2. Company X has an employee who is paid weekly. For Company X the FUTA tax rate is 6%. The limit for FUTA is $7000 of employee annual earning subject to the applicable tax. The employee earns $1000 for the week and has cumulative earnings year to date through the previous week of $6500. How much is deducted from the employees weekly paycheck for FUTA?

		A. -60-
		B. 30
		C. 0
		D. 42
		E. None of the above

3. Louis Ruiz Consulting Services has a balance in prepaid insurance of $960 per the trial balance and $760 per the adjusted trial balance. What is the amount of insurance expense based on these two numbers?

		A. 80
		B. 200
		C. 880
		D. 960
		E. None of the above.

4. For the journal entry-- Dr. Cash 20000; Cr. Ruiz Capital 20000--, what is the correct analysis of the journal entry?

		A. Cash, Asset, Increases; Luis Ruiz, Equity- Capital, Increases
		B. Cash, Asset, Increases; Luis Ruiz, Equity-Capital, Decreases
		C. Cash, Asset, Increases; Luis Ruiz, Equity-Expense, Increases
		D. Cash, Liability, Increases; Luis Ruiz, Equity-Capital, Decreases
		E. None of the above

5. How many of the four accounts have a normal balance:1.Prepaid Insurance 1000 debit, 2.Accounts Receivable 1000 debit;3.Accumulated Depreciation 1000 credit;4.Ruiz Withdrawals 1000 credit?

		A. None
		B. One
		C. Two
		D. Three
		E. Four

6. At December 31, 2021, Mimi Co. has $30,000,000 of notes payable. Of the $30,000,000 total, $10,000,000 of notes payable mature June 30, 2022 and $20,000,000 mature June 30, 2025. In Mimi Co.'s balance sheet at December 31, 2021, how much of the $30,000,000 in notes payable is reported as a long-term liability?

		A. 0
		B. 5,000,000
		C. 20,000,000
		D. 30,000,000
		E. None of the above

7. What is the journal entry to record the salary expense and its related payroll liabilities for this employee if payroll register shows the following amounts for his payroll Salaries and Wages Expense 3,000; FICA--OASDI Taxes Payable 150; FICA- Medicare Taxes Payable 20; Employee Income Taxes Payable 400; Salaries and Wages Payable 2,430?

		A. Dr. Cash 3,000; Cr. FICA-OASDI Taxes Payable 150; Cr FICA--Medicare Taxes Payable 20; Cr. Employee Income Taxes Payable 400; Cr. Salaries and Wages Payable 2430
		B. Dr. Salaries and Wages Payable 3,000; Cr. FICA-OASDI Taxes Payable 150; Cr FICA--Medicare Taxes Payable 20; Cr. Employee Income Taxes Payable 400; Cr. Salaries and Wages Expense 2430
		Dr. Salaries and Wages Expense 3000 Cr. FICA-OASDI Taxes Payable 150 Cr FICA--Medicare Taxes Payable 20; Cr. Employee Income Taxes Payable 400; Cr. Cash 2430
		C. Dr. Salaries and Wages Expense 3,000; Cr. FICA-OASDI Taxes Payable 150; Cr FICA--Medicare Taxes Payable 20; Cr. Employee Income Taxes Payable 400; Cr. Salaries and Wages Payable 2430
		D. None of the above