EXERCISE 13-8 - (a) Cash (150 X $4,000).

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EXERCISE 13-8 (10–15 minutes) Wages and Salaries Expense. ....................................... 480,000 Withholding Taxes Payable. ................................. 80,000 FICA Taxes Payable*. ............................................ 28,040 Union Dues Payable. ............................................. 9,000 Cash. ....................................................................... 362,960 *[($480,000 – $140,000) X 7.65% = $26,010] $140,000 X 1.45% = $2,030; $26,010 + $2,030 = $28,040 Payroll Tax Expense. ...................................................... 29,440 FICA Taxes Payable. .............................................. 28,040 (See previous computation.) Federal Unemployment Tax Payable [($480,000 – $410,000) X .8%). ........................... 560 State Unemployment Tax Payable [$70,000 X (3.5% – 2.3%)]. .................................. 840 EXERCISE 13-10 (10–15 minutes)
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Unformatted text preview: (a) Cash (150 X $4,000). ............................................... 600,000 Sales. .............................................................. 600,000 Warranty Expense. ................................................. 17,000 Cash, Inventory, Accrued Payroll. ............... 17,000 Warranty Expense ($45,000* $17,000). .............. 28,000 Liability Under Warranties. ........................... 28,000 *(150 X $300) (b) Cash. ........................................................................ .................................................................................. 600,000 Sales. .............................................................. 600,000 Warranty Expense. ................................................. 17,000 Cash, Inventory, Accrued Payroll. ............... 17,000...
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This note was uploaded on 04/22/2010 for the course ACCT ACC552 taught by Professor Hint during the Spring '09 term at Keller Graduate School of Management.

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EXERCISE 13-8 - (a) Cash (150 X $4,000).

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