1.) Beau Brentley earned $60,000 from his job at Bridgestone Tires. He had 15% of his gross pay withheld for federal income taxes, 6.2% withheld for FICA Social Security taxes, and 1.45% withheld for Medicare taxes. What amount will Bridgestones Tires report as salary expense for 2011?

Salaries Expenses * Tax rate= salaries payable

60,000 * 15%= 9000

60,000 * 6.2%= 3720

60,000 * 1.45%= 870

Sum= 13,590

Earnings - Net earning

60000 - 13590= 46,410

2.) In december 2011, Marvin Simpson worked for Longville Flower and earned $5000, Federal income tax withholding is 15%. The FICA rate is 6.2% and Medicare tax is 1.45%. How much cash will Longville FLower pay the government for Medicare tax because of Homer's December earnings?

A.) $310

B.) $72.50

C.) $145

D.) $620

3.) December 2010, Bob Lucus worked for Valentinos and earned $1000. Federal income tax withholding is 10%. The FICA rate is 6.2% and the Medicare tax is 1.45%. How much does Bob December salary will be included in Salary expense on Valentinos income statement for year ended December 31 2010?

A.) $923.50

B.) $1,000

C.) $900

D.) $823.50

4.) December 2010, Bob Lucus worked for Valentinos and earned $1000. Federal income tax withholding is 10%. The FICA rate is 6.2% and the Medicare tax is 1.45%. How much cash will Valentinos pay the government for Medicare tax because of Bob's december earnings?

A.) $62.00

B.) $124.00

C.) $14.50

D.) $29.00

5.) Brooke's Bike Company sold $3780 worth of mountain bikes in June. Warranty expense is estimated to be 2% of a sales. During June, Brooke's Bikes replaced two faulty parts under warranty. The parts cost a total $100. The Warranty. The parts cost a total of $100. The warranty expense for June was

A.) $ 65.60

B.) $ 175.60

C.) $ 100

D.) $ 75.60

3780*2%= 75.60

+100= 175.60