chapter 11 accounting

the payroll register of sara company indicates %5,800 of social security withheld and $1,450 of medicare tax withheld on total salaries of $90,000 for the period. assume earnings subject to state and federal unemployment compensation taxes are $31,500, at the federal rate of .8% and the sate rate or 5.4%. what is the total amount of payroll taxes

$9,203 payroll tax expense=fica+suta+futa

the following totals for the month of july were taken from the payroll register of lakeside company. salaries:16,000 social security and medicare taxes withheld:900 employees federal income taxes withheld:2,500 medical insurance deducted:450 federal unemployment taxes:32 state unemployment taxes:216 the journal entry to record the monthly payroll of july 31 would include

credit to salaries payable for $12,150 sal wag pay 16,000 fica pay 2,500 ins pay 450 wag pay 12,150

which of the following taxes are not included in the employers payroll taxes

federal income tax

future pension liabilities are estimated based on all of the following except

federal withholding income tax

on july 8 action co issued an $70,000, 6% 120 day note payable to scanlon co. assuming a 360 day year what is the interest expense of the note

$1,400 70,000 (.06) (120/360)

the payroll register of charbroil company indicates $1,200 of social security tax withheld and $300 of medicare tax withheld on total salaries of $20,000 for the period. assume earnings subject to state and federal unemployment compensation taxes are $7,000, at the federal rate of .8% and the state rate of 5.4%. what is the total amount of payroll tax expense

$1,934

little company provides its employees with varying amount of vacation per year, depending on the length of employment. the estimated amount of the current years vacation cost is $172,800. the journal entry to record the adjusting entry required on december 31, the end of the current year, to record the current months accrued vacation pay is

$14,400 172800/12

blazer company sells merchandise with a one year warranty. in year 1, sales consisted of 2,800 unites. it is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in year 1 and 70% in year 2. in the income statement for year 1, blazer company should show warranty expense of

$28,000

assume employees weekly gross earnings are $80,000, federal income tax withholding is $22,634.50, fica taxes are $11,920 in total for the employee and the employer. determine the net amount to be paid to employees

$51,405.50 80,000-22,634.50-(11,920/2)

on january 8 Lowrence co. issued a $60,000, 120 day discounted note to raines bank. the discount rate is 8%. assuming a 360 day year, what is the amount of proceeds received

$58,400 60,000 (120/360) (.08)= 1,600 60,000-1,600

an employee receives an hourly rate of $25, with time and a half for all hours worked in excess of 40 during a week. payroll data for the current week are as follows: hours worked, 45; federal income tax withheld, $350; social security tax rate, 6.0%; and medicare tax rate, 1.5%. what is the net amount to be paid to the employee

$748.44 40*25=1,000 5*(25(1.5))=187.50 1187.5(.06)=71.25 1187.5(.015)=17.81 1000+187.50-71.25-17.81-350

on july 8 action co issued an $80,000, 6%, 90 day note payable to scanlon co. assuming 360 day year, what is the maturity value of the note

$81,200 80,000 (.06) (90/360)= 1,200 1,200+80000

an unfunded pension liability is reported on the balance sheet as

a current liability or long term liability, depending upon when the pension liability is to be paid

scout company sold $15,000 of merchandise in september with a three month warranty. the cost to repair defects under warranty is estimated at 5% of the sales price. the journal entry to record the estimated warranty expense for the month of september will include

a debit to product warranty expense for $750

parton company provides its employees with varying amount of vacation per year, depending on the length of unemployment. the estimated amount of the current years vacation cost is $196,800. the journal entry to record the adjusting entry required on december 31 to record the current months accrued vacation pay will include

a debit to vacation pay expense for $16,400 196800/2

a debtor is referred to as

borrower

a contingent liability that is reasonably possible should be

disclosed only

a contingent liability that is probable and the dollar amount can be estimated should be

recorded and disclosed

which of the following taxdese are employees not subject to

state unemployment tax