Question

In: Accounting

In September 2019, Manson Paint Corporation began operations in a state that requires new employers of...

In September 2019, Manson Paint Corporation began operations in a state that requires new employers of one or more individuals to pay a state unemployment tax of 3.5% of the first $7,000 of wages paid each employee.

An analysis of the company's payroll for the year shows total wages paid of $177,610. The salaries of the president and the vice president of the company were $20,000 and $15,000, respectively, for the four-month period, but there were no other employees who received wages in excess of $7,000 for the four months. Included in the total wages were $900 paid to a director who only attended director meetings during the year, $6,300 paid to the factory superintendent, and $2,000 in employee contributions to a cafeteria plan made on a pretax basis-for both federal and state.

In addition to the total wages of $177,610, a payment of $2,430 was made to Andersen Accounting Company for an audit it performed on the company's books in December 2019. Compute the following; round your answers to the nearest cent.

a. Net FUTA tax $
b. SUTA tax $

Solutions

Expert Solution


Related Solutions

In September Manson Paint Corporation began operations in a state that requires new employers of one...
In September Manson Paint Corporation began operations in a state that requires new employers of one or more individuals to pay a state unemployment tax of 3.5% of the first $7,000 of wages paid each employee. An analysis of the company's payroll for the year shows total wages paid of $177,610. The salaries of the president and the vice president of the company were $20,000 and $15,000, respectively, for the four-month period, but there were no other employees who received...
Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on...
Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. During September, Exceptional Electronics engaged in the following transactions. 1 Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $3,000 plus sales tax of $210. 3 Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $900 plus sales tax of $63. 7 Sold...
Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on...
Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. During September, Exceptional Electronics engaged in the following transactions: DATE TRANSACTIONS 2019 Sept. 1 Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $2,100 plus sales tax of $147. 3 Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $900 plus sales tax...
Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on...
Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. During September, Exceptional Electronics engaged in the following transactions: DATE TRANSACTIONS 2019 Sept. 1 Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $2,700 plus sales tax of $189. 3 Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $900 plus sales tax...
Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on...
Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. During September, Exceptional Electronics engaged in the following transactions.    DATE TRANSACTIONS 2019 Sept. 1 Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $2,900 plus sales tax of $203. 3 Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $1,000 plus sales...
Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on...
Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on an open account. Sales are subject to a 7 percent sales tax. During September, Exceptional Electronics engaged in the following transactions: DATE TRANSACTIONS 2019 Sept. 1 Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $2,400 plus sales tax of $168. 3 Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $900 plus sales...
Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the...
Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $250,000, $320,000, and $410,000, respectively, for September, October, and November. The company expects to sell 25% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale and 30% in the month following the sale. ​ The cash collections expected in October are a. $320,000 b. $304,250 c....
Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the...
Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business—September, October, and November—are $237,000, $304,000, and $414,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections expected in September from accounts receivable are estimated to be
Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the...
Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business—September, October, and November—are $260,000, $375,000, and $400,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections expected in November from accounts receivable are projected to be a.$276,500 b.$280,000 c.$316,400...
The Flynn Corporation began operations on September 1, 20x3. On that date, equipment costing $84,000 was...
The Flynn Corporation began operations on September 1, 20x3. On that date, equipment costing $84,000 was purchased. Flynn estimated that the equipment’s useful life would be seven years and have a residual value of $24,500. Flynn also estimated that the equipment could be used for about 10,000 hours. It was used for 800 hours in 20x3 and 1,700 hours in 20x4. Required – Calculate depreciation expense for 20x3 and 20x4 under each of the following methods: a) Straight-line method. b)...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT