1. A company has total Wages owed to employees of $90,000 for the first week of the year. Social security tax is 6.2 %, medicare is 1.45%, federal income tax is 20% and state income tax is 5%. In addtion, FUTA tax rate is .8% and the SUTA rate is 5.4%, what is the amount of money paid to employees in their paychecks for that week?

A. $60,615

B. $55,035

C. $55,755

D. $67,500

2. A $10,000, 9% 90-day note payable is signed on December 1, 2018. What adjusting entry should be prepared on December 31 relating to this note (assuming no prior adjusting entries have been made relating to this note)?

A. Debit Interest Expense for $75; Credit Interest Payable for $75

B. Debit Interest Expense for $225; Credit Interest Payable for $225

C. Debit Interest Expense for $750; Credit Interest Payable for $750

D. Debit Interest Expense for $2,250; Credit Cash for $2,250

E. Debit Interest Payable for $75; Credit Interest Expense for $75

3. If a company sells inventory for $10,000 cash subject to an 8% sales tax, the revenue recorded on the sale will be how much?

A. $9,200

B. $10,000

C. $10,800

D. $800

E. None of the above