Question

Pickett Company typically sells subscriptions on an annual basis, and publishes six times a year. The magazine sells 80,000 subscriptions in January at $15 each. What entry is made in January to record the sale of the subscriptions?

a Subscriptions Receivable ....................................................... 1,200,000

                               Subscription Revenue ...................................................                       1,200,000

b Cash ....................................................................................... 1,200,000

                               Unearned Subscription Revenue ...................................                       1,200,000

c Subscriptions Receivable .......................................................      200,000

                               Unearned Subscription Revenue ...................................                          200,000

d Prepaid Subscriptions............................................................. 1,200,000

                               Cash...............................................................................                       1,200,000

Ann Ellis's regular rate of pay is $15 per hour with one and one-half times her regular rate for any hours which exceed 40 hours per week. She worked 48 hours last week. Therefore, her gross wages were

a $720.

b $600.

c $780.

d $1,080.

Gary Dittman, an employee of Hopkins Company, has gross earnings for the month of October of $6,000. FICA taxes are 8% of gross earnings, federal income taxes amount to $952 for the month, state income taxes are 2% of gross earnings, and authorizes voluntary deductions of $15 per month to the United Way. What is the net pay for Gary?

a. $4,442

b $4,433

c $4,448

d $4,452

   

        

The tax that is paid equally by the employer and employee is the

a federal income tax.

b federal unemployment tax.

c state unemployment tax.

d FICA tax.

The current ratio is

a current assets plus current liabilities.

b current assets minus current liabilities.

c current assets divided by current liabilities.

d. current assets multiplied by current liabilities.

Answer 1

	Answere)	option b
		Cash			1200000
		unearned Subscription revenue				1200000
	Answer)	option c ---$780
		40*15+8*22.5
		780
	answer)	option b
		4,433
		6000 - (6000*10%-952-15)
		4433
	answer)	option d
		FICA tax
	answer)	option c
		current assets divided by current liabilities