Springfield Company offers a bonus plan to its employees and the amount of the employee bonuses for the current year is estimated to be $966,000 to be paid during January of the following year The journal entry on December 31 to record the bonuses is Debit Estimated Bonus Payable $966,000 credit Cash $966,000 Debit Employee Bonus Expense $966,000 credit Prepaid Employee Bonus $966,000 Debit Employee Bonus Expense $966,000 credit Bonus Payable $966,000 Debit Unearned Bonuses $966,000 credit Bonus Payable $966,000 No entry since the bonuses are not paid until January 2 A company has a selling price of $1,650 each for its printers Each printer has a 2 year warranty that covers replacement of defective parts It is estimated that 3 of all printers sold will be returned under the warranty at an average cost of $147 each During November, the company sold 27,000 printers, and 370 printers were serviced under the warranty at a total cost of $52,000 The balance in the Estimated Warranty Liability account at November 1 was $27,500 What is the company's warranty expense for the month of November $54,390 $59,535 $52,000 $24,500 $119,070 3 Cantrell Company is required by law to collect and remit sales taxes to the state If Cantrell has $12,000 of cash sales that are subject to an 9 sales tax, what is the journal entry to record the cash sales Debit Accounts Receivable $13,080 credit Sales $12,000 credit Sales Taxes Payable $1,080 Debit Cash $13,080 credit Sales $12,000 credit Sales Taxes Payable $1,080 Debit Cash $12,000 credit Sales $10,920 credit Sales Taxes Payable $1,080 Debit Sales Taxes Payable $1,080 debit Cash $10,920 credit Sales $12,000 Debit Cash $12,000 credit Sales $12,000 and record the taxes when paid 4 During August, Boxer Company sells $358,000 in merchandise that has a one year warranty Experience shows that warranty expenses average about 5 of the selling price The warranty liability account has a credit balance of $12,600 before adjustment Customers returned merchandise for warranty repairs during the month that used $9,200 in parts for repairs The entry to record the estimated warranty expense for the month is Debit Estimated Warranty Liability $9,200 credit Warranty Expense $9,200 Debit Warranty Expense $5,300 credit Estimated Warranty Liability $5,300 Debit Estimated Warranty Liability $17,900 credit Warranty Expense $17,900 Debit Warranty Expense $14,500 credit Estimated Warranty Liability $14,500 Debit Warranty Expense $17,900 credit Estimated Warranty Liability $17,900 5 During the first week of January, an employee works 45 hours For this company, workers earn 150 of their regular rate for hours in excess of 40 per week Her pay rate is $20 per hour, and her wages are subject to no deductions other than FICA Social Security, FICA Medicare, and federal income taxes The tax rate for Social Security is 6 2 of the first $118,500 earned each 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 5 4 Both unemployment taxes are applied to the first $7,000 of an employees pay The employee has $92 in federal income taxes withheld What is the amount of this employees net pay for the first week of January $950 00 $164 68 $877 33 $785 33 $1,114 68

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Springfield Company offers a bonus plan to its employees and the amount of the employee bonuses for the current year is estimated to be $966,000

Springfield Company offers a bonus plan to its employees and the amount of the employee bonuses for the current year is estimated to be $966,000 to be paid during January of the following year. The journal entry on December 31 to record the bonuses is:

Debit Estimated Bonus Payable $966,000; credit Cash $966,000.
Debit Employee Bonus Expense $966,000; credit Prepaid Employee Bonus $966,000.
Debit Employee Bonus Expense $966,000; credit Bonus Payable $966,000.
Debit Unearned Bonuses $966,000; credit Bonus Payable $966,000.
No entry since the bonuses are not paid until January.

A company has a selling price of $1,650 each for its printers. Each printer has a 2 year warranty that covers replacement of defective parts. It is estimated that 3% of all printers sold will be returned under the warranty at an average cost of $147 each. During November, the company sold 27,000 printers, and 370 printers were serviced under the warranty at a total cost of $52,000. The balance in the Estimated Warranty Liability account at November 1 was $27,500. What is the company's warranty expense for the month of November?

$54,390
$59,535
$52,000
$24,500
$119,070

Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $12,000 of cash sales that are subject to an 9% sales tax, what is the journal entry to record the cash sales?

Debit Accounts Receivable $13,080; credit Sales $12,000; credit Sales Taxes Payable $1,080.
Debit Cash $13,080; credit Sales $12,000; credit Sales Taxes Payable $1,080.
Debit Cash $12,000; credit Sales $10,920; credit Sales Taxes Payable $1,080.
Debit Sales Taxes Payable $1,080; debit Cash $10,920; credit Sales $12,000.
Debit Cash $12,000; credit Sales $12,000; and record the taxes when paid.

During August, Boxer Company sells $358,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $12,600 before adjustment. Customers returned merchandise for warranty repairs during the month that used $9,200 in parts for repairs. The entry to record the estimated warranty expense for the month is:

Debit Estimated Warranty Liability $9,200; credit Warranty Expense $9,200.
Debit Warranty Expense $5,300; credit Estimated Warranty Liability $5,300.
Debit Estimated Warranty Liability $17,900; credit Warranty Expense $17,900.
Debit Warranty Expense $14,500; credit Estimated Warranty Liability $14,500.
Debit Warranty Expense $17,900; credit Estimated Warranty Liability $17,900

During the first week of January, an employee works 45 hours. For this company, workers earn 150% of their regular rate for hours in excess of 40 per week. Her pay rate is $20 per hour, and her wages are subject to no deductions other than FICA Social Security, FICA Medicare, and federal income taxes. The tax rate for Social Security is 6.2% of the first $118,500 earned each 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 5.4%. Both unemployment taxes are applied to the first $7,000 of an employees pay. The employee has $92 in federal income taxes withheld. What is the amount of this employees net pay for the first week of January?