QUIZ G-ANSWER - FICA—Medicare 7,400 1.45 107.30 Full amount is subject to tax FUTA 0.80 0.00 Full amount is over maximum SUTA 2.90 0.00 Full

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ANSWERS TO QUIZ G 1-5CAADA 6-10EDECE 11-15CEBEC PROBLEM 1. Subject to Tax Rate Tax Explanation a. FICA--Social Security. ........................ $2,100 6.20% $130.20 Full amount is subject to tax. FICA—Medicare. ................................ 2,100 1.45 30.45 Full amount is subject to tax. FUTA. ......................................................... 1,100 0.80 8.80 $1,000 is over the maximum. SUTA. ......................................................... 1,100 2.90 31.90 $1,000 is over the maximum. b. FICA--Social Security. ........................ $2,500 6.20% $155.00 Full amount is subject to tax. FICA—Medicare. ................................ 2,500 1.45 36.25 Full amount is subject to tax. FUTA. ......................................................... 0 0.80 0.00 Full amount is over maximum. SUTA. ......................................................... 0 2.90 0.00 Full amount is over maximum. c. FICA--Social Security. ........................ $6,300 6.20% $390.60 $1,100 is over the maximum.
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Unformatted text preview: FICA—Medicare. ................................ 7,400 1.45 107.30 Full amount is subject to tax. FUTA. ......................................................... 0.80 0.00 Full amount is over maximum. SUTA. ......................................................... 2.90 0.00 Full amount is over maximum. 2. 3. $258,200 Statement of retained earnings for the year ended December 31,2010 4.1. X*4.1002=700,000 X=170,723.38=170,723 2.2009.12.31 Interest expense……………………………….8167 Interest payable………………………………….8167(700,000*7%*2/12) October 31 Interest expense………………………………. 40,833 (700,000*7%*10/12) Notes payable…………………………………121723 (170,723-40,833-8167) Interest payable………………………………….8167 (700,000*7%*2/12) Cash…………………………………………… .170,723 (700,000*7%)...
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This note was uploaded on 11/07/2010 for the course BBA 1023 taught by Professor Luoyi during the Spring '10 term at University of Macau.

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QUIZ G-ANSWER - FICA—Medicare 7,400 1.45 107.30 Full amount is subject to tax FUTA 0.80 0.00 Full amount is over maximum SUTA 2.90 0.00 Full

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