Question

7. a) Paige's payroll included social security tax withholding of $139.75 for the pay period. The journal entry to record this includes a credit to

		social security tax payable
		salaries expense
		cash
		social security tax expense

Burns Inc. purchased a mining site for $2,000,000 on January 1, 2019. The company expects to mine coal for the next 10 years and anticipates that a total of 1,000,000 tons will be recovered. During 2019, the company extracted 100,000 tons of coal. The depletion expense for 2019 is
$200,000

$400,000

$300,000

$1,000,000

c) The balance sheet of Vikings Suck, LLC has included the following information:

Cash $83,000

Accounts Receivable $37,000

Inventory $63,000

Accounts Payable $49,000

Notes Payable $150,000 (Long-Term Debt)

What is Vikings Suck, LLC's Current Ratio?

		3.73
		2.45
		0.92
		5.82

d) DJ Partners has current assets of $107,000 and current liabilities of $42,000. The current assets included inventory of $24,000. What would is their quick ratio?

		2.31
		1.98
		0.68
		2.55

Answer 1

a

The journal entry to record this includes a credit to social security tax payable

Option A is correct

b
Cost	2000000
Divide by Total tons	1000000
Depletion per ton	2
Depletion expense for 2019	200000	=100000*2
Option A is correct
c
Cash	83000
Accounts Receivable	37000
Inventory	63000
Total Current assets	183000
Divide by Current liabilities	49000
Current Ratio	3.73
Option A is correct
d
Quick Assets	83000	=107000-24000
Divide by Current liabilities	42000
Quick ratio	1.98
Option B is correct