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 changes in shareholders' equity 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.
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Q. 2) The systems development function provides efficient and effective operation of the computer equipment.
Indicate whether the statement is true or false
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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 gross pay?
A) 5,000
B) 4,250
C) 3,940
D) 3,867.50
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Q. 4) Someone who performs a service for a fee and does not work under the control and direction of the company paying for the service is known as a(n) ____________________.
Fill in the blank(s) with correct word
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Q. 5) Sales returns and allowances and Sales discounts are ________.
A) contra-asset accounts and are netted against Accounts receivable on the balance sheet
B) contra-expense accounts and netted against Cost of goods sold on the income statement
C) expense accounts and added to Sales on the income statement
D) contra-revenue accounts and netted against Sales on the income statement
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Q. 6) Assuming that the company uses the perpetual inventory system, determine the Gross Profit for the month of Mayusing the LIFO cost method.
a. 348
b. 452
c. 444
d. 356
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