Question : 126.On April 12, Hong Company agrees to accept a 60-day, : 1258967

 

 

126.On April 12, Hong Company agrees to accept a 60-day, 10%, $4,500 note from Indigo Company to extend the due date on an overdue account. What is the journal entry needed to record the payment of the note by Indigo Company on the maturity date?   

A. Debit Notes Payable $4,500; debit Interest Expense $75; credit Cash $4,575.

 

B. Debit Notes Payable $4,500; credit Interest Expense $75, credit Cash $4,425.

 

C. Debit Cash $4,575; credit Interest Revenue $75; credit Notes Payable $4,500.

 

D. Debit Notes Payable $4,500; debit Interest Expense $112; credit Cash $4,612.

 

E. Debit Cash $4,575; credit Interest Revenue $75; credit Notes Receivable $4,500.

Interest Expense = Principal * Interest Rate * TimeInterest Expense = $4,500 * 0.10 * 60/360 = $75 (Debit to Interest Expense)Cash Proceeds = Notes Payable + Interest ExpenseCash Proceeds = $4,500 + $75 = $4,575 (Credit to Cash)

 

 

 

127.On May 22, Jarrett Company borrows $7,500 from Fairmont Financing, signing a 90-day, 8%, $7,500 note. What is the journal entry needed to record the transaction by Jarrett Company?   

A. Debit Cash $7,500; credit Accounts Payable $7,500.

 

B. Debit Accounts Payable $7,500; credit Notes Payable $7,500.

 

C. Debit Cash $7,650; credit Notes Payable $7,650.

 

D. Debit Cash $7,500; credit Notes Payable $7,500.

 

E. Debit Notes Receivable $7,500; credit Cash $7,500.

 

 

 

 

128.. On May 22, Jarrett Company borrows $7,500 from Fairmont Financing, signing a 90-day, 8%, $7,500 note. What is the journal entry needed to record the payment of the note by Jarrett Company on the maturity date?   

A. Debit Notes Payable $7,500; credit Interest Expense $150; credit Cash $7,350.

 

B. Debit Notes Payable $7,500; credit Cash $7,500.

 

C. Debit Notes Payable $7,650; credit Cash $7,650.

 

D. Debit Notes Payable $7,500; debit Interest Expense $150; credit Cash $7,650.

 

E. Debit Cash $7,650; credit Interest Revenue $150; credit Notes Receivable $7,500.

Interest Expense = Principal * Interest Rate * TimeInterest Expense = $7,500 * 0.08 * 90/360 = $150 (Debit to Interest Expense)Cash Proceeds = Notes Payable + Interest ExpenseCash Proceeds = $7,500 + $150 = $7,650 (Credit to Cash)

 

 

 

129.An employee earns $5,500 per month working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 4.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. The employee has $182 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $150 and contributes $75 to a retirement plan each month. What is the amount of net pay for the employee for the month of January?    

A. $4,827.00

 

B. $4,672.25

 

C. $4,628.25

 

D. $4,386.25

 

E. $4,430.25

Net Pay = Gross Pay – Federal Income Tax – FICA-SS Tax – FICA-Medicare Tax – Health Insurance – Retirement Plan Net Pay = $5,500 – $182 – $341* – $79.75** – $150 – $75 = $4,672.25 *FICA-SS Tax $5,500 * 0.062 = $341.00 **FICA-Medicare Tax $5,500 * 0.0145 = $79.75 

 

 

 

130.An employee earned $4,600 in February working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee has $644 in federal income taxes withheld and has voluntary deductions for health insurance of $50 and contributes 10% of gross pay to a retirement plan each month. The employer pays the $200 remainder of the health insurance premium and an equal amount of contribution to the retirement fund. What is the amount of net pay for the employee for the month of February?    

A. $3,094.10

 

B. $3,496.00

 

C. $3,604.10

 

D. $3,446.00

 

E. $2,634.10

Net Pay = Gross Pay – Federal Income Tax – FICA-SS Tax – FICA-Medicare Tax – Health Insurance – Retirement Plan Net Pay = $4,600 – $644 – $285.20* – $66.70** – $50 – ($4,600 * .10) = $3,094.10 *FICA-SS Tax $4,600 * 0.062 = $285.20 **FICA-Medicare Tax $4,600 * 0.0145 = $66.70

 

 

 

131.An employee earns $5,500 per month working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 4.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. The employee has $182 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $150 and contributes $75 to a retirement plan each month. What is the amount the employer should record as payroll taxes expense for the employee for the month of January?    

A. $420.75

 

B. $464.75

 

C. $602.75

 

D. $841.50

 

E. $695.75

Payroll Tax Expense = FICA-SS Tax1 + FICA-Medicare Tax2 + FUTA Tax3 + SUTA Tax4Payroll Tax Expense = $341 + $79.75 + $33 + $242 = $695.751FICA-SS Tax $5,500 * 0.062 = $341.002FICA-Medicare Tax $5,500 * 0.0145 = $79.753FUTA Tax $5,500 * 0.006 = $33.004SUTA Tax $5,500 * 0.044 = $242.00

 

 

 

132.An employee earned $4,600 in February working for an employer. Cumulative earnings of the previous pay periods are $4,800. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 4.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. What is the amount the employer should record as payroll taxes expense for the month of February?    

A. $581.90

 

B. $110.00

 

C. $351.90

 

D. $461.90

 

E. $230.00

Employer Taxes = FICA Social Security + FICA Medicare + FUTA + SUTA Employer Taxes = $285.20* + $66.70** + $13.20*** + $96.80*** = $461.90 *FICA-SS Tax $4,600 * 0.062 = $285.20 **FICA-Medicare Tax $4,600 * 0.0145 = $66.70 ***Wages taxable for Unemployment = $7,000 – $4,800 = $2,200 FUTA = $2,200 * 0.006 = $13.20; SUTA = $2,200 * .044 = $96.80

 

 

 

133.All of the following statements regarding FICA taxes are true except:    

A. FICA taxes are deducted from the employee.

 

B. Employers must pay withheld FICA taxes to the IRS.

 

C. The amount of FICA deducted from the employee is credited to a liability account.

 

D. A self-employed person is exempt from FICA taxes.

 

E. An employer must pay FICA taxes equal to the amount withheld from the employee.

 

 

 

 

134.Athena Company provides employee health insurance that costs $5,000 per month. In addition, the company contributes an amount equal to 5% of the employees’ $120,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a:   

A. Debit to Medical Insurance Payable $5,000.

 

B. Debit to Employee Retirement Program Payable $6,000.

 

C. Debit to Employee Benefits Expense $11,000.

 

D. Credit to Employee Benefits Expense $11,000.

 

E. Debit to Payroll Taxes Expense $11,000.

Accrued Expenses = ($120,000 * 0.05) + $5,000 = $11,000

 

 

 

135.Athena Company’s salaried employees earn two weeks of vacation per year. It pays $858,000 in total employee salaries for 52 weeks but its employees work only 50. Record Athena Company’s weekly journal entry to record the vacation expense:   

A. Debit Vacation Benefits Expense $16,500; credit Vacation Benefits Payable $16,500.

 

B. Debit Vacation Benefits Expense $17,160; credit Vacation Benefits Payable $17,160.

 

C. Debit Vacation Benefits Expense $17,875; credit Vacation Benefits Payable $17,875.

 

D. Debit Vacation Benefits Payable $17,160; credit Vacation Benefits Expense $17,160.

 

E. Debit Vacation Benefits Payable $16,500; credit Vacation Benefits Expense $16,500.

Weekly Vacation Expense = $858,000/50 = $17,160

 

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more