Accounting

Contingent liabilities Reynolds American, Inc., has numerous pages dedicated to describing contingent liabilities in the notes to recent financial statements. These pages include extensive descriptions of multiple contingent liabilities. Use the Internet to research Reynolds American, Inc., at www.reynoldsamerican.com. 1.  What are the major business units of Reynolds American Inc.? 2.  Based on your understanding of […]

Recognizing pension expense The annual examination of Felton Company’s financial statements by its external public accounting firm (auditors) is nearing completion. The following conversation took place between the controller of Felton Company (Francie) and the audit manager from the public accounting firm (Sumana): Sumana: You know, Francie, we are about to wrap up our audit

Payroll forms Payroll accounting involves the use of government-supplied forms to account for payroll taxes. Three common forms are the W-2, Form 940, and Form 941. Form a team with three of your classmates and retrieve copies of each of these forms. They may be obtained from a local IRS office, a library, or the

Ethics in Action Tonya Latirno is a staff accountant for Cannally and Kennedy, a local CPA firm. For the past 10 years, the firm has given employees a year-end bonus equal to two weeks’ salary. On November 15, the firm’s management team announced that there would be no annual bonus this year. Because of the

Wage and tax statement data and employer FICA tax Obj. 2, 3 Jocame Inc. began business on January 2, 20Y7. Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and federal income tax were withheld in the required amounts. An employee who is hired in the middle

Entries for payroll and payroll taxes Obj. 2, 3 The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.:   Instructions 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries: 1. December

Payroll accounts and year-end entries Obj. 2, 3, 4 The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year:   The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:   Instructions 1. Journalize the transactions. 2. Journalize the following adjusting entries

  Prepare a payroll register for Throwback Industries Inc. for the week ended December 9, 20Y8.Payroll register Obj. 2, 3 The following data for Throwback Industries Inc. relate to the payroll for the week ended December 9, 20Y8:   Employees Mantle and Williams are office staff, and all of the other employees are sales personnel. All

Wage and tax statement data on employer FICA tax Obj. 2, 3 Ehrlich Co. began business on January 2, 20Y8. Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and federal income tax were withheld in the required amounts. An employee who is hired in the middle

1. Determine the quick ratio for both companies. Round to one decimal place. Answer Check Figure: Apple, 1.0 2. Interpret the quick ratio difference between the two companies. 11-7fProblems: Series A PR 11-1A Liability transactions Obj. 1, 5 The following items were selected from among the transactions completed by O’Donnel Co. during the current year: Jan. 10. Purchased