What is the price
· Net pay = Gross pay – __________ · __________ = Current assets – Current liabilities · __________ = Current assets / Current liabilities · __________ = Quick assets / Current liabilities Exercises 1. School Tools recently purchased inventory from one of its largest suppliers. The company receives an invoice, which states the credit terms 2/10, n/30. Is the liability an example of an account payable, current portion of long-term debt, or short-term notes payable? 2. Peach Tree Inc. recently rebounded from financial troubles. To satisfy an overdue liability owed to an equipment supplier, the company issued a liability to satisfy the debt at a later date, which also bears interest at a 9% annual rate. Is the newly issued liability an example of an account payable, current portion of long-term debt, or short-term notes payable? 3. Pet Supply Co. incurred 10-year notes payable when constructing its newest office. The notes totaled $2.1 million, but in the upcoming year the company plans to pay $250,000 to the creditor. Is the $250,000 an example of an account payable, current portion of long-term debt, or short-term notes payable? 4. To satisfy $3,570 of an overdue account payable owed to Collar Co., Pet Supply Co. issued a 10%, 90-day note payable on July 1, 2015. Prepare the journal entry to record the following: · Issuance of the note · Payment of the note and any interest owed (round interest to the nearest whole dollar) 5. When purchasing equipment, Bed Threads Inc. issued a 15%, 120-day note payable on March 1, 2015. The purchased equipment cost $6,525. Prepare the journal entry to record the following: · Issuance of the note · Payment of the note and any interest owed (round interest to the nearest whole dollar) 6. On August 1, 2015, School Tools received $3,500 in cash from the bank in exchange for a 14%, 60-day note payable. Prepare the journal entry to record the following: · Issuance of the note · Payment of the note and any interest owed (round interest to the nearest whole dollar) 7. Mountain Time borrowed cash from its local bank by issuing a 90-day note with a $3,500 face amount. The note is discounted at 6% and issued on June 1, 2015. · Determine the proceeds of the note (round interest to the nearest whole dollar). · Prepare the journal entry to record the issuance of the note. · Prepare the journal entry to record the payment of the note. 8. Palmetto Charms borrowed cash from its bank in exchange for a 60-day note on April 1, 2015. The note is discounted at 7% and has a face amount of $6,750. · Determine the proceeds of the note (round interest to the nearest whole dollar). · Prepare the journal entry to record the issuance of the note. · Prepare the journal entry to record the payment of the note. 9. School Tools issued a note payable to its bank in exchange for cash on July 1, 2015. The 120-day note has a $9,500 face amount and is discounted at 9%. · Determine the proceeds of the note (round interest to the nearest whole dollar). · Prepare the journal entry to record the issuance of the note. · Prepare the journal entry to record the payment of the note. 10. Cody Smith’s weekly gross earnings for the week were $3,150. Smith has one exemption. Using the wage bracket withholding table below with a $100 standard withholding allowance for each exemption, what is Smith’s federal income tax withholding? Table for Percentage Method of Withholding WEEKLY Payroll Period (a) SINGLE person (including head of household)— If the amount of wages (after subtracting withholding allowances) is: Not over $42. . . . . . . . . . . . . .. . . $0 The amount of income tax to withhold is: Over— But not over— of excess over— $42 —$214 . . $0.00 plus 10% —$42 $214 —$739 . . $17.20 plus 15% —$214 $739 —$1,732 . . $95.95 plus 25% —$739 $1,732 —$3,566 . . $344.20 plus 28% —$1,732 $3,566 —$7,703 . . $857.72 plus 33% —$3,566 $7,703 —$7,735 . . $2,222.93 plus 35% —$7,703 $7,735 . . . . . . . . . . . . . . . . . $2,234.13 plus 39.6% —$7,735 11. Kim Akinson’s weekly gross earnings for the week were $4,750. She has three exemptions. Using the wage bracket in Exercise 10, what is her federal income tax withholding? Assume there is a $90 standard withholding allowance for each exemption. 12. Judy Allen’s biweekly gross earnings for the period were $6,900. Allen has two exemptions. Using the wage bracket below, calculate her federal income tax withholding if there is an $80 standard withholding allowance for each exemption. Table for Percentage Method of Withholding BIWEEKLY Payroll Period (a) SINGLE person (including head of household)— If the amount of wages (after subtracting withholding allowances) The amount of income tax is: to withhold is: Notover$85. . . . . . . . . . . . . . . . . . . . . . . . . .$0 The amount of income tax to withhold is: Over— But not over— of excess over— $85 —$428 . . $0.00 plus 10% —$85 $428 —$1,479 . . $34.30 plus 15% —$428 $1,479 —$3,463 . . $191.95 plus 25% —$1,479 $3,463 —$7,133 . . $687.95 plus 28% —$3,463 $7,133 —$15,406 . . $1,715.55 plus 33% —$7,133 $15,406 —$15,469 . . $4,445.64 plus 35% —$15,406 $15,469 . . . . . . . . . . . . . . . . . $4,467.69 plus 39.6% —$15,469 13. Using the information from Exercise 10, calculate Cody Smith’s net pay. Assume the social security rate is 6% and Medicare is 1.5%. 14. Using the information from Exercise 11, calculate Kim Akinson’s net pay. Assume the social security rate is 6% and Medicare is 1.5%. 15. Using the information from Exercise 12, calculate Judy Allen’s net pay. Assume the social security rate is 6% and Medicare is 1.5%. She also makes a 1% contribution of her gross earnings to her retirement fund. 16. Which element of the payroll system keeps a running total of an employee’s history, including deductions and wage earnings? 17. Each month, an employee receives a statement from his employer which gives the following information: gross wages, FICA tax, social security tax, Medicare tax, and a calculation of net pay. Which element of the payroll system is the statement an example of? 18. A manager of a business would like to review various data for the previous payroll period, including hours worked, overtime earnings, check numbers, and various taxes withheld. Which element of the payroll system would the manager use to review these data? 19. Use the payroll register below to prepare the journal entry to record the salaries expenses for the week ended January 10, 2015. All miscellaneous deductions should create a liability payable to RPC Helpers. Deductions Withheld Paid Accounts Debited