Question 1

A company borrowed $60,000 by signing a 60-day, 5% note payable from its bank. Compute the total cash payment due on the note's maturity date.

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Question 2

What are estimated liabilities? Cite at least two examples and explain why they are classified as estimated liabilities.

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Question 3

A company's income before interest expense and income taxes in 2014 and 2015 is $225,000 and
$250,000, respectively. Its interest expense was $45,000 for both years. Calculate the company's times interest earned ratio, and comment on its level of risk.

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Question 4

Explain how to calculate times interest earned and how it is used to analyze a company's risk.

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Question 5

Identify and discuss the factors involved in computing federal income taxes withheld from employees.

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Question 6

An employee earns $9,450 for the current period. The cumulative earnings of previous pay periods is $110,000. Social security tax applies to the first $118,500 of employee earnings. Calculate the total and individual amounts to be withheld for social security (6.2%), Medicare (1.45%) and federal income tax (15%).

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Question 7

A company's income before interest expense and income taxes is $302,400, and its interest expense is $62,000. Calculate the company's times interest earned ratio.

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Question 8

Explain the responsibilities of and the accounting by employers for deductions from employee payroll.

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Question 9

On September 15, SkateWorld borrowed $70,000 cash from Mutual Bank by signing a 6%, 60-day note payable.
a. Prepare SkateWorld's journal entry to record the issuance of the note payable.
b. Prepare SkaetWorld's journal entry to record the payment of the note at maturity.

Accepted Answer

The answer of On September 15, SkateWorld borrowed $70,000 cash...

Question 10

Calculate the total amount of FICA withholding for an employee whose pay is $2,400 for the first pay period of the year. The tax rate for FICA-Social Security is 6.2% and the tax rate for FICA
-Medicare is 1.45%.

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Question 11

Kelso had income before interest expense and income taxes of $570 million and interest expense of
$37 million. Calculate Kelso' times interest earned.

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Question 12

On June 1, Jasper Company signed a $25,000, 120-day, 6% note payable to cover a past due account payable.
a. What is the total amount of interest to be paid on this note?
b. Prepare Jasper Company's general journal entry to record the issuance of the note payable.
c. Prepare Jasper Company's general journal entry to record the payment of the note on September 29.

Accepted Answer

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Question 13

A company had income before interest expense and income taxes of $186,000, and its interest expense is $55,000. Calculate the company's times interest earned ratio.

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Question 14

On November 1, Casey's Snowboards signed a $12,000, 90-day, 5% note payable to cover a past due account payable.
a. What amount of interest expense on this note should Casey's Snowboards report on year-end December 31?
b. Prepare Casey's journal entry to record the issuance of the note payable.
c. Prepare Casey's adjusting journal entry at the end of the year
d. Prepare Casey's journal entry to record the payment of the note on February 1 of the following year.

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Question 15

On December 1, Williams Company borrowed $45,000 cash from Second National Bank by signing a 90-day, 9% note payable.
a. Prepare Williams' journal entry to record the issuance of the note payable.
b. Prepare Williams' journal entry to record the accrued interest due at December 31.
c. Prepare Williams' journal entry to record the payment of the note on March 1 of the next year.

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The answer of On December 1, Williams Company borrowed $45,000...

Question 16

Floral Depot's income before interest expense and income taxes was $5,900 million, and interest expense was $38 million. Calculate Floral Depot's times interest earned.

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The answer of Floral Depot's income before interest expense and...

Question 17

A company's income before interest expense and income taxes in 2014 and 2015 is $487,500 and
$427,000, respectively. Its fixed interest expense was $125,000 for both years. Calculate the company's times interest earned ratio, and comment on its level of risk.

Accepted Answer

The answer of A company's income before interest expense and...

Question 18

What is a short-term note payable? Explain the accounting issues related to notes payable.

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Question 19

Identify and explain the types of employer payroll taxes.

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Question 20

SaveMart had income before interest expense and income taxes of $12,581 million and interest expense of $1,063 million. Valueland had income before interest expense and income taxes of
$3,596 million and interest expense of $1,143 million. Calculate the times interest earned for each company and comment on the results.

Accepted Answer

The answer of SaveMart had income before interest expense and...

Quiz 11: Current Liabilities and Payroll Accounting

A company borrowed $60,000 by signing a 60-day, 5% note payable from its bank. Compute the total cash payment due on the note's maturity date.

What are estimated liabilities? Cite at least two examples and explain why they are classified as estimated liabilities.

A company's income before interest expense and income taxes in 2014 and 2015 is $225,000 and $250,000, respectively. Its interest expense was $45,000 for both years. Calculate the company's times interest earned ratio, and comment on its level of risk.

Explain how to calculate times interest earned and how it is used to analyze a company's risk.

Identify and discuss the factors involved in computing federal income taxes withheld from employees.

A company's income before interest expense and income taxes is $302,400, and its interest expense is $62,000. Calculate the company's times interest earned ratio.

Explain the responsibilities of and the accounting by employers for deductions from employee payroll.

On September 15, SkateWorld borrowed $70,000 cash from Mutual Bank by signing a 6%, 60-day note payable. a. Prepare SkateWorld's journal entry to record the issuance of the note payable. b. Prepare SkaetWorld's journal entry to record the payment of the note at maturity.

Calculate the total amount of FICA withholding for an employee whose pay is $2,400 for the first pay period of the year. The tax rate for FICA-Social Security is 6.2% and the tax rate for FICA -Medicare is 1.45%.

Kelso had income before interest expense and income taxes of $570 million and interest expense of $37 million. Calculate Kelso' times interest earned.

A company had income before interest expense and income taxes of $186,000, and its interest expense is $55,000. Calculate the company's times interest earned ratio.

Floral Depot's income before interest expense and income taxes was $5,900 million, and interest expense was $38 million. Calculate Floral Depot's times interest earned.

A company's income before interest expense and income taxes in 2014 and 2015 is $487,500 and $427,000, respectively. Its fixed interest expense was $125,000 for both years. Calculate the company's times interest earned ratio, and comment on its level of risk.

What is a short-term note payable? Explain the accounting issues related to notes payable.

Identify and explain the types of employer payroll taxes.