An accountant for a corporation forgot to pay the firm’s income tax of $725,896.15 (uh-oh) on time. The government charged a penalty of 12.7% annual interest for the 34 days the money was late. Find the total amount that must be paid
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An accountant for a corporation forgot to pay the firm’s income tax of $725,896.15 (uh-oh) on time. The government charged a penalty of 12.7% annual interest for the 34 days the money was late. Find the total amount that must be paid
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- a. Harriet Pandel, an employer, is subject to FICA taxes but exempt from FUTA and SUTA taxes. During the last quarter of the year, her employees earned monthly wages of $16,900, all of which is taxable. The amount of federal income taxes withheld each month is $1,698. Journalize the payment of wages, and record the payroll tax on November 29. For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. Account Debit Credit Payment of wages Payroll tax b. Prior to posting the November 29 payroll transaction, FICA Taxes Payable-OASDI, FICA Taxes Payable-HI, and Employees FIT Payable had zero balances. Pandel must pay the FICA taxes and income taxes withheld on the November 29 payroll. Journalize the electronic transfer of the payroll taxes on December 16. If an amount box does not require an entry, leave it blank. Round your…Abbot Corporation reported pretax book income of $500,000. During the current year, the reserve for bad debts increased by $5,000. In addition, tax depreciation exceeded book depreciation by $40,000. Finally, Abbot received $3,000 of tax-exempt life insurance proceeds from the death of one of its officers. Abbot's current income tax expense or benefit would be:Ehrlich Co. began business on January 2. Salaries were paid toemployees on the last day of each month, and social security tax,Medicare tax, and federal income tax were withheld in the requiredamounts. An employee who is hired in the middle of the month receiveshalf the monthly salary for that month. All required payroll tax reports were filed, and the correct amount of payroll taxes was remitted by thecompany for the calendar year. Early in the following year, before theWage and Tax Statements (Form W-2) could be prepared for distributionto employees and for filing with the Social Security Administration, theemployees' earnings records were inadvertently destroyed.None of the employees resigned or were discharged during the year, and there were no changes in salary rates. The social security tax waswithheld at the rate of 6.0% and Medicare tax at the rate of 1.5% onsalary. Data on dates of employment, salary rates, and employees'income taxes withheld, which are summarized as follows,…
- At the beginning of 2021, Pitman Co. had pretax financial income of $1,200,000. Additionally, there was a timing difference of $300,000 due to an accounts receivable that will not be collected until the following year. The tax rate us 30%. A. Calculate the total taxable income for 2021. B. Calculate Income tax expense, income tax payable, and the deferred amount for 2021, and create the journal entry.As of February 28, American Greetings Corporationhad 7,400 full-time and 17,400 part-time employees.Assume that in the last pay period of the year, thecompany paid $8,000,000 to employees after deducting$2,000,000 for employee income taxes, $612,000 forFICA taxes, and $700,000 for other purposes. No payments have been made to the government relating to thesetaxes. Which of the following statements is true regardingthis pay period?a. FICA Taxes Payable should be $612,000.b. FICA Taxes Payable should be $1,224,000.c. Salaries and Wages Expense should be $8,000,000.d. None of the above is true.Mitchell and O’Brien, CPAs, P.C., prepared 600 business and personal tax returns for the filing season ending April 15, 2019, for total billings of $135,000. On May 1, 2020, Mitchell and O’Brien wrote off $2,600 related to the services performed in 2019. The firm determined that, based on past experience, approximately 3% of fees would be uncollectible. Prepare the adjusting journal entry for bad debt on 12/31/2019. Prepare the journal entry to record the defaulted amount on 5/1/2020. Prior to the posting of the adjusting journal entry in #1 above, the balance in the Allowance for Doubtful Accounts is $3,500 (credit). What is the balance in the account at the end of 2019, after the adjusting entry is posted? What is the balance in the account after the entry on May 1, 2020 is posted?
- Gary Noll's gross earnings for the week were $3,400, his federal income tax withholding was $612, and his FICA total was $260. There were no state income taxes. What was Noll's net pay for the week? Net pay $An accountant for a corporation forgot to pay the firm's income tax of $725,718.89 on time. The government charged a penalty of 7.8% interest for the 43 days the money was late. Find the total amount (tax and penalty) that was paid. Assume 365 days in a year The total amount paid was $ (Round to the nearest cent as needed.) CELLSOn January 21, the column totals of the payroll register for Great Products Company showed that its sales employees had earned $14,710, its truck driver employees had earned $10,300, and its office employees had earned $8,240. Social Security taxes were withheld at an assumed rate of 6.2 percent, and Medicare taxes were withheld at an assumed rate of 1.45 percent. Other deductions consisted of federal income tax, $3,990; and union dues, $540. Determine the amount of Social Security and Medicare taxes withheld and record the general journal entry for the payroll, crediting Salaries Payable for the net pay. All earnings were taxable. If necessary, round intermediate calculations and the final answer to the nearest cent. If an amount box does not require an entry, leave it blank.
- Subject :- AccountDecimal Corporation is a monthly depositor whose December federal taxes are displayed below. Record one journal entry to account for the payment of the federal taxes. All tax payments are made in a timely manner on the payment due date (which, for this month, is not impacted by a weekend or holiday). Chart of Accounts Notes: • Enter the transaction date on the first line only (if multiple transactions are required, enter the date on the first line of each transaction). Enter all debits within the transaction prior to entering any credits. • See the Chart of Accounts provided for the proper account names to use. • To earn any credit for a given line within the journal entry, the account name must be correct. Partial credit is given for a correct account name with an incorrect amount; full credit is given for a correct account name with the correct amount. • Do not include journal entry explanation when submitting your answer. December Tax Totals Federal Income Tax $3250 Employee's…69. Jackal Company's (a monthly depositor) tax liability (amount withheld from employees' wages for federal income tax and FICA tax plus the company's portion of the FICA tax) for July was $2,780. No deposit was made by the company until August 22, 20-- (7 days late). Determine the following: A. The date by which the deposit should have been made B. The penalty for failure to make timely deposit C. The penalty for failure to fully pay tax when due D. The interest on taxes due and unpaid (assume a 5% interest rate)
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