a. The total of all wages and salaries at Sun Cleaners for the most recent month was $12,327. The Social Security rate is 6.2%, Medicare rate is 1.45%, federal unemployment taxes are 0.6%. and state unemployment taxes are 2.7%. No employee has reached any tax limits. The employer payroll tax expense for the month is:
b. Goods shipped from a seller's warehouse on June 10, arrived at the buyer's warehouse on June 16. The invoice was paid on June 20. If the goods were sold FOB shipping point, the buyer took legal title on:
c. Southern Union Gas issues 10,000 shares of $1 par value common stock for cash at $60 per share. The entry to record the transaction will consist of a debit to Cash for $600,000 and a credit or credits to
d. The maturity value of a 20,000, 9%, 36-day note receivable dated July 3 is
| a | Employer payroll tax expense | ||||||||
| Social Security Rate | 764.274 | ||||||||
| Medicare Rate | 178.7415 | ||||||||
| FUTA | 73.962 | ||||||||
| SUTA | 332.829 | ||||||||
| Payroll tax expense | 1349.81 | ||||||||
| b | The Buyer took legal title on June 10. | ||||||||
| FOB Shipping Point FOB is a shipping term that stands for “free on board.” If a shipment is designated FOB (the seller's location), | |||||||||
| then as soon as the shipment of goods leaves the seller's warehouse, the seller records the sale as complete. The buyer owns | |||||||||
| the products en route to its warehouse and must pay any delivery charges. | |||||||||
| c | Credits to: | ||||||||
| Common Stock | 10000 | ||||||||
| Additional Paid in capital - Common Stock | 590000 | ||||||||
| d | 8th August | ||||||||
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