Lopez Company paid wages of $178,200 this year. Of this amount, $107,500 was taxable for net FUTA and SUTA purposes. The state's contribution tax rate is 3.1% for lopez Company. Due to cash flow problems, the company did not make any SUTA payments until after the Form 940 filing date. Compute the following; round your answers to the nearest cent.
a. Amount of credit the company would receive
against the FUTA tax for its SUTA contributions
$
b. Amount that lopez Company would pay to the
federal government for its FUTA tax
$
c. Amount that the company lost because of its
late payments
$
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During 2017, lopez worked for two different employers. Until May, he worked for M Construction Company in, Iowa, and earned $21,210. The state unemployment rate for lopez is 4.6%. He then changed jobs and worked for Hugh Improvement Company in kansas, and earned $28,200 for the rest of the year. The state unemployment rate for Ford is 5.1%. Determine the unemployment taxes (FUTA and SUTA) that would be paid by each company. Round your answers to the nearest cent.
Use Figure 5.1 to determine SUTA caps in Iowa and Kansas
|
A lopez Construction Company |
$ |
|
b. Hugh Improvement Company |
$ |
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GURE 5.1
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1This is $1,500 in any calendar quarter in current or
preceding calendar year unless otherwise specified. |
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In: Accounting
On the last day of the fiscal year, a co-worker asks you to cut a check for $2,000 as a miscellaneous expense for supplies in order to complete a project for a VIP customer today. You notice the invoice looks a little different from other invoices that are usually processed. You know that by preparing the closing entries tomorrow, the miscellaneous expense will be set to zero for the beginning of the year.
Respond to the following in a minimum of 175 words:
In: Accounting
Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 60 percent of sales. Merchandise purchases are to be made during the month preceding the month of the sales. Button pays 60 percent in the month of purchase and 40 percent in the month following. Wages are estimated at 20 percent of sales and are paid during the month of sale. Other operating costs amounting to 10 percent of sales are to be paid in the month following the sale.
Month Sales Revenue
December $170,000
January 250,000
February 120,000
March 200,000
April 160,000
Prepare a schedule of cash disbursements for January, February, and March
In: Finance
A 20 year loan is repaid by a decreasing annuity of 20, 19, 18, 17, ...., 3, 2, 1, and payments are made at the end of each year. The annual effectuve interest rate is 7%. Determine the row of an amortization table associated with the 11th payment.
In: Finance
Midlands Inc. had a bad year in 2019. For the first time in its
history, it operated at a loss. The company’s income statement
showed the following results from selling 77,000 units of product:
net sales $1,540,000; total costs and expenses $1,964,000; and net
loss $424,000. Costs and expenses consisted of the
following.
|
Total |
Variable |
Fixed |
||||
|---|---|---|---|---|---|---|
| Cost of goods sold | $1,299,600 | $773,000 | $526,600 | |||
| Selling expenses | 513,400 | 93,000 | 420,400 | |||
| Administrative expenses | 151,000 | 58,000 | 93,000 | |||
| $1,964,000 | $924,000 | $1,040,000 |
Management is considering the following independent alternatives
for 2020.
| 1. | Increase unit selling price 25% with no change in costs and expenses. | |
| 2. | Change the compensation of salespersons from fixed annual salaries totaling $198,000 to total salaries of $38,005 plus a 5% commission on net sales. | |
| 3. | Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50. |
(a) Compute the break-even point in dollars for
2019.
| Break-even point |
$Enter the break-even point in dollars rounded to 0 decimal places |
(b) Compute the break-even point in dollars under
each of the alternative courses of action for 2020.
|
Break-even point |
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|---|---|---|---|---|
| 1. | Increase selling price |
$Enter a dollar amount |
||
| 2. | Change compensation |
$Enter a dollar amount |
||
| 3. | Purchase machinery |
$Enter a dollar amount |
Which course of action do you recommend?
In: Accounting
For the year 2009, the table below gives the percent of people living below the poverty line in the 26 states east of the Mississippi River. Answer the following questions based on this data. State Percent Alabama 7.5 Connecticut 7.9 Delaware 14.9 Florida 13.2 Georgia 12.1 Illinois 10.0 Indiana 9.9 Kentucky 11.9 Maine 13.3 Maryland 10.9 Massachusetts 7.9 Michigan 15.8 Mississippi 9.1 State Percent New Hampshire 14.6 New Jersey 8.3 New York 9.1 North Carolina 12.1 Ohio 13.6 Pennsylvania 10.5 Rhode Island 8.2 South Carolina 12.5 Tennessee 10.0 Vermont 7.3 Virginia 10.4 West Virginia 10.5 Wisconsin 16.1 Identify any outliers that exist in the data using the 1.5xIQR rule discussed in the text/PowerPoint Slides. (3 pts.)
In: Statistics and Probability
Jake deposits 5000 at the end of each year in an investment fund
earning an annual effective interest rate of 11.6%. The interest
from this investment fund is paid at the end of each year into a
savings account which earns an annual effective interest rate of
2.1%.
Find Jake's combined total accumulated value at the end of 16
years.
