Rose Flower wasjlust hired as an accountant by Perennial Company. She will be pa

Question

Rose Flower wasjlust hired as an accountant by Perennial Company. She will be paid a salary of $1,200 per week. She started work on Monday, May 2 and wil receive her first paycheck on Friday, May 6 Peer nal Company does not pay 10 % of health insurance costs, thus an amount is withheld from Rose's check each week for her share of her health insurance pre tum. eher in or mati related to Rose's employment can be found in the table given below $118 With respect to the "employec related payroll entry" (e the entry made for the employer payroll taxes) needed for Rose's first paycheck, calculate the amount of the debit made to Tax Expense" (rounded to the nearest dollar) O $72 O $92 O s164 7 8 5 6 0

Explanation / Answer

1 Rose Flower Ans is D $164 Payroll Tax 6.20% 1.45% 5.40% 0.60% OASDI Medicare SUTA FUTA 1200 x 6.2% 1200 x 1.45% 1200 x 5.4% 1200 x 0.6% Gross Pay 1200 74.4 17.4 64.8 7.2 $                                                                                                        164 2 Warranty Liability Claims incurred $14,000 $22,000 Beginning Balance $16,000 Current yr (80 x 5000 x 4%) $24,000 Ending Balance Ans is B 3 Interest Payable is $2695 $231000 x 7% x 2/12 = $2695 Ans is A 4 B Interest Payable and notes payable both are current liability since due in less than 1 year. 5 Present value of interest 12000 x           7.0197            84,236 Present Value of face value 600000 x           0.7894          473,640          557,876 Ans is C Present value of $1 annuity 3%, n -8 = 7.0197 Present value of $1 3%, n -8 = 0.7894

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