Question

On September 30, 2019, Sarpino's Pizzeria sold a piece of equipment for $42,000 cash. The equipment onginally cow $180,000 and had Accumulated Depreciation of $442.000. The journal entry to record this sale includes as a. Credit to 'Gain on Sale of Equipment' for $4,000. b. Credit to 'Gain on Sale of Equipment' for $42,000. c. Debit to Gain on Sale of Equipment' for $4,000. d. Debit to 'Loss on Sale of Equipment' for $38,000. 10. Glamour, Inc. purchases a new limousine for $200,000 on January 1, 2019 and originally estimates that the limousine has a $30,000 residual value and a useful life of 10 years, Glamour uses straight-line method to record depreciation. However, on January 1, 2021 (ie, after 2 years), Glamour realizes that limousine has remaining useful life of years and a $26,000 residual value. A depreciation schedule would show depreciation expense for 2021. a. $17,000 b. $20,000 c. $28,000 d. $34.800 11. HP, Inc. sells a laptop to a DePaul student at a price of $1,000. Sales tax on the transaction is an additional $100. The student pays $1,100 cash for the total amount owed. HP's journal entry to record this sale would include a a. Credit to Sales for $1,100. b. Debit to Cash for $1,000 c. Credit to Sales Tax Payable for $100. d. Debit to Sales Tax Expense for $100 12. Which of the following taxes must be paid by both the employee and the employer? a. State withholding tax b. FICA tax c. State unemployment tax d. Federal unemployment tax 13. DRT sells radios and each unit carries a two-year replacement warranty. The cost of repair defects under the war is estimated at 5% of the sales. During October, DRT sells 100 radios for $50 each. One radio is actually replaced during October. For what amount would DRT debit Product Warranty Expense at the end of October? a $2.50 b. $50 c. $250 d. $5,000 14. Danone, Inc. uses a periodic inventory system. When Danone's employees count the inventory on December 31, 2019, they accidently forget to count one shelf of yogurts, resulting in 2019 ending inventory being understated $4,000. Danone's employees count its December 31, 2020 inventory correctly. Which of the following statements true related to Danone's 2019 and 2020 financial statements? a. 2019 Cost of Goods Sold will be understated by $4,000. b. 2020 Cost of Goods Sold will be properly stated. c. 2020 Beginning Inventory will be overstated by $4,000. d. 2020 Cost of Goods Sold will be understated by $4,000.

Answer 1

Answer Opt ion a Alc. $42000 Dr Cash OY ACC.Depre ciation ANc. ¢u42,000 Alc $480000 Equipment cr Gain Sale of Equipment Alc CY $.4000 Opt ion (C) Depreciaton 200000- 3O,000 10 Depreciable valve after 2years. 200000 34000 166,000 IG6 000 26000 Dep for 2O21 28,000 OPtion (C) 1100 Alc Dr Cash Alc 000 Salesccomputc) cr. Alc (00 Cr Sale tax payable (2 Option Co) FICA tax employee pay and emplayer Scanedwith CamScanner