Hey guys, i only need help with these 5 problems. Thank you so much in advance f
ID: 2469121 • Letter: H
Question
Hey guys, i only need help with these 5 problems. Thank you so much in advance for assisting and if you could possibly show calculations, thank you again!
1) On June 8, Alton Co. issued an $70,518, 9%, 120-day note payable to Seller Co. Assuming a 360-day year for your calculations, what is the maturity value of the note?
Select the correct answer.
A) 70,518
B) 72,634
C) 6,347
D) 76,865
2) On June 8, Alton Co. issued an $80,600, 10%, 120-day note payable to Seller Co. Assume that the fiscal year of Seller Co. ends June 30. Using the 360-day year in your calculations, what is the amount of interest revenue recognized by Seller in the following year?
A) 1,343
B) 8,060
C) 2,015
D) 672
3) A business borrowed $72,317 on March 1 of the current year by signing a 30 day, 7% interest bearing note. When the note is paid on March 31, the entry to record the payment should include a
A) Debit to Interest Payable 422
B) Debit to Interest Expense 422
C) credit to Cash for 72,317
D) credit to Cash for 77,379
4)
An employee receives an hourly rate of $16, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 43; federal income tax withheld, $335; cumulative earnings for year prior to current week, $96,078; social security tax rate, 6.0% on maximum of $109,604; and Medicare tax rate, 1.5% on all earnings. What is the gross pay for the employee?
Select the correct answer.
A) 1376
B) 688
C) 712
D) 1032
5) An employee receives an hourly rate of $23, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 43; federal income tax withheld, $313; cumulative earnings for year prior to current week, $96,776; social security tax rate, 6.0% on maximum of $105,111; and Medicare tax rate, 1.5% on all earnings. What is the net amount to be paid the employee?
Select the correct answer.
A) 1588
B) 1024
C) 1407
D) 634
Explanation / Answer
1) Answer: $72634
Maturity value of the Notes payable
= Face value of the notes payable + Interest on notes payable for 120 days @ 9%
= 70518 + ((70518 *9%) * (120/360))
= $72634
2)
Interest revenue that should be recognized
= Interest on notes payable for 90 days @ 10%
= ((80600 *10%) * (90/360))
= $ 2015
3)
B) Debit to Interest Expense 422
Interest expense for March = 72317*7%*(30/360) = $422
4) Answer: C) 712
Gross pay = 40 hours x $16/hour + 3 hours x $16 / hour x 1.5 = $712
5) Answer: D) 634
Gross salary = 40 * 23 + 3 * 23*1.5 = $1023.50
Social security tax = 1023.5 x 6% = $61.41
Medicare tax = 1.5% x 1023.5 = $15.35
Tota tax witheld Amount federal income tax $ 313.00 Social Security tax $ 61.41 Medicare tax $ 15.34 $ 389.75