Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

10. On December 1. Watson Enterprises signed a $24,000,60-day, 4% note payable as replacement of an account payable with Erikson Company. What is the joumal

image text in transcribed
10. On December 1. Watson Enterprises signed a $24,000,60-day, 4% note payable as replacement of an account payable with Erikson Company. What is the joumal entry that should be recorded by Watson Enterprisest upon signing the note? A) Debit Accounts Receivable $24,000; credit Notes Recelvable $24,000 B) Debit Accounts Payable $24,000; credit Notes Payable $24,000 C) Debit Accounts Payable $24,160; credit Notes Payable $24,160 D) Debit Notes Payable $24,000; debit interest Expense $160; credit Accounts Payable $24,160 E) Debit Notes Payable $24,000; debit interest Expense $160; credit Cash $24.160 11. On May 22, Jarrett Company borrows $7,500 from Fairmont Financing, signing a 90 -day. 8%,$7,500 note. What is the journal entry needed to record the transaction by darrett Company? A) Debit Cash $7,500, credit Accounts Payable $7,500 B) Debit Accounts Payable \$7,500; credit Notes Payable $7,500 C) Debit Cash $7,650; credit Notes Payable $7,650 D) Debit Cash $7,500; credit Notes Payable $7,500 E) Debit Notes Receivable $7,500, credit Cash $7,500 12. An employee earned $4.600 in February working for an employor. The FICA tax rate for Social Security is 6.2% of the first $128,400 eamed during each calendar year and the FICA tax rate for Medicare is 1.45% of all eamings. The employee has $644 in federal income tares withheid and has voluntary deductions for health insurance of $50 and contributes 10% of gross pay to a retirement plan each month. The employer pays the $200 remainder of the health insurance premium and an equal amount of contribution to the retirement fund. What is the amount of net pay for the employee for the month of February? A) $3,094.10 B) $3.496.00 C) $3,604.10 D) $3,446.00 E) $2,634.10 13. An employee earned $43,300 working for an employer in the current year. The current rate for FICA Social Security is 6.2% payable on earnings up to $128,400 maximum per year and the rate for FICA Medicare 1.45\%. The employer's total FICA payroll tax for this employee is: A) $8,950,50 B) $5,638.05 C) $3,312.45 D) $2,684.60 E) $0, since the FICA tax is only deducted from an employee's pay

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Logistics Audit Methods Organization And Practice

Authors: Piotr Buła, Bartosz Niedzielski

1st Edition

1032461268, 978-1032461267

More Books

Students also viewed these Accounting questions