Question

1. Bibby Company retired a $900,000, 7% bond issue at 98. If the unamortized discount is $7,200, the entry will include a:

   	A.	Credit to gain on bond retirement for $10,800
   	B.	Credit to gain on bond retirement for $7,200
   	C.	Debit to loss on bond retirement for $7,200
   	D.	Debit to loss on bond retirement for $10,800

2.

1. Moonbeam Company has the following monthly payroll for June, 2016:

   Total salaries	$216,000
   Salaries subject to FICA taxes (6.2% + 1.45%)	216,000
   Salaries subject to FUTA (0.8%) and state unemployment taxes (2.7%)	56,000
   Income taxes withheld	19,500

   
   The total employer's payroll tax expense for this period is:

   	A.	$ 2,116
   	B.	$40,084
   	C.	$20,952
   	D.	$18,484

3.

1. Which of the following is not a payroll tax on wages or salaries?

   	A.	State unemployment tax
   	B.	FICA tax
   	C.	Federal Unemployment tax
   	D.	Federal product excise tax

4.

Once sold, bonds can be traded in the market place similar to shares of stock.

True

False

5.

Zero-coupon notes do not pay periodic interest payments.

True

False

6.

The employer firm's total expenses for employing an employee is less than the related employee's gross earnings.

True

False

7.

Federal unemployment tax is withheld from each employee's wages.

True

False

8.

The times-interest-earned ratio reflects the number of times that the company earned interest during the year.

True

False

Answer 1

0 Given -that 5 Bfbby em pany setired a 4 q0a 000 If the unamo,heed dis count 's รุ่-7,200 credit to gain n bond vetase mentFoi 10 800 parkculars Bonds payeb le 9001000 10 800 00 To gain on relaáe ment To dis Couat on bon ds +200 00 Payable Ro cash 1o800 +7200 To cash 882000