1) Cambria owns equipment that cost $93,500 with accumulated depreciation of $64
ID: 2385137 • Letter: 1
Question
1) Cambria owns equipment that cost $93,500 with accumulated depreciation of $64,000. Cambria asks $35,000 for the equipment but sells the equipment for $33,000. Compute the amount of gain or loss on the sale. The journal entry to record the disposal of the asset would involve all of the following except:Possible Answers
A. Debit Accumulated Depreciation $64,000.
B. Credit Equipment $93,500.
C. Debit Loss on Disposal of Equipment $3,500.
D. Credit Gain on Disposal of Equipment $3,500.
E. Debit Cash $33,000.
2) Cambria owns equipment that cost $93,500 with accumulated depreciation of $64,000. Cambria asks $35,000 for the equipment but sells the equipment for $33,000. Compute the amount of gain or loss on the sale.
Possible Answers
A. $3,500 loss.
B. $5,500 gain.
C. $5,500 loss.
D. $3,000 gain.
E. $3,500 gain.
3.) An employee earns $5,500 per month working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.8%, and the SUTA tax rate is 4.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $182 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $150 and contributes $75 to a retirement plan each month. What is the amount of net pay for the employee for the month of January?
4) Amounts received in advance from customers for future products or services:
Possible Answers
A. Are revenues.
B. Increase income.
C. Are liabilities.
D. Are not allowed under GAAP.
E. Require an outlay of cash in the future.
Possible Answers
A. $4,827.00
B. $4,672.25
C. $4,628.25
D. $4,386.25
E. $4,430.25
Explanation / Answer
1. C. Debit Loss on Disposal of Equipment $3,500. 2. E. $3,500 gain 3. $4386.25 4. C. Are liabilities.
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