For each of the following separate situations, determine the amount of expense each company should recognize in Decembe (using accrual basis accounting) a. Chipotle has monthly wages expense of $6,000 that has been incurred but not paid as of December 31 b. United Airlines purchases a 24-month insurance policy for $90,000 on December 1 for immediate coverage.

For each of the following separate situations, determine the amount of expense each company should recognize in Decembe (using accrual basis accounting) a. Chipotle has monthly wages expense of $6,000 that has been incurred but not paid as of December 31 b. United Airlines purchases a 24-month insurance policy for $90,000 on December 1 for immediate coverage.

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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At the end of the weekly payroll period on June 30, the payroll register of Concord Consultants showed employee earnings of $71,000. Determine the firm's payroll taxes for the period. Use a social security rate of 6.2 percent, Medicare rate of 1.45 percent, FUTA rate of 0.6 percent, and SUTA rate of 5.4 percent. Consider all earnings subject to social security tax and Medicare tax and $40,908 subject to FUTA and SUTA taxes. (Round your answers to 2 decimal places.) Base Rate Tax Social security Medicare FUTA SUTA Total % % % % Amount
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