Mia Hero started her own catering business called Hero's Catering. Analyze each of the following transactions for the first month of business. Prepare the statement of cash flows for the month of March.
a. Mia contributed 10,000 of her own money to start Mia's catering.
b. The business borrowed another 5,000 from the local bank.
c. The business rented a kitchen for 1,500 for the month.
d. The business spent 1,200 on food, spices and other supplies used during the month.
e. The business hired Betty Foit as an assistant chef and paid her 500 for the month.
f. The business earned 7,000 in revenues during the month.
(
Q. 2) The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What isthe amount of inventory at the end of the year according to the LIFO method?
a. 655
b. 620
c. 690
d. 659
(
Q. 3) In December 2011, Homer Simpson worked for Springfield Power and earned 5,000. Federal income tax withholding is 15. The FICA rate is 6.2 and the Medicare tax is 1.45. What is Homer's net pay?
A) 5,000
B) 4,250
C) 3,940
D) 3,867.50
(
Q. 4) Segregation of duties consists of separating the four functions of authorizing events, executing events, recording events, and safeguarding the resources resulting from consummating the events.
Indicate whether the statement is true or false
(
Q. 5) An accountant discovered a bank error while reviewing the bank statement, and called the bank to correct the mistake. This call is an example of a ________.
A) business control
B) detective control
C) corrective control
D) preventive control
(
Q. 6) A(n) ____________________ exempts a specific dollar amount of an employee's gross pay from federal income tax withholding.
Fill in the blank(s) with correct word
Quick Reply
