Question

There is no ceiling on the amount of income subject to the medicare tax and for the federal unemployment tax. TRUE OR FALSE

Robin Banks, Inc. owns an armored truck which was purchased for $83,000. The Accumulated Depreci­ation on the truck is $57,500. The book value of the armored truck is

Multiple Choice

Top of Form

$25,500

$83,000

$57,500

$140,500

Bottom of Form

The Rent Expense account balance would be reported on the income statement but would never be reported on the statement of owner's equity. True or False

The total of the figures on the left side of a Cash account is $26,800. The total of the figures on the right side is $14,300. The balance of this account

Multiple Choice

Top of Form

is $12,500 and would be recorded on the right side of the account.

is $41,100 and would be recorded on the right side of the account.

is $41,100 and would be recorded on the left side of the account.

is $12,500 and would be recorded on the left side of the account.

Bottom of Form

On July 1, 2016, a firm purchased a 1-year insurance policy for $2,100 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 2016, is

Multiple Choice

Top of Form

$700.

$1,225.

$2,100.

$1,050.

Bottom of Form

Answer 1

1

False, There is ceiling on the amount of income subject to the federal unemployment tax.

2

Book value of the armored truck = 83000-57500= $25500

Option 1 is correct

3

True, The Rent Expense account balance would be reported on the income statement but would never be reported on the statement of owner's equity

4

The balance of this account is is $12,500 and would be recorded on the left side of the account.

Option 4 is correct

5

Insurance expense for the year ending December 31, 2016 = 2100*6/12 = $1050

Option 4 is correct

answered by: anonymous