In: Finance
Presented below are a number of balance sheet items for Metlock, Inc., for the current year, 2017.
| Goodwill | $ 129,170 | Accumulated Depreciation-Equipment | $ 292,100 | |||
| Payroll Taxes Payable | 181,761 | Inventory | 243,970 | |||
| Bonds payable | 304,170 | Rent payable (short-term) | 49,170 | |||
| Discount on bonds payable | 15,100 | Income taxes payable | 102,532 | |||
| Cash | 364,170 | Rent payable (long-term) | 484,170 | |||
| Land | 484,170 | Common stock, $1 par value | 204,170 | |||
| Notes receivable | 449,870 | Preferred stock, $10 par value | 154,170 | |||
| Notes payable (to banks) | 269,170 | Prepaid expenses | 92,090 | |||
| Accounts payable | 494,170 | Equipment | 1,474,170 | |||
| Retained earnings | ? | Debt investments (trading) | 125,170 | |||
| Income taxes receivable | 101,800 | Accumulated Depreciation-Buildings | 270,300 | |||
| Notes payable (long-term) | 1,604,170 | Buildings | 1,644,170 |
Prepare a classified balance sheet in good form. Common stock
authorized was 400,000 shares, and preferred stock
authorized was 20,000 shares. Assume that notes receivable and
notes payable are short-term, unless stated otherwise. Cost and
fair value of debt investments (trading) are the same.
(List Current Assets in the order of liquidity. List
Property, Plant and Equipment in order of Land, Building and
Equipment.)
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METLOCK, INC. |
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Assets |
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select an opening name for subsection oneselect an opening name for subsection one Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity |
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select a closing name for subsection oneselect a closing name for subsection one Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity |
$ enter a total amount for subsection one |
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select an opening name for subsection twoselect an opening name for subsection two Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity |
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enter a balance sheet item |
enter a dollar amount |
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enter a balance sheet item |
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select between addition and deductionselect between addition and deduction AddLess: enter a balance sheet item |
enter a dollar amount |
enter a subtotal of the two previous amounts |
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enter a balance sheet item |
enter a dollar amount |
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select between addition and deductionselect between addition and deduction AddLess: enter a balance sheet item |
enter a dollar amount |
enter a subtotal of the two previous amounts |
enter a total amount for subsection two |
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select an opening name for subsection threeselect an opening name for subsection three Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity |
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enter a balance sheet item |
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select a closing section name for this part of the balance sheetselect a closing section name for this part of the balance sheet Capital StockCurrent AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity |
$ enter a total amount for this part of the balance sheet |
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Liabilities and Stockholders' Equity |
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select an opening name for subsection oneselect an opening name for subsection one Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity |
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enter a balance sheet item |
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select a closing name for subsection oneselect a closing name for subsection one Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity |
$ enter a total amount for subsection one of the second part of the balance sheet |
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select an opening name for subsection twoselect an opening name for subsection two Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity |
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enter a balance sheet item |
enter a dollar amount |
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select between addition and deductionselect between addition and deduction AddLess: enter a balance sheet item |
enter a dollar amount |
enter a subtotal of the two previous amounts |
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enter a balance sheet item |
enter a dollar amount |
enter a total amount for subsection two of the second part of the balance sheet |
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select a closing name for section oneselect a closing name for section one Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity |
enter a total amount for this section of the balance sheet |
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select an opening name for section twoselect an opening name for section two Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity |
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select an opening name for subsection oneselect an opening name for subsection one Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity |
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enter a balance sheet item |
enter a dollar amount |
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enter a balance sheet item |
enter a dollar amount |
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enter a total amount for subsection one of the second part of the balance sheet |
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enter a balance sheet item |
enter a dollar amount |
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select a closing name for section twoselect a closing name for section two Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity |
enter a total amount for this section of the balance sheet |
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select a closing name for this part of the balance sheetselect a closing name for this part of the balance sheet Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesRevenuesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity |
$ enter a total amount for this part of the balance sheet |
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List of Accounts
In: Accounting
At the end of its first year of operations on December 31, 2018, the Hondo Company reported the following information for the year: (Assume any deferred tax assets are more likely than not to be realized).
|
Pretax income for financial reporting purposes |
$360,000 |
|
Municipal bond interest revenue on State of Texas bonds |
12,000 |
|
Warranty expense for financial reporting purposes Warranty repair costs during period |
30,000 10,000 |
|
Excess of MACRS Depreciation for tax purposes above straight line for financial reporting purposes |
36,000 |
|
Officer’s life insurance premium expense |
4,000 |
|
Sales with an accrual basis profit for 2018 Installment basis profit for tax reportable for 2018* |
50,000 20,000 |
|
Fines for pollution violations |
5,000 |
|
Subscription revenues received in advance of product delivery |
15,000 |
|
The income tax rate for current and future years |
30% |
*Remainder reportable in 2019
Required:
a. Determine taxable income
b. Prepare the income tax journal entr(ies) for the company at the end of 2018 including both current and deferred taxes
c. What was total income tax expense for 2018 and show how it would be presented in the income statement starting with income before taxes for financial reporting purposes.
In: Accounting
The trial balance for Terry’s Auto Shop as of January 1, Year 2, follows:
| Account Titles | Debit | Credit | ||||
| Cash | $ | 14,760 | ||||
| Inventory | 3,170 | |||||
| Common Stock | $ | 7,310 | ||||
| Retained Earnings | 10,620 | |||||
| Total | $ | 17,930 | $ | 17,930 | ||
The following events affected the company during the Year 2 accounting period:
Purchased merchandise on account that cost $4,140.
The goods in Event 1 were purchased FOB shipping point with freight cost of $215 cash.
Returned $405 of damaged merchandise for credit on account.
Agreed to keep other damaged merchandise for which the company received an $250 allowance.
Sold merchandise that cost $2,630 for $13,000 cash.
Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $150 cash.
Paid $2,840 on the merchandise purchased in Event 1.
Paid $8,600 cash for operating expenses.
c. Prepare a multistep income statement, balance sheet, and statement of cash flows. (Assume that closing entries have been made.)
Complete this question by entering your answers in the tabs below.
Income Statement
Balance Sheet
Statement of Cash Flows
In: Accounting