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QUESTION 1 On October 31, a theater receives $2,000 in cash from advance ticket sales for 5 plays and credits Unearned Ticket Revenue. The first
QUESTION 1 On October 31, a theater receives $2,000 in cash from advance ticket sales for 5 plays and credits Unearned Ticket Revenue. The first play is November 5 and represents one-fifth of the advance ticket sales. What journal entry does the theater make on November 5 to record the revenue earned for the first concert? Debits Cash for $1,600 and credits Unearned Ticket Revenue for $1,600 Debits Ticket Revenue for $400 and credits Unearned Ticket Revenue for $400 Debits Unearned Ticket Revenue for $400 and credits Ticket Revenue for $400 Debits Unearned Ticket Revenue for $1,600 and credits Ticket Revenue for $1,600 QUESTION 2 An employer has one employee who earned $3,000 his first month of employment. The employee's federal income tax withholding (FITW) is $400, and the employee has voluntary monthly deductions of $125 for health insurance and $25 for union dues. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employer's FUTA tax rate is 0.6% and the SUTA tax rate is 5.4%. (Note: The limit for FICA Social Security is $128,400 and there is no limit for FICA Medicare. The limit is $7,000 for FUTA and $9,000 for SUTA.) What is the employer's payroll tax expense for the first month of the year? $180.00 $229.50 $409.50 $809.50
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