Exam 8: Current Liabilities and Fair Value Accounting

Use this information to answer the following question. The following totals for the month of November were taken from the payroll register of Levine Company: Salaries expense \1 2,000 Social security and Medicare taxes withheld 550 Income taxes withheld 2,500 Medical insurance deductions 250 Life insurance deductions 200 Salaries subiect to federal and state unemployment taxes of 6.2 percent 4,000 The journal entry to record the monthly payroll on November 30 would include a

Working capital equals current assets plus current liabilities.

Use this information to answer the following question. The following totals for the month of November were taken from the payroll register of Levine Company: Salaries expense \1 2,000 Social security and Medicare taxes withheld 550 Income taxes withheld 2,500 Medical insurance deductions 250 Life insurance deductions 200 Salaries subiect to federal and state unemployment taxes of 6.2 percent 4,000 The entry to record the accrual of federal unemployment tax (assume FUTA tax of .8 percent)would include a

The most common examples of commitments are leases and purchase agreements.

If product X cost $50 and had a 4 percent failure rate,the entry to record the estimated product warranty expense in a month when 1,000 units are sold would be

Kahn Company had cash sales of $60,000 for the month of June.Sales are subject to a 4 1/2 percent sales tax and a 6 percent excise tax.In the journal provided,prepare a compound entry without explanation to record Kahn's sales and related sales and excise taxes for the month.