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The following totals for the month of April were taken from the payroll register of Main Company: Salaries FICA taxes withheld Income taxes withheld Medical
The following totals for the month of April were taken from the payroll register of Main Company: Salaries FICA taxes withheld Income taxes withheld Medical insurance deductions Federal Unemployment Taxes State Unemployment Taxes $24,000 1,100 5,000 900 64 432 The entry to record accrual of employer's payroll taxes would include a a. debit to Payroll Tax Expense for $496 b. debit to Payroll Tax Expense for $1,596. c. credit to FICA Taxes Payable for $2,200. d. credit to Payroll Tax Expense for $496. 14. From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that a. bond interest is deductible for tax purposes. b. interest must be paid on a periodic basis regardless of earnings. c. income to stockholders may increase as a result of trading on the equity. d. the bondholders do not have voting rights. The interest charged on a $200,000 note payable, at the rate of 8%, on a 90-day note would be a. $16,000. b. $8,888. c. $4,000. d. $1,333. 15
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