Author Question: Social Security, Medicare, FUTA, and SUTA taxes have separate liability accounts. a. True b. ... (Read 222 times)

mydiamond · **on:** Jul 5, 2018

Social Security, Medicare, FUTA, and SUTA taxes have separate liability accounts.
a. True
b. False
Indicate whether the statement is true or false

Question 2

At December 31, 2011 a company's Accounts receivable balance was 12,600 and its Allowance for uncollectible accounts was (1,000).

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. Credit sales in 2012 were 117,000.

Cost of goods sold was 45,000.
2. During 2012, 900 of specific receivables were written off as uncollectible.
3. During 2012, 119,000 of receivables were collected.
4. At Dec. 31, 2012, the company estimates that 5 of its accounts receivable will be uncollectible.

Part B: Select the column which represents the 2012 financial statement where the item will appear, and fill in the correct dollar amount.

Income Statement Balance Sheet
1. Net accounts receivable
2. Sales
3. Accounts receivable
4. Bad debts expense
5. Allowance for uncollectible accounts

honnalora · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

True

Answer to Question 2

Part A:
Shareholders' equity
Assets Liab. CC Retained earnings
1. 117,000 Accounts receivable
(45,000) Inventory 117,000 Sales
(45,000) COGS
2. 900 Allowance for uncoll. accts.
(900) Accounts receivable
3. 119,000 Cash
(119,000) Accounts receivable
4. (385) Allowance for uncoll. accts. (385) Bad Debts expense

Part B:
Income Statement Balance Sheet
1. Net accounts receivable 9,215
2. Sales 117,000
3. Accounts receivable 9,700
4. Bad debts expense 385
5. Allowance for uncollectible accounts (485)