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Nookie1986 [14]
4 years ago
7

Toshlin issues financial statements on June 30. If payroll was $30,000 through June 30th and wages were to be paid on July 5. Wh

at is the correct journal entry on June 30?Assume FIT = 15%, FICA = 8%, SUTA = 6%, FUTA = 1%,
Business
1 answer:
ad-work [718]4 years ago
6 0

Answer:

a. No entry is required.

b.   Payroll        Dr.      $30,000  

           Wages Payable                      Cr.   $30,000

c.     Payroll          Dr.           $30,000    

             Federal Income Tax              Cr.       $4,500    

             FICA Taxes Payable               Cr.      $2,400    

             Wages Payable                       Cr.      $23,100      

d.     Payroll                          Dr.      $30,000  

              Federal Income Tax                       Cr.         $4,500  

              FICA Taxes Payable                       Cr.        $2,400    

              SUTA                                               Cr.        $1,800    

              FUTA                                               Cr.        $300        

              Wages Payable                               Cr.        $21,000

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The $3,700 (PV: $25,166.26) cash flow stream has the higher present value than the $5,500 (PV: 23,168) cash flow stream if the discount rate is 6 percent. The $5,500 (PV: 15.750.02) cash flow stream has the higher present value than the $3,700 (PV: $14,009.25) cash flow stream if the discount rate is 22 percent.
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4 years ago
Quantitative Problem 2: Hadley Inc. forecasts the year-end free cash flows (in millions) shown below.
Katarina [22]

The stock price is mathematically given as

P=$57.64

<h3>What is the stock price?</h3>

Generally, the equation for is Value after year  mathematically given as

V=\frac{(FCF for year 5*Growth rate)}{(WACC-Growth rate)}\\\\V = \frac{(55.4*1.05)}{(0.09-0.05)}

V= $1454.25

Hence, the current value is mathematically given as

I=Discounting factor equal to the future cash flows multiplied by their present value

I=\frac{-22.76}{1.09} + \frac{38.8}{1.09^2}+ \frac{43.4}{1.09^3}+\frac{52.3}{1.09^4}+\frac{55.4}{1.09^5}+\frac{1454.25}{1.09^5}

I=$1063.508769

current value for ordinary stock

I'=$1037.508769million

In conclusion, the stock price is

P=(1037.508769/18)

P=$57.64

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5 0
2 years ago
Economies of scale refers to the fact that as the quantity of product produced in a given time period __________, the cost of ma
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Economies of scale refers to the fact that as the quantity of product produced in a given time period <u>increase</u>, the cost of manufacturing each unit <u>decreases</u>.

<h3>What is Economies of scale?</h3>

Economies of scale can be defined as the benefit a company or organization enjoy for expanding their business or the cost benefit a business derived when they increases  their level of output.

Therefore Economies of scale refers to the fact that as the quantity of product produced in a given time period <u>increase</u>, the cost of manufacturing each unit<u> decreases.</u>

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8 0
2 years ago
Read 2 more answers
The following
Nadusha1986 [10]

Answer:

All of the basic expenses necessary to run a business are generally tax-deductible, including office rent, salaries, equipment and supplies, telephone and utility costs, legal and accounting services, professional dues, and subscriptions to business publications.

Explanation:

Option D is right my friend

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5 0
3 years ago
Which of the following methods of project analysis is defined as computing the value of a project based on the present value of
Anna35 [415]

Answer: discounted cash flow valuation

Explanation:

The discounted cash flow valuation is a method of project analysis that is defined as computing the value of a project based on the present value of the project based on the present value of the project's anticipated cash flows.

Discounted cash flow is used to determine an investment's value based on the future cash flows that the investment will bring.

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