Question :
111. Mission Company has three employees:
Gross Pay through July
Gros : 1256977
111. Mission Company has three employees:
Gross Pay through July
Gross Pay for August
Smith
$3,200
$1,000
Cain
25,800
3,500
Clark
94,600
13,100
The company is subject to the following taxes:
Tax
Rate
Applied to
FICA—Social Security
6.20 %
First $106,800
FICA—Medicare
1.45
All gross pay
FUTA
.80
First $7,000
SUTA
5.40
First $7,000
What is the amount that Mission Company will withhold from Clark’s August gross pay?
A. $ 946.35B. $1,002.15C. $1,814.35D. $6,234.75E. $812.20
112. Mission Company has three employees:
Gross Pay through July
Gross Pay for August
Smith
$3,200
$1,000
Cain
25,800
3,500
Clark
94,600
13,100
The company is subject to the following taxes:
Tax
Rate
Applied to
FICA—Social Security
6.20 %
First $106,800
FICA—Medicare
1.45
All gross pay
FUTA
.80
First $7,000
SUTA
5.40
First $7,000
What is the amount that Mission Company will withhold from Smith’s August gross pay?
A. $ 62.00B. $138.50C. $443.20D. $581.70E. $76.50
113. If a company paid $350,000 in bonuses, and net income prior to the bonus was $4,200,000, what was the bonus percentage offered to the employees during 2010?
A. 6.2%B. 5.7%C. 9.1%D. 8.3%E. 6.8%
114. If Jefferson Company paid a bonus equal to 8% of net income after bonuses and the total bonus distributed was $420,000, how much was net income for the year?
A. $5,250,000B. $5,670,000C. $6,250,000D. $4,320,000E. $4,875,000
115. Conner Company borrows $185,600 cash on November 1, 2013, by signing a 120-day, 8% note. What is the total amount of interest expense that Conner will recognize for this note?
A. $4,949.B. $14,848.C. $2,467.D. $0, no interest expense is recognized.E. $1485.
116. Buyer Company asks to extend its past due $600 account payable to Seller Company. Seller Company agrees to accept $100 cash and a 60-day, 12%, $500 note payable to replace the account payable. How does Buyer Company record this event in the general journal?
A.
Accounts Payable
600
Cash
100
Notes Payable
500
00 Notes Payableompany record this event in the general journal?11111111111111111111111111111111111111111111111111111111111111B.
Notes Payable
500
Cash
100
Accounts Payable
600
C.
Cash
100
Accounts Payable
100
D.
Accounts Payable
100
Cash
100
E. Buyer Company has no entry to record for this transaction.
117. Company A and Company B each borrow $2,000 from the bank. Company A signed a 60-day, 12% note. Company B signed a 90-day, 11% note. How will each of these companies record these events in their respective general journals on the day the money was borrowed?
A. Company A
Cash
2,000
Notes Payable
2,000
Company B
Cash
2,000
Notes Payable
2,000
00 Notes Payableompany record this event in the general journal?11111111111111111111111111111111111111111111111111111111111111B. Company A
Cash
2,040
Interest Expense
40
Notes Payable
2,000
Company B
Cash
2,055
Interest Expense
55
Notes Payable
2,000
C. Company A
Notes Payable
2,000
Cash
2,000
Company B
Notes Payable
2,000
Cash
2,000
D. Company A
Interest Expense
40
Notes Payable
2,000
Cash
2,040
Company B
Interest Expense
55
Notes Payable
2,000
Cash
2,055
E. . Company A
Cash
2,040
Notes Payable
2,040
Company B
Cash
2,055
Notes Payable
2,055
118. On October 10, 2013, Printfast Company sells a commercial printer for $2,350 with a one-year warranty that covers parts. Warranty expense is projected to be 4% of sales. On February 28, 2014, the printer requires repairs. The cost of the parts for the repair is $80 and Printfast pays their technician $150 to perform the repair. What is the warranty liability for this printer at the end of 2013?
A. $49.00B. $84.80C. $94.00D. $0, there is no liability at the end of 2013E. $230.00
119. On October 10, 2013, Printfast Company sells a commercial printer for $2,350 with a one-year warranty that covers parts. Warranty expense is projected to be 4% of sales. On February 28, 2014, the printer requires repairs. The cost of the parts for the repair is $80 and Printfast pays their technician $150 to perform the repair. What warranty expense is recorded for this printer during 2014?
A. $14.00.B. $84.80.C. $94.00.D. $0, there is no expense in 2014.E. $230.00.
120. On October 10, 2013, Printfast Company sells a commercial printer for $2,350 with a one-year warranty that covers parts. Warranty expense is projected to be 4% of sales. On February 28, 2014, the printer requires repairs. The cost of the parts for the repair is $80 and Printfast pays their technician $150 to perform the repair. What is the warranty liability for this printer at the at the end of 2014?
A. $14.00.B. $84.80.C. $94.00.D. $0, there is no liability at the end of 2014.E. $230.00.
121. If a company had income before interest and taxes in the amount of $2,345,540 and a times interest earned ratio of 5.2, what is the total amount of the company’s interest expense?
A. $451,065B. $320,185C. $121,968D. $275,840E. $230,000
122. If a company had net income of $2,379,600, interest expense of 234,000, a tax rate of 40%, and operating income of $4,200,000, what is the times interest earned ratio?
A.10.17B. 17.95C. 7.78D. 7.18E. 4.07
123. If a company had net income of $1,486,875, a times interest earned ratio of 4.0, a tax rate of 35%, and operating income of $3,050,000, what is the company’s interest expense for the year?
A.$1,067,500B. $725,329C. $371,719D. $762,500E. $1,564,000
