Answer:
Option B- $63510 is the correct option.
Explanation:
Remember that:
Net Working Capital = Current Assets - Current Liabilities
Current assets includes receivables, cash and inventory, and current liabilities include accounts payable, short term notes payable and accrued taxes.
Putting value of current assets and current liabilities, we have:
Net Working Capital = ($47,199+$63,781+$21,461) - ($51,369+$11,417+$6145)
Net Working Capital = $132,441 - $68931 = $63,510
So the option B is the correct option.
Answer and Explanation:
The answer is attached below
Answer:
Part 1:
Total amount withheld for Social Security and medicare=$16264.2
Amount withheld for Social Security=$7049.4
Part 2:
Additional amount which the employer will contribute=$16264.2
Explanation:
Part 1:
Amount withheld for Social Security= $113700 * 6.2%=$113700 * 6.2/100
Amount withheld for Social Security=$7049.4
Amount withheld for Medicare=$632400 * 1.45%=$632400 * 1.45/100
Amount withheld for Medicare=$9169.8
Total amount withheld for Social Security and medicare=$7049.4+$9169.8
Total amount withheld for Social Security and medicare=$16264.2
Part 2:
The additional amount which the employer will contribute towards the FICA taxes is same as withheld by Coach Samson.
Additional amount which the employer will contribute=$7049.4+$9169.8
Additional amount which the employer will contribute=$16264.2
<u>Solution:</u>
<u>The</u><u> </u><u>following journal entries will be passed:</u>
Accounts Debit Credit
Bond Payable (2000 bonds x $1000) $2,000,000
Discounts on Bonds Payable $30,000
Common Stock (50 shares x $10 x 2000 bonds) $1,000,000
Paid -in Capital in Excess of Par--Common Stock $970,000
(TO RECORD CONVERSION)
Cash ( 2000 * $1000 * 1.01) $2020000
Discount on bonds payable $59216
Bonds payable (2000 * $1000) $ 2000000
Paid - in - Capital - Stock warrant $79216
(To record issuance of bonds with stock warrant)
