following the work week, the employee will receive a paycheck showing gross wages of $600 (40 x $15). If the employee had worked only 30 hours during the work week, the paycheck will show gross wages of $450 (30 x $15)....
following the work week, the employee will receive a paycheck showing gross wages of $600 (40 x $15). If the employee had worked only 30 hours during the work week, the paycheck will show gross wages of $450 (30 x $15)....
of $22,491. ($147,000 X 15.3%). 2023 FICA Tax Rate for Self-Employed The self-employed person’s FICA tax rate for 2023 (January 1 through December 31, 2023) is 15.3% on the first $160,200 of net income plus 2.9% on...
$147,000 of wages, salaries, etc. If an employee’s 2022 wages, salaries, etc. exceed $147,000, the amount in excess of $147,000 is not subject to the Social Security tax. Hence, the maximum amount of the employer’s...
. On each June 30 and December 31, the corporation must pay interest of $60,000 ($2,000,000 X 6% X 1/2 year). The corporation must also amortize the bond discount and the bond issue costs. The following are...
. These products will be included in inventory at their cost of $3,200. A manufacturer produces a batch of 100 units of Product X23 by using the following costs: materials $600, direct labor $700, and manufacturing...
, the employer must withhold from the employee’s paychecks a total of $2,295 in FICA taxes. (Social Security tax = $30,000 X 6.2% = $1,860. Regular Medicare tax = $30,000 X 1.45% = $435.) The employer must also match...
of interest expense is entered on the corporation’s income tax return, its taxable income will decrease by $800,000. If the corporation’s combined federal and state income tax rate on this increment is 40%, the...
manufactured). Since the sales remain at $2,000,000 (100,000 units X $20) but the cost of goods sold will include only $500,000 of fixed manufacturing overhead costs (100,000 units sold X $5), the gross profit will be...
to $450. The 7% of sales tax on the true sales is $31.50 ($450 X 0.07). Now let’s make sure this adds up: $450 of sales of product + $31.50 of sales tax = $481.50, which was the total amount of the vending machine...
Our Explanation of Present Value of a Single Amount discusses the time value of money and the need to discount future amounts to the time of an investment or other transaction. The present value of 1 table is used to...
stops using one of its buildings and puts the building up for sale. In that situation, the journal entry description might be, “To reclassify the X building from property, plant and equipment to long-term...
! Owner's (Stockholders') Equity is not involved in this transaction. Information for Items 10 through 13 Company X provides consulting services to Client Q in May. Company X bills Client Q in May for the...
amount of $684: The employee's monthly salary of $1,800 X 12 months = the full-year amount of $21,600. The federal amount of $684 per week X 52 weeks = the full-year amount of $35,568. Since the employee's...
Electricity Cost if you are analyzing the individual components of overhead). Label the horizontal or x-axis of the graph as total machine hours (or some other indicator of volume). Then put a point on the graph for...
Our Explanation of Future Value of a Single Amount will show you the power of compounded interest on a single deposit. You will see how the future value tables can be useful as well as the rule of 72.
and the credit? Answer $1,000. Computation: 12% per year is 1% per month X $100,000 = $1,000 per month. Another method is Principal X Rate X Time = $100,000 X .12 X 1/12 = $1,000. As of December 31 the company owes...
Our Explanation of Future Value of a Single Amount will show you the power of compounded interest on a single deposit. You will see how the future value tables can be useful as well as the rule of 72.
+ variable expenses (cartons, helpers, etc.) of $150,000 (50,000 items X $3 each) = total static budget of $500,000. Unlike the static budget, a flexible budget for the shipping department will increase when more than...
in the cost of the 10 units from 2021 remaining in inventory (10 X $20 = $200) and an additional layer being added in 2022. The 2022 LIFO layer will be the 2022 cost of 5 units (5 X $21 = $105). The LIFO inventory cost...
