1) Beau Brentley earned $60,000 from his job at Bridgestone Tires. He had 15% of his gross pay withheld for federal income taxes, 6.2% withheld for FICA Social Security taxes, and 1.45% withheld for Medicare taxes. What amount will Bridgestones Tires report as salary expense for 2011?
Salaries Expenses * Tax rate= salaries payable
60,000 * 15%= 9000
60,000 * 6.2%= 3720
60,000 * 1.45%= 870
Sum= 13,590
Earnings - Net earning
60000 - 13590= 46,410
2) In december 2011, Marvin Simpson worked for Longville Flower and earned $5000, Federal income tax withholding is 15%. The FICA rate is 6.2% and Medicare tax is 1.45%. How much cash will Longville FLower pay the government for Medicare tax because of Homer's December earnings?
A.) $310
B.) $72.50
C.) $145
D.) $620
3.) December 2010, Bob Lucus worked for Valentinos and earned $1000. Federal income tax withholding is 10%. The FICA rate is 6.2% and the Medicare tax is 1.45%. How much does Bob December salary will be included in Salary expense on Valentinos income statement for year ended December 31 2010?
A.) $923.50
B.) $1,000
C.) $900
D.) $823.50
4.) December 2010, Bob Lucus worked for Valentinos and earned $1000. Federal income tax withholding is 10%. The FICA rate is 6.2% and the Medicare tax is 1.45%. How much cash will Valentinos pay the government for Medicare tax because of Bob's december earnings?
A.) $62.00
B.) $124.00
C.) $14.50
D.) $29.00
5.) Brooke's Bike Company sold $3780 worth of mountain bikes in June. Warranty expense is estimated to be 2% of a sales. During June, Brooke's Bikes replaced two faulty parts under warranty. The parts cost a total $100. The Warranty. The parts cost a total of $100. The warranty expense for June was
A.) $ 65.60
B.) $ 175.60
C.) $ 100
D.) $ 75.60
3780*2%= 75.60
+100= 175.60