1. During one pay period, your company distributes $138,500 to employees as net

ID: 2572001 • Letter: 1

Question

1. During one pay period, your company distributes $138,500 to employees as net pay. The income tax withholdings were $20,600 and the FICA withholdings were $9,060. Total payroll costs to the company for this pay period, excluding any unemployment taxes, was: A) $159,100 B) $138,500 C) $168,160 D) $177,220

2. If a company's gross salaries and wages are $46,000, and it withholds $6,900 for income taxes and $3,519 for FICA taxes, the journal entry to record the employees' pay should include a:

A) credit to Salaries and Wages Payable for $46,000.

B) debit to Salaries and Wages Expense for $35,581.

C)debit to Salaries and Wages Payable for $35,581.

D)credit to Salaries and Wages Payable for $35,581.

3) On September 1, ABC Company borrowed $57,000 on a 8%, 9 month note payable to XYZ National Bank. Given no previous adjusting entries have been recorded, ABC's adjusting entry four months later at December 31 would include a:

A) debit to interest expense of $1,140.

B) debit to interest expense of $1,520.

C) debit to interest expense of $4,560.

D) debit to interest expense of $3,420.

4) The total amount of interest that will be paid on a four-month, $15,600, 10% note payable equals:

A) $520.00

B) $1,560.00

C) $780.00

D) $390.00

5) Your company sells $110,000 of bonds for an issue price of $105,050. Which of the following statements is correct?

A) The bond sold at a price of 95.50, implying a discount of $9,900.

B) The bond sold at a price of 95.50, implying a discount of $4,950.

C) The bond sold at a price of 47.75, implying a premium of $4,950.

D) The bond sold at a price of 47.75, implying a premium of $9,900.

6) Your company sells $53,000 of one-year, 12% bonds for an issue price of $45,500. The journal entry to record this transaction will include a credit to Bonds Payable in the amount of:

rev: 06_25_2016_QC_CS-54689

A) $45,500.

B) $53,000.

C) $51,860.

D) $59,360.