Our Explanation of Future Value of a Single Amount will show you the power of compounded interest on a single deposit. You will see how the future value tables can be useful as well as the rule of 72.
Our Explanation of Future Value of a Single Amount will show you the power of compounded interest on a single deposit. You will see how the future value tables can be useful as well as the rule of 72.
documents produced X $3 per document). In the subsequent year, the depreciation expense is $21,000 (7,000 documents produced X $3 per document). 4. On January 1, 2024 RepairServ began using equipment that had a cost of...
of the asset’s life, the beginning book value will be $80,000 ($100,000 minus $20,000 of accumulated depreciation). That amount times 20% will mean $16,000 of depreciation during the second year of the asset’s life....
is $1,000. If the employee works 30 hours in the following week, the employee’s gross pay will be $750 (30 hours X $25). Some employees’ gross pay is in the form of a salary. Often salaried employees are paid...
the discovery of association between X and Y, but additional studies must be done before they can conclude there is cause and effect.) To recap, correlation does not assure that there is a cause and effect relationship....
to increase on January 1, 2020 to $684 per week. For a full-year employee, this means the current annual amount of $23,660 ($455 X 52 weeks) will become $35,568. You should refer to both the U.S. Department of Labor...
What does stepped cost mean? Stepped cost refers to the behavior of the total cost of an activity at various levels of the activity. When a stepped cost is plotted on a graph (with the total cost represented by the...
by $91. With a time value of money of 10%, the $909 can be invested today and will grow by $91 ($909 x 10%) to be $1,000 in one year. Receiving a net amount of $1,000 in two years will have a present value of only $826....
. Examples of Cumulative Preferred Stock Assume that a corporation has issued and outstanding 10,000 shares of 6% cumulative preferred stock with a par value of $100. This means that the corporation must declare and pay...
that during the next 12 months, the company will be required to repay $36,000 ($3,000 x 12 months) of the loan’s principal. Therefore $36,000 is reported as a current liability. The remaining principal of $202,000...
and to credit Sales $60,000. We also knew that the beef would shrink approximately 800 pounds as it traveled in the refrigerated truck and that the customer would deduct $1,200 (800 pounds X $1.50) when the customer...
of Fiscal Years A few examples of fiscal years include: 12 months of February 1 through January 31 12 months of October 1 through September 30 12 months of June 1 through May 31 52 weeks ending on the Saturday closest...
outstanding. If a stockholder owns 1,000 shares of the common stock, the stockholder owns 1% of the corporation. If the corporation declares a divided of $0.10 per share, this stockholder will receive a dividend of $100...
divided by the expected 40,000 machine hours). If the finishing of 4,000 units should have taken 3,500 standard machine hours, the standard cost of the units processed in the finishing department will be $35,000 (3,500...
of manufacturing overhead (15 minutes = 1/4 hour X $40 per machine hour). Join PRO to Track Progress Mark the Question as Read Must-Watch Video Learn How to Advance Your Accounting and Bookkeeping Career Perform...
tells you that 64% of the change in the total of the dependent variable is associated with the change in the independent variable.) An r of +0.20 or -0.20 will result in an r-squared of only 4% (0.20 x 0.20), which...
expenses, the company will need to have $500,000 of net sales ($100,000 divided by 20%). At $500,000 of net sales, the amount of variable expenses will be $400,000 (80% X $500,000). That leaves $100,000 to cover the...
, this employee will earn vacation pay of $3,120 (120 hours x $26), or $60 per week ($3,120 per year divided by 52 weeks). This means that in the current year the company must record vacation pay expense and a related...
part of the total cost increases as an activity increases and it decreases as the activity decreases. Semivariable costs are also referred to as mixed costs. The equation for a semivariable cost is Total Cost = Fixed...
Earnings and a credit of $100,000 to Cash. Next month, Jones Corporation will be declaring a 10% stock dividend. This means that the corporation will distribute 10,000 (100,000 shares X 10%) new shares of common stock...
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