Question
Taylor Bank lends Guarantee Company $90,204 on January 1. Guarantee Company signs a $90,204, 9%, 9-month, interest-bearing note. The entry made by Guarantee Company on
Taylor Bank lends Guarantee Company $90,204 on January 1. Guarantee Company signs a $90,204, 9%, 9-month, interest-bearing note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is
a.Cash90,204Notes Payable90,204
b.Notes Payable90,204Interest Payable3,045Cash90,204Interest Expense3,045
c.Cash96,293Interest Expense6,089Notes Payable90,204
d.Interest Expense6,089Cash84,115Notes Payable90,204
Balance sheet and income statement data indicate the following:
Bonds payable, 10% (due in 15 years)$1,166,622Income before income tax for year353,116Income tax for year105,935Interest payable33,000Interest receivable19,000Interest expense116,662
Based on the data presented above, what is the times interest earned ratio? (Round to two decimal places.)
a.2.12
b.4.03
c.1.12
d.3.03
The Levi Company issued $94,000 of 10% bonds on January 1 of the current year at face value. The bonds pay interest semiannually on June 30 and December 31. The bonds are dated January 1, and mature in five years, on January 1. Determine the total interest expense related to these bonds for the current year ending on December 31 is
a.$4,700
b.$9,400
c.$783
d.$7,050
An employee receives an hourly rate of $20, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the first week of the calendar year are as follows: hours worked, 43; federal income tax withheld, $127; Social security tax rate, 6%; and Medicare tax rate, 1.5%; state unemployment tax, 5.4% on the first $7,000; federal unemployment tax, 0.8% on the first $7,000. What is the net amount to be paid to the employee? If required, round your answers to the nearest cent.
a.$1,290.00
b.$696.25
c.$666.25
d.$890.00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started