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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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The following changes took place last year in Pavolik Company’s balance sheet accounts:
irinina [24]

Answer:

1. $260

2. $103

Explanation:

1. Calculation to determine the net cash provided by operating activities for the year

PAVOLIK COMPANY

STATEMENT OF CASH FLOWS PARTIAL (USING INDIRECT METHOD)

FOR THE YEAR ENDED

Particulars Amount

Cash flow from operating activities

Net Income $100

Adjustments to reconcile net income to net cash provided by operating activities

Adjustment for non cash effects

Depreciation $82

Loss on sale of land $21

Gain on sale of investments -$25

Change in operating assets & liabilities

Increase in accounts receivable -$24

Decrease in inventory $58

Increase in prepaid expenses -$19

Increase in accounts payable $62

Decrease in accrued liabilities -$24

Increase in income taxes payable $29

Net cash flow from operating activities (a) $260

Therefore Using the indirect method the net cash provided by operating activities for the year is $260

2. Preparation of a statement of cash flows for the year

PAVOLIK COMPANY

STATEMENT OF CASH FLOWS (USING INDIRECT METHOD)

FOR THE YEAR ENDED

Particulars Amount

$

Cash flow from operating activities (a) $260

Cash Flow from Investing activities

Property,plant and equipment purchased -$395

Long term investment sold $46

Land sold $24

Net cash Flow from Investing activities (b) -$325

(-$395+$46+$24)

Cash Flow from Financing activities

Cash dividends paid -$18

Common stock purchased -$96

Bonds issued $204

Net cash Flow from Financing activities (c) $90

(+$204-$18-$96)

Net Change in cash c=a+b+c -$25

Beginning cash balance $128

Closing cash balance $103

($128-$25)

Therefore the statement of cash flows for the year is $103

4 0
3 years ago
Prepare a bank reconciliation for Cole Co. assuming the following as of May 31. Use the worksheet provided in the Ch 7 Module: 1
goblinko [34]

Answer:

Cole Co.

Bank Reconciliation Statement

Balance as per cash account adjusted $112,933

add uncredited deposits                             11,317

less Outstanding checks                         -41,750

Balance as per bank statement            $82,500

Explanation:

a) Data and Calculations:

Cash account debit balance = $95,250

Bank statement balance = $82,500

Outstanding checks = $11,317

Credit memorandum $18,000

Collection fee $45

Check 1115 for Rent Expense of $1,350 transposed as $1,050 = $300 ($1,350 - $1050)

Uncredited deposits = $41,750

Interest earned = $28

Cash Account Adjustment:

Cash account debit balance        $95,250

Debit:

Credit memorandum                      18,000

Interest earned                                      28

Credit:

Collection fee                                       -45

Rent Expense (understated)             -300

Adjusted cash account balance $112,933

b) The bank reconciliation statement above was prepared after adjusting the cash account with items that were recorded by the bank but not recorded by Cole Co. and other misstatements.  With the adjusted cash account balance, the bank reconciliation was then carried out with the items that were not recorded by the bank.  The resulting figure should agree with the bank statement balance.

4 0
3 years ago
If the natural rate of unemployment is 5%, and the actual rate of unemployment is 4%: a the short-run Phillips curve will shift
fiasKO [112]

Answer: d. inflation will increase.

Explanation:

The Natural rate of unemployment is the long term rate of unemployment which means that it is the rate associated with the Potential GDP.

If the Actual unemployment is less than this natural rate, it means that the Economy is performing better than the potential GDP. When this is happening, it means that the economy is overheating.

One of the symptoms of an overheated economy is increased inflation as more people can afford to buy goods and services. Inflation is therefore more probably rising in this economy.

3 0
3 years ago
"Planning sessions, workshops, formal reports, and personal conversations are all part of the internal __________ that is necess
Ksju [112]

Answer:

The correct answer is: Distribution.

Explanation:

To begin with, the concept of distribution inside the marketing field and refering specifically to the internal marketing approach is understand as the way that the informatino of the marketing strategy is distributed inside the organization with all of the members that need to know that data in order to focus on the campaign and make it possible and effective so that the objectives are accomplished. That is why that the planning sessions, workshops, formal reports and personal conversations are part of the internal distribution that is necessary to implement the marketing strategy that the company tends to use.

4 0
3 years ago
Which of these groups of workers is not a part of Handy's Shamrock organization?
kolezko [41]

Answer:

#1 Outsourced workers

Explanation:

Outsourced workers are not employees of Handy's Shamrock organization. They are workers who have been contracted by Handy Shamrock to carry out specific functions.

In most cases, outsources workers are employed by a company that specializes in certain tasks. For example, Handy Shamrock may need cleaning workers. Instead of hiring cleaners, they may contract a cleaning company to do the job for them.  The cleaning company workers that will be cleaning at Handy Shamrock will be outsourced workers.

4 0
3 years ago
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