51 what is the amount of vacation pay expense that should be reported on silver s in 4314640

51 what is the amount of vacation pay expense that should be reported on silver s in 4314640

51.What is the amount of vacation pay expense that should be reported on Silver’s income statement for 2017?

a) $37,800

b) $36,120

c) $34,440

d) $0

52.What is the amount of the Vacation Wages Payable that should be reported at December 31, 2019?

a) $39,900

b) $45,360

c) $47,460

d) $47,880

53. Information regarding Oxygen Inc.’s payroll for the period ending March 22 follows:

Gross salaries and wages………….$100,000

CPP rate……………………..4.95%

EI rate……………………….1.83%

Employee income tax…………….deducted $20,000

Company pension deducted………..5% of gross salaries and wages

Union dues deducted…………….$800

Assume 100% of the gross salaries and wages are subject to CPP and EI. Therefore, the NET pay for this period is

a) $66,690.

b) $67,420.

c) $68,220.

d) $72,420.

54. Browning Company's salaried employees are paid biweekly. Information relating to salaries for the calendar year 2017 is as follows:

Accrued salaries payable………….91,000

Salaries expense for 2017…………910,000

Salaries paid during 2017 (gross)…….875,000

At December 31, 2017, what amount should Browning report for accrued salaries payable?

a) $126,000

b) $120,000

c) $91,000

d) $35,000

55. Willow Corp.'s payroll for the period ended October 31, 2017 is summarized as follows:

Amount of Wages Subject

DepartmentTotalIncome Tax    to Payroll Taxes    

Payroll WagesWithheldCPP/QPPEI

Factory$75,000$10,000$66,000$22,000

Sales22,0003,00016,0002,000

Office18,0002,0008,000—

$115,000$15,000$90,000$24,000

Assume the following payroll tax rates:

CPP/QPP for employer and employee4.95% each

Employment Insurance1.83% for employee

1.4 times employee premium for employer

To the nearest dollar, what amount should Willow accrue as its share of payroll taxes in its October 31, 2017 statement of financial position?

a) $4,894

b) $5,070

c) $6,102

d) $20,070

Use the following information for questions 56–57.

Antimony Inc. developed a new gold mine during 2017, and is required by provincial law to restore the site to its previous condition once mining operations are completed. The company estimates that the mine will close in 20 years and that the land restoration will cost $5,000,000. Antimony uses a 6% discount rate.

56.To the nearest dollar, the entry to record the asset retirement obligation is

a) Restoration Expense……………………………….93,541

Asset Retirement Obligation …………………..93,541

b) Restoration Expense……………………………….250,000

Asset Retirement Obligation……………………250,000

c) Gold Mine……………………………………….5,000,000

Asset Retirement Obligation……………………5,000,000

d) Gold Mine……………………………………….1,559,000

Asset Retirement Obligation……………………1,559,000

57.To the nearest dollar, the adjusting entry to record accretion at the end of Year One is

a) Accretion Expense…………………………………250,000

Asset Retirement Obligation……………………250,000

b) Accretion Expense…………………………………93,540

Asset Retirement Obligation……………………93,540

c) Gold Mine……………………………………….93,540

Asset Retirement Obligation……………………93,540

d) Interest Expense………………………………….93,540

Asset Retirement Obligation……………………93,540

58. On April 30, 2017, Canuck Oil Corp. purchased an oil tanker depot for $1,200,000 cash. The company expects to operate this depot for eight years, at which time they will be legally required to dismantle the structure and remove the underground storage tanks. Canuck Oil estimates this asset retirement obligation (ARO) will cost $200,000. Assuming a 5% discount rate, to the nearest dollar, the amount to be recorded as the ARO is

a) $ 25,000.

b) $135,368.

c) $150,000.

d) $295,491.

59. On Dec 12, 2017, Ivory Coast, CGA, received $5,000 from a customer as an advance payment for accounting work to be done. The payment was credited to Accounting Revenue. Thirty percent of the work was performed in December 2017, with the rest to be done in January 2018, at which time the customer will be billed. The required adjusting entry at December 31, 2017 (yearend) is

a) Dr. Unearned Revenue $1,500, Cr. Accounting Revenue $1,500.

b) Dr. Accounting Revenue $1,500, Cr. Unearned Revenue $1,500.

c) Dr. Accounting Revenue $3,500, Cr. Unearned Revenue $3,500.

d) Dr. Unearned Revenue $3,500, Cr. Accounting Revenue $3,500.

60. On January 1, 2017, Wick Ltd. leased a building to Candle Corp. for a ten-year term at an annual rental of $90,000. At the inception of the lease, Wick received $360,000 covering the first two years rent of $180,000 and a security deposit of $180,000. This deposit will NOT be returned to Candle upon expiration of the lease but will be applied to payment of rent for the last two years of the lease. What portion of the $360,000 should be shown as a current and long-term liability, respectively, in Wick's December 31, 2017 statement of financial position?

Current LiabilityLong-term Liability

a) $0$360,000

b) $90,000$180,000

c) $180,000$180,000

d) $180,000$90,000

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