Identify the types of goods or services they provide to their customers?(informal bookkeeping operation)
1 answer:
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Answer:
Please check the images attached below
Explanation:
Salaries Payable = (Salariesexpense - Socialsecurity taxes - Medicaretaxes - Incometaxes - MedicalcareInsurance Education - Union dues)
=$28,000−$1,736−$406−$3,800−$678−$190
=$28,000−$6,810
=$21,190
Hence, the salaries payable are $21,190.
Compute the social security taxes using the equation as shown below:
\begin{array}{c}\\{\rm{Social security taxes}} = {\rm{FICA tax rate}} \times {\rm{Salaries expense}}\\\\ = 6.2\% \times \$ 28,000\\\\ = \$ 1,736\\\end{array}
Socialsecuritytaxes=FICAtaxrate×Salariesexpense
=6.2%×$28,000
=$1,736
Hence, social security taxes are $1,736.
Compute the Medicare taxes using the equation as shown below:
Medicaretaxes=Medicaretaxrate×Salariesexpense
=1.45%×$28,000
=$406
Hence, Medicare taxes are $406.
Answer:
The second project should be chosen. Because the present value of the second project is greater than that of the first project.
Explanation:
The project that should be chosen can be determined by comparing the present value of both projects.
Present value is the cash flows from a project discounted at the discount rate.
Present value can be found using a financial calculator;
For project 1,
Cash flow each year from year one to six is $52,000
Discount rate = 15%
Present value =$196,793.10
For project 2,
Cash flow each year from year one to eight is $48,000
Discount rate = 15%
Present value =$215,391.43
The second project would be chosen because its present value is greater than that of the first project.
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