Short answer questions (5 POINTS each for total of 30) S1. Calculate straight li

Question

Short answer questions (5 POINTS each for total of 30) S1. Calculate straight line and double declining depreciation for 4 year property with a cost of 12,000 and salvage value of 2,000 S2. Gregg Katz earns an hourly wage of $12, with time-and-a-half pay for hours worked over 40 per week. During the most recent week, he worked 46 hours, his federal tax withholding is 15%, and his state tax withholding totaled 6%. Assuming a 6.2 percent Social Security tax rate and a 1.45 percent Medicare tax rate, Calculate both gross and net pay S3. Prepare the following journal entries: a. Your customer with pay next month for $1,000 of merchandise purchased b. You purchased $20,000 of land c. You borrowed $20,000 from the bank d. Your customer bought and paid for $200 of merchandise today e. You issued $10,000 of stocks S4. Prepare closing entries Cash 100 C/S R/E Dividends Sales Interest Revenue Wages Exp Misc Exp 20,000 10 35,000 20,000 300 S5. Please define the following words and give examples a. Asset b. Liability c. Equity d. Revenue e. Expense f. depreciation g. accumulated depreciation

Explanation / Answer

Solution S1:

Depreciable cost = Cost of asset - Salavage value = $12,000 - $2,000 = $10,000

Annual depreciation - straight line = $10,000 / 4 = $2,500

Rate of depreciation - DLM = $2,500 / $10,000 = 25%

rate of depreciation - DDB = 25%*2 = 50%

Note: As multiple questions are posted, i have answered first question as per chegg policy. Kindly post separate question for answer of remaining.

Depreciation Schedule - Straight Line Method Year Depreciation Expense Accumulated Depreciation Net Book Value Acquisition Cost $12,000.00 1 $2,500.00 $2,500.00 $9,500.00 2 $2,500.00 $5,000.00 $7,000.00 3 $2,500.00 $7,500.00 $4,500.00 4 $2,500.00 $10,000.00 $2,000.00

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