1. Current Portion of Long-Term Debt

Connie's Bistro, Inc. reported the following information about its long-term debt in the notes to a recent financial statement (in millions):

Long-term debt consists of the following:

	December 31
	Current Year		Preceding Year
Total long-term debt	$754,200		$414,800
Less current portion	(218,700)		(203,600)
Long-term debt	$535,500		$211,200

a. How much of the long-term debt was disclosed as a current liability on the current years December 31 balance sheet? $

b. How much did the total current liabilities change between the preceding year and the current year as a result of the current portion of long-term debt? $

c. If Connie's Bistro did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming year? $

2. Calculate Payroll

An employee earns $20 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. If the employee worked 60 hours during the week.

Assume that the social security tax rate is 6.0%, the Medicare tax rate is 1.5%, and the employees federal income tax withheld is $322.

a. Determine the gross pay for the week. $

If applicable, round your final answer to two decimal places.

b. Determine the net pay for the week. $

3. Payroll Tax Entries

According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $25,000 was subject to state and federal unemployment taxes.

a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%. $________

b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.

4. Accrued Vacation Pay

A business provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year's vacation pay is $55,200.

a. Journalize the adjusting entry required on January 31, the end of the first month of the current year, to record the accrued vacation pay. If an amount box does not require an entry, leave it blank.

b. How is the vacation pay reported on the company's balance sheet?

_________, unless employees are allowed to accumulate their vacation pay for use in future years.

When is this amount removed from the company's balance sheet?__________