Southwest Talent Search has an annual payroll of $125,000. In addition, the company incurs payroll tax expense of 8%. At December 31, Southwest owes salaries of $9,500 and FICA and other payroll tax of $920. The company will pay these amounts early next year. Show what Southwest will report for the foregoing on its income statement for the year and on its year-end balance sheet.
Answer to relevant QuestionsAssume that Fallon Sales Company completed the following note-payable transactions:2014Apr 1 Purchased delivery truck costing $58,000 by issuing a one-year, 4% note payable.Dec 31 Accrued interest on the note payable.2015Apr ...On January 31, 2014, Trapp Logistics, Inc., issued five-year, 3.5% bonds payable with a face value of $6,000,000. The bonds were issued at 96 and pay interest on January 31 and July 31. Trapp Logistics, Inc., amortizes bond ...Northeast Talent Search has an annual payroll of $168,000. In addition, the company incurs payroll tax expense of 8%. At December 31, Northeast owes salaries of $7,900 and FICA and other payroll tax of $915. The company will ...Colorado Sports Ltd. is authorized to issue $5,000,000 of 4%, 10-year bonds payable. On December 31, 2014, when the market interest rate is 4.5%, the company issues $3,200,000 of the bonds. Colorado Sports amortizes bond ...1. Journalize the following transactions of Trahan Communications, Inc.:2014Jan 1 Issued $3,000,000 of 4%, 10-year bonds payable at 95. Interest payment dates are July 1 and January 1.Jul 1 Paid semiannual interest and ...
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