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Monthly gross Payroll is $20,000 entirely subject income tax 5% and social security 9% deducted from employees and employer share in social security is 10%. If net salaries is paid to employees, compute the total payables for a month?

Note: (Payables consist of tax payable to tax department and Social Security Payable to social security department)

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Question 4

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In 2020, the total Sales from Washing machines is 300 units each of them has selling price of $500, each of them is under warranty for 2 years, from past experience 20% of units sold needs maintenance and parts replacement. The average warranty cost is estimated by $100 for each unit. During 2021 actual warranty was $2000. Compute the ending balance of warranty liability should be shown in Dec.31,2020 financial position statement?

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