Question
8. On January 1, 2017, Dennis Supply purchased equipment for $60,000 cash, expecting it to remain in service for six years. The equipment is depreciated
8. On January 1, 2017, Dennis Supply purchased equipment for $60,000 cash, expecting it to remain in service for six years. The equipment is depreciated using the straight-line method with $2,000 estimated residual value. On April 30, 2019, the equipment was sold for $48,000 cash. Record depreciation expense for 2019 and the sale of the equipment on April 30, 2019.
9. Geller Electronics paid $200,000 to acquire Tabletz Company, an electronic gadget-advertising website. At the time of the acquisition, Tabletz's balance sheet reported total assets of $200,000 and liabilities of $100,000. The fair market value of Tabletz's assets was $200,000. The fair market value of its liabilities was $100,000. Journalize the acquisition of Tabletz in the books of Geller Electronics.
10. Mars Company had cash sales of $10,000. The state sales tax rate is 10.8%. Journalize the transaction.
11.
1) Sean's gross pay for this month is $8750. His gross year-to-date pay, prior to this month, totaled $112,000. Sean's rate for federal income tax is 25%. His voluntary deductions total $950. What is Sean's net pay? Journalize the payroll entry for Sean. (Assume an OASDI rate of 6.2%, applicable on the first $118,500 earnings, and a Medicare rate of 1.45%, applicable on all earnings.
2) Jason's gross pay for the week is $1900. His year-to-date pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is 6% and that Jason's year-to-date pay has not yet exceeded the $7000 cap. What is the total amount of payroll taxes that his employer must record as payroll tax expenses? Journalize the payroll tax expense for the employer. Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started