Prelim 2 notes - Yr2 22,222 Yr3 1,111 90,000 Books Year 1...

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When capitalize lease Nothing on present value future value Payroll question FICA taxes 6.2% Up to max= 106,800 2009 Medicare taxes 1.45% No max 7.65% Salaries 70,000 Wages 30,000 Difference. Salaries are set. Wages are hourly. Federal Withholding Tax 12,600 State Withholding tax 5,000 Insurance Premium 800 Union Dues 1,200 Salaries Exp 70,000 Wages Exp 30,000 FWT (+L) need to pay in 3 days 12,600 SWT (+L) 5,000 Insurance Premium Payable 800 Union Dues Payable 1,200 FICA tax Payable need to pay in 3 days 7,650 Wages Payable/ Cash (-A) 72,750 FICA Tax Expense 7,650 FICA Tax Payable 7,650 FICA tax 100,000 X 7.65% 100,000; 3 yrs life; 10,000 residual SL Depreciation Yr1 – 30,000 Yr2 – 30,000 Yr3 – 30,000 90,000 DDB Yr1 – 66,667
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Unformatted text preview: Yr2 22,222 Yr3 1,111 90,000 Books Year 1 year2 year3 Revenue 100,000 100,000 100,000 Depre exp 30,000 30,000 30,000 Net income 70,000 70,000 70,000 Inc. Tax 21,000 Taxes 1 2 3 100,000 100,000 100,000 66,667 22,222 1,111 33,333 77,778 98,889 10,000 23,333 29,667 Income tax expense 21,000 Income tax payable (due short order) 10,000 Deferred Tax Liability (owe this tax: to the future sometime) 11,000 Income Tax expense 21,000 Deferred Tax Liab 2,333 Income tax payable 23,333 I/T exp 21,000 Def Tax Liab 8,667 I/T Pay 29,667 Def Tax Liab 11,000 2,333 8,667 Bad debt Ratio Inventory calculation 10 m/c credit difficult...
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This note was uploaded on 10/21/2009 for the course H ADM 223 taught by Professor Pstrebel during the Spring '07 term at Cornell University (Engineering School).

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Prelim 2 notes - Yr2 22,222 Yr3 1,111 90,000 Books Year 1...

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