111. Mission Company has three employees:
|
Gross Pay through July
|
Gross Pay for August
|
|
Smith
|
$3,200
|
$1,000
|
|
Cain
|
25,800
|
3,500
|
|
Clark
|
94,600
|
13,100
|
|
|
The company is subject to the following taxes:
|
|
|
|
|
Tax
|
Rate
|
Applied to
|
FICA—Social Security
|
6.20 %
|
|
First $106,800
|
FICA—Medicare
|
1.45
|
|
All gross pay
|
FUTA
|
.80
|
|
First $7,000
|
SUTA
|
5.40
|
|
First $7,000
|
|
|
|
|
|
What is the amount that Mission Company will withhold from Clark’s August gross pay?
A. $ 946.35
B. $1,002.15
C. $1,814.35
D. $6,234.75
E. $812.20
112. Mission Company has three employees:
|
Gross Pay through July
|
Gross Pay for August
|
|
Smith
|
$3,200
|
$1,000
|
|
Cain
|
25,800
|
3,500
|
|
Clark
|
94,600
|
13,100
|
|
|
The company is subject to the following taxes:
|
|
|
|
|
Tax
|
Rate
|
Applied to
|
FICA—Social Security
|
6.20 %
|
|
First $106,800
|
FICA—Medicare
|
1.45
|
|
All gross pay
|
FUTA
|
.80
|
|
First $7,000
|
SUTA
|
5.40
|
|
First $7,000
|
|
|
|
|
|
What is the amount that Mission Company will withhold from Smith’s August gross pay?
A. $ 62.00
B. $138.50
C. $443.20
D. $581.70
E. $76.50
113. If a company paid $350,000 in bonuses, and net income prior to the bonus was $4,200,000, what was the bonus percentage offered to the employees during 2010?
A. 6.2%
B. 5.7%
C. 9.1%
D. 8.3%
E. 6.8%
114. If Jefferson Company paid a bonus equal to 8% of net income after bonuses and the total bonus distributed was $420,000, how much was net income for the year?
A. $5,250,000
B. $5,670,000
C. $6,250,000
D. $4,320,000
E. $4,875,000
115. Conner Company borrows $185,600 cash on November 1, 2013, by signing a 120-day, 8% note. What is the total amount of interest expense that Conner will recognize for this note?
A. $4,949.
B. $14,848.
C. $2,467.
D. $0, no interest expense is recognized.
E. $1485.
116. Buyer Company asks to extend its past due $600 account payable to Seller Company. Seller Company agrees to accept $100 cash and a 60-day, 12%, $500 note payable to replace the account payable. How does Buyer Company record this event in the general journal?
A.
Accounts Payable
|
600
|
|
Cash
|
|
100
|
Notes Payable
|
|
500
|
00 Notes Payableompany record this event in the general journal?11111111111111111111111111111111111111111111111111111111111111
B.
Notes Payable
|
500
|
|
Cash
|
100
|
|
Accounts Payable
|
|
600
|
C.
Cash
|
100
|
|
Accounts Payable
|
|
100
|
D.
Accounts Payable
|
100
|
|
Cash
|
|
100
|
E. Buyer Company has no entry to record for this transaction.
117. Company A and Company B each borrow $2,000 from the bank. Company A signed a 60-day, 12% note. Company B signed a 90-day, 11% note. How will each of these companies record these events in their respective general journals on the day the money was borrowed?
A.
Company A
Cash
|
2,000
|
|
Notes Payable
|
|
2,000
|
Company B
Cash
|
2,000
|
|
Notes Payable
|
|
2,000
|
00 Notes Payableompany record this event in the general journal?11111111111111111111111111111111111111111111111111111111111111
B.
Company A
Cash
|
2,040
|
|
Interest Expense
|
|
40
|
Notes Payable
|
|
2,000
|
Company B
Cash
|
2,055
|
|
Interest Expense
|
|
55
|
Notes Payable
|
|
2,000
|
C.
Company A
Notes Payable
|
2,000
|
|
Cash
|
|
2,000
|
Company B
Notes Payable
|
2,000
|
|
Cash
|
|
2,000
|
D.
Company A
Interest Expense
|
40
|
|
Notes Payable
|
2,000
|
|
Cash
|
|
2,040
|
Company B
Interest Expense
|
55
|
|
Notes Payable
|
2,000
|
|
Cash
|
|
2,055
|
E. .
Company A
Cash
|
2,040
|
|
Notes Payable
|
|
2,040
|
Company B
Cash
|
2,055
|
|
Notes Payable
|
|
2,055
|
118. On October 10, 2013, Printfast Company sells a commercial printer for $2,350 with a one-year warranty that covers parts. Warranty expense is projected to be 4% of sales. On February 28, 2014, the printer requires repairs. The cost of the parts for the repair is $80 and Printfast pays their technician $150 to perform the repair. What is the warranty liability for this printer at the end of 2013?
A. $49.00
B. $84.80
C. $94.00
D. $0, there is no liability at the end of 2013
E. $230.00
119. On October 10, 2013, Printfast Company sells a commercial printer for $2,350 with a one-year warranty that covers parts. Warranty expense is projected to be 4% of sales. On February 28, 2014, the printer requires repairs. The cost of the parts for the repair is $80 and Printfast pays their technician $150 to perform the repair. What warranty expense is recorded for this printer during 2014?
A. $14.00.
B. $84.80.
C. $94.00.
D. $0, there is no expense in 2014.
E. $230.00.
120. On October 10, 2013, Printfast Company sells a commercial printer for $2,350 with a one-year warranty that covers parts. Warranty expense is projected to be 4% of sales. On February 28, 2014, the printer requires repairs. The cost of the parts for the repair is $80 and Printfast pays their technician $150 to perform the repair. What is the warranty liability for this printer at the at the end of 2014?
A. $14.00.
B. $84.80.
C. $94.00.
D. $0, there is no liability at the end of 2014.
E. $230.00.
121. If a company had income before interest and taxes in the amount of $2,345,540 and a times interest earned ratio of 5.2, what is the total amount of the company’s interest expense?
A. $451,065
B. $320,185
C. $121,968
D. $275,840
E. $230,000
122. If a company had net income of $2,379,600, interest expense of 234,000, a tax rate of 40%, and operating income of $4,200,000, what is the times interest earned ratio?
A.10.17
B. 17.95
C. 7.78
D. 7.18
E. 4.07
123. If a company had net income of $1,486,875, a times interest earned ratio of 4.0, a tax rate of 35%, and operating income of $3,050,000, what is the company’s interest expense for the year?
A.$1,067,500
B. $725,329
C. $371,719
D. $762,500
E. $1,564,000