1. On October 1, Ramos Co. signed a $90,000, 60-day discounted note at the bank. The discount rate was 6%, and the note was paid on November 30. (Assume a 360-day year is used for interest calculations.)
(a) Journalize the entries for October 1 and November 30.
(b) Assume that Ramos Co. signed a 6% note. Journalize the entries for October 1 and November 30.
2. The summary of the payroll for the monthly pay period ending July 15 indicated the following:
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Sales salaries
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$125,000
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Federal income tax withheld
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32,300
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Office salaries
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35,000
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Medical insurance withheld
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7,370
|
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Social security tax withheld
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10,200
|
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Medicare tax withheld
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2,550
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Journalize the entries to record (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate is 3.1%, and the federal unemployment tax rate is 0.8%. Only $25,000 of salaries are subject to unemployment taxes.