1. Company borrowed $62,000 cash. The one-year note carried a 18% rate of interest. The amount of interest expense on the income statement and the amount of cash flow from operating activities shown on December 31, Year 1, financial statements would be

2. Earns a monthly salary of $4,000. Based on Mr. Ortgas Form W-4, the tax tables require withholding $450 per month for income taxes. Mr. Ortega has authorized his employer to deduct $190 per month for medical insurance and $15 per month for a charitable contribution to the Humane Society. Assume a FICA tax rate of 6%, a Medicare tax rate of 1.5%, and an Unemployment tax rate of 6% on the first $7,000 of income. Based on this information, the total amount of accrued payroll tax expense incurred by Mr. Ortegas employer for January is

On September 1, Year 1. Western Company borrowed $62,000 cash. The one-year note carried a 18% rate of interest. The amount of interest expense on the income statement and the amount of cash flow from operating activities shown on Western's December 31 , Year 1 , financial statements would be: Multiple Choice $7,440 interest expense and $11,60 cash outfiow from operating activities. $3,720 interest expense and $11,160 cash outliow from operating activities. $3.720 interest expense and $0 cosh outfow from operating activities $7,440 interest expense and $0 cash outfow from operating activities. Mr. Ortega earns a monthly salary of $4,000. Based on Mr. Ortega's Form W-4, the tax tables require withholding $450 per month for income taxes. Mr. Ortega has authorized his employer to deduct $190 per month for medical insurance and $15 per month for a charitable contribution to the Humane Society. Assume a FICA tax rate of 6%, a Medicare tax rate of 1.5%, and an Unemployment tax rate of 6% on the first $7,000 of income. Based on this information, the total amount of accrued payroll tax expense incurred by Mr. Ortega's employer for January is Multiple Choice $610 $300 5540 $810