An employee earns $6,250 per month working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $212 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $180 and contributes $90 to a retirement plan each month. What is the amount of net pay for the employee for the month of January? (Round your intermediate calculations to two decimal places.)	$5,380.50 $5,289.88 $5,239.87 $4,902.37 $4,952.37
A company has a selling price of $1,850 each for its printers. Each printer has a 2 year warranty that covers replacement of defective parts. It is estimated that 3% of all printers sold will be returned under the warranty at an average cost of $151 each. During November, the company sold 31,000 printers, and 410 printers were serviced under the warranty at a total cost of $56,000. The balance in the Estimated Warranty Liability account at November 1 was $29,500. What is the company's warranty expense for the month of November?	$56,000 $140,430 $61,910 $70,215 $26,500
On April 12, Hong Company agrees to accept a 60-day, 10%, $5,400 note from Indigo Company to extend the due date on an overdue account. What is the journal entry needed to record the transaction by Indigo Company? Debit Cash $5,400; credit Notes Payable $5,400. Debit Accounts Receivable $5,400; credit Notes Payable $5,400. Debit Accounts Payable $5,400; credit Notes Payable $5,400. Debit Notes Payable $5,400; credit Accounts Payable $5,400. Debit Sales $5,400; credit Notes Payable $5,400.
During August, Boxer Company sells $351,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $11,300 before adjustment. Customers returned merchandise for warranty repairs during the month that used $7,900 in parts for repairs. The entry to record the estimated warranty expense for the month is: Debit Estimated Warranty Liability $17,550; credit Warranty Expense $17,550. Debit Estimated Warranty Liability $7,900; credit Warranty Expense $7,900. Debit Warranty Expense $14,150; credit Estimated Warranty Liability $14,150. Debit Warranty Expense $6,250; credit Estimated Warranty Liability $6,250. Debit Warranty Expense $17,550; credit Estimated Warranty Liability $17,550.
An employee earned $5,200 working for an employer in the current year. The current rate for FICA Social Security is 6.2% payable on earnings up to $117,000 maximum per year and the rate for FICA Medicare 1.45%. The employer's total FICA payroll tax for this employee is: $397.80. $795.60. $75.40. Zero, since the FICA tax is a deduction from an employee's pay, and not an employer tax. $322.40.
Springfield Company offers a bonus plan to its employees and the amount of the employee bonuses for the current year is estimated to be $955,000 to be paid during January of the following year. The journal entry on December 31 to record the bonuses is: Debit Employee Bonus Expense $955,000; credit Bonus Payable $955,000. Debit Estimated Bonus Payable $955,000; credit Cash $955,000. Debit Employee Bonus Expense $955,000; credit Prepaid Employee Bonus $955,000. Debit Unearned Bonuses $955,000; credit Bonus Payable $955,000. No entry since the bonuses are not paid until January.
A company's fixed interest expense is $12,000, its income before interest expense and income taxes is $60,000. Its net income is $20,400. The company's times interest earned ratio equals: 2.94. 0.59. 5.00. 0.34. 0.200.
Athena Company provides employee health insurance that costs $14,900 per month. In addition, the company contributes an amount equal to 3% of the employees' $149,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a: Debit to Payroll Taxes Expense $19,370. Credit to Employee Benefits Expense $14,900. Debit to Medical Insurance Payable $14,900. Debit to Employee Retirement Program Payable $4,470. Debit to Employee Benefits Expense $19,370.
An employee earned $62,300 during the year working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. What is the amount of total unemployment taxes the employee must pay? $0.00 $56.00 $378.00 $101.50 $434.00
On November 1, Alan Company signed a 120-day, 12% note payable, with a face value of $24,300. What is the adjusting entry for the accrued interest at December 31 on the note? (Use 360 days a year.) Debit interest expense, $972; credit interest payable, $972. Debit interest expense, $324; credit interest payable, $324. Debit interest expense, $0; credit interest payable, $0. Debit interest expense, $648; credit interest payable, $648. Debit interest expense, $486; credit interest payable, $486.