An employee earns $5,500 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 of earnings each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. The employee has $182 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $150 and contributes $75 to a retirement plan each month. What is the amount the employer should record as payroll taxes expense for the employee for the month of January?
$841.50
$420.75
$464.75
$602.75
$750.75
The accountant for Crusoe Company is preparing the company's
statement of cash flows for the fiscal year just ended. The
following information is available:
| Retained earnings balance at the beginning of the year | $ | 132,500 |
| Cash dividends declared for the year | 52,500 | |
| Proceeds from the sale of equipment | 87,500 | |
| Gain on the sale of equipment | 8,300 | |
| Cash dividends payable at the beginning of the year | 24,500 | |
| Cash dividends payable at the end of the year | 27,800 | |
| Net income for the year | 98,500 | |
What is the ending balance for retained earnings?
$187,000.
$178,500.
$289,000.
$261,000.
$208,500.
Green Company reports depreciation expense of $47,000 for Year
2. Also, equipment costing $161,000 was sold for a $5,700 gain in
Year 2. The following selected information is available for Green
Company from its comparative balance sheet. Compute the cash
received from the sale of the equipment.
| At December 31 | Year 2 | Year 1 | ||||
| Equipment | $ | 645,000 | $ | 806,000 | ||
| Accumulated Depreciation-Equipment | 456,000 | 535,000 | ||||
$40,700.
$35,000.
$82,000.
$47,000.
$29,300.
| Ques 1 | ||
| earns | 5500 | |
| fica-social | 6.20% | 341.00 |
| ficamedicare | 1.45% | 79.75 |
| FUTA | 0.60% | 33.00 |
| SUTA | 5.40% | 297.00 |
| Payroll expense | 750.75 | |
| Ques 2 | ||
| Retained earnings at the beginnig of the year | 132500 | |
| Add:net income | 98500 | |
| Less:cash dividends declared | -52500 | |
| Retained earnings balance | 178500 | |
| Ques 3 | ||
| Accumulated depreciaiton | ||
| Year 2 balance | 535000 | |
| Less:opening balance | -456000 | |
| Add:dep expense | 47000 | |
| Acc dep on equipment sold | 126000 | |
| cash received | ||
| Gross value of asset sold | 161000 | |
| Less:acc dep | -126000 | |
| 35000 | ||
| Add:gain on sale | 5700 | |
| Cash received | 40700 |
Get Answers For Free
Most questions answered within 1 hours.