Answer:
(B) 9%
Explanation:
In order to calculate this you just have to do a simple rule of three with the 100% being the 450,000 you withdraw from the paid money the selling price of the bonds:
490,222-450000= 40,222
Now we do the rule of three using 450,000 as 100%:
So the actual rate would be 8,93 which is closest to 9% so that would be the answer.
Answer:
Debit: Salaries and wages expense $25,056
Credit: Salaries and wages payable $25,056
<em>(To recognize the salaries and wages payable at year-end)</em>
Explanation:
Merando Industries employs a 5-day workweek - this means $41,760 normal weekly wages can be divided by 5 to arrive at the daily workweek wages, which is $41,760 / 5 = $8,352.
If the fiscal year-end is a Wednesday, the company has to recognize a salaries and wages payable of $25,056 due to the following:
- the workweek remains 2 weekdays to complete
- the company pays at the completion of the 5-day workweek
- there is no need to recognize the remaining 2 days next year as salaries and wages payable since the employer may not have control over the employees - they may decide the exit the company
So, the amount to be recognized will be $8,352 x 3 = $25,056.
