FUND.ACCT.PRIN.-CONNECT ACCESS
25th Edition
ISBN: 9781260780185
Author: Wild
Publisher: MCG
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Question
Chapter 1, Problem 6E
To determine
Concept Introduction:
There are different types of business organizations available. The people choose the type of business organizations according to the attributes of the business.
The attributes of business are −
| Proprietorship | Corporation | LLC | ||
| Number of owners | Only 1 owner | 2 or more people termed as parts | 1 or more. They are termed as stockholders | 1 or more. They are termed as members |
| Business | No additional business income tax | No additional business income tax | Additional business income tax | No additional business income tax |
| Owner Liability | Unlimited Liability | Unlimited Liability | Limited Liability | Limited Liability |
| Legal entity | Not a separate legal entity | Not a separate legal entity | A separate legal entity with same rights | A separate legal entity with same rights |
| Business Life | Business ends with the death of owner or by his choice | Business ends with the death of partners or by their choice | Indefinite | Indefinite |
Whether each description best refers to a sole proprietorship, partnership, corporation and LLC.
The given descriptions are −
- Micah and Nancy own Financial services, which pays a business income tax, Micah and Nancy do not have personal responsibility for the debts of Financial Services
- Riley and Kay own Speedy Packages, a courier service. Both are personally liable for the debts of the business.
- IBC Services does not have a separate legal existence apart from the person who owns it.
- Trent Company is owned by Trent Malone, who is personally liable for the debts of the company.
- Ownership of Zander Company is divided into 1000 shares of stock. The company pays a business income tax.
- Physio Products does not pay income taxes and one owner. The owner has unlimited liability for business debt
- AJ Company pays a business income tax and has two owners
- Jeffy Auto is a separate legal entity from its owners, but it does not pay business income tax
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Students have asked these similar questions
Martin Hughes earns net self-employment income of $157,100. He works a second job from which he receives FICA taxable earnings of $127,600.Self-Employment tax =
Question 2
U. Richards does not keep his books on the double entry system. His bank summary
amount for 2010 is as follows:
Balance 1.1.2010
1890
Receipts from
$44656
debtors
Creditors
Loan from U. Miller
$2.000
Rates
Rent
Drawings
Cash withdrawn from
bank
$540
0
Payment to Trade
$316
95
2750
1316
3095
1642
Sundry Expense
Records of cash paid were sundry $122, trade creditors $642. Cash sales amounted to
cash drawings were $5289.
The following information is also available:
31.12.201
31.12.2
0
011
Cash in hand
$48
$93
Trade creditors
$4896
$5091
Accounts Receivables
60
$71
13
32
Rent Owing
$250
Rates in Advance
$282
$312
Motor van (at valuation)
2800
2400
Stock
11163
13021
Required:
A. Statement of Affairs. (to find opening capital as at 31.12.2010)
B. Cash Account & Bank Account.
C. Accounts Receivables & Accounts Payables Control A/Cs.
D. Income Statement for the year ended 31 December 2011.
2: Martin Hughes earns net self-employment income of $157,100. He works a second job from which he receives FICA taxable earnings of $127,600.
Self-Employment tax = $ 6,440.70
3: Elisa Grant earns net self-employment income of $198,000. She works a second job from which she receives FICA taxable earnings of $100,400.
Self-Employment tax = $ 30,294.00
Chapter 1 Solutions
FUND.ACCT.PRIN.-CONNECT ACCESS
Ch. 1 - Prob. 1QSCh. 1 - Prob. 2QSCh. 1 - Prob. 3QSCh. 1 - Prob. 4QSCh. 1 - Prob. 5QSCh. 1 - Prob. 6QSCh. 1 - This icon highlights assignments that enhance...Ch. 1 - Prob. 8QSCh. 1 - Prob. 9QSCh. 1 - Prob. 10QS
Ch. 1 - Prob. 11QSCh. 1 - Identifying items with financial statements P2...Ch. 1 - P2
Classify each of the following items as...Ch. 1 - P2
Classify each of the following items as assets...Ch. 1 - Preparing an income statement P2...Ch. 1 - Prob. 16QSCh. 1 - Prob. 17QSCh. 1 - Prob. 18QSCh. 1 - Prob. 19QSCh. 1 - Prob. 20QSCh. 1 - Prob. 21QSCh. 1 - Prob. 1ECh. 1 - Exercise 1-2 Identifying accounting users and uses...Ch. 1 - Prob. 3ECh. 1 - Prob. 4ECh. 1 - Prob. 5ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Prob. 8ECh. 1 - Prob. 9ECh. 1 - Prob. 10ECh. 1 - Prob. 11ECh. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Prob. 14ECh. 1 - Prob. 15ECh. 1 - Prob. 16ECh. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Prob. 21ECh. 1 - Prob. 22ECh. 1 - Prob. 23ECh. 1 - Prob. 24ECh. 1 - Prob. 25ECh. 1 - Prob. 1PSACh. 1 - Prob. 2PSACh. 1 - Prob. 3PSACh. 1 - Prob. 4PSACh. 1 - Prob. 5PSACh. 1 - Prob. 6PSACh. 1 - Prob. 7PSACh. 1 - Prob. 8PSACh. 1 - Prob. 9PSACh. 1 - Prob. 10PSACh. 1 - Prob. 11PSACh. 1 - Prob. 1PSBCh. 1 - Prob. 2PSBCh. 1 - Prob. 3PSBCh. 1 - Prob. 4PSBCh. 1 - Prob. 5PSBCh. 1 - Prob. 6PSBCh. 1 - Prob. 7PSBCh. 1 - Prob. 8PSBCh. 1 - Prob. 9PSBCh. 1 - Prob. 10PSBCh. 1 - Prob. 11PSBCh. 1 - On October 1. 2019, Santana Rev launched a...Ch. 1 - Prob. 1AACh. 1 - Prob. 2AACh. 1 - Prob. 3AACh. 1 - Prob. 1DQCh. 1 - Technology is increasingly used to process...Ch. 1 - Prob. 3DQCh. 1 - What are at least three questions business owners...Ch. 1 - Prob. 5DQCh. 1 - Describe the internal role of accounting for...Ch. 1 - Identify three type of services typically offered...Ch. 1 - Prob. 8DQCh. 1 - Why is accounting described as a service activity?Ch. 1 - What are some accounting-related professions?Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - Prob. 13DQCh. 1 - A business reports its own office stationary on...Ch. 1 - Why is the revenue recognition principle needed?...Ch. 1 - Prob. 16DQCh. 1 - Prob. 17DQCh. 1 - What events or transactions change equity?Ch. 1 - Prob. 19DQCh. 1 - What do accountants mean by the term revenue?Ch. 1 - 21. Define net income and explain its...Ch. 1 - Identify the four basics financial statements of a...Ch. 1 - Prob. 23DQCh. 1 - 24. Give two examples of expenses a business might...Ch. 1 - Prob. 25DQCh. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Prob. 28DQCh. 1 - Prob. 1BTNCh. 1 - Prob. 2BTNCh. 1 - Visit the EDGAR database at SEC.gov. Access the...Ch. 1 - Prob. 4BTN
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