AC LS 10
Payroll taxes are paid only by employer
Futu suta
john smith works 40 hours. how would abc record his gross pay
salaries and wages expense increase 600
xyz company is in the process of issuing bonds...
the issue price will be below the bond's face value
credited when payroll tax expense is debited
unemployment tax payable fica payable
long term liabilities are accounted for in the same was short term liabilities, except that long term liabilities are on the books for more than one
year
the following 12% 1,000 notes have varying periods to maturity but all were issued on december 1. which of the following are the correct calculations of interest for these notes on december 31 of this same year
- 4 mo 1000x12x1/12 -2 year 1000x1201/12 -3 mo 1000x12x1/12
on november 1,2018 abc corp borrowed 100,000 cash on a 1 year 6% note payable that requires ac to pay both principal and interest on october 31, 2019. the journal entry on november 1, 2018 would include which of the following
- debit to cash 100k -credit to np 100k
as of december 31, 2018, $110 of interest had been accrued on a 12%, 1 year 1,000 note payable. on January 31,2019, the entry to record the payment of the note's principal and interes requires a
-1120 credit to cash -10 debit to interest expense -110 debit to interest pay -1000 debit to notes pay
payroll deductions
-are amounts subtracted from employees gross earning -decrease the amount of cash
the journal entry to record the payment of salaries and wages for work performed in the current accounting period causes
-assets to decrease -liabilities to increase -stockholder eq decrease
on sept 1
-debit 1000 interest pay -debit to inte ex 1250 -debit np 50k -credit cash 52,250
if abc company issues 100 of its 1000 bonds at a price of 11.00. ie 1100 each, the journal entry to record the transaction includes a
-debit to cash 110k -credit bonds pay 100k -credit premium 10k
abc company issues a bond
-debit to interest exp -credit to cash 500
on november 1,2018, ab corp borrwed 100,00l cash on an 1-year 6% note payable that requires abc to pay noth principal and interest on October 31, 2018 abcs years end. the entry to record the payment on october 31, 2019 would include a
-debit to interest payable of 1000 -credit cash 106k -debit to np 100k -debit to interest expense of 5k
texable
-debit to payroll expense 506k -credit to unemployment tax payable 4,700 -credit to FICA payable for 45,900
employees gross earnings differ from their net pay because of
-federal and state income taxes -payroll deductions -FICA taxes
which of the following are not required payroll deductions from an employees gross earnings?
-federal unemployments tax (FUTA) -state unemployment tax(SUTA) -charitable contributions
on Nov 1, 20188...year end adjusting entry affect the accounting equation
-liabilities increase and stockholders equity decreases
which of the following are long term liabilities
-notes pay 3 years -bond payable to due in 20 year
john smith work 40 hours for abc corp for 15 per hour. required payroll deductions are social security 8.70 federal income tax $58 and state income tax $10. assuming the payroll deductions are paid in the following month
486.10
the discount on a bonds payable because
additional interest expense over the life of the bonds
bondholders are willing to pay a premium to acquire a bond bc the
bond's stated interest rate is higher than than the market interest rate
abc corporation issued bonds that pay interest each march 1 and september 1. the corporation december 31 adjusting entry may include a
credit to interest payable
under US GAAp, if a company violates loan covenants on a long term debt but renegotiates the loan before releasing its financial statements, the debt remains classified
current
john smith
current liabilities increase 113.90
on september 1
debit to interest expense of 1000
amortizing a bond premium will ___the premium balance and __the carrying value of the bond so that when the bond matures the carrying value will __the face value
decreases, decreases, equal
bond premium is the amount by which a bonds issue price is __its face value
exceeds
a liability is first recorded at the amount of cash a creditor would accept to immediately settle the liability, which __interest
excludes
whether a bond is issued at par, premium, or discount, when the bond mature the amount paid equals the __value
face
bonds are issued at a discount when the bonds stated interest rate is ___the market interest rate
lower than
for investors
moodys standards and poors