Sylvestor Systems borrows $110,000 cash on May 15, 2015, by signing a 60-day, 12% note.
Check (2b) Interest expense, $2,200
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $117,000 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 2.9% of the first $7,000 paid to its employee. Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (c). (Round amounts to cents.)
Check (a) FUTA, $3.60; SUTA, $17.40
Using the data in situation a of Exercise 11-5, prepare the employer's September 30 journal entries to record salary expense and its related payroll liabilities for this employee. The employee's federal income taxes withheld by the employer are $80 for this pay period. (Round amounts to cents.)
For the year ended December 31, 2015, Lopez Company has implemented an employee bonus program equal to 3% of Lopez's net income, which employees will share equally. Lopez's net income (pre-bonus) is expected to be $500,000, and bonus expense is deducted in computing net income.
Check (1) $14,563
Prepare any necessary adjusting entries at December 31, 2015, for Maxum Company's year-end financial statements for each of the following separate transactions and events.
Prepare any necessary adjusting entries at December 31, 2015, for Melbourn Company's year-end financial statements for each of the following separate transactions and events.