On April 12, Hong Company agrees to accept a 60-day, 10% $4,500 note from Indigo Company to extend the due date on an overdue account. What is the journal entry needed to record the transaction by Indigo Company? O Debit Notes Payable $4,500, credit Accounts Payable $4,50o ODebit Accounts Payable $4,500; credit Notes Payable $4,500 O Debit Accounts Receivable $4,500; credit Notes Payable $4.500 O Debit Cash $4,500, credit Notes Payable $4,500 O Debit Sales $4,500, credit Notes Payable $4,500o 0888 A company sold $12.000 worth of bicycles with an extended warranty.it estimates that 2% of these sales will result in warranty work. The current period's entry to record the warranty expense is: O debit Warranty Expense $240; credit Cash $240 O debit Prepaid Warranties $240, credit Warranty Expense $240. O debit Estimated Warranty Liability $240, credit Cash $240 O debit Sales Allowances $240; credit Estimated Warranty Liability $240 O debit Warranty Expense $240; credit Estimated Warranty Liability $240 ety.. a0 80 & Exit 27. A company sold $12.000 worth of bicycles with an extended warrenty It estimates should: O consider the warranty expense a remote liability since the rate is only 2 O recognize warranty expense at the time the warranty work is perfomed O recognize warranty expense and liability in the year of the sal O consider the warranty expense a contingent liablity O recognize warranty liability when the company purchases Question 26 (of 29) 26. An employee earned $62,500 during the year working for an employer. The FICA tax rate for Social Security is 62% of the first S earnings per calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 54%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. What is the amount of total unemployment taxes the employee must pay? m8,500 of employee o $101.50 O $56.00 O $378.00 O $434.00 O $0.00 instructions i help Question 25 (of 29) 25. The current FUTA tax rate is 0.6%. and the SUTA tax rate is 5.4% Both taxes are applied to the first $7000 of on employee's pay. Assume that an employee earned total wages of $9.900. What is the amount of total unemployment taxes the employer must pay on this employee's wages? O $336.00 O $420.00 O $534.60 O $594.00 O $000 24. Trey Morgan is an employee who is paid monthly. For the month of January security is 2% of the first $118,500 earned each calendar year, and the FICA tax te for Medicar the employer. The amount of federal income tax withheld from his earnings was $680.70. Hls net pay for the month s of the current year, he earned a total of $4,538. The FICA tax for soclal e is 1.45% of all earnings for both the employee O $3,510.14 O $3,857.30 O $4,190.84 O $4,538.00 O $3162.98