returns and CR Accounts Receivable - $250
Jets Jams writes off an uncollectible account worth $3,000. What journal entry must Jets make to record this write-off?
DR Allowance for Uncollectible Accounts and CR Accounts Receivable - $3,000
Canuck Corporation issue a six-month 5% note receivable for $7,500. How much interest revenue will Canuck record on the day of maturity when the note is paid?
$187.50
When establishing an allowance for doubtful accounts, what account is debited?
Bad debt expense
Islander has equipment that originally cost $200,000 and has an estimated residual value of $25,000. If the equipment has a useful life of five years, how much accumulated depreciation would Islander report after 2 years?
$70,000
On November 1, Panther Produce sells fruit on account to Senator Supermarket for $1,000, terms 5/10, n/30. If Senator pays for the fruit on November 7, how much cash will Panther receive?
$950
