$$\begin{matrix} \text{Estimated uncollectible accounts based} & \text{}\\ \text{on aging accounts receivable} & \text{\$ 3,796.00}\\ \text{Accrued interest income} & \text{80.00}\\ \text{Merchandise inventory} & \text{98,996.13}\\ \text{Supplies inventory} & \text{401.25}\\ \text{Jalue of prepaid insurance} & \text{600.00}\\ \text{Annual depreciation expense- equipment} & \text{7,345.00}\\ \text{Accrued interest expense} & \text{150.00}\\ \text{Prepaid rent income earned} & \text{2,000.00}\\ \end{matrix}$$

Journalize the income tax adjustment and post it to the T accounts.

On January 14, the end of the first bi-weekly pay period of the year, Rockin Company’s payroll register displayed that its employees earned $14,000 of sales salaries. Withholdings from the employees’ salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%,$2,600 of federal income taxes, $309 of medical insurance deductions, and$120 of union dues. No employee earned more than $7,000 in this first period. Prepare the journal entry to record Rockin Company’s January 14 (employee) payroll expenses and liabilities.

Presented below is information related to Gonzales Corporation the month of January 2020.

$$\begin{array}{lrrllrrr} \text{Cost of goods sold}&&\$208,000&\hspace{10pt}&\text{Salaries and wages expense}&&\$61,000\\ \text{Delivery expense}&&7,000&\hspace{10pt}&\text{Sales discounts}&&8,000\\ \text{Insurance expense}&&12,000&\hspace{10pt}&\text{Sales returns and allowances}&&13,000\\ \text{Rent expense}&&20,000&\hspace{10pt}&\text{Sales revenue}&&350,000\\ \end{array}$$

Prepare the necessary closing entries.

Two people decide to open a business reconditioning toner cartridges for copy machines. They rent a building for $7000/year and estimate that building maintenance, taxes, and insurance will cost$6500/year. Each person wants to make $12/h in the first year and will work 10 h per day for 260 days of the year. Assume that it costs$28 to restore a cartridge and that the restored cartridge can be sold for $45. How many cartridges must the business restore and sell annually to break even, not including the hourly wage the owners wish to earn?

An actuary studying the insurance preferences of automobile owners makes the following conclusions: (i) An automobile owner is twice as likely to purchase collision coverage as disability coverage. (ii) The event that an automobile owner purchases collision coverage is independent of the event that he or she purchases disability coverage. (iii) The probability that an automobile owner purchases both collision and disability coverages is 0.15. What is the probability that an automobile owner purchases neither collision nor disability coverage? Choose one of the following. (a) 0.18 (b) 0.33 (c) 0.48 (d) 0.67 (e) 0.82

A physician performs medical services for a patient on October 20; the total bill for the medical services was $200. The patient makes a co-pay of$20 on October 20, and the insurance company pays the remaining balance of $180 on November 19. On what date(s) will the physician record the revenue for those medical services provided on October 20?

a.$200 of revenue on October 20 b. $20 of revenue on October 20 and$180 of revenue on November 19 c. $200 of revenue on November 19 d.$180 of revenue on October 20 and the remaining $20 on November 19

Ramirez Company has the following data for the weekly payroll ending January 31.

Instructions

(b) Prepare the journal entries to record the payroll and Ramirez’s payroll tax expense.

Timberlake Company owns equipment with a cost of $165,000 and an accumulated depreciation of$60,000 that can be sold for $82,000, less a 6% sales commission. Alternatively, the equipment can be leased by Timberlake Company for five years for a total of$84,600, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Timberlake Company on the equipment would total $7,950 over the five years. Prepare a differential analysis on March 23, 2014, as to whether Timberlake Company should lease (Alternative 1) or sell (Alternative 2) the equipment.

Timberlake Company owns equipment with a cost of $165,000 and accumulated depreciation of$60,000 that can be sold for $82,000, less a 6% sales commission. Alternatively, the equipment can be leased by Timberlake Company for five years for a total of$84,600, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Timberlake Company on the equipment would total $7,950 over the five years. Prepare a differential analysis on March 23, 2014, as to whether Timberlake Company should lease (Alternative 1) or sell (Alternative 2) the equipment.

Use Table discussed earlier to find the annual premium of each of the following life insurance policies:

$$\begin{array}{} \begin{array}{}\text{Sex} \end{array}& \begin{array}{}\text{Age} \end{array}& \begin{array}{}\text{Policy type}\end{array}& \begin{array}{}\text{Rate classification} \end{array}& \begin{array}{}\text{Face Value}\end{array}& \begin{array}{}\text{Annual premium}\end{array}&\\ \text{Female}&30&\text{Whole-life}&\text{NT}&\$200,000 \end{array}$$

Lettie just got her driver's license. Her friends soon nicknamed her "Leadfoot" because she is always going 80 mph on the freeway even though the speed limit is 65 mph. a. At this speed, how long will it take her to travel 50 miles? b. How long would it take her if she drove the 50 miles at 65 mph? c. Speeding tickets carry fines of about $200 and usually increase the cost of insurance. If Lettie gets a ticket on this trip, then what would be her cost per minute of time saved?

The following revenue and expense account balances were taken from the ledger of Wholistic Health Services Co, after the accounts had been adjusted on February 29, 2016, the end of the fiscal year:

$$\begin{array}{lrlr}\text { Depreciation Expense } & \$ 7,500 & \text { Service Revenue } & \$ 448,400 \\ \text { Insurance Expense } & 3,000 & \text { Supplies Expense } & 2,750 \\ \text { Miscellaneous Expense } & 8,150 & \text { Utilities Expense } & 33,900 \\ \text { Rent Expense } & 54,000 & \text { Wages Expense } & 360,000\end{array}$$

Prepare an income statement.

Suppose that an insurance company classifies people into one of three classes — good risks, average risks, and bad risks. Their records indicate that the probabilities that good, average, and bad risk persons will be involved in an accident over a 1-year span are, respectively, .05, .15, and .30. If 20 percent of the population are “good risks,” 50 percent are “average risks,” and 30 percent are “bad risks,” what proportion of people have accidents in a fixed year? If policy holder A had no accidents in 1987, what is the probability that he or she is a good (average) risk?

Janice Wong receives an annual salary of $42,536, which is paid weekly. Her normal work week is 40 hours, and she is paid time and a half for all overtime. She is single and claims two withholding allowances. Her deductions include FICA, Medicare, federal withholding, state disability insurance, state withholding at 4.4%, credit union payments of$125, retirement deductions of $75, association dues of$12, and a Diabetes Association contribution of $25. Find the federal withholding using the percentage method for a week in which she works 52 hours.