Question

16) Portia Grant is an employee who is paid monthly, For the month of January of the current year, she carned a total of 8988. The FICA tax for social security is 6.2% of the first $127,200 of employee earnings each calendar year and the FICA tax rate for Medicare is 1.45 % of all earnings. The FUTA tax rate of 0.6% and the SUTA tax rate of 5.4 % are applied to the first $7000 of an employee's pay. The amount of federal income tax withheld from her earnings was $1491.37. Her net pay for the month is: (Round your intermediate calculations to two decimal places.) A) $7700.21 B) S6809.04 C) $6939.37 D) $6753.04 E) $6375.04 17) Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of $9138.00. The FICA tax for social security is 6.2 % of the first 127,200 earned each calendar year and the FICA tax rate for Medicare is 1.45 %. The FUTA tax rate of 0.6 % and the SUTA tax rate of 5.4 % are applied to the first $7000 of an employee's pay. The amount of federal income tax withheld from her earnings was $1516.27. What is the total amount of taxes withheld from the Portia's earnings? (Round your intermediate calculations to two decimal places.) A) $2010.00 B) $2215.33 C) S1699.19 D) $2701.48 E) $3355.44 18) A company estimates that warranty expense will be 5 % of sales. The company's sales for the current period are $168,000. The current period's entry to record the warranty expense is: A) Debit Estimated Warranty Liability $8400 credit Warranty Expense $8400. B) Debit Warranty Expense $8400 credit Sales $8400 C) Debit Estimated Warranty Liability $8400 credit Cash $8400. D) Debit Warranty Expense $8400 credit Estimated Warranty Liability $8400. E) No entry is recorded until the items are returned for warranty repairs. co 19) Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $6500 of cash sales that are subject to an 9 % sales tax, what is the journal entry to record the cash sales? A) Debit Cash $6500; credit Sales $5915; credit Sales Taxes Payable $585. nviB) Debit Accounts Receivable $7085; credit Sales $6500; credit Sales Taxes Payable $585 C) Debit Sales Taxes Payable $585; debit Cash $5915; credit Sales $6500. D) Debit Cash $7085; credit Sales $6500; credit Sales Taxes Payable $585. E) Debit Cash $6500; credit Sales $6500; and record the taxes when paid. 20) A bond traded at 102 % means that: A) The bond traded at 102.5 % of its B) The bond pays 2.5% interest. C) The bonds were retired at $1,025 each. D) The market rate of interest is 2.5 %. E) The market rate of interest is 2% % above the contract rate. par value

Answer 1

16) Answer : B) $6809.04
Gross Pay		8988
Social security	557.26		8988*6.2%
Medicare	130.33		8988*1.45%
Federal Income tax withheld	1491.37
total withheld		-2178.95
Net Pay		6809.05
17) Answer : B) $2215.33
Gross Pay		9138
Social security	566.56		9138*6.2%
Medicare	132.50		9138*1.45%
Federal Income tax withheld	1516.27
total withheld		2215.33
18) Answer : D) Debit warranty expense $8400 Credit Estimated Warranty Liability $8400
warranty amount = 168000 * 5% = $8400
Debit - booking Warranty expense
Credit - booking Liability for warranty which is actually expensed in future
19) Answer : A) Debit Cash $6500, Credit Sales $5915, Credit Sales Taxes Payable $585
sales tax = 6500 * 9% = 585
debit - asset received ie. cash
credit - revenue booked Sales
credit - liability of sales tax which is payable
20) Answer : A) The bond traded at 102.5% of its par value
it means for every $100 is tradable at $102.50