3.If a company's gross salaries and wages are $28,000, and it withholds $4,200 for income taxes and $2,142 for FICA taxes, the journal entry to record the employees' pay should include a:

credit to Salaries and Wages Payable for $28,000.

debit to Salaries and Wages Expense for $21,658.

credit to Salaries and Wages Payable for $21,658.

debit to Salaries and Wages Payable for $21,658.

5.Horizontal analysis involves:

Comparing individual financial statement line items over time.

Comparing individual financial statement line items to some benchmark, typically similar competitors financial statement line items.

Comparing individual financial statement line items with each other to understand the relationships between line items.

Comparing individual financial statement line items that have been arranged horizontally from highest to lowest dollar amounts.

7.Which income statement line item had the largest percentage increase from the prior year to the current year?

	Current Year	Prior Year
Sales	$120,000	$100,000
Cost of Goods Sold	80,000	60,000
Depreciation Expense	30,000	20,000
Interest Expense	2,000	5,000

Sales

Cost of Goods Sold

Interest Expense

Depreciation Expense

10.A company issued $370,000, 11-year, 9 % bonds at 106.75.

What is the issue price of these bonds?

$345,025

$394,975

$370,000

$403,300