Stone Corporation has 25 employees and incurs total wages and salaries expense o
ID: 2425623 • Letter: S
Question
Stone Corporation has 25 employees and incurs total wages and salaries expense of $1,000,000 per year. The following table shows various payroll amounts as a percentage of this annual wage and salaries expense:
In addition, Stone provides group health insurance for its entire workforce. The cost of this insurance is $400 per month for each employee.
19
Required information
$900,000.
$880,000.
$583,500.
$823,500.
Q..Sanford Corporation borrowed $240,000 by issuing a 17%, six-month note payable, all due at the maturity date. After one month, the company's total liability for this loan amounts to:
$240,000.
$241,700.
$243,400.
$246,800.
Q1. On September 1, 2015, Able Company purchased a building from Regal Corporation by paying $280,000 cash and issuing a one-year note payable for the balance of the purchase price. Interest on the note is stated at an annual rate of 8% and is paid at maturity. In its December 31, 2015, balance sheet, Able correctly presented the note and interest payable as follows:
17.
Required information
$20,400.
$6,800.
$13,600.
$11,900.
2.The interest coverage ratio is computed by dividing:
Net income by interest expense.
Operating income by interest expense.
Interest expense by net income.
Interest expense by operating income.
Workers compensation insurance 5% Social security and Medicare (employees' share andEmployer's share combined) 15.3% Pension and other postretirement costs expense
(paid by employer) 5% Personal income taxes withheld 10% Unemployment taxes expense 2%
Explanation / Answer
19. The correct answer is $ 900,000
Q: The correct answer is $ 243,400.
17. The correct answer is $ 13,600
2. The interest coverage ratio is computed by divided Operating income / interest expense.