Question
A business issued a 45-day, 10% note for $255,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note
A business issued a 45-day, 10% note for $255,000 to a creditor on account.
Journalize the entries to record (a) the issuance of the note on January 1 and (b) the payment of the note at maturity, including interest. Assume a 360-day year. Refer to the Chart of Accounts for exact wording of account titles.
JOURNAL
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | |
---|---|---|---|---|---|
1 |
| ||||
2 |
|
PART II
Federal Income Tax Withholding
Bob Wolfe's weekly gross earnings for the present week were $1,710. Wolfe has three exemptions. Using the wage bracket withholding table below with a $63 standard withholding allowance for each exemption, what is Wolfe's federal income tax withholding? Round your answer to two decimal places.
Table for Percentage Method of Withholding WEEKLY Payroll Period (a) SINGLE person (including head of household) | |||||||
If the amount of wages (after subtracting withholding allowances) is: | The amount of income tax to withhold is: | ||||||
Not over $51.... | $0 | ||||||
Over | But not over | of excess over | |||||
$51 | $198 | 10% | $51 | ||||
$198 | $653 | $14.70 plus 15% | $198 | ||||
$653 | $1,533 | $82.95 plus 25% | $653 | ||||
$1,533 | $3,202 | $302.95 plus 28% | $1,533 | ||||
$3,202 | $6,916 | $770.27 plus 33% | $3,202 | ||||
$6,916 | ..... | $1,995.89 plus 35% | $6,916 |
$_______ PART III
Calculate Payroll
An employee earns $16 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 55 hours during the week, and that the gross pay prior to the current week totaled $23,200. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was $230.
If required, round your answers to two decimal places.
a. Determine the gross pay for the week. $
b. Determine the net pay for the week. $
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