Mission Company has three employees: Gross Pay through July Gross Pay for August Smith $3.200 $1.000 Cain 25.800 3.500 Clark 94.600 13.100 Tax Rate Applied To FICA-Social Security 6.20 % First $106,800 FICA Medicare 1.45 All gross pay FUTA 80 First $7.000 SUTA 5.40 First $7.000 The company is subject to the following taxes: What is the amount that Mission Company will withhold from Clark's gross pay? $946.35 $1.002.15 1.814.35 $6.234.75 $812.20 For the year ended December 31. 2010. Mason Company has implemented an employee bonus program equal to 7% of Mason's net income, which employees will share equally. Mason's net income (pre-bonus) is expected to be $3,500,000. and bonus expense is deducted in computing net income. What is the amount that needs to be recorded for estimated bonus liability for 2010? $245.000 $144.118 S228.972 $50.000 $125.000 There are two common payment patterns for installment notes: (1) accrued interest plus equal principal payments and (2) equal payments. True False A basic present value concept is that cash received in the future is worth more value than the same amount of cash received today. True False Bonds may only be issued on an interest payment date. True False An advantage of bond financing is that issuing bonds does not affect owner control. True False A bond listed at 103 on a stock exchange is selling at 103% of its par value. True False A company issues at par 7% bonds with a par value of $500.000 on June 1. which is 5 months after the most recent interest date. How much total cash interest is received on May 1 by the bond issuer? $0 S2.916.66 $100.000.00 $14.583.33 $35.000.00 Sinking fund bonds: Require the issuer to set aside assets in order retire the bonds at maturity Require equal payments of both principal and interest over the life of the bond issue Decline in value over time Are registered bonds Are bearer bonds. A liability is a probable future payment of assets or services that a company is currently obligated to make as a result of xpeiphansactions or events. True fralse All expected future payments are liabilities. True Faiste A company can have a liability even if the amount of the obligation is unknown. True False The Orlando Magic received S6 million cash in advance season ticket sales. Prior to the beginning of the basketball season, these sales are recorded as a credit to unearned season ticket revenue. True False Promissory notes are nonnegotiable, which means they cannot be transferred from party to party. True False Obligations due to be paid within one year or within the company's operating cycle, whichever is longer, are: Current assets Current liabilities Earned revenues Operating cycle liabilities Bills Advance ticket sales totaling $6,000,000 cash would be recognized as follows: Debit Sales, credit Unearned Revenue Debit Unearned Revenue, credit Sales Debit Cash, credit Unearned Revenue Debit Unearned Revenue, credit Cash Debit Cash, credit Revenue Payable A company estimates that warranty expense will be 4% of sales. The company's sales for the current period are S185.000. The current period's entry to record the warranty expense is: Warranty Expense 7.400 Sales 7.400 Warranty Expense 7 400 Estimated Warranty Liability 7.400 Estimated Warranty Liability 7.400 Estimated Warranty Expense 7.400 Warranty Liability 7.400 Cash 7.400 No entry is recorded until the items are returned for warranty repairs