Question

Springfield Company offers a bonus plan to its employees and the amount of the employee bonuses for the current year is estimated to be $966,000 to be paid during January of the following year. The journal entry on December 31 to record the bonuses is:

• Debit Estimated Bonus Payable $966,000; credit Cash $966,000.

• Debit Employee Bonus Expense $966,000; credit Prepaid Employee Bonus $966,000.

• Debit Employee Bonus Expense $966,000; credit Bonus Payable $966,000.

• Debit Unearned Bonuses $966,000; credit Bonus Payable $966,000.

• No entry since the bonuses are not paid until January.

2.

A company has a selling price of $1,650 each for its printers. Each printer has a 2 year warranty that covers replacement of defective parts. It is estimated that 3% of all printers sold will be returned under the warranty at an average cost of $147 each. During November, the company sold 27,000 printers, and 370 printers were serviced under the warranty at a total cost of $52,000. The balance in the Estimated Warranty Liability account at November 1 was $27,500. What is the company's warranty expense for the month of November?

• $54,390

• $59,535

• $52,000

• $24,500

• $119,070

3.

Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $12,000 of cash sales that are subject to an 9% sales tax, what is the journal entry to record the cash sales?

• Debit Accounts Receivable $13,080; credit Sales $12,000; credit Sales Taxes Payable $1,080.

• Debit Cash $13,080; credit Sales $12,000; credit Sales Taxes Payable $1,080.

• Debit Cash $12,000; credit Sales $10,920; credit Sales Taxes Payable $1,080.

• Debit Sales Taxes Payable $1,080; debit Cash $10,920; credit Sales $12,000.

• Debit Cash $12,000; credit Sales $12,000; and record the taxes when paid.

4.

During August, Boxer Company sells $358,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $12,600 before adjustment. Customers returned merchandise for warranty repairs during the month that used $9,200 in parts for repairs. The entry to record the estimated warranty expense for the month is:

• Debit Estimated Warranty Liability $9,200; credit Warranty Expense $9,200.

• Debit Warranty Expense $5,300; credit Estimated Warranty Liability $5,300.

• Debit Estimated Warranty Liability $17,900; credit Warranty Expense $17,900.

• Debit Warranty Expense $14,500; credit Estimated Warranty Liability $14,500.

• Debit Warranty Expense $17,900; credit Estimated Warranty Liability $17,900

5.

During the first week of January, an employee works 45 hours. For this company, workers earn 150% of their regular rate for hours in excess of 40 per week. Her pay rate is $20 per hour, and her wages are subject to no deductions other than FICA Social Security, FICA Medicare, and federal income taxes. The tax rate for Social Security is 6.2% of the first $118,500 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. The employee has $92 in federal income taxes withheld. What is the amount of this employee’s net pay for the first week of January?

• $950.00

• $164.68

• $877.33

• $785.33

• $1,114.68

Answer 1

1.Springfield Company offers a bonus plan to its employees and the amount of the employee bonuses for the current year is estimated to be $966,000 to be paid during January of the following year. The journal entry on December 31 to record the bonuses is:

• Debit Estimated Bonus Payable $966,000; credit Cash $966,000.

• Debit Employee Bonus Expense $966,000; credit Prepaid Employee Bonus $966,000.

• Debit Employee Bonus Expense $966,000; credit Bonus Payable $966,000.

• Debit Unearned Bonuses $966,000; credit Bonus Payable $966,000.

• No entry since the bonuses are not paid until January.

• Answer:-

• Diary passage on Dec 31 to record rewards is :

• Debit Employee Bonus Expense $966,000; credit Bonus Payable $966,000.

• 2.A company has a selling price of $1,650 each for its printers. Each printer has a 2 year warranty that covers replacement of defective parts. It is estimated that 3% of all printers sold will be returned under the warranty at an average cost of $147 each. During November, the company sold 27,000 printers, and 370 printers were serviced under the warranty at a total cost of $52,000. The balance in the Estimated Warranty Liability account at November 1 was $27,500. What is the company's warranty expense for the month of November?

• $54,390

• $59,535

• $52,000

• $24,500

• $119,070

• Answer:-

• 2.

  A company has a selling price of $1,650 each for its printers. Each printer has a 2 year warranty that covers replacement of defective parts. It is estimated that 3% of all printers sold will be returned under the warranty at an average cost of $147 each. During November, the company sold 27,000 printers, and 370 printers were serviced under the warranty at a total cost of $52,000. The balance in the Estimated Warranty Liability account at November 1 was $27,500. What is the company's warranty expense for the month of November?

• $54,390

• $59,535

• $52,000

• $24,500

• $119,070

• The company's warranty expense for the month of November is:

  = (27,000 units × $147) × 0.03

  = $119070

• 3. Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $12,000 of cash sales that are subject to an 9% sales tax, what is the journal entry to record the cash sales?

• Debit Accounts Receivable $13,080; credit Sales $12,000; credit Sales Taxes Payable $1,080.

• Debit Cash $13,080; credit Sales $12,000; credit Sales Taxes Payable $1,080.

• Debit Cash $12,000; credit Sales $10,920; credit Sales Taxes Payable $1,080.

• Debit Sales Taxes Payable $1,080; debit Cash $10,920; credit Sales $12,000.

• Debit Cash $12,000; credit Sales $12,000; and record the taxes when paid.

• Answer:-

• Debit Cash $13080 = (12000+(12,000*9%)

  Credit Sales $,12,000

  Credit Sales Tax Payable $1,080

• Please do rates my answer...………….