LO 12.1On which financial statement are current liabilities reported?
LO 12.1How is the sales tax rate usually determined? Does the company get to keep the sales tax as earned revenue?
LO 12.2What amount is payable to a state tax board if the original sales price is $3,000, and the tax rate is 3.5%?
LO 12.3What is a contingent liability?
LO 12.3If a bankruptcy is deemed likely to occur and is reasonably estimated, what would be the recognition and disclosure requirements for the company?
LO 12.3A company’s sales for January are $250,000. If the company projects warranty obligations to be 5% of sales, what is the warranty liability amount for January?
LO 12.4What business circumstance could bring about a short-term note payable created from a purchase?
LO 12.4Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
LO 12.5What are the 2019 tax rates for FICA Social Security and FICA Medicare? What are the 2019 maximum taxable earnings amounts for each of these taxes?
- If an employee makes $1,400 per month and files as single with no withholding allowances, what would be his monthly income tax withholding?
- What would it be if an employee makes $2,500 per month and files as single with two withholding allowances?