On September 1, Bailey Auto Parts Company borrowed cash from Northwest Bank by issuing a 90-day note with a face amount of $48,000.

1. Determine the proceeds of the note, assuming the note carries an interest rate of 5%
2. Determine the proceeds of the note, assuming the note is discounted at 4%

2:

Karen Johnson's weekly gross earnings for the present week were $2,835.00. Johnson has two exemptions. Using the wage bracket withholding table with a $75 standard withholding allowance for each exemption, what is Johnson's federal income tax withholding?

3:

David Smith's weekly gross earnings for the week ending October 14 were $1,850.00 and her federal income tax withholding was $238.00. Assuming the social security rate is 6% and Medicare is 1.5%, what is Smith’s net pay?

4:

The payroll register of Classic Designs indicates $1,320 of social security withheld and $330 of Medicare tax withheld on total salaries of $22,000 for the period. Federal withholding for the period totaled $1,875.

Provide the journal entry for the period’s payroll. Indicate debits and credits.

5:

The payroll register of North Country Store Services indicates $1080 of social security withheld and $270 of Medicare tax withheld on total salaries of $18,000 for the period. Earnings of $6250 are subject to state and federal unemployment compensation taxes at the federal rate of 0.7% and the state rate of 3.8%.

Provide the journal entry to record the payroll tax expense for the period.

6:

Mansfield Services Company provides its employees vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $44,000 for the period. The pension plan requires a contribution to the plan administrator equal to 8% of employee salaries. Salaries were $450,000 during the period.

Provide the journal entry for the:

1. vacation pay and
2. pension benefit.

Answer rating: 100% (QA)

1 The proceeds of the note would be 48000 if the note carries an interest rate of 5 If the note is d... View the full answer