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anygoal [31]
3 years ago
9

Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay perio

d of January 15 - 31.
Gross payroll $19,676
Federal income tax withheld $3,438
Social security rate 6%
Federal unemployment tax rate 0.8%
Medicare rate 1.5%
State unemployment tax rate 5.4%
Salaries Payable would be recorded in the amount of
a) $15,018.09
b) $13,542.39
c) $14,762.30
d) $19,676.00
Business
1 answer:
Tanya [424]3 years ago
8 0

Answer:

The correct answer is B. Salaries Payable would be recorded in the amount of 13,542.39.

Explanation:

Given that the company's gross payroll is $19,676, and that a discount of $3,438 must be applied by the Federal Income Tax, a 6% social security rate, a 0.8% federal unemployment rate, a 1.5% rate Medicare and 5.4% state unemployment rate, the following gross discounts must be made to gross payroll to determine wages to be paid after taxes:

3,438 (Federal Income Tax)

19,676 x 0.06 = 1,180.56 (social security rate)

19,676 x 0.008 = 157.408 (federal unemployment rate)

19,676 x 0.015 = 295.14 (Medicare rate)

19,676 x 0.054 = 1,062.5 (state unemployment rate)

Therefore, those discounts should be subtracted from the gross payroll in order to get the Salaries Payable:

19,676 - 3,438 - 1,180.56 - 157.4 - 295.14 - 1,062.5 = 13,542.39.

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Low. strategic trade policy calls for equal treatment of all trading
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3 years ago
In preparing closing entries
mrs_skeptik [129]

Answer:

a. each revenue account will be credited.

Explanation:

In accrual accounting revenues and expenses are realised and recorded when the revenues are earned or when expenses are incurred.

Temporary accounts are used to store balances from the revenue or expense activities of a business.

Eventually these accounts are closed out to permanent revenue and expense accounts. Revenues are credited to reflect income earned, and expenses are debited to reflect costs incurred.

6 0
3 years ago
Read 2 more answers
Jack performs maintenance on the manufacturing machinery, and Charlie performs maintenance on the office computers. Would their
Nana76 [90]

Answer:

B : Yes, Jack’s salary would be classified as a product cost, whereas Charlie’s salary would be classified as a period cost.

Explanation:

In determining the product cost, Jack's salary which forms part of the manufacturing overhead will be included in the total manufacturing costs whereas Charlie's salary will be regarded as a period cost.  This makes option B the correct choice.  The maintenance costs on manufacturing machinery and office computers are classified differently in a manufacturing setting because Jack's maintenance affects manufacturing indirectly while Charlie's maintenance affects the office administration directly.

5 0
3 years ago
At the end of its first year, the trial balance of Blossom Company shows Equipment $21,500 and zero balances in Accumulated Depr
faltersainse [42]

Answer:

The adjusting entry is shown below.

Explanation:

According to the scenario, the given data are as follows:

Estimated depreciation for year = $4,300

So, the adjusting entry  for depreciation is shown below:

Adjusting Entry

Dec.31

Depreciation expense A/c Dr.     $4,300

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(Being the Depreciation expense is recorded)

7 0
3 years ago
term fixed price contract to build an office tower for​ $10,000,000. In the first year of the contract Tullis incurs​ $3,000,000
almond37 [142]

Answer: $750,000

Explanation:

Given that,

Fixed price contract = $10,000,000

Cost incurred in the first year = $3,000,000

Remaining costs to complete =​ $5,000,000

Tullis billed =​ $4,000,000 in year 1

Collected​ by the end of the year = $3,500,000

Percentage of work completed = \frac{Expenditures\ Incurred\ from\ Inception\ to\ Date}{Total\ Estimated\ Costs\ for\ the\ Contract}

= \frac{3}{8} \times 100percent

= 37.5%

Revenue recognized = 37.5% of $10,000,000

                                    = $3,750,000

Income recognized = Revenue recognized - Cost incurred in the first year

                                 = $3,750,000 - $3,000,000

                                 = $750,000

8 0
3 years ago
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