SHORT ANSWER. Write the word or phrase that best completes each sta...

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SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 1) The balance of accounts receivable is $275,000. The allowance for uncollectible accounts 1) has a credit balance of $240. Net credit sales for the year were $771,000 and cash sales were $68,000. Information for estimating uncollectible accounts expense is presented below. For each independent situation, prepare the adjusting entry to record the estimate and determine the resultant balance in the allowance for uncollectible accounts. a. The company uses the aging-of-accounts-receivable method. A partial aging of accounts receivable balance is presented below: Percentage Days Outstanding Amount Uncollectible Not yet due $150,000 1% 31-60 days past due 50,000 5% 61-90 days past due 40,000 10% 91-120 days past due 25,000 25% Over 120 days past due 10,000 50% b. The company uses the percent-of-sales method. Historical data indicates that approximately 3% of net credit sales are uncollectible. 2) Martin Manufacturing held three interest-bearing notes during 2005 and 2006. For each 2) note, determine the following items. a. The maturity date b. The maturity value c. Interest revenue to be reported on December 31, 2005 Note 1 - issued September 25, 2005, $15,000, 10%, 60 days Note 2 issued November 20, 2005, $25,000, 12%. 90 days Note 3 - issued December 30, 2005, 14,000, 9%, 30 days 3) McAfee Construction acquired the following plant assets on January 1, 2009. The delivery 3) equipment was driven for 12,000 miles of its useful estimated life of 100,000 miles. Compute depreciation for each of the assets. For the year ending 2009 Residual Assets Cost Value Useful Life Depreciation Method Office Equipment $150,000 $ 5,000 5 years Straight-line Building $240,000 $20,000 20 years Double-declining balance Delivery equipment $125,000 $25,000 10 years Units-of-production a. Office equipment b. Building c. Delivery equipment 1 4) Porter Business Products acquired equipment on January 1, 2008 for $470,000. The 4) equipment has an estimated useful life of 5 years and an estimated residual value of $30,000. The equipment is expected to produce 150,000 units. During 2008, the equipment produced 24,000 units and during 2009, the equipment produced 60,000 units. Calculate depreciation expense for 2008 and 2009 under each of the following methods. Depreciation Method 2008 2009 Straight-line Double-decllining balance Units-of-production 5) Taylor Computer Services purchased a tract of land and contracted with a builder to build 5) an office building, a parking lot, and landscaping. The following transactions resulted from the contractor's activities. Determine the total costs allocated to the land, building, and land improvements accounts. Purchased land for $135,000. Paid a demolition company $40,000 to remove an old structure on the property. Paid $14,000 in delinquent taxes on the property. Paid the contractor $333,000 to design and build the office building. Paid $34,700 for fencing. Paid $39,500 for paving. Paid an electrical contractor $14,900 for outdoor lighting. a. Cost of land b. Cost of building c. Cost of land improvements 6) Jones Construction purchased a group of assets for $740,000. The individual assets and 6) their market values are listed as follows. Prepare the journal entry to record the transaction. Land $450,000 Building 400,000 Equipment 150,000 7) a. Compute gross pay for the following individuals assuming time in excess of 40 hours 7) is paid at the rate of one and one-half of regular pay. Employee Hours Worked Pay Rate Per Hour Juanita Jones 50 $26 Maria Smith 44 $30 Lisa Rojas 46 $20 b. All employees are subject to a rate of 8% FICA tax, 25% federal income tax, and union dues of $20 per week. Federal unemployment taxes are levied at a rate of .8% and state unemployment taxes are levied at a rate of 5.4%. No employee has earned more than $7,000, induding this week's earnings. Determine the total net pay for all employees combined. Round to the nearest dollar.

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