Jamal Company employees are paid at the end of every week. There are 2 employees and each are paid $500 per week. Jamal withholds $50 in Federal tax and $25 in state tax per employee, Jamal then remits these taxes withheld at the end of every quarter. 5. At the end of every week, Jamal Company would record a payroll transaction that would: a. Decrease Cash by $850 and increase Salary Expense by $1,000 b. Decrease Cash by $500 and increase Salary Expense by $500 c. Decrease Cash by $450 and increase Salary Expense by $450 d. Decrease Cash by $425 and increase Salary Expense by $425 e. 6. When Jamal Company records the weekly salary payments, what accounts would be impacted? a. Cash, Salaries Payable, Federal tax expense, and state tax expense b. Cash, Salaries Expense, Federal taxes payable, and state taxes payable c. Cash, Salaries Expense, Federal tax expense, and state tax expense d. Cash and Salaries Expense only. Any Federal or state tax accounts would be impacted at quarter- end when Jamal Company pays those taxes. 7. Technical Services, Inc. (TSI) guarantees the quality of its instructional services. TSI earned $40,000 of cash revenue from instructional services in Year 1. The company estimates that future warranty claims will be 6 percent of revenue. During Year 1, TSI paid $700 cash on warranty claims. Based on this information, the amount of net income and the net change in cash for Year 1 would be a. $37,600/$39,300. b. $37,600 / $37,600 c. $39,300/39,300. d. $38,300 / $39,300 The following Information pertains to the next three questions. On April 1. Year 1. Halo Co. issued a $5,000 face value discount note to the Capri Bank. The note had a 12 percent discount rate and a one-year term. 8. The amount of cash Halo received on April 1, Year 1 was a $5,000 b. $4,250 c. 54.400 d. $5,500 9. The total carrying value of Halo's liabilities on December 31, Year 1, would be a $5,600 b. $5,000. c. $5,450. d. $4,850 10. If Halo Co. earned $2,000 of revenue in Year 1, the amount of net income would be a $2,000. b. $1,550. c. $1,400 d. $1,850. 11. Sikes Company paid cash to settle a warranty liability. Which of the following reflects how this event affects the company's financial statements? Income Statement Statement of Balance Sheet Uab. + Equity Assets Rev. Exp. Net Inc. Cash Flows a. NA NA - OA b. NA NA + NA + OA c. NA NA + - OA d. NA NA NA NA - OA