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Journalize Payroll Tax The payroll register of Chen Engineering Co. indicates $1,344 of social security withheld and $336.00 of Medicare tax withheld on total salaries
Journalize Payroll Tax The payroll register of Chen Engineering Co. indicates $1,344 of social security withheld and $336.00 of Medicare tax withheld on total salaries of $22,400 for the period. Earnings of $6,300 are subject to state and federal unemployment compensation taxes at the federal rate of 0.6% and the state rate of 5.4%. Provide the journal entry to record the payroll tax expense for the period. If an amount box does not require an entry, leave it blank. Round to two decimal places. Estimated Warranty Liability Oven Roasted Co. sold $689,000 of equipment during January under a one-year warranty. The cost to repair defects under the warranty is estimated at 5% of the sales price. On August 15, a customer required a $382 part replacement, plus $93 of labor under the warranty. Required: (a) Provide the journal entry for the estimated warranty expense on January 31 for January sales. Jan. 31 (b) Provide the journal entry for the August 15 warranty work. If an amount box does not require an entry, leave it blank. Aug. 15 Quick Ratio Nabors Company reported the following current assets and liabilities for December 31 for two recent years: Dec. 31, Current Year Dec. 31, Previous Year Cash $590 $440 Temporary investments 1,300 990 Accounts receivable 1,350 670 Inventory 970 950 Accounts payable 2,700 2,100 Required: a. Compute the quick ratio on December 31 of both years. If required, round your answers to one decimal place. Quick Ratio December 31, current year December 31, previous year b. Is the quick ratio improving or declining
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