106.Julie's Boutique has total receipts for the month of $29,295 including sales taxes. If the sales tax rate is 5%, what are Julie's sales for the month?
a.$27,831
b.$27,900
c.$29,295
d.It cannot be determined.
107.A cash register tape shows cash sales of $2,500 and sales taxes of $150. The journal entry to record this information is
a.Cash...............................................2,500
Sales2,500
b.Cash...............................................2,650
Sales Tax Revenue...........................................150
Sales2,500
c.Cash...............................................2,500
Sales Tax Expense...........................................150
Sales2,650
d.Cash...............................................2,650
Sales2,500
Sales Taxes Payable..........................................150
108.Jim's Pharmacy has collected $600 in sales taxes during March. If sales taxes must be remitted to the state government monthly, what entry will Jim's Pharmacy make to show the March remittance?
a.Sales Tax Expense.....................................600
Cash600
b.Sales Taxes Payable....................................600
Cash600
c.Sales Tax Expense.....................................600
Sales Taxes Payable..........................................600
d.No entry required.
109.Oakley Company does not ring up sales taxes separately on the cash register. Total receipts for February amounted to $42,900. If the sales tax rate is 4%, what amount must be remitted to the state for February's sales taxes?
a.$1,716
b.$1,650
c.$2,574
d.It cannot be determined.
110.Any balance in an unearned revenue account is reported as a(n)
a.current liability.
b.long-term debt.
c.revenue.
d.unearned liability.
111.Pickett Company typically sells subscriptions on an annual basis, and publishes six times a year. The magazine sells 60,000 subscriptions in January at $15 each. What entry is made in January to record the sale of the subscriptions?
a.Subscriptions Receivable................................900,000
Subscription Revenue........................................900,000
b.Cash...........................................900,000
Unearned Subscription Revenue................................900,000
c.Subscriptions Receivable................................150,000
Unearned Subscription Revenue................................150,000
d.Prepaid Subscriptions..................................900,000
Cash900,000
112.Hilton Company issued a four-year interest-bearing note payable for $300,000 on January 1, 2011. Each January the company is required to pay $75,000 on the note. How will this note be reported on the December 31, 2012 balance sheet?
a.Long-term debt, $300,000.
b.Long-term debt, $225,000.
c.Long-term debt, $150,000; Long-term debt due within one year, $75,000.
d.Long-term debt, $225,000; Long-term debt due within one year, $75,000.
113.Kelly Rice has a large consulting practice. New clients are required to pay one-half of the consulting fees up front. The balance is paid at the conclusion of the consultation. How does Rice account for the cash received at the end of the engagement?
a.Cash
Unearned Consulting Revenue
b.Cash
Earned Consulting Revenue
c.Prepaid Consulting Fees
Earned Consulting Revenue
d.No entry is required when the engagement is concluded.
114.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.
115.Hardy Company has current assets of $90,000, current liabilities of $100,000, long-term, assets of $180,000 and long-term liabilities of $80,000. Hardy Company's working capital and its current ratio are:
a.$90,000 and .90:1.
b.-$10,000 and 1.50:1.
c.$10,000 and .90:1.
d.-10,000 and .90:1.