Caars Inc. issued a 120-day note in the amount of $360,000 on November 1, 2016 w
ID: 2584259 • Letter: C
Question
Caars Inc. issued a 120-day note in the amount of $360,000 on November 1, 2016 with an annual rate of 6%. What amount of interest has accrued as of December 31, 2016?
Select one:
A. $6,000
B. $4,500
C. $3,600
D. Zero. The interest is accrued at the end of the 120 day period.
If bonds are issued at 103, this means that:
Select one:
A. The bond rate of interest is 10.3% of the market rate of interest.
B. A $1,000 bond sold for $103.
C. A $2,000 bond sold for $2,060.00.
D. The bonds sold at a discount.
Sunshine Company has the following monthly payroll for June, 2016:
Total salaries
$108,000
Salaries subject to FICA taxes (6.2% + 1.45%)
108,000
Salaries subject to FUTA (0.8%) and state unemployment taxes (2.7%)
28,000
Income taxes withheld
9,700
The total employer's payroll tax expense for this period is:
Select one:
A. $10,476
B. $ 1,558
C. $18,942
D. $ 9,242
A corporation received land valued at $340,000 and a building valued at $410,000 in exchange for 5,000 shares of $80 par value common stock and $200,000 cash.
The entry to record this transaction includes a credit to:
Select one:
A. Paid-in capital in excess of par-common for $150,000
B. Common stock for $750,000
C. Retained earnings for $150,000
D. Paid-in-capital in excess of par, common stock for $350,000
Total salaries
$108,000
Salaries subject to FICA taxes (6.2% + 1.45%)
108,000
Salaries subject to FUTA (0.8%) and state unemployment taxes (2.7%)
28,000
Income taxes withheld
9,700
Explanation / Answer
1 Interest accrued as of December 31, 2016 = 360000*6%/360*60= 3600 2 If bonds are issued at 103, this means that A $2,000 bond sold for $2,060.00. 3 Total employer's payroll tax expense = (108000*7.65%)+(28000*3.5%)= 9242 4 The entry to record this transaction includes a credit to Paid-in capital in excess of par-common for $150,000