Answer:
a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.
b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.
- Dr FICA Social Security expense 6,600
- Dr FICA Medicare expense 1,650
- Dr Federal unemployment tax expense 200
- Dr State unemployment tax expense 1,350
- Cr FICA Social Security payable 6,600
- Cr FICA Medicare payable 1,650
- Cr Federal unemployment tax payable 200
- Cr State unemployment tax payable 1,350
Explanation:
payroll taxes should be:
social security $110,000 x 6% = $6,600
Medicare $110,000 x 1.5% = $1,650
federal unemployment $25,000 x 0.8% = $200
state unemployment $25,000 x 5.4% = $1,350
total = $9,800
Both employees and employers must pay equal amounts of FICA taxes (social security and medicare), but only employees pay unemployment taxes.
<span>True because I believe you have to have your Driver's License before getting a motorcycle endorsement because it not safe for fellow riders.</span>
Answer:
The ending balance of Allowance for Bad Debts account is $800
Explanation:
The computation of the ending balance of allowance for bad debt is shown below:
= Credit sales × uncollectible rate
= $40,000 × 2%
= $800
The estimated amount would be considered as an allowance for bad debts i.e $800, So no other amount would be come while computing the ending balance of Allowance for Bad Debts account.
However, the other information which is given in the question is not relevant. Hence, ignored it
Answer:
Part (a)
The percentage ownership of Mr. John is 20% + (80% x 20%) = 36%
Part (b)
The percentage ownership of Mr. Brian is 30% + 30% = 60%
Part (c)
The percentage ownership of Mr. Charlie is 30% + 30% = 60%
Part (d)
The amount that could be recognized for the purposes of tax would be $0, as Mr. Brian owns more than half that is more than 50% of XYZ Corp. either directly or indirectly.
Answer:
126,000 shares
Explanation:
Stock split is a method used to increase the number of shares in an organization without a change on the company's owners equity or market value , but cause a decrease to the market price of the shares which in return attracts investors.
No of shares stock = 42000
New offer = 3-for 1
Stock outstanding after split=
3/1*42000
=126,000 shares
