Exam 8: Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Bonita Industries purchased $5,000 of merchandise on account for resale purposes.Bonita plans to sell the merchandise for $7,500.If Bonita returned $1,000 of merchandise for credit,the journal entry to record the return would include a:

The following information was taken from the accounting records of Swanson Farms in 2010.For each of the following determine the amount of expense Swanson Farms should report on its income statement related to data presented below and give the entry made to record the expense.

Gross pay for the employees of Mr.Scott Corporation for February 28,2010 is as follows: Information on withholding and payroll taxes are shown below: Required: (A.)Make the journal entry to record the February payroll. (B.)Record the journal entry for the employer's payroll taxes. (C.)Make the journal entry to record the employer's monthly payment of payroll tax liabilities.

In a perpetual inventory system,the journal entry to record the purchase of merchandise on account includes a:

Which of the following is the entry used to determine cost of goods sold when the periodic inventory system is used?

Which of the following entries reflects the use of a periodic inventory system?

Why are subsidiary ledgers used?

Iowa Corporation had a beginning balance of $8,600 in Utilities Payable account at the start of the year and an ending balance of $4,000.During the year Iowa recorded $10,000 of utilities expense.How much cash did Iowa pay the utility company during the year?

Why would the amount of supplies expense differ from the amount of cash paid for supplies in a year?

All of the following payroll taxes are expenses incurred by an employer except:

Hurricane Enterprises purchased $4,000 of merchandise on account,terms 2/10,n/30.Assuming Hurricane uses the gross price method to account for purchase discounts,and it pays for the merchandise on the 9th day after the invoice date,which of the following would not be used in either the acquisition of the merchandise or the payment of the invoice :

Purchase Discounts does all of the following except:

Corinthian Industries reported cost of goods sold of $765,000,beginning and ending inventory of $85,200 and $98,600,respectively,and beginning and ending accounts payable of $54,300 and $62,500,respectively.Cash payments for merchandise inventory during the year were:

Ogallah Corporation purchased $100,000 inventory on account with terms of 1/10 net 30 on November 1,2010. Required: Assume periodic inventory system and gross method (A.)Make the entries to record the purchase of the inventory and subsequent payment of amount due on Nov 9,2010 Assume perpetual inventory system and net method (B.)Make the entries to record the purchase of the inventory and subsequent payment of the amount due on Nov 30,2010.

The following information was taken from the accounting records of Russell Oil Corp in 2010.For each of the following make the entries associated with the changes in the account given the data available.

In a purchases journal only one amount is recorded but that amount is posted by

Information from the 2010 financial statements of Bravura Corporation is shown below.Calculate the cash paid for merchandise inventory.

Which of the following could not be net pay?

Net pay is equal to:

In a periodic inventory system,the journal entry to record the sale of merchandise on account would include a: