The owner invested $15,200 cash in the company in exchange for its common stock. The company purchased supplies for $550 cash.
1 answer:
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Answer:
The correct answer is $10,160.38
Explanation:
According to the scenario, the given data are as follows:
Future value = $12,350
Number of years (n) = 4 years
Discount rate (r) = 5%
Hence, Present value can be calculated by following formula:
Future value = Present value
$12,350 = Present value
Present value =
Present value = $10,160.38
Hence, the correct answer is $10.160.38
Answer:
a.
Taxes to be withheld from Gross Pay (Employee - Paid Taxes)
September Earnings Tax Rate Tax Amount
Subject to Tax
Federal Income tax $80.00
FICA - Social Security 800 6.20% $49.60
FICA - Medicare 800 1.45% <u> $11.60</u>
Total <u> $141.20</u>
FICA - Social Security = 800 * 6.2% = $49.60
FICA - Medicare = 800 * 1.45% = $11.60
b.
Date General Journal Debit Credit
Sep 30 Salaries Expense $800
Federal income tax payable $80
FICA taxes Payable - Social Security $49.60
FICA taxes Payable - Medicare $11.60
Salaries Payable $658.80
Salaries Payable = 800 - 80 - 49.60 - 11.60 = $658.80
