On September 1, Klondike Co. issued a 90-day note with a faceamount of $120.000
ID: 2458128 • Letter: O
Question
On September 1, Klondike Co. issued a 90-day note with a faceamount of $120.000 to Arctic Apparel Co. for merchandiseinventory.
a. Determine the proceeds of thenote, assuming the note carries an interest rate of 8%.
b. Determine the proceeds of thenote, assuming the note is discounted at 8%.
Don Truett’s weekly gross earnings for the week endingDecember 18 were $1,680 and his federal income tax withholding was$298.51. Prior to this week, Truett had earned $99,000 for theyear. Assuming the social security is 6% on the first $100,000of annual earnings and medicare is 1.5% of all earnings,what is Truett’s net pay?
The payroll register of Lowry Landscaping Co. indicates $1,260of social security withheld and $315 of Medicare tax withheld ontotal salaries of $21,000 for the period. Federal withholdingfor the period totaled $3,822. Provide the journal entry forthe period’s payroll.
Explanation / Answer
1) 120000*(90/360)*.08=$2400 PLEASE RATE :2) discounted 8% proceeds=120000-(120000*.08*90/360)=$117600 : 3)99000+1680=100680.....meaning that only 1000 of this checkis subject to social security taxes 1000(.06)=60.......medicare is .015(1680)=25.2. : Truett's net pay = 1680-298.51-60-25.2=$1296.29 :
4) debit credit Salariesexpense 21000 FITpayable 3822 FICApayable 1260 Medicarepayable 315 Salaries payable (netpay) 15603 :
4) debit credit Salariesexpense 21000 FITpayable 3822 FICApayable 1260 Medicarepayable 315 Salaries payable (netpay) 15603
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