Employees weekly gross earnings were $5,700, and their federal income tax withholding was $1,118.50. Assuming the social security rate is 6.0% and the Medicare tax rate is 1.5%, what is the net amount to be paid to employees?

a.$4,581.50

b.$4,154.00

c.$4,239.50

d.$4,496.00

The pension plan for GL Inc. requires a contribution to the plan administrator equal to 11% of employee salaries. Salaries were $597,600 for the period. The entry to journalize the pension benefit would include a

a.debit to Pension Expense for $6,574.

b.debit to Cash for $6,574.

c.credit to Salary Expense for $65,736.

d.credit to Cash for $65,736.

Blazer Company sells merchandise with a 1year warranty. In Year 1, sales consisted of 3,700 units. It is estimated that warranty repairs will average $18 per unit sold, and 30% of the repairs will be made in Year 1 and 70% in Year 2. In the income statement for Year 1, Blazer Company should show warranty expense of

a.$19,980.

b.$66,600.

c.$46,620.

d.$0.

Peachtree Company borrows $24,000 from the local bank at 8% interest. The term of the note is 5 years, and the annual payments remain constant at $6,011. Determine the decrease in notes payable that Peachtree Company should record in the first year.

a.$6,011

b.$4,091

c.$1,202

d.$1,920

On January 8, Lawrence Co. issued a $96,000, 120-day discounted note to Raines Bank. The discount rate is 8%. Assuming a 360-day year, what is the amount of proceeds received?

a.$98,560

b.$88,320

c.$93,440

d.$96,000