The following information about the payroll for the week ended September 15 was obtained from the records of Simkins Mining Co.:Salaries and wages:Deductions:Sales salariesEmployee WagesOffice salaries$15,00020,00010,000$45,000Income tax withheldU.S. savings bondsGroup insuranceTax rates assumed:FICA tax, 7.5% of employee annual earningsState unemployment (employer only), 4.2%Federal unemployment (employer only), 0.8%Indicate the effects on net assets and EPS of each of the following:1. Recording and paying the payroll.2. Recording the employer payroll taxes.3. Paying the employee and employer payroll taxes.1. Paying payroll2. Recording employer payroll taxes3. Paying employee and employer payroll taxesSolvency MetricNet Assets$8,5001,0003,000Profitability MetricEarnings per ShareDecreaseIncreaseNo effect

Let’s analyze the effects on net assets and Earnings per Share (EPS) for each of the…

Answered: 1. Paying payroll 2. Recording employer…

1. Paying payroll 2. Recording employer payroll taxes 3. Paying employee and employer payroll taxes Solvency Metric Net Assets Profitability Metric Earnings per Share Decrease Increase No effect

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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