1, Commonly, current liabilities are payable within one year and long-term liabilities are payable more than one year from now. True or False
2, Given a choice, most companes would prefer to report a liability as current rather than long-term because it may cause the firm to appear less risky T or F
3, If company borrows from another company rather than from a bank, the note is referred to as commercial paper. T or F
4, Sales taxes collected from customers by seller are not an expense, instead they represent current liabilities payable to the govermant T or F
5, The balance in the estimated warranty liability account is always equal to warranty expense. T or F
6, We record gain contingencies when the gain is probable and can be reasonable estimated. T or F.
7, An employee has gross earning of $1,600 and withholding of $25 for income taxes, $5 for social security taxes and $3 for medicare taxes. The employer also pays a total of $5 for social securty and $3 for medicare taxes, $12 for SUTA. What is the total cost of this employer to the employer? Assume no other infomation.
1, Commonly, current liabilities are payable within one year and long-term liabilities are payable more than one year from now. True or False
2, Given a choice, most companes would prefer to report a liability as current rather than long-term because it may cause the firm to appear less risky T or F
3, If company borrows from another company rather than from a bank, the note is referred to as commercial paper. T or F
4, Sales taxes collected from customers by seller are not an expense, instead they represent current liabilities payable to the govermant T or F
5, The balance in the estimated warranty liability account is always equal to warranty expense. T or F
6, We record gain contingencies when the gain is probable and can be reasonable estimated. T or F.
7, An employee has gross earning of $1,600 and withholding of $25 for income taxes, $5 for social security taxes and $3 for medicare taxes. The employer also pays a total of $5 for social securty and $3 for medicare taxes, $12 for SUTA. What is the total cost of this employer to the employer? Assume no other infomation.
Related questions
A company's had fixed interest expense of $3,300, its incomebefore interest expense and income taxes is $16,200, and its netincome is $6,600. The company's times interest earned ratioequals: |
2.45.
0.50.
4.91.
2.00.
0.20.
A company's income before interest expense and income taxes is$225,000 and its interest expense is $75,000. Its times interestearned ratio is: |
2.67
0.99
3.00
0.33
1.68
A company's fixed interest expense is $9,000, its income beforeinterest expense and income taxes is $38,250. Its net income is$11,850. The company's times interest earned ratio equals: |
0.235.
0.76.
3.23.
4.25.
0.31.
An employee earned $43,600 during the year working for anemployer when the maximum limit for Social Security was $117,000.The FICA tax rate for Social Security is 6.2% and the FICA tax ratefor Medicare is 1.45%. The employee's annual FICA taxes amountis: |
$632.20.
$2,703.20.
$6,670.80.
$6,670.80.
$3,335.40.
An employee earned $5,300 working for an employer in the currentyear. The current rate for FICA Social Security is 6.2% payable onearnings up to $117,000 maximum per year and the rate for FICAMedicare 1.45%. The employer's total FICA payroll tax for thisemployee is: |
$405.45.
Zero, since the FICA tax is a deduction from an employee's pay,and not an employer tax.
$76.85.
$328.60.
$810.90.
An employee earned $62,400 during the year working for anemployer. The FICA tax rate for Social Security is 6.2% and theFICA tax rate for Medicare is 1.45%. The current FUTA tax rate is0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes areapplied to the first $7,000 of an employee's pay. What is theamount of total unemployment taxes the employee mustpay?
$101.50
$56.00
$378.00
$434.00
$0.00
Employees earn vacation pay at the rate of one day per month.During the month of July, 16 employees qualify for one vacation dayeach. Their average daily wage is $91 per day. What is the amountof vacation benefit expense to be recorded for the month ofJuly? |
$16.0
$14,560.0
$1,456.0
$91.0
$145.6
A company estimates that warranty expense will be 4% of sales.The company's sales for the current period are $233,000. Thecurrent period's entry to record the warranty expense is:
Debit Warranty Expense $9320 credit Sales $9320.
Debit Warranty Expense $9320 credit Estimated Warranty Liability$9320.
Debit Estimated Warranty Liability $9320 credit Warranty Expense$7400.
Debit Estimated Warranty Liability $9320 credit Cash $9320.
No entry is recorded until the items are returned for warrantyrepairs.
A company has a selling price of $2,050 each for its printers.Each printer has a 2 year warranty that covers replacement ofdefective parts. It is estimated that 3% of all printers sold willbe returned under the warranty at an average cost of $155 each.During November, the company sold 35,000 printers, and 450 printerswere serviced under the warranty at a total cost of $60,000. Thebalance in the Estimated Warranty Liability account at November 1was $31,500. What is the company's warranty expense for the monthof November? |
$69,750
$60,000
$81,375
$162,750
$28,500
An employee earns $6,500 per month working for an employer. TheFICA tax rate for Social Security is 6.2% and the FICA tax rate forMedicare is 1.45%. The current FUTA tax rate is 0.8%, and the SUTAtax rate is 5.4%. Both unemployment taxes are applied to the first$7,000 of an employee's pay. The employee has $222 in federalincome taxes withheld. The employee has voluntary deductions forhealth insurance of $190 and contributes $95 to a retirement planeach month. What is the amount of net pay for the employee for themonth of January? (Round your intermediate calculations totwo decimal places.) |
$5,495.75
$5,590.00
$5,144.75
$5,092.75
$5,443.75
According to a summary of the payroll of Mountain Streaming Co., $720,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $60,000 was subject to state and federal unemployment taxes.
| Required: | |
| A. | Calculate the employerâs payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%. |
| B. | Journalize the entry to record the accrual of payroll taxes. Refer to the Chart of Accounts for exact wording of account titles. |
Chart of Accounts
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Starting Question
a. Calculate the employerâs payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.
Journal
b. On December 31, journalize the entry to record the accrual of payroll taxes. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
|---|---|---|---|---|---|---|---|---|
| 1 | ||||||||
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