Susan Braun’s regular hourly wage rate is $16
1.) Susan Braun’s regular hourly wage rate is $16. Susan Braun’s regular hourly wage rate is $16, and she receives an hourly rate of $24 for work in excess of 40 hours. During a January pay period, Susan works 49 hours. Susan’s federal income tax withholding is $94, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65%.
Prepare the employer’s journal entries to record (a) Susan’s pay for the period and (b) the payment of Susan’s wages. Use January 15 for the end of the pay period and the payment date. (Round answers to 2 decimal places, e.g. 15.25. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
2.) On May 15, Criqui Outback Clothiers borrowed some money on a 4-month note to provide cash during the slow season of the year. The interest rate on the note was 8%. At the time the note was due, the amount of interest owed was $430.
Determine the amount borrowed by Criqui. (Round intermediate calculation to 6 decimal places, e.g. 1.251241 and final answer to 0 decimal places, e.g. 125.)
Susan Braun’s regular hourly wage rate is $16
3.) During the month of March, Olinger Company’s employees earned wages of $61,400. Withholdings related to these wages were $4,697 for Social Security (FICA), $7,195 for federal income tax, $2,974 for state income tax, and $384 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $672 for state unemployment tax.
Prepare the necessary March 31 journal entry to record salaries and wages expense and salaries and wages payable. Assume that wages earned during March will be paid during April. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Susan Braun’s regular hourly wage rate is $16
4.) On January 1, Newkirk Company issued $407,800, 9%, 20-year bonds at face value. Interest is payable annually on January 1.
Prepare journal entries to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
5.) Assume that the following are independent situations recently reported in the Wall Street Journal.
| 1. | General Electric (GE) 7% bonds, maturing January 28, 2015, were issued at 113.33. | |
| 2. | Boeing 7% bonds, maturing September 24, 2029, were issued at 98.98. |
| (c) | Prepare the journal entry to record the issue of each of these two bonds, assuming each company issued $800,000 of bonds in total. (Credit account titles are automatically indented when amount is entered. Do not indent manually. |
6.)On January 1, 2014, the ledger of Hiatt Company contained these liability accounts.
| Accounts Payable | $50,260 | |
| Sales Taxes Payable | 7,218 | |
| Unearned Service Revenue | 29,520 |
During January, the following selected transactions occurred.
| Jan. 1 | Borrowed $18,960 in cash from Premier Bank on a 4-month, 5%, $18,960 note. | |
| 5 | Sold merchandise for cash totaling $7,102, which includes 6% sales taxes. | |
| 12 | Performed services for customers who had made advance payments of $21,886. (Credit Service Revenue.) | |
| 14 | Paid state treasurer’s department for sales taxes collected in December 2013, $7,218. | |
| 20 | Sold 400 units of a new product on credit at $54 per unit, plus 6% sales tax. |
Susan Braun’s regular hourly wage rate is $16
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During January, the company’s employees earned wages of $78,210. Withholdings related to these wages were $5,983 for Social Security (FICA), $5,586 for federal income tax, and $1,676 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume that wages earned during January will be paid during February. No entry had been recorded for wages or payroll tax expense as of January 31.
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