can you help with the highlighted question (number 24) 23. Alcrest Company purch

Question

can you help with the highlighted question (number 24)

23. Alcrest Company purchased a machine on January 2, 20x3. Under the terms of the purchase agreement, the company is required to make 14 quarterly installment payments of $28,000 each, beginning April 1, 20x3. Assuming that the interest rate is 16 percent compounded quarterly, determine the purchase price of the machine. Use future value and/or present value tables in calculating your answer. 24. The following totals for the month of March were taken from the payroll register of the Tobias Company: Salaries (ll sabject to social security and Medicare taves) $14,000 3,500 700 400 11,000 1.45% 6.2% Federal income taxes withheld Medical insurance deductions Life insurance deductions Salaries subject to unemployment taxes Medicare tax rate Social security tax rate Required: Prepare journal entries without explanations to record the employer's payroll taxes (assuming the social security and Medicare taxes to be equal to the amount for employees, a FUTA tax of.8 percent, and a state unemployment tax of 5.4 percent). Round amounts to the nearest dollar. 25. On July 1, 20xx, Habib Corporation issued bonds with a face value of $500,000. The bonds carry a face interest rate of 10 percent that is payable each July 1 and January 1. 6

Explanation / Answer

Payroll Taxes Expense 1753         Social Security Tax Payable 868 =14000*6.2%          Medicare Tax Payable 203 =14000*1.45%          State Unemployment Tax Payable 594 =11000*5.4%          Federal Unemployment Tax Payable 88 =11000*0.8%

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