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sergiy2304 [10]
3 years ago
9

According to a summary of the payroll of Kirby Co., $700,000 in earnings were subject to the 7.6% FICA tax. Also, $108,500 in ea

rnings were subject to state and federal unemployment taxes. Round your answers to the nearest cent. a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.6%; federal unemployment, 0.9%. $ b. Illustrate the effects on the accounts and financial statements of recording the accrual of payroll taxes. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Statement of Cash Flows Balance Sheet Income Statement Assets = Liabilities + Stockholders' Equity + = + + + Statement of Cash Flows
Business
1 answer:
Ganezh [65]3 years ago
8 0

Answer:

FICA   53,200

SUTA    4, 991

FUTA        976.5

Total   59, 167. 5

Assets No effect.

Liaiblities increase by 59,167.5

Equity decrease by 59,167.5

Cash flow statemnet: no effect

Explanation:

700,000 x 7.6% = 53,200 FICA

108,500 x 4.6% =    4,991 SUTA

108,500 x 0.9% =    976.5 FUTA

This are expenses which, decreases the equity.

As we are performing the accrual of payroll taxes we recognize the payable amount.

There is no cash involve

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Which function(s) of money informs the consumer what currency to use to obtain a good or service?
inna [77]
The third function explains that money is a medium of exchange. It means that it is better to use the money used in the country itself to gain better service because it would provide better protection. Costumers would be more satisfied if the business would accept the money they have and it would be safer and mutually good for both if the customer would transact using the currency country's currency.


Source: https://www.stlouisfed.org/education/economic-lowdown-podcast-series/episode-9-functions-of-money
4 0
3 years ago
Read 2 more answers
You are set to receive an annual payment of $12,100 per year for the next 17 years. Assume the interest rate is 7 percent. How m
uranmaximum [27]

Answer:

The difference in value is worth $8,269 more in money.

Explanation:

Case 1. Payments are made at the end of each year

So here, we will use the annuity formula for computing the present value of payments that we are receiving at the end of each year.

Here

Annual Cash flow is $12,100

Interest Rate "r" is 7%

And

Number of Payments "n" will be 17

Present Value = Cash flow * [1 - 1 / (1+r)^n] / r

By putting values, we have:

Present Value = $12,100 * [1 - 1 / (1 + 7%)^17] / 7%

Present Value = $12,100 * 9.763223

Present Value = $118,135

Now

Cash 2. Payments are arising at the start of each year

Just like the case above, we will use the annuity formula for computing the present value of payments that we are receiving at the start of each year. The first payment will be at worth the same because it is received in today's price.

So

Present Value = Cash flow     +       Cash flow * [1 - 1 / (1+r)^n] / r

So by putting values, that were used in case 1, we have:

Present Value = $12,100 + $12,100 * (1 - (1/1.07)^16) / 0.07

Present Value = $12,100 + $12,100 * 9.446649

Present Value = $126,404

Difference in Present Value = PV of Case 1      -    PV of Case 2

= $126,404 - $118,135 = $8,269

The difference in value is worth $8,269 more in money.

4 0
3 years ago
g In the theory of comparative advantage, a good should be produced in that nation where Multiple Choice the production possibil
Lady_Fox [76]

Answer:

its cost is least in terms of alternative goods that might otherwise be produced

Explanation:

Comparative Advantage

This is simply explained as when an individual has an opportunity cost of performing a task is lower than the other individuals opportunity cost that is it is more efficient. It is the usual fundamental basis for international trade. Its principle includes production at a maximum peak to be achieved if each individual focus on the job or activities for which his or her opportunity cost is lowest.

Opportunity Cost

This is simply known as the highest valued of an alternative that must be given up so as to be involved or engage in an activity/job or task. There are several sources of a comparative advantage. They includes;

1. Climate and natural resources

2. Relative abundance of labor and capital

3. Technology

4. External economies etc.

3 0
3 years ago
The loss in total surplus resulting from a tax is called.
natta225 [31]

Answer:

Deadweight loss

Explanation:

:D

5 0
3 years ago
Which of the following will decrease the demand (demand curve shifts to the left), for jogging shoes?
Brut [27]

Answer:

B. A decrease in the price of substitutes.

Explanation:

When there is a Decrease in the price of Substitute goods to jogging shoes then more people will demand more of those substitutes.

Because those other goods are Substitutes, an increase in their demand reduces the demand for Jogging shoes because goods that are substitutes are not usually bought at the same time.but rather to replace the other. When more of the jogging shoe substitute are bought, less Jogging shoes will be demanded.

3 0
3 years ago
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