Home / Questions / Abby Smith earned wages of $500 for one week. Her withholdings included CPP $21, EI $9 and
Abby Smith earned wages of $500 for one week. Her withholdings included CPP $21, EI $9 and income tax $75. In a synoptic journal under the modified cash system, her employer would record the payment as follows:
A) debit Salary Expense $500, credit CPP Payable $21, credit EI payable $9, credit Income Tax Payable $75, credit Cash $395.
B) the employer cannot use the modified cash basis for recording payment of payroll.
C) debit Salary Expense $500, credit Cash $500.
D) debit Salary Expense $395, credit Cash $395.
12) Payroll taxes withheld from employees during the period were $300 CPP, $120 EI and $1,000 Income Tax. The entry to record payment of the taxes withheld and the employer's share in the synoptic journal under the modified cash system would be
A) debit payroll tax expense $580, credit Cash $580.
B) debit Payroll Tax Expense $468, debit CPP Payable $300, debit EI Payable $120, debit Income Tax Payable $1,000, credit Cash $1,888.
C) debit Payroll Tax Expense $468, debit CPP Payable $300, debit EI Payable $120, credit Cash $888.
D) debit Payroll Tax Expense $420, debit CPP Payable $300, debit EI Payable $120, debit Income Tax Payable $1,000, credit Cash $1,840.
13) Curly Ribbon Co. uses a synoptic journal under the modified cash-basis. How should a purchase on account of $1,000 of ribbons for resale be recorded?
A) Debit Supplies $1,000, credit Accounts Payable $1,000
B) Debit Supplies $1,000, credit Cash $1,000
C) Debit Purchases $1,000, credit Accounts Payable $1,000
D) None of the above are correct.
14) Which company is most likely to use the cash basis of accounting?
A) Service company with no inventory
B) Department store
C) Accounting firm
D) Real estate office
15) Under the modified cash-basis method, the amount paid for equipment in one year cannot be treated as an expense of the period.
16) To avoid distorting the financial reports, the modified cash-basis makes adjustments for amortization, purchases of insurance, and large amounts of supplies.
17) Accounts that are used the least in the business should have a special column.
18) When the synoptic journal is used, the cash balance can be determined easily.
19) Under the cash basis system, CPP Payable and EI Payable, and Income Tax Payable are considered liability accounts.
20) Payroll Tax Expense is used to record the employer's payroll taxes.
21) To prove the journal means that debits and credits equal.
22) A synoptic journal on a cash basis would have an accounts payable column.
Dec 06 2019 Read more Less More
Th assignment is attachedDocument Preview:Department of Civil Engineering and Engineering Mechanics Soil Mechanics CIEN 3141: Spring 2015 Steve Sun Homework No. 3 (Due da...
May 20 2020Consider the following point estimators, W, X, Y, and Z of µ: W = (x1 + x2)/2; X = (2x1 + x2)/3; Y = (x1 + 3x2)/4; and Z = (2x1 + 3x2)/5. Assuming that x1 and x2 have bot...
May 01 2020Project Details: Individually you are required to identify a company, local or multinational, with operations in the UAE. This should be a FMCG ( Fast moving consumer goo...
Aug 08 2020Explain in writing the function of each labelled structures mentioned in the chapter diagram of the eye.
Mar 21 2020Explain the value proposition offered by freight forwarding. Provide an example that illustrates why shippers would be attracted to using the services of a freight forwar...
Mar 27 202023. Which of the following expenses reported on Schedule C (page 1) does not need to be substantiated on another form or schedule?a. Car and truck expensesb. Business use...
Mar 17 2020Which of the reactions shown would convert the indicated starting material to butanoic (i.e. All of the above would work. e. None of the above would work. 23. Which reage...
Jul 18 2020The Dallas Morning News reported the findings of a study by the Department of Transportation that examined the effect on average airfares when new, low-priced carriers, s...
May 02 2020What is Sysco’s value-profit chain? Explain each linkin the model and why it is important in understanding how management practices affect employee satisfaction-engagemen...
May 12 2020This is the project from CIST2341:Create a program that will calculate the employee’s monthly gross pay as follows:Inputs:1) Name2) Annual Salary3) Monthly Sales4) Keeps ...
May 27 2020Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.