Answer:
The combined wage bracket tables in Exhibits 9-3 and 9-4 is missing hence I will use 2014 tax year
answer :
a) Federal income tax withheld
= 75.6 + ( 1989.60 - 944 )*15% = $232.44
b) social security
6% * 1989.6 = $119.38
c) Medicare
1.45% * 1989.6 = $28.85
Explanation:
For a single individual
Two withholding allowance = $329.20 * 2 = $658.40
Gross Pay = $2648
withholding allowance = $658.40
Subject to withholding = $2648 - $658.40 = $1989.60
a) Federal income tax withheld
= 75.6 + ( 1989.60 - 944 )*15% = $232.44
b) social security
6% * 1989.6 = $119.38
c) Medicare
1.45% * 1989.6 = $28.85
Answer: as a current liability
Explanation:
From the question, we are given the information that Orear Manufacturing signed a contract with a supplier to buy raw materials in 2021 for $700,000 and before the December 31, 2020 balance sheet date, the market price for these materials dropped to $510,000.
The journal entry to record this situation at December 31, 2020 will result in a credit that should be reported in the current liability. It should be noted that current liabilities are the liabilities for the financial obligations for a company on a short-term basis which are normally due within a period of one year.
Examples of current liabilities are accruwed expenses, accounts payables, short-term debt, and dividends payable.
The company should sell product xy as it is
and should not process it further.
Given:
Original
Incurred cost of $5,000
No. of units is 6,400
Price per unit is $33
Processed product
No. of units is 6,400
Costs for further processing is $8/unit
New price per unit is $39
First, know the total costs
Original: $5,000
Processed: 6,400 x $8 = $51,200
Next, find the sales revenue for the original
and processed product
Original: $33 x 6,400 = $211,200
Processed: $39 x 6,400 = $249,600
Then, get the net profit for the original and
processed product
Original: $211,200 - $5,000 = $206,200
Processed: $249,600 - $51,200 = $198,400
With the data provided, you can find out that
the net profit is higher on the original/unprocessed product compared to the
processed product even if the selling price and revenue is much higher.
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Answer:
A. Debit Income Summary $41,300; credit Expense accounts $41,300
Explanation:
At the end of the period, the revenue and expenses for the company are closed into the income summary account which in turn is closed into the retained earnings account.
For revenue, the entries are debit revenue and credit income summary with the revenue for the year. For expenses, credit expenses and debit income summary with the total expense for the year.
As such, given that Total revenues for the period are $58,200, total expenses are $41,300, and dividends are $10,200, the correct closing entry for the expense accounts is
Debit Income Summary $41,300
Credit Expense accounts $41,300
