1. (2 points) Diane borrowed $1,800,000 at 2% on April 1. Diane is required to make quarterly interest payments with the first payment due on July 1. Diane prepares monthly financial statements What is the amount of Diane's interest payable as of June 30? What is the amount of interest costs Diane should recognize for the period April 1 to August 30? . 2. (2 points) Donna is a retail store that operates in a locale where the state sales tax is 5% and the county sales tax is 3%. Both the state and the county require Donna to remit sales tax collections in the month following the sale. The state allows Donna to keep 2% of the sales tax it collects and the county allows Donna to keep 1% of the sales tax it collects. Donna records the sales tax that it collects in its sales revenue account. The amount recorded in Donna's sales revenue account during March was $504,360. Donna prepares monthly financial statements For the month of March, what was Donna's sales revenues amount? As of March 31, what is the amount of Donna's sales taxes payable to the state (if necessary, round to the nearest dollar)? As of March 31, what is the amount of Donna's sales taxes payable to the county (if necessary, round to the nearest dollar)? . no 3. (2 points) On 01-01-18. Hazel began offering a cash rebate of $1 on each $35 package of widgets it sold. The rebates do not have an expiration date Hazel estimates 45% of its customers will mail in the rebate form. During 2018 and 2019, Hazel sold 27,000 and 31,000 packages of widgets, respectively. During 2018 and 2019. respectively. Hazel mailed 3.240 and 11,600 cash rebates to customers. What is Hazel's rebate expense amount for the year ended 12-31-187 What is Hazel's rebate expense amount for the year ended 12-31-19? As of 12-31-19, what is Hazels rebate liability amount? . 4.2 points) The November 2021 payroll of Sonja Service Company is $840,000, of which $500,000 is exempt from Social Security tax because it represented amounts paid to certain employees in excess of $142,800. The amount paid to employees in excess of $7,000 was $810,000. Amounts withheld from employee's paychecks were $175,000 for federal income taxes, $39,000 for state income taxes, and $76,000 for 401K employee contributions. Sonja's effective state unemployment tax rate is 1.6% and the effective federal unemployment tax rate is 0.8%. Prepare the two joumal entries Sonja should make to reflect its payroll expense and its payroll taxes expense , 5.2 points) During 2020, Polly started manufacturing and selling a new product with a three-year warranty Polly prepares amal AJEs once each year as of 12-31 Based upon past experience with similar products, Polly estimated the following warranty costs as a % of sales dollars: First year of warranty 196 Second year of warranty 396 Third year of warranty 7% Pollys sales during 2020 and 2021, respectively, were 5480,000 and $660,000. Polly's actual warranty expenditures for 2020 and 2021, respectively, were $3,000 and $14,000 What was Polly's estimated warranty expense amount for 2021? What was Polly's estimated warranty liability amount as of 12-31-21? . 6.2 points) Forest bought a fixed asset for $18,000,000 on January 1, 2019. The life of the fixed asset is 7 years and the expected cost to dismantle the fixed asset at the end of 7 years as $1,200,000. An interest rate of 3% would be appropriate for Forest for any necessary present value calculations What amount will Forest record as accretion expense for 20217 Round your answer to the nearest dollar Forest uses a straight-line depreciation method and assumes no salvare value. What amount will Forest record as depreciation expense for 2020? Round your answer to the nearest dollar
