Chapter 9: Q12DQ (page 428)
What is a wage bracket withholding table?
The employers use the wage bracket withholding table to compute the federal income taxes withheld from each employee’s gross pay.
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Use the following information from separate companies athrough fto compute times interest earned.
Which company indicates the strongest ability to pay interest expense as it comes due? (Round ratios to
two decimals.)
Net Income (Loss) Interest Expense Income Taxes
a. \(115,000 \)44,000 $ 35,000
b. 110,000 16,000 50,000
c. 100,000 12,000 70,000
d. 235,000 14,000 130,000
e. 59,000 14,000 30,000
f. (5,000) 10,000 0
On January 15, the end of the first biweekly pay period of the year, North Company’s payroll register showed that its employees earned \(35,000 of sales salaries. Withholdings from the employees’ salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, \)6,500 of federal income taxes, \(772.50 of medical insurance deductions, and \)120 of union dues. No employee earned more than $7,000 in this first period. Prepare the journal entry to record North Company’s January
15 (employee) payroll expenses and liabilities. (Round amounts to cents.)
Ticketsales, Inc., receives $5,000,000 cash in advance ticket sales for a four-date tour of Bon Jovi. Record the advance ticket sales on October 31. Record the revenue earned for the first concert date of November 5, assuming it represents one-fourth of the advance ticket sales.
On November 7, 2017, Mura Company borrows \(160,000 cash by signing a 90-day, 8% note payable with
a face value of \)160,000.
(1) Compute the accrued interest payable on December 31, 2017,
(2) Prepare the journal entry to record the accrued interest expense at December 31, 2017, and
(3) Prepare the journal entry to record payment of the note at maturity.
What is an employer’s unemployment merit rating? How are these ratings assigned to employers?
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