Blackfly Ltd. had no outstanding current liabilities at the start of year 2007. During the year, the company paid $300,000 for direct labour. At the end of the year the company still owed a $2.000 performance bonus to one employee, and $33,000 to another employee. The amount the company would report as labour expense for 2007 is $325,000 $302.000 none of the listed answers are correct $300,000 $298.000 G

Blackfly Ltd. had no outstanding current liabilities at the start of year 2007. During the year, the company paid $300,000 for direct labour. At the end of the year the company still owed a $2.000 performance bonus to one employee, and $33,000 to another employee. The amount the company would report as labour expense for 2007 is $325,000 $302.000 none of the listed answers are correct $300,000 $298.000 G

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter5: Unemployment Compensation Taxes

Section: Chapter Questions

Problem 5PB

See similar textbooks

Similar questions

Trumpet and Trombone Manufacturing, Inc. began the year with a retained earnings balance of $545,000. The company had a great year and earned a net income of $190,000 this year and paid dividends of $14,000. Additionally, the companys controller determined that it had made an error when calculating tax expense in the preceding year, resulting in an understated expense amount of $22,000. What is the ending retained earnings balance?
Donner Company began its operations in September of the current year. During September, the company paid wagesof $23,400. For the last quarter of the year, the taxable wages paid amounted to $64,700. None of the employeeswas paid more than $7,000 this year. a. Is Donner Company liable for FUTA tax this year? Explain.b. What is the net FUTA tax?...................................................... $
Lightning Electronics is a midsize manufacturer of lithium batteries. The company’s payroll records for the November 1–14 pay period show that employees earned wages totaling $70,000 but that employee income taxes totaling $9,000 and FICA taxes totaling $3,625 were withheld from this amount. The net pay was directly deposited into the employees’ bank accounts. Required: What was the amount of net pay? Assuming Lightning Electronics also must pay $450 of unemployment taxes for this pay period, what amount would be reported as the total payroll costs?
As of February 28, American Greetings Corporationhad 7,400 full-time and 17,400 part-time employees.Assume that in the last pay period of the year, thecompany paid $8,000,000 to employees after deducting$2,000,000 for employee income taxes, $612,000 forFICA taxes, and $700,000 for other purposes. No payments have been made to the government relating to thesetaxes. Which of the following statements is true regardingthis pay period?a. FICA Taxes Payable should be $612,000.b. FICA Taxes Payable should be $1,224,000.c. Salaries and Wages Expense should be $8,000,000.d. None of the above is true.
BARS Company operates in the travel industry and incurs costs unevenly through the financial year. Advertising costs of P2 million were incurred on March 1, 2021 and it is expected to be benefit future interim periods. On the other hand, staff bonuses are estimated to be around P20 million for the year. How much is the total expense to be recognized by BARS on its income statement for the three-month period ended March 31, 2021?
Sam Winchstone operates a concrete repair business. His condensed income statement for fiscal December 31, 2021 is shown below: Sales $202,000 Cost of Goods Sold (89,000) Gross Profit 113,000 Operating Expenses (41,000) Employee Bonus (8,000) Convention Costs (6,200) Loss on Sale of Assets (3,400) Net Income $54,400 Other Information: 1. Operating expenses include a $3,000 penalty to a customer for a delay in completing a contract, $6,500 in amortization expense, a $4,500 golf membership for Sam that he uses mainly for clients and $2,600 in meals and entertainment costs. 2. Operating expenses also include $25,000 in wages to his 15 year old brother, Dean. Dean came in on Saturdays to help file paperwork. Sam could have hired an experienced adult from a temporary agency for $4,000. Dean was the only employee for the business for the year. 3. The employee bonus will be paid to Sam on January 31, 2022. 4. Sam travelled to Montreal to attend the Canadian Home Renovators convention where he…
Norma Smith is the controller of Baylor Corporation and is responsible for the preparation of the year-end financial statements. The following transactions occurred during the year. a. On December 20, 2020, a former employee filed a legal action against Baylor for $100,000 for wrongful dismissal. Management believes the action to be frivolous and without merit. The likelihood of payment to the employee is remote. b. Bonuses to key employees based on net income for 2020 are estimated to be $150,000. c. On December 1, 2020, the company borrowed $600,000 at 8% per year. Interest is paid quarterly. d. Accounts receivable at December 31, 2020, is $10,000,000. An aging analysis indicates that Baylor’s expense provision for doubtful accounts is estimated to be 3% of the receivables balance. e. On December 15, 2020, the company declared a $2.00 per share dividend on the 40,000 shares of common stock outstanding, to be paid on January 5, 2021. f. During the year, customer…
North Corp. has an employee benefit plan for compensated absences that gives employees 10 paid vacation days and 10 paid sick days. Both vacation and sick days can be carried over indefinitely. Employees can elect to receive payment in lieu of vacation days; however, no payment is given for sick days not taken. At December 31, 2016, North’s unadjusted balance of liability for compensated absences was $21,000. North estimated that there were 150 vacation days and 75 sick days available at December 31, 2016. North’s employees earn an average of $100 per day. In its December 31, 2016, balance sheet, what amount of liability for compensated absences is North required to report? a. $15,000 b. $21,000 c. $22,500 d. $36,000
In March of the current year, Mooney Company estimated its year-end executive bonuses to be $800,000. The executive bonus paid in the previous year was $950,000. What amount of bonus expense, if any, should Mooney recognize in determining net income for the first quarter of the current calendar year?a. –0–b. $200,000c. $237,500d. $800,000
Batman Company paid the annual fee of P30,000 for an equipment maintenance contract on July 1, the first day of its second quarter and incurred research costs in the same quarter of P12,000. The research did not prove to be fruitful. Batman should recognize the following expense amount in the second quarter:
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 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. Compute the following; round your answers to the…
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 $188,480. The salaries of the president and the vice president of the company were $18,100 and $15,100, 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 $970 paid to a director who only attended director meetings during the year, $6,130 paid to the factory superintendent, and $1,810 in employee contributions to a cafeteria plan made on a pretax basis-for both federal and state. In addition to the total wages of $188,480, a payment of $2,460 was made to Andersen Accounting Company for an audit it performed on the company's books in December. Compute the following; round your answers to the…