Multiple Choice HW

Normal No Spacing He 1 Heading 2 Title Subtitle 1.A company's interest expense is $16,000. Its income before interest expense and income taxes is 596,000. Its net income is $36,500 The company's times interest earned ratio equals: a)6.00 b)0,44 c)0,167 d)0.38 e)2.63 2.On May 22, Jarrett Company borrows $9,000, signing a 90-day, 6%, 89,000 note. What is the journal entry made by Jarrett Company to record the transaction? Debit Cash $9,000; credit Accounts Payable $9,000. b. Debit Accounts Payable $9,000; credit Notes Payable $9,000. Debit Cash $9,135; credit Notes Payable $9,135. d. Debit Cash $9,000; credit Notes Payable $9,000. Debit Notes Receivable $9,000; credit Cash $9,000. a. C. e. 3. The current Federal Unemployment Taxes (FUTA) tax rate is 0.6%, the State Unemployment Taxes (SUTA) tax rate is 5.4% Both taxes are applied to the first $7,000 of an employee's pay. Assume that an employee earned total wages of $11,700. What is the amount of total unemployment taxes the employer must pay on this employee's wages? a)420.00 b)702.00 )0.00 d)631.80 e).70.20 4.An employee earned $44,800 during the year working for an employer when the maximum limit for Social Security was $137,700, The Federal Insurance Contributions Act (FICA) tax rate for Social Security is 6.2% and the Federal Insurance Contributions Act (FICA) tax rate for Medicare is 1.45%. The employee's annual Federal Insurance Contributions Act (FICA) taxes amount is: $649.60. b. $6,854.40. c. $6,204.80. d. $2,777.60. e. $3,427.20. a