The federal unemployment tax is levied on a. employers and is ...

[newyorker26]

The federal unemployment tax is levied on
 a. employers and is not deducted from employees' earnings.
   b. employees and is deducted from customer payments.
   c. employers and is deducted from employees' earnings.
   d. employees and employers.

Question 2

At December 31, 2011, Dodgem Company has Accounts receivable of 25,000. The Allowance for uncollectible accounts has a balance of (200) before adjustment.
 
  Part A: Show the effect of the following events on the accounting equation, including both account titles and amounts:
 
   Shareholders' equity
   Assets Liabilities CC Retained earnings
  1. On Dec. 31, 2011, Dodgem estimates that 10 of its accounts receivable will be uncollectible.
  2. During 2012, Dodgem had 500,000 of sales on account.
  3. During 2012, Dodgem collected 490,000 from credit customers.
  4. During 2012, Dodgem wrote off 2,000 of specific customer accounts.
  5. On Dec. 31, 2012, Dodgem estimates that 10 of its accounts receivable will be uncollectible.
 
  Part B: Select the column which represents the 2011 financial statement where the item will appear, and fill in the correct dollar amount:
 
   Income Statement Balance Sheet
  1. Net accounts receivable
  2. Bad debts expense
  3. Allowance for uncollectible accounts
 
  Part C: Select the column which represents the 2012 financial statement where the item will appear, and fill in the correct dollar amount:
 
   Income Statement Statement of Cash Flows Balance Sheet
  1. Sales
  2. Cash received from customers
  3. Net accounts receivable
  4. Bad debts expense
  5. Allowance for uncollectible accounts

[efwsefaw]

Answer to Question 1

a

Answer to Question 2

Part A:
Shareholders' equity
Assets Liab. CC Retained earnings
1. (2,300) Allowance for uncoll. accts. (2,300) Bad debts exp.
2. 500,000 Accounts receivable 500,000 Sales
3. 490,000 Cash
(490,000) AR
4. 2,000 Allowance for uncoll. accts.
(2,000) AR
5. (2,800) Allowance for uncoll. accts. (2,800) Bad debts exp.

Part B:
Income Statement Balance Sheet
1. Net accounts receivable 22,500
2. Bad debts expense 2,300
3. Allowance for uncollectible accounts (2,500)

Part C:
Income Statement Statement of Cash Flows Balance Sheet
1. Sales 500,000
2. Cash received from customers 490,000
3. Net accounts receivable 29,700
4. Bad debts expense (2,800)
5. Allowance for uncollectible accounts (3,300)

[newyorker26]

Thank you

[efwsefaw]

No problemo