Define current liabilities. List the current liabilitieswe cover in this chapter.
What are payroll deductions? Provide someexamples.
How is net pay calculated?
Employer payroll taxes include FICA Tax andFederal & State Unemployment Tax. Which expense account isdebited for employer payroll taxes? Provide an example journalentry.
Employee payroll taxes include FICA Tax &Income Tax. Which expense account is debited for employee payrolltaxes? Provide an example journal entry.
What is the formula to calculate interest on a notepayable?
Provide the following journal entries:
Establish note payable
Accrue interest incurred but not paid
Record interest paid
Record principal paid
Explain the current portion of long termdebt.
What are contingent liabilities?
What is the debt-to-assets ratio and what does it tellyou?
What is the times interest earned ratio and what does ittell you?
What are the three key elements of a bond?
What types of bonds are available?
Explain the difference between face value and issueprice.
Explain when each occurs, how interest is recorded, andprovide the journal entry for:
Bonds issued at face value
Bonds issued at a premium
Bonds issued at a discount
Bond Amortization using the Effective InterestMethod:
Bond Retirement:
Time Value of Money:
Define current liabilities. List the current liabilitieswe cover in this chapter.
What are payroll deductions? Provide someexamples.
How is net pay calculated?
Employer payroll taxes include FICA Tax andFederal & State Unemployment Tax. Which expense account isdebited for employer payroll taxes? Provide an example journalentry.
Employee payroll taxes include FICA Tax &Income Tax. Which expense account is debited for employee payrolltaxes? Provide an example journal entry.
What is the formula to calculate interest on a notepayable?
Provide the following journal entries:
Establish note payable
Accrue interest incurred but not paid
Record interest paid
Record principal paid
Explain the current portion of long termdebt.
What are contingent liabilities?
What is the debt-to-assets ratio and what does it tellyou?
What is the times interest earned ratio and what does ittell you?
What are the three key elements of a bond?
What types of bonds are available?
Explain the difference between face value and issueprice.
Explain when each occurs, how interest is recorded, andprovide the journal entry for:
Bonds issued at face value
Bonds issued at a premium
Bonds issued at a discount
Bond Amortization using the Effective InterestMethod:
Bond Retirement:
Time Value of Money:
Related questions
A company's had fixed interest expense of $3,300, its incomebefore interest expense and income taxes is $16,200, and its netincome is $6,600. The company's times interest earned ratioequals: |
2.45.
0.50.
4.91.
2.00.
0.20.
A company's income before interest expense and income taxes is$225,000 and its interest expense is $75,000. Its times interestearned ratio is: |
2.67
0.99
3.00
0.33
1.68
A company's fixed interest expense is $9,000, its income beforeinterest expense and income taxes is $38,250. Its net income is$11,850. The company's times interest earned ratio equals: |
0.235.
0.76.
3.23.
4.25.
0.31.
An employee earned $43,600 during the year working for anemployer when the maximum limit for Social Security was $117,000.The FICA tax rate for Social Security is 6.2% and the FICA tax ratefor Medicare is 1.45%. The employee's annual FICA taxes amountis: |
$632.20.
$2,703.20.
$6,670.80.
$6,670.80.
$3,335.40.
An employee earned $5,300 working for an employer in the currentyear. The current rate for FICA Social Security is 6.2% payable onearnings up to $117,000 maximum per year and the rate for FICAMedicare 1.45%. The employer's total FICA payroll tax for thisemployee is: |
$405.45.
Zero, since the FICA tax is a deduction from an employee's pay,and not an employer tax.
$76.85.
$328.60.
$810.90.
An employee earned $62,400 during the year working for anemployer. The FICA tax rate for Social Security is 6.2% and theFICA tax rate for Medicare is 1.45%. The current FUTA tax rate is0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes areapplied to the first $7,000 of an employee's pay. What is theamount of total unemployment taxes the employee mustpay?
$101.50
$56.00
$378.00
$434.00
$0.00
Employees earn vacation pay at the rate of one day per month.During the month of July, 16 employees qualify for one vacation dayeach. Their average daily wage is $91 per day. What is the amountof vacation benefit expense to be recorded for the month ofJuly? |
$16.0
$14,560.0
$1,456.0
$91.0
$145.6
A company estimates that warranty expense will be 4% of sales.The company's sales for the current period are $233,000. Thecurrent period's entry to record the warranty expense is:
Debit Warranty Expense $9320 credit Sales $9320.
Debit Warranty Expense $9320 credit Estimated Warranty Liability$9320.
Debit Estimated Warranty Liability $9320 credit Warranty Expense$7400.
Debit Estimated Warranty Liability $9320 credit Cash $9320.
No entry is recorded until the items are returned for warrantyrepairs.
A company has a selling price of $2,050 each for its printers.Each printer has a 2 year warranty that covers replacement ofdefective parts. It is estimated that 3% of all printers sold willbe returned under the warranty at an average cost of $155 each.During November, the company sold 35,000 printers, and 450 printerswere serviced under the warranty at a total cost of $60,000. Thebalance in the Estimated Warranty Liability account at November 1was $31,500. What is the company's warranty expense for the monthof November? |
$69,750
$60,000
$81,375
$162,750
$28,500
An employee earns $6,500 per month working for an employer. TheFICA tax rate for Social Security is 6.2% and the FICA tax rate forMedicare is 1.45%. The current FUTA tax rate is 0.8%, and the SUTAtax rate is 5.4%. Both unemployment taxes are applied to the first$7,000 of an employee's pay. The employee has $222 in federalincome taxes withheld. The employee has voluntary deductions forhealth insurance of $190 and contributes $95 to a retirement planeach month. What is the amount of net pay for the employee for themonth of January? (Round your intermediate calculations totwo decimal places.) |
$5,495.75
$5,590.00
$5,144.75
$5,092.75
$5,443.75
