Interim ReportingSystematic Allocation of Expense VS. Outright Allocation of Expense1) Cyrus Company provided the following information for the first quarter:Loss from typhoonInsurance for the calendar yearLoss on inventory write downProperty taxes for the calendar yearAdvertising of a new productP 800,000200,000100,000500,000300,000Page 2 of 3Depreciation expense for the yearYear end bonuses to employeesOrdinary repair to equipment600,0001,200,000150,000What total amount of expense should be reported in the first quarter?A. 1,975,000B. 1,657,000C. 1,750,000D. 2,350,000 Systematic Allocation of Expense VS. Outright Allocation of Expense2) On June 30, 2014, Wicked Wish Corporation incurred a P200,000 net loss form disposal of business segment. Alsoon June 30, 2014, Wicked Wish paid P80,000 for property taxes assessed for the calendar year 2014.What amount of the foregoing items should be included in the determination of Wicked Wish's net income or loss forthe 6-month interim period ended June 30, 2014?A. 280,000B. 240,000C. 180,000D. 140,000Cause & Effect Allocation of Expense - Bad Debts3) Cosmic Cleave Company has historically reported bad debts expense of 5% of sales in each quarter. For the currentyear, the company allowed the same procedure in the three quarters of the year.However, in the fourth quarter, the company, in consultation with its auditor, determined that bad debt expense for theyear should be P4,500,000. Sales in each quarter of the year were as follows: first quarter, P20,000,000; secondquarter, P15,000,000; third quarter, P25,000,000; fourth quarter, P40,000,000.How much bad debt expense should be recognized for the fourth quarter?A. 1,500,000B. 2,000,000C. 3,000,000D. 4,000,000

Name: Interim ReportingSystematic Allocation of Expense VS. Outright Alloca
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Description: Interim ReportingSystematic Allocation of Expense VS. Outright Allocation of Expense1) Cyrus Company provided the following information for the first quarter:Loss from typhoonInsurance for the calendar yearLoss on inventory write downProperty taxes

In systematic allocation, there is no presence of cause and effect relationship, thus they can be…

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Systematic Allocation of Expense VS. Outright Allocation of Expense 1) Cyrus Company provided the following information for the first quarter. Loss from typhoon Insurance for the calendar year Loss on inventory write down Property taxes for the calendar year Advertising of a new product P 800,000 200,000 100,000 500,000 300,000 Page 2 of 3 Depreciation expense for the year Year end bonuses to employees Ordinary repair to equipment 600,000 1,200,000 150,000 What total amount of expense should be reported in the first quarter? A. 1,975,000 B. 1,657,000 C. 1,750,000 D. 2,350,000

Systematic Allocation of Expense VS. Outright Allocation of Expense 1) Cyrus Company provided the following information for the first quarter. Loss from typhoon Insurance for the calendar year Loss on inventory write down Property taxes for the calendar year Advertising of a new product P 800,000 200,000 100,000 500,000 300,000 Page 2 of 3 Depreciation expense for the year Year end bonuses to employees Ordinary repair to equipment 600,000 1,200,000 150,000 What total amount of expense should be reported in the first quarter? A. 1,975,000 B. 1,657,000 C. 1,750,000 D. 2,350,000

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter9: Payroll Accounting: Employer Taxes And Reports

Section: Chapter Questions

Problem 6SEA

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SUTA taxes on July 31, 20--. WORKERS COMPENSATION INSURANCE AND ADJUSTMENT Columbia Industries estimated that its total payroll for the coming year would be 385,000. The workers compensation insurance premium rate is 0.2%. REQUIRED 1. Calculate the estimated workers compensation insurance premium and prepare the journal entry for the payment as of January 2, 20--. 2. Assume that Columbia Industries actual payroll for the year is 396,000. Calculate the total insurance premium owed and prepare a journal entry as of December 31, 20--, to record the adjustment for the underpayment. The actual payment of the additional premium will take place in January of the next year.
Recording Various Liabilities Glenview Hardware had the following transactions that produced liabilities during 2020: a. Purchased merchandise on credit for $30,000. ( Note: Assume a periodic inventory system.) b. Year-end wages of $10,000 were incurred, but not paid. Related federal income taxes of $1,200, Social Security of $620 (employee portion), and Medicare taxes of $145 were with-held from employees. c. Year-end estimated income taxes payable, but unpaid, for the year were $42,850. d. Sold merchandise on account for $1,262, including state sales taxes of S48. ( Note: Assume a periodic inventory system.) e. Employers share of Social Security and Medicare taxes for the period were $620 and $145, respectively. f. Borrowed cash under a 90-day, 9%, $25,000 note. Required: Prepare the entry to record each of these transactions (treat each transaction independently).
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