Payroll and Liabilities

On June 8, Williams Company issued an $80,000, 5%, 120-day note payable to Brown Industries. Assuming a 360-day year, what is the maturity value of the note?

• $ 84000,

• $ 82,600

• $ 81,333

• $ 88,200

On July 8, Jones Inc. issued an $80,000, 6%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends July 31. Using a 360-day year, what is the amount of interest expense recognized by Jones in the current fiscal year?

• $1,400

• $307

• $700

• $4,200

On June 1, Davis Inc. issued an $84,000, 5%, 120-day note payable to Garcia Company. Assume that the fiscal year of Garcia ends June 30. Using a 360-day year, what is the amount of interest revenue recognized by Garcia in the following year?

• $4,200

• $1,600

• $700

• $1,062

On May 18, Rodriguez Co. issued an $84,000, 6%, 120-day note payable on an overdue account payable to Wilson Company. Assume that the fiscal year of Rodriguez ends on June 30. Which of the following relationships is true?

• Wilson is the borrower and credits Accounts Payable.

• Rodriguez is the creditor and credits Accounts Receivable.

• Wilson is the creditor and debits Accounts Receivable.

• Rodriguez is the borrower and debits Accounts Payable.

Assuming a 360-day year, the interest charged by the bank, at the rate of 6%, on a 90-day, discounted note payable of $100,000 is

• $3,000

• $6,000

• $500

• $1,500

Assuming a 360-day year, when a $50,000, 90-day, 9% interest-bearing note payable matures, total payment will be

• $4,500

• $51,125

• $1,125

• $54,500

Which of the following will have no effect on an employee’s take-home pay?

• unemployment tax

• number of exemptions claimed

• marital status

• social security tax

Which of the following are included in the employer's payroll taxes?

• SUTA taxes

• social security taxes

• FUTA taxes

• all of these choices

Which of the following is required to be withheld from an employee's gross pay?

• only federal unemployment compensation tax

• only state unemployment compensation tax

• only federal income tax

• both federal and state unemployment compensation taxes

Each year there is a ceiling for the amount that is subject to all of the following except

• federal income tax

• state unemployment tax

• federal unemployment tax

• social security tax