P13-3 (Payroll Tax Entries) Star Wars Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their vacation period, vacation pay is also listed.
Employee Earnings to July 31 Weekly Pay Vacation Pay to be Received in Aug
Mark Hamell $4,200 $180 -----------
Carrie Fisher $3,500 150 $300
Harrison Ford $2,700 110 $220
Alec Guinness $7,400 250 -----------
Peter Cushing $8,000 290 $580
Assume that the federal income tax withheld is 10% of wages. Union dues withheld are 2% of wages. Vacations are taken the second and third weeks of August by Fisher, Ford, and Cushing. The state unemployment tax rate is 2.5% and the federal is 0.8%, both on a $7,000 maximum. The F.I.C.A. rate is 7.65% on employee and employer on a maximum of $97,500 per employee. In addition, a 1.45% rate is charged both employer and employee for an employee’s wage in excess of $97,500.
Instructions
Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the company’s liability are made separately. Also make the entry to record the monthly payment of accrued payroll liabilities.
Click here for the solution: Star Wars Company pays its office employee payroll weekly
Showing posts with label pays. Show all posts
Showing posts with label pays. Show all posts
Wednesday, November 11, 2015
Tuesday, July 14, 2015
(Nonconstant Growth Valuation) A company currently pays a dividend of $2 per share (D0 = $2)
(Nonconstant Growth Valuation)
A company currently pays a dividend of $2 per share (D0 = $2). It is
estimated that the company’s dividend will grow at a rate of 20% per
year for the next 2 years, then at a constant rate of 7% thereafter. The
company’s stock has a beta of 1.2, the risk-free rate is 7.5%, and the
market risk premium is 4%. What is your estimate of the stock’s current
price?
Click here for the solution: (Nonconstant Growth Valuation) A company currently pays a dividend of $2 per share (D0 = $2)
Click here for the solution: (Nonconstant Growth Valuation) A company currently pays a dividend of $2 per share (D0 = $2)
Saturday, July 11, 2015
Jackie pays $20 every time she visits her doctor
1) Jackie pays $20 every time she visits her doctor. She is covered by a(n)
2) If your employment is terminated, COBRA provides for
3) Ben's health coverage charges a low ($15) deductible each time he visits the doctor or hospital. Other than the low per-service deductible, there is very little cost sharing. However, Ben must go to the health care providers listed by the provider of the health coverage. If he goes to a provider that is not on the list, there is very little coverage. Which of the following types of entity most likely provides Abe's health coverage?
4) All property insurance companies require you to show the following when making a claim:
5) Given a $500 annual deductible, a $4,000 lid on the coinsurance, 80/20 coinsurance, and a $250,000 policy limit, how much of a $15,000 medical bill will be paid by the insured?
6) Disability income policies usually have ____ that is a time delay from the date of the issuance of the policy until benefit privileges are activated.
7) Which of the following best describes a "pre-existing condition"?
8) The insurance designed to help with nursing home or in-home care due to chronic illness is called
9) Surgical expenses now generally are reimbursed on the basis of
10) All of the following except a ____ are highly recommended for a long-term disability income policy.
11) A comprehensive major medical insurance would not
12) Some common liability risks include:
13) A liability suit could result when
14) Homeowners' insurance premiums are determined by
15) Supplementary Medical Insurance (SMI) provides health care protection beyond basic hospital coverage for
16) Medicare is a government-sponsored health care plan composed of Part A and Part B. Part A covers
17) Your son left his skateboard at the bottom of the basement stairs. While going downstairs to change a broken light bulb, you step on the skateboard and break your ankle during the fall. Medical damages total $1,455. How much will your $140,000 homeowners' insurance policy pay for this accident? The policy has $100,000 comprehensive liability coverage and medical payments of $1,000/person.
18) Your standard HO policy will not include coverage for damage done by
19) Negligence results when a person
20) Many airline passengers purchase a special life insurance policy frequently sold at the airport. This is an example of a(n) ____ policy.
21) Which of the following events would probably increase your auto premiums?
22) Homeowner's property insurance does not provide protection on the
23) Suppose a person has a health insurance policy with a $500 calendar year deductible, a $2,000 out-of-pocket cap, and an 80% coinsurance provision. If this person suffers a $600 covered loss, how much will the insurance company pay? (Assume no previous losses have occurred.)
24) Social security provides health care coverage to persons age ____ and those who are ____.
25) Donna, who is single and 30-years-old, has received several speeding tickets recently and was shocked by the effect on her auto insurance. Donna drives a 2002 Pontiac Firebird, is currently not covered by health insurance, has an emergency fund of $25,000, an income of $100,000 per year, and an investment portfolio of $230,000. She is trying to reduce the price of her auto insurance. Which of the following actions is most likely to be advisable.
Click here for the solution: 1) Jackie pays $20 every time she visits her doctor
2) If your employment is terminated, COBRA provides for
3) Ben's health coverage charges a low ($15) deductible each time he visits the doctor or hospital. Other than the low per-service deductible, there is very little cost sharing. However, Ben must go to the health care providers listed by the provider of the health coverage. If he goes to a provider that is not on the list, there is very little coverage. Which of the following types of entity most likely provides Abe's health coverage?
4) All property insurance companies require you to show the following when making a claim:
5) Given a $500 annual deductible, a $4,000 lid on the coinsurance, 80/20 coinsurance, and a $250,000 policy limit, how much of a $15,000 medical bill will be paid by the insured?
6) Disability income policies usually have ____ that is a time delay from the date of the issuance of the policy until benefit privileges are activated.
7) Which of the following best describes a "pre-existing condition"?
8) The insurance designed to help with nursing home or in-home care due to chronic illness is called
9) Surgical expenses now generally are reimbursed on the basis of
10) All of the following except a ____ are highly recommended for a long-term disability income policy.
11) A comprehensive major medical insurance would not
12) Some common liability risks include:
13) A liability suit could result when
14) Homeowners' insurance premiums are determined by
15) Supplementary Medical Insurance (SMI) provides health care protection beyond basic hospital coverage for
16) Medicare is a government-sponsored health care plan composed of Part A and Part B. Part A covers
17) Your son left his skateboard at the bottom of the basement stairs. While going downstairs to change a broken light bulb, you step on the skateboard and break your ankle during the fall. Medical damages total $1,455. How much will your $140,000 homeowners' insurance policy pay for this accident? The policy has $100,000 comprehensive liability coverage and medical payments of $1,000/person.
18) Your standard HO policy will not include coverage for damage done by
19) Negligence results when a person
20) Many airline passengers purchase a special life insurance policy frequently sold at the airport. This is an example of a(n) ____ policy.
21) Which of the following events would probably increase your auto premiums?
22) Homeowner's property insurance does not provide protection on the
23) Suppose a person has a health insurance policy with a $500 calendar year deductible, a $2,000 out-of-pocket cap, and an 80% coinsurance provision. If this person suffers a $600 covered loss, how much will the insurance company pay? (Assume no previous losses have occurred.)
24) Social security provides health care coverage to persons age ____ and those who are ____.
25) Donna, who is single and 30-years-old, has received several speeding tickets recently and was shocked by the effect on her auto insurance. Donna drives a 2002 Pontiac Firebird, is currently not covered by health insurance, has an emergency fund of $25,000, an income of $100,000 per year, and an investment portfolio of $230,000. She is trying to reduce the price of her auto insurance. Which of the following actions is most likely to be advisable.
Click here for the solution: 1) Jackie pays $20 every time she visits her doctor
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