Accounting Answers

Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages.


Hunter Company had a FUTA taxable payroll of $192,700 for the year. Since the company is located in a state that has 1.5% FUTA credit reduction due to unpaid loans, determine Hunter's FUTA tax liability for the year.

Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages.


Faruga Company had FUTA taxable payrolls for the four quarters of $38,400; $29,600; $16,500; and $8,900, respectively. What was the amount of Faruga’s first required deposit of FUTA taxes?

Edward Dorsey is a part-time employee, and during the biweekly pay period he earned $395. In addition, he is being paid a bonus of $300 along with his regular pay. If Dorsey is single and claims two withholding allowances, how much would be deducted from his pay for FIT?


Hint: There are two ways to determine his deduction—do not use tables for percentage method.


(biweekly withholding allowance = $161.50)


Tax table link below


https://cxp.cengage.com/contentservice/assets/T=1587480948747/btpa20t/images/chapter04/Exhibit_4-1.html

Mary Matthews made $950 during a biweekly pay period only social security (fully taxable) and federal income taxes attach to her pay. Matthews contributes $100 each biweekly pay to her company's 401k. Determine Matthews take home pay if she is married and claims 2 allowances.


(biweekly withholding allowance = $161.50)


Tax table link below


https://cxp.cengage.com/contentservice/assets/T=1587480948747/btpa20t/images/chapter04/Exhibit_4-1.html

Use the appropriate table to determine the amount to withhold for federal income tax from each of the following biweekly wages (biweekly withholding allowance = $161.50):

Patrick Patrone (single, 2 allowances), $925 wages

Carson Leno (married, 4 allowances), $1,195 wages Carli Lintz (single, 0 allowances), $700 wages Tax table link below

https://cxp.cengage.com/contentservice/assets/T=1587480948747/btpa20t/images/chapter04/Exhibit_4-1.html

1.Mary Matthews made $950 during a biweekly pay period only social security (fully taxable) and federal income taxes attach to her pay. Matthews contributes $100 each biweekly pay to her company's 401k. Determine Matthews take home pay if she is married and claims 2 allowances.(biweekly withholding allowance = $161.50)Tax table link below

https://cxp.cengage.com/contentservice/assets/T=1587480948747/btpa20t/images/chapter04/Exhibit_4-1.html

RON started a business on 1 July2019. He brought in the following assets:

Motor vehicle RM68,000

Cash RM50,000

Equipment and fittings RM35,000

Inventory RM42,000

On 9 August2019,Ronintroducedadditional cash of RM28,000.

After six months oftrading,a net profit of RM25,000was earned.

During thesix months, Ronwithdrew RM18,000 for his personal use.

Required:

(i)What is Ron’sopening capital as at 1 July2019?

(ii)What is Ron’s capital as at 31 December2019?

On January 1, 2020 Rodman Inc issues for cash $100,000 of 8%, five-year bonds with interest payable semiannually. The market rate of interest at the time the bonds are issued is 10%. Assume the bonds sell for $92,278.


A. Is the bond issued at a premium, a discount, or neither?


B. Prepare journal entries for the bond’s issuance, and the first and second semiannual interest payment (3 journal entries required). Assume any premium or discount is amortized on he straight-line basis semiannually.

Which of the following statements is false regarding an employee's contribution into a 401(k) tax deferred retirement account?


a.The employee's contributions are not subject to FICA tax.


b.Upon retirement, the employee will receive their contributions back in the form of regular payments.


c.None of these statements are correct.

On January 1, 2009 Akil Rampaul's balance sheet was as follows:


ASSETS

Plants & Machinery 20400

Accounts Receivable 7817

Cash 1183

Furniture & Fittings 10840

Inventory 5000

Prepaid Insurance 160



LIABILITIES

Accrued Wages 940

Accounts Payable 5340

Capital 35000

Bank Overdraft 4120


During the first week, Rampaul recorded the following transactions.


1. Sold machinery with the net book value of $2000 for $1200 cash and bought new machinery for $6900 paying by cheque.


2. Collected $1102 in cash from debtors


3. The inventory was revalued at $4300


4. Insurance of $20 for one week was used up


5. Creditors were paid $3340 by cheque


6.The outstanding wages were paid in cash


7. Received a cheque for $13000 from his brother, Asa, as loan to be repaid in two years



Prepare Akil Rampaul, a revised balance sheet as at January 7, 2009 to show the effects of the first week's transactions.