Question

SUTA social security and Medicare taxes 32. Form 941 is filed weekdy monthly quarterly annually 33. Which of the following statements is not correct? The federal government allows a credit, or reduction, in the federal unemployment tax for amounts charged by the state for unemployment taxes The normal federal unemployment tax rate of 0.8% (or 6.2% less the state unemployment tax credit of 5.4%) changes it favorable experience ratings change the state unemployment tax rate The earnings limits for the federal and the state unemployment tax are usually the same, $7,000 Under the experience rating system, the state tax rate may be reduced to less than 1 percent for businesses that provide seady employment. In contrast, some stateslevy penalty rates as high as 10 percent for employers with poor records of providing steady employment The reduction of state unemployment because of favorable experience a s does not meet the credit wible against the federal 3. Allowance for Doubtful Accounts deducted from Sales in the Revenue section of the income statement listed in the Liables section of the balance sheet subtracted from Accounts Receivable in the Ass section of the balance sheet period end adjusting entry to debit revenue and credit deferred revenue listed in the Operating Expenses section of the income statement. 35. On January 2, 2010, a firm purchased equipment for $8.500 Depreciation expense for the year ended December 31, 2011, given the straight-line method, a 5-year useful life, and a salvape value of $1,500, is $1,500 $1,700 $1,200 $1,400 year insurance policy for $3.600 and paid the full premium in advance. The insurance expense 36. On May 1, 2010, a firm purchased a associated with this policy for 2010 is - $1.500 • $2,400 $2.100 - $1,200 37. The balance of the owner's drawing account is listed in the • Other Expenses section of the income statement Current Assets section of the balance sheet. calculation of ending capital on a statement of owner's equity Operating Expenses section of the income statement 38. Which of the following statement is not correct? Reversing entries are made to reverse the effect of certain adjustments Reversing entries provide a way to guard against oversights, eliminate the review of accounting records and simplify the entry made in the new period A reversing entry is the act opposite the reverse of the adjustment Aer the reversing entry is posted for the adjustment made to recenie the s ense at the end of the accounting period, the Salaries Expense account will have a balance and the salaries Payable account will have a credit balance 39. Arments that a business it pay in the future are nown as accounts receivable accounts payable capital

Answer 1

1. As the question is clear as to which of the questions to be answered as HOMEWORKLIB RULESs policy i am going for 4 questions that is 36 to 39 and if the students doubt is not clarified in this 4 questions they may post the question again.
2. 36. The payment of insurance premium is for one year which is paid on May 1, therefore it will be deferred for till May 1 2011 based on number of months, since the number of months in the current year that is 2010 is 8, the insurance expense associated with current year is 3600*8/12=2400.
3. 37. Drawings of owners funds is neither an expense nor an income, and it will be adjusted to calculation of ending capital on a Statement of owners equity.
4. 38. A reversing entry is passed which is exactly the reverse of any wrong entry passed during the year, which will nullify both the accounts, therefore option 4 which says after passing reverse entry salaries expense account is nullified and salaries payable account shows a balance is not a correct statement.
5. 39. Amounts that a business is liable to pay in the future are called accounts payable.