A firm has common stock of $90, paid-in surplus of $180, total liabilities of $360, current assets of $430, and fixed assets of $590. What is the amount of the shareholders’ equity?
Pacific Travels is a travel agency and sells flight tickets of reputed Airlines to customers for a commission of 3% of the ticket price. In the month of June 2013, Pacific sold $600,000 flight tickets of American Airlines to customers…
Assume for 2013 that Don made one transfer involving his grandson as follows: Don opened a joint checking account with his grandson, with right of survivorship, for his grandson’s college expenses. Don made an initial deposit of $100,000. During 2013,…
Wynn, Inc. has a contract to construct a large hotel for $12,000,000. The contract was signed on January 2, 2010 and it was expected that the hotel would be complete on December 31, 2013. At the date the contract was…
A tract of land was distributed by WESTO Inc. to its sole shareholder, Steve, as a dividend. At the time of the distribution, WESTO Inc.’s adjusted basis in the land was $40,000, the fair market value of the land was…
Carl’s Video includes the amount of sales taxes collected directly in the price charged for merchandise, and the total amount is credited to Sales. During January, Sales was credited for $239,680. The January 31 adjusting entry to account for a…
Employees earn vacation pay at the rate of one day per month. During the month of July, 19 employees qualify for one vacation day each. Their average daily wage is $94 per day. What is the amount of vacation benefit…
Assume the facts stated in the prior two questions. Assume further that for 2013 Satsuki will offset his wages (with any deduction related to the debt) to the maximum extent permitted by law. What is the amount of Satsuki’s capital…
In April of the current year, Steelman Press Company transferred Ken Sherm from its factory in Louisiana to its plant in Florida. The company’s SUTA tax rates based on its experience ratings are 3.2% in Louisiana and 3.8% in Florida.…
Phil Phoenix is paid monthly. For the month of January of the current year, he earned a total of $8,288. The FICA tax rate for social security is 6.2% and the FICA tax rate for Medicare is 1.45%. The FUTA…
