mcgraw hill financial accounting notes chapter 2

Prepare the January 1, 2017, journal entry to record the bonds’ issuance.The bonds are issued at a price of $1,036,935. Hillside issues $1,200,000 of 8%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. Problem 10-2A Straight-Line: Amortization of bond discount For BMX, its FUTA taxes are 0.6% and SUTA taxes are 2.9% of the first $7,000 paid to its employee.Ĭompute BMX’s amounts for each of these four taxes as applied to the employee’s gross earnings for September under each of three separate situations (a), (b), and (c). FICA Social Security taxes are 6.2% of the first $118,500 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. Use the following information for the Exercises below.īMX Company has one employee. Then compute his FICA tax deduction (use 6.2% for the Social Security portion and 1.45% for the Medicare portion), income tax deduction, total deductions, and net pay.Ĭompute the times interest earned for Park Company, which reports income before interest expense and income taxes of $3,610,000 and interest expense of $190,000. Compute his regular pay, overtime pay (for this company, workers earn 150% of their regular rate for hours in excess of 40 per week), and gross pay. His pay rate is $11 per hour, and his wages are subject to no deductions other than FICA Social Security, FICA Medicare, and federal income taxes. Lenny Florita, an unmarried employee, works 50 hours in the week ended January 12. (Assume no reversing entries are made.)Įxercise 9-16A Gross and net pay computation Prepare journal entries to record (a) issuance of the note, (b) accrual of interest at the end of 2017, and (c) payment of the note at maturity. borrows $255,000 cash on November 1, 2017, by signing a 120-day, 11% notes with a face value of $255,000.Ģ & 3.What is the amount of interest expense in 20 from this note?Ĥ. We at Accounting Assignments Help provide Mcgraw-hill Connect Homework Help and Mcgraw-hill Connect Exam Help with step by step calculation and explanation 24*7 from our professional experts for following topics.Įxercise 9-4 Interest-bearing notes payable with year-end adjustments

Mcgraw hill financial accounting notes chapter 2