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Anna35 [415]
3 years ago
11

During January, Luxury Cruise Lines incurs employee salaries of $2.9 million. Withholdings in January are $221,850 for the emplo

yee portion of FICA, $435,000 for federal income tax, $181,250 for state income tax, and $29,000 for the employee portion of health insurance (payable to Blue Cross Blue Shield). The company incurs an additional $179,800 for federal and state unemployment tax and $87,000 for the employer portion of health insurance.
Required:
A) Record the employee salary expense, withholdings, and salaries payable.
B) Record the employer-provided fringe benefits.
C) Record the employer payroll taxes.
Business
1 answer:
Bad White [126]3 years ago
7 0

Explanation:

The journal entries are shown below:

a. Salaries expense $2,900,000

             To Income tax payable $616,250  ($435,000 + $181,250)

             To FICA tax payable  $221,850

             To Account payable $29,000

             To Salaries payable $2,032,900

(Being the employee salary expense, withholdings, and salaries payable is recorded)

b. Salaries expense $87,000

                 To Account payable $87,000

(Being the employer-provided fringe benefits is recorded)

c. Payroll tax expense $179,800

   FICA tax expense $221,850

              To Unemployment tax payable $401,650

(being the employer payroll taxes is recorded)

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Bond Valuation and Changes in Maturity and Required Returns Suppose Hillard Manufacturing sold an issue of bonds with a 10-year
g100num [7]

Answer:

It will be sold at $1,186.71

Explanation:

We will calculate the present value of the cuopon payment and the maturity at the new market rate of 7%

<u>The coupon payment will be calcualte as the PV of ordinary annuity</u>

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C $50 (1,000 x 10%/2 as there are 2 payment per year)

time    16 (8 years x 2 payment per year)

rate     0.035 (7% rate / 2 payment per year)

50 \times \frac{1-(1+0.035)^{-16} }{0.035} = PV\\

PV $604.7058

<u>The maturity will be calculate as the PV of a lump sum</u>

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  1,000.00

time         8 years

rate  0.07

\frac{1000}{(1 + 0.07)^{8} } = PV  

PV   582.01

<u>The market price will be the sum of both:</u>

PV cuopon $604.7058

PV maturity  $582.0091

Total $1,186.7149

6 0
3 years ago
Bear tracks, inc., has current assets of $2,180, net fixed assets of $9,400, current liabilities of $1,355, and long-term debt o
abruzzese [7]

(a) Total assets = Current assets + Fixed assets  

Total assets = 2180 +9400 = 11,580

Total liabilities = Current liabilities + long term debt

Total liabilities = 1355+3990 = 5,345

According t the accounting equation, Stockholders equity = Total assets - Total liabilities =  11,580-5,345 = 6,235

Stockholders equity = $6,235

(b) Working capital = Current assets - Current liabilities

Working Capital = 2180-1355

Working Capital = $825

3 0
3 years ago
Which of the following was the fourth leading cause of deaths in the construction industry in 2013? A. Being struck by something
jolli1 [7]
The fourth leading cause of deaths in the construction industry in 2013 was D. getting caught or between two objects.
Falling is the number one cause of deaths, followed by electrocution and being struct by something. Getting caught between objects is the fourth most common way to die when it comes to the construction industry - at least it was 4 years ago.
6 0
3 years ago
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m_a_m_a [10]

Answer:

regards

can you please call me when you get a chance

Explanation:

good morning I will be in touch with you doing today I hope you are doing well and that you are you doing today

4 0
2 years ago